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September 16, 2019

Next NAAA President Ready to Take Helm

Photo by Jeff Kowalski MOTOR CITY: Incoming NAAA President Laura Taylor and outgoing President Chad Bailey held interviews and a photo shoot at the Shinola Hotel in downtown Detroit this summer. Bailey will pass the reins of the NAAA presidency to Taylor at the 2019 NAAA Convention & Expo in Indianapolis next month.

Laura Taylor, general manager of Charleston Auto Auction, is the incoming president of the National Auto Auction Association. The auction is part of the XLerate Group.

UCN: Congratulations on becoming the next NAAA president.

Can you tell us about your background and how you got into the auction business?

Rush - Dated Material

Taylor: When I was growing up, my father and grandfather had a small service station. I’ve been around cars a long time. My father raced a Chevrolet back in the day.

It was very exciting. He used to

buy cars at Clanton’s Auto Auction, what is now Manheim Darlington.

Later I had my own restaurant and my own mobile sign business. I worked NHRA drag racing.

I worked car shows. I’ve always been fascinated by fast things – cars, airplanes. I sold repo cars for a remarketing company in Spartanburg, S.C. I’ve got some friends that owned Upstate Auto Auction, used to be called Spartanburg Auto Auction. I went to work for them. They needed help running the office.

I actually planned on moving to Charleston to take it a little easier.

I went to Charleston Auto Auction in 2004. It was running two lanes

and 60 cars. I thought there was nowhere to go but up. I thought I was going to get out of the industry, but it keeps pulling you back in.

Henry and Patty (Stanley) owned that place and when the market fell in 2008-2009, that’s when we started to separate and start the group.

It started out as AAAG (America’s Auto Auction Group) and now it’s known as XLerate. Been there going on 15 years.

UCN: What challenges, if any, have you faced being a woman and a leader in a male-dominated industry? How have attitudes changed from when you first

started out?

Taylor: There’s not any challenge. Pretty much all of the men I’ve run into in this industry treat us as their partners. They’re very respectful. Obviously, I wouldn’t be in the position I’m about to go into if this (wasn’t true). I’m the fifth woman president since 1948. I’m very proud to follow Alexis Jacobs, Charlotte Pyle and Ellie (Johnson).

As far as where things have changed, NAAA CEO Frank (Hackett) made a comment that women have done such a great job and men have seen that.

Continued on page 6

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USED CAR NEWS

September 16, 2019 • 3

Manheim Veteran Calls it a Career in 2019

By Jeffrey Bellant

Nick Peluso, who recently announced his retirement from both Manheim and several decades in the auto business, explained his decision simply.

“It was just time,” he said.

Peluso, who turns 60 this year, compared it to a professional athlete getting out after winning a championship.

“If you push one more year, who knows,” he joked.

“You never know what’s going to happen.”

Peluso said he doesn’t know what’s coming next, but this break was a long time coming.

“I started working fulltime when I was 13 or 14,” he said. “My family was in the restaurant, hotel and casino business. My uncle, dad and other family members had 16 different restaurants throughout the San Francisco Bay area – which is where I’m originally from – and Lake Tahoe, along with some partnerships in Las Vegas.”

So now Peluso wants to

“take a deep breath.”

Looking back, Peluso didn’t know much about the auto business in his early 20s. He points to one moment that was a turning point.

He bought a car at that time and, for some reason, didn’t like it. So, he resold it within a few days.

“I made a nice amount of money,” Peluso said.

Without knowing anything about the auction business, he would run an ad in a free paper back in the mid-70s that read: “School student needs transportation. Please call.”

Sellers would call Peluso to check out some old car and he would pull “everything out of my pockets, including the lint. And there’d be $198 on the table.”

He said nine times out of 10, he’d leave with the car.

Then he’d drive down to Earl Scheib Paint, where “you could paint a car for $35 back then.”

And then he’d list it for sale in a newspaper. He sold five to 10 cars a year like this,

never knowing there was an industry behind it.

While working in the restaurant business, his only time off was Monday afternoon, not even the whole day. Peluso was married by this time with a young son.

“It was not the way I wanted to raise my son,” Peluso said.

He took a job as a collector of medical bills and later spent seven years in a leasing company that was a division of a bank. Part of his job was remarketing automobiles.

“That’s kind of where I got my taste of the industry,” he said. “It just kind of bit me and lasted for the 40 years I’ve played in the auto business.”

When that first bank sold, Peluso had been selling cars for ADT, the former AngloAmerican Auto Auction. He later worked for Manheim, after it bought ADT. “That’s how my auction career began,” Peluso said.

“I played in a lot of different spaces, but vehicle remarketing is so interesting.”

Manheim later named

Nick Peluso Peluso president of remarketing solutions. He served in many other positions throughout the years. As president of Manheim Digital. Peluso led the creation

and deployment of the first omni-channel experience, bringing together Manheim. com, Simulcast and Online Vehicle Exchange (OVE) into one integrated solution.

4 • September 16, 2019

USED CAR NEWS

NEWS BRIEFS KAR Invests in Downtown Indy KAR Auction Services announced it is investing $3.75 million in downtown Indianapolis to house the new, expanded U.S. headquarters and tech center of the company’s TradeRev business unit.

The company will occupy a 45,000-square-foot space in the Century building, former home of C.H. Black Manufacturing, credited with building the first automobile in Indiana in 1891.

The new investment will create 200 additional, high-paying jobs by 2023.

“The City of Indianapolis welcomes KAR and its TradeRev employees to the heart of our thriving downtown economic landscape,” said Mayor Joe Hogsett.

“As the ‘Tech Capital of the Midwest,’ Indianapolis will provide the perfect home for the company’s new offices and tech center, as well as access to a growing pool of talent needed to fill the hundreds of new jobs created.”

KAR is one of Indiana’s largest publicly traded companies, with eight locations and approximately 2,000 employees in the state.

TradeRev, a digital platform that facilitates live dealer-to-dealer vehicle auctions, was purchased by KAR

in 2017 and employs more than 700 people in the U.S. “KAR’s growing North American team needed a larger space and we were fortunate to find one with deep automotive roots,” said Jim Hallett, KAR chairman and CEO. “Being in the heart of downtown Indianapolis will help us attract the talent KAR needs to accelerate the digital transformation of our industry and help TradeRev remain the premier digital automotive auction platform.”

Toyota Announces Recall Toyota is recalling 191,000 cars in North America and Japan because the air bags may not inflate properly in a crash.

The recall covers certain 2003-08 Corolla compact sedans and 200508 Matrix hatchbacks.

Toyota says the front passenger air bags in the cars were installed in prior recalls to replace dangerous Takata air bags.

But in high temperatures, the replacement bags may not unfold as designed, increasing the risk of injury in a crash. Toyota wouldn’t say if anyone has been hurt due to the problem.

The company says the replacements were not made by Takata.

Toyota says dealers will replace the air bag assemblies with improved versions at no cost to owners.

The company will notify owners by letter starting in October.

behind iLien Motor Vehicle,” said Raja Sengupta, executive vice president and general manager of Wolters Kluwer’s Lien Solutions.

“We are pleased by the continued, independent market recogniFirm Wins Industry Award tion that this innovation has reWolters Kluwer’s Lien Solutions ceived, not only from our clients but has earned two major industry through accolades such as these two awards for its iLien Motor Vehicle prestigious awards.” product innovation, winning a Goldlevel Globee Award in the “Fintech, Penske Opens Supercenter Information Technology InnovaPenske Automotive Group antion” category as well as an Inter- nounced the opening of its 15th used national Business Awards (IBA) vehicle supercenter as CarSense Bronze-level Stevie Award in the Glen Mills, located in Glen Mills, Pa. “Best Financial Services Solution” CarSense now has six locations category, respectively. operating in the Pennsylvania and Launched in 2018, iLien Motor Ve- New Jersey areas. hicle delivers a single point of manFor the six months ended June agement for processing and manag- 30, the used supercenters retailed ing motor vehicle titles.

35,815 units and generated $626.5 As a cloud-based SaaS, iLien Motor million in revenue compared to reVehicle is focused on meeting lend- tail unit sales of 37,505 and revenue ers’ everyday requirements, helping of $677.8 million in the same period solve the most unique and compli- last year. cated challenges in title perfection.

These recognitions mark the third and fourth award accolades bestowed this year on iLien Motor Vehicle, and the seventh industry award in 2019 for the Lien Solutions PAGE 14 business.

“Our longstanding leadership in lien management served as catalyst

Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Editorial: Jeffrey Bellant, News Editor Ed Fitzgerald, Staff Writer Advertising: Shannon Colby, Account Manager

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USED CAR NEWS

September 16, 2019 • 5

Edmunds Names Best College Cars (AP) Many college-bound students, whether a freshman leaving home for the first time or a grad student needing more reliable transportation, require a vehicle. To help out, Edmunds has identified five common requirements for college drivers and recommended a slightly used vehicle for each.

Purchasing a vehicle that’s about three years old will save you perhaps 30 to 40 percent off the purchase price compared to buying a new version of the same car. All of the recommended vehicles have top expert and consumer review scores on Edmunds.

• Long-distance commuter: 2016 Toyota Prius • Sporty commuter: 2016 Mazda 3 • Laundry hauler: 2016 Volkswagen Golf • Winter weather transport: 2016 Ford Edge • All-in-one luxury ride: 2016 Acura RDX Not much is going to beat the Toyota Prius in terms of fuel economy.

Its hybrid powertrain gets between 52 and 56 mpg in combined city/ highway driving. The average transaction price is about $19,000.

The Mazda 3’s carefully tuned steering and suspension allows

for nimble handling. Other advantages include an available sedan or hatchback body style and many premium features, including optional advanced driver safety aids, on the top Touring and Grand Touring trim levels. The average transaction price is under $14,000, and fuel economy runs between 29 and 33 mpg combined.

The Volkswagen Golf’s boxy styling opens up plenty of interior space for laundry baskets or whatever needs to be hauled. Folding down the 60/40-split rear seats expands the Golf’s versatility. Advanced driver safety aids were available as part of an optional package on the SE and SEL trim levels. The Golf gets 29 mpg combined and costs about $14,500.

The Ford Edge possesses a wellrounded quality that makes it a standout choice for a used SUV. It’s comfortable and quiet, and the available Sync 3 infotainment system is feature-packed. The Edge is bigger and roomier than many other common crossover SUVs. Its fuel economy is between 20 and 24 mpg combined and will cost about $22,500.

The Acura RDX is an ideal pick for a used vehicle at a slightly higher price.

6 • September 16, 2019

USED CAR NEWS

NAAA – Continued from page 1 REMARKETING ARTIST OR SCIENTIST?

12 10 8 6 4 2 0

But you have to be tough and you’ve got to be knowledgeable.

Most of the women that were my mentors have either grown up in the industry or were owners of the auctions. Now we’re starting to get women from sales backgrounds and different industries. I could not go into the presidency without the great team I have at Charleston.

UCN: The traditional make-up of the industry used to be corporates on one side and independents on the other. Now we have several independent groups like XLerate. What make these independent auction groups different and important to the industry?

Laura Taylor, Charleston Auto Auction

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Taylor: With most of the independents, like auctions in the XLerate Group, they are family-owned auctions that are purchased. The family can elect to come along and we typically like that. So, you still have that kind of a corporate-like (structure) with an independent mentality. So, I can make a decision at the auction without having to call corporate. Also, a customer can walk in with a situation and come straight to the GM at our auctions.

It’s still all about customer service.

UCN: NAAA’s Auction of the Year program, started in 2016, has been a great addition to the industry. Charleston Auto Auction, was the 2017 winner. Is it important to recognize the good work auctions are already doing?

Taylor: Auctions gave an estimated $5 million to charity last year (and that probably isn’t near the true number). The auction industry has some of the greatest people in the nation. So, I don’t think the award made anyone go out and start giving. Does it make some places get even more involved? Probably.

The first year’s winner, an employee gave a kidney. How do you beat that?

UCN: What are your goals for your terms as NAAA President?

What issues are most important to you?

Taylor: I follow a long line of great leaders who had great ideas. Chad (Bailey, the outgoing president) has been a delight and his passion has been contagious. Safety will be on the forefront, especially in the area of active shooters. We plan on having training for that.

We want to continue to continue with the education program. It’s also important to find more transporters, CR writers and mechanics of the future. Finding employees will continue to be a problem.

We also want more participation from members. My funny story is when I first started going to conventions and I first walked accidentally into an executive board meeting, Charlotte Pyle turns around and said, “You can’t come in here.” I said, “What do I have to do to come in here?” She said, “You’ve got to be on the executive board.” So, I said, “I’ll see you soon.”

8 • September 16, 2019

USED CAR NEWS

Outgoing NAAA President Praises Staff, Successor DETROIT – Chad Bailey said his year at the helm of the National Auto Auction Association went by quickly and kept him busy.

For Bailey, his term was less about any specific goal than it was about just working hard.

“I was raised to roll up my sleeves and get things done,” said Bailey, the association’s outgoing president.

“I don’t want to say I had the whole game plan figured out. Everyone normally had an agenda or platform coming in.

“I have an M.B.A., so I like to think I’m educated, but I get a lot done just by working.”

Bailey, president of Akron Auto Auction in Ohio, said if he had a focus, it was to motivate others.

“That was my biggest objective – getting people involved,” he said.

“I figured the only way they’d follow me is if I led, did things, got involved and didn’t just talk but actually act and do.”

Bailey remembered when he was first interviewed by

Used Car News a year ago, sitting with the then-outgoing NAAA President Warren Clauss.

“I remember thinking,

I’ve got the fall conference coming up. I’ve got this agenda, etc.

“I just never sat back and had a deep breath. I’m not

Chad Bailey

ugh, a year. But now it’s like, all of the sudden, we’re done,” Bailey said.

He said he remembers Clauss telling him to remember to smell the roses.

“You hear that and there are moments I thought about that,” Bailey said.

“But then I’d think, I don’t have time to do that.

upset about that. I figured I’d have time to sit back afterwards.”

Bailey knew the challenges he faced in being away from his auction during his NAAA term and prepared his independent auction’s team back home before he committed.

He made a point to meet

NOW THAT MY CASH ISN’T TIED UP ININVENTORY I CAN DO MORE OF THE THINGS I USED TO JUST DREAM ABOUT.

with his board of directors, shareholders and key managers to make sure he had his “ducks in a row” before he was nominated.

“I would have never done this, or even applied if I thought I couldn’t have been (in an active role),” he said. “I knew if I was going to do this, I was going to take a lot of time off (from my auction).”

He knew his staff could handle it.

“They’ve given me the opportunity,” Bailey said.

Prior to becoming president, Bailey talked about his past and how he got into the business.

“It’s funny because – indirectly – I am a third-generation owner-operator,” he said. “We’ve been around 45 years but this wasn’t a family plan.

“My grandfather started the auction with partners.

Then his son, my uncle Jeff took it over.”

Bailey went to college and later earned his Master’s degree.

“I didn’t have a job so moonlighted during the

days at the auction. I would bartend at night at my other uncle’s restaurant.” He started doing more and more at the auction and, eventually, he and his uncle sat down to discuss the future.

“I told my uncle, ‘Let’s talk about making this long term and making a career out of this.’ So he said, ‘Let’s sit down and figure this out.’

“The rest is history.”

Traveling with his successor, President-elect Laura Taylor, has also been a learning experience for Bailey.

“I learned a lot when she hosted the World Auctioneers Championship at her auction,” Bailey said.

“I’ve hosted them and so I thought I had it all figured out. But when I went to her place, I saw how she led and how spot-on she was.”

He saw how Taylor was able to run her sale during the event and ran them both “flawlessly.”

Overall, it was a good year for Bailey.

“It’s been awesome,” he said.

USED CAR NEWS

September 16, 2019 • 9

Wholesale App Targets Independent Dealers, Auctions

By Jeffrey Bellant

Two independents – from the dealer side and the auction side – have created a new tool that promises to turn heads in the market.

The product Turn Auction – was co-founded by Ryan Clark, director of Greater Rockford Auto Auction and Illinois independent dealer Joe Mok of Gmotorcars.

Turn is a mobile and desktop platform for independent dealers and auctions to sell inventory, from “out-ofthe-gate” cars directly from dealers on the lot or re-runs from a sale, Clark said.

It was an idea the two independents felt would fill a gap in the marketplace.

“It just started with Joe and I talking,” Clark said.

“At Greater Rockford, we’re always looking for new channels to sell cars.

“Simulcast has been around for a long time, but we’re looking for other ways to sell cars.

“We want to move from a three-hour window on Wednesdays to selling cars

seven days a week.”

Mok, coming from the independent dealer perspective, said the apps and mobile tools he saw fell short in one area.

“They didn’t include the independent dealers on the selling side,” Mok said. “We could buy, but we couldn’t sell.”

Clark said Turn is better than dealers buying a car through a typical third-party mobile app and the car doesn’t look anything like the dealer expected when it arrives.

“I don’t think they can offer the full suite of services that we, as independent auctions can provide,” Clark said. “This is something that independent auctions can participate in. We’re inspecting the cars. We’re bringing our experience, our reputations into the process.

“This gives buyers assurance.”

With the app, dealers and auctions submit vehicles for the auction with photos and condition reports.

Turn finds the best run-

ning slot for the vehicle and schedules the auction. If the reserve is not met, Turn works with the seller and highest bidder to try and facilitate a sale.

Turn offers post-sale inspections and a warranty program for purchased vehicles.

Turn joins the space with other platforms like ACV and TradeRev. Mok said nine independent auctions are using Turn.

“We signed up with Turn Auctions,” said Bruce Beam, general manager, Dealers Auto Auction of Oklahoma City.

“I believe it’s a great way for the independent auctions to jump into that marketplace, like some of the start-up tech firms,” he said.

“But this is kind of auction-driven and was designed by a family that comes from the auction business. It’s just now getting traction with some other auctions and the more auctions you have, the more cars you’ll have.

“It’s just one more avenue

for auctions. It’s just one more opportunity to sell cars.”

Greg Price, owner/operator, FastLane Auto Exchange, near Flint, Mich., said these upstream tools expand opportunities for dealers and the auction.

“We do a lot upstream with SmartAuction, OpenLane, OVE and TURN. That’s been a real area of growth for us,” he said.

Clark said Turn started with a few hundred cars, now it has thousands on the platform.

Mok has been in business for a decade. He keeps about 150 units in stock and sells about 80 a month.

But wholesale is a big part of his business.

“Wholesale business accounts for about $10,000 to $15,000 a month in income for us,” he said. “You have a dealer license, so you can turn and burn your inventory.”

Mok said inventory is crucial and it’s hard to move the inventory off the lot to sell at a physical sale, where it only gets 20 seconds of

exposure.

Turn allows independents to sell from their lot, which still gives them exposure to walk-on traffic.

Mok sees wholesale as critical to an independent’s success.

“I tell dealers, if you’re not using wholesale as a profit center, you’re in trouble,” Mok said. “You need multiple profit centers.

“So, this is a no-brainer.

Some of our wholesale profits are bigger than our retail profits.”

Mok’s involvement with Turn Auction doesn’t mean he’s not using traditional retail channels to boost business.

“For advertising, we do all the typical things. We’re doing Facebook marketing.

We’re on OfferUp, Letgo and we do a done of social media. We’re on TrueCar, CarGurus and Cars.com.”

Mok and Clark are hoping to expand both the number of dealers and the number of auctions on Turn.

That, in turn, should add more vehicles to the platform.

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10 • September 16, 2019

RETAIL MARKETS MISSOURI Heather Hicklin, office manager, Kwik Auto Finance, Raytown, Mo. “We will be celebrating our 30th anniversary next year. Brant Farrar has been the only owner. I’ve been here five years. We have one location.

“We keep about 40-60 vehicles in inventory. Our average sales are about 35-60 cars a month.

“It was a good summer.

It’s been really warm, but we haven’t had any real weather issues.

“We get our vehicles mostly through auctions and wholesalers. Mainly ADESA Kansas City and Manheim Kansas City.

“We are buy-here, pay-here.

Our down payments run from around $500 to $1,500.

The term lengths are usually no more than 26 months.

We’re probably one of the only buy-here, pay-here dealers in the area who do the shorter terms. Everybody else is 3 to 5 years.

“We recently moved to the Goldstar (GPS) unit because they offer something called Goldstar Connect where basically customers can track their own car. The customer has control of that now whereas before it was just the dealer.

“If the car is stolen they are able to call the police themselves, they can file a report and the police don’t have to get involved with us.

“And sometimes the customer doesn’t realize that the reason their car isn’t starting is because they have a bad battery.

“They can see that they have a low battery and that’s why they have to jump it all the time.

“Trucks are very hard to come by here, especially in the 26-month range we try to keep our vehicles in.

“We do a pretty healthy mix of imports and domestics.

Our reconditioning costs are about $500 to $1,000.

We try to do a lot of it in-

house. We do use a local shop that we have partnered with.

“Our advertising is strictly digital. All of our inventory is uploaded to Facebook Marketplace as well as Car Gurus, AutoTrader, Carsforsale.com, but it seems to me the place that really gives us leads is the Facebook advertising. At the end of August, 27 percent of our sales was previous customers, which is normal for us; but 41 percent was from digital marketing.

“The rest of the year looks very healthy. We are on track to beat last year’s sales by probably 30 cars.

“This past week we sold a 1990 Chevy Corvette. We sold it for $8,995.”

NEW YORK Joel Osserman, owner, Select EuroCars, Inc., Waterloo, N.Y.: “I’ve been in business 39 years. I have one location.

“I keep 60 cars in inventory, in this crazy world. I get cars from auctions, deal-

$ ers – all of those.

“I sell about 30 cars a month. In 1993 I was the fourth-largest buyer of VW/ Audi off-lease cars; for 19852001 I was in the Top 10.

Now it’s just much harder to find quality “ I have 17 buyers in 13 states and I still have huge holes in my inventory. I sell almost nothing at auction.

“There’s a lot of bad credit out there. Nine out of 10 customers don’t have enough for a down payment.

“In my 39 years I’ve run credit on over 100,000 customers and I’ve sold 8,800 cars.

“I sell almost no trucks. I used to love stocking Toyota pickups and vans. Now those cost two grand more than they’re worth. Now I sell VW/Audi, VW/Audi, VW/Audi.

“My reconditioning costs are high, probably $700 per car. But we don’t farm anything out. We started with service, and sales came later.

“My average sales term length is 63 months.

$

USED CAR NEWS

Compiled by Jeffrey Bellant “For advertising, the internet is No. 1. I do a minimum with newspapers, and no TV or radio.

“The last car I sold was a ’13 new Beetle with 49,000 miles. The price was right in line with NADA. “I can’t project the future.

My July was amazing. I sold 39 cars in July, and 30 in August. But I’m pretty heavy in inventory. It all has to do with inventory.

“Select EuroCars has also invested in solar power. We use a 47.5kW solar array and 228 panels to power the facility.

“The installation of the solar array is expected to save us $1,793 a year in electrical costs, offsetting 100 percent of the business’s electrical usage.

“The solar array has helped to reduce the company’s carbon footprint, preventing 34.5 metric tons of carbon dioxide emissions each year. The effect will be the equivalent of preventing 12.4 tons of waste from being sent to a landfill.”

12 • September 16, 2019

USED CAR NEWS

WHOLESALE MARKETS Compiled by Jeffrey Bellant MONTANA Jack Gertsch, sales manager, Auto Auction of Montana, Billings, Mont.: “My family bought the auction in 2002.

“We have four lanes, but we’re set up to run doubleblocks in two lanes. So, we’re able to run six lanes.

“We’ve been averaging about 600 consignments each week. I think we might be a little higher than this time last year because we’ve been starting to see more rentals. It was a busy rental season.

“We’ve been hanging right at 60 percent (conversion rates). In recent weeks we’ve been between 60 and 65 percent. We’ve been happy with that.

“We have mostly dealer consignment.

“We have one fleet/lease lane that typically has anywhere between 150 to 180 cars. That’s part of the 600 total units. We usually have that many each week. That’s pretty steady and similar to this time last year.

“Repos have been steady.

Some of the bigger (accounts) we run are Wells Fargo, GM Financial, ARI and LeasePlan.

“We also run in-ops, but we’ve started to sell them just on video and online. We don’t run them through the auction anymore.

“Typically, we’ll have between 220 and 280 dealers registered and online. So, we’ll have 150 to 200 dealers live on the floor.

“It seems like summer was pretty steady. Normally, the lower-end cars in the summer take a little dip. But everything else stayed steady.

“We have a GSA sale and, sometimes, run it twice a month during the summer months when the volume is bigger.

“Our Sept. 18 GSA sale will run about 80 units. Volumes and attendance have been good. That GSA volume kind of (thins out) by November.

“We use Online Ringman as our online system, but we do link with Edge Pipeline, so people can buy online

with us as well.

“Online is a big deal for us simply because of (geography). If you look at the black hole for Verizon, that’s where we’re at. We probably sell 30 percent online.

“Our average price in the lane is about $17,000. We sell a lot of trucks and SUVs. “I’m feeling good about the fall. Typically fall is a good market. Retail is usually good. I think it will be that way again.”

TEXAS Wayne Cook, president, Greater Tyler Auto Auction, Tyler, Texas: “It’s hotter than a two-dollar pistol down here. I think it’s 98 today.

“We’ve been in business 18 ½ years and we run four lanes. It’s a 5 p.m. sale.

“We’ve had some mixed – up and down – volumes.

I think the really nice stuff has been a little (scarce). But now we’ve got some new consignors on board that are really bringing some nice stuff out here. It’s pretty

much all dealer consignment.

“We do get some repos through some banks and loan companies. It’s probably 5 to 10 percent of volume.

“If a sale is near a holiday, it’s never that great.

“But business is pretty good now. Average volume would be about 300 to 350.

Conversion rates have been close to 60 percent.

“I think the average price (coming across the block) is something like $5,500.

“We use Auction Pipeline and we’re getting more and more online bidding.

It’s picked up considerably.

We’re working to take more and better pictures. We also try to do the very best we can in our post-sales inspections.

“We’ve been getting some really nice pickups lately.

Typically, in our part of the country, we’ve got some Ford, Chevy and GM dealers here that sell trucks, so they also trade for trucks.

Years ago, you didn’t seem to see too many four-wheel drives. But it seems like

four-wheel-drives are a lot more popular and a lot more common today than twowheel-drive trucks. I mean, there are people that drive four-wheel-drive trucks just because they like the way they look. They drive a little higher or whatever.

But they never stick them in four-wheel drive. Now you can get a four-door pickup and take your whole family out in it. Trucks are multipurpose vehicles and they’re probably safer to drive.

“My grandson went and took his driver’s test in a Dodge dually. That was his truck. The DPS officer who administered the test passed him. He said, ‘I have to tell you, young man, you’re the first person I’ve seen take a first-time driver’s test in a standard-shift Dodge dually.’

“The job market is pretty good right here. I think we’re going to be OK. Everybody would like to have more.

“If you try to treat your customers right and take good care of them, they’ll take good care of you.”

2019 NAAA Midwest Chapter Auto Auction of the Year

Columbus Fair Auto Auction “By supporting our employees and surrounding companies, we can lift up central Ohio as a whole to make it a stronger place to live, work, and raise a family. This is a goal that has been close to my heart since I took over for my father here at CFAA 37 years ago.”

- Alexis Jacobs, Owner and CEO

Your source for quality, selection and value: A broad selection of pre-owned vehicles from an industry leader.

October 2019

Chase High Lines, featuring: 1 1

ADESA Boston October 4, 11, 18, 25 508-626-7000

ADESA Salt Lake October 1, 15, 29 801-322-1234

Manheim New Jersey October 2, 16, 30 609-298-3400

ADESA Boston October 25 508-626-7000

Manheim Dallas October 15 877-860-1651

Manheim Palm Beach October 2, 30 561-790-1200

ADESA Brasher’s October 15 916-991-5555

ADESA Tulsa October 11 918-437-9044

Manheim New Orleans October 2, 30 985-643-2061

ADESA Golden Gate October 8 209-839-8000

Manheim Milwaukee October 16 262-835-4436

Manheim Pennsylvania October 10, 24 800-822-2886

ADESA Charlotte October 10, 24 704-587-7653

ADESA Washington DC October 16 703-996-1100

Manheim Orlando October 1, 8, 15, 22, 29 800-337-8491

Manheim Atlanta October 9 404-762-9211

Manheim Nashville October 23 877-386-5004

Manheim Riverside October 3, 17, 31 951-689-6000

ADESA Chicago October 18 847-551-2151

Columbus Fair AA October 2, 23, 30 614-497-2000

Manheim Palm Beach October 2, 30 561-790-1200

ADESA Cincinnati/Dayton October 22 937-746-4000

Manheim Atlanta October 9, 10, 24 404-762-9211

Manheim Pennsylvania October 10, 11, 24, 25 800-822-2886

ADESA Golden Gate October 8, 22 209-839-8000

Manheim Dallas October 2, 15, 16, 30 877-860-1651

ADESA Houston October 9, 23 281-580-1800

Manheim Denver October 16 800-822-1177

Manheim Phoenix October 2, 3, 10, 17, 24, 30, 31 623-907-7000

ADESA Indianapolis October 8, 22 317-838-8000

Manheim Detroit October 10, 24 734-654-7100

ADESA Jacksonville October 10 904-765-1004

Manheim Fredericksburg October 3, 17, 31 540-368-3400

ADESA Kansas City October 8, 22 816-525-1100

Manheim Milwaukee October 2, 16, 30 262-835-4436

ADESA Lexington October 3, 31 859-263-5163

Manheim Minneapolis October 9 763-425-7653

ADESA New Jersey October 10, 24 908-725-2200

Manheim Nashville October 1, 2, 16, 23, 29, 30 877-386-5004

Manheim Pittsburgh October 16 724-452-5555 Manheim Riverside October 1, 3, 15, 17, 29, 31 951-689-6000 Manheim Seattle October 9, 23 206-762-1600 Manheim Southern California October 10, 24 909-822-2261

Chase High Lines, featuring:

Manheim Tampa October 17, 24 800-622-7292

2 2

ADESA Boston October 4, 18 508-626-7000

Manheim Atlanta October 10 404-762-9211

Manheim Orlando October 8, 22 800-337-8491

ADESA Charlotte October 10 704-587-7653

Manheim Dallas October 16 877-860-1651

Manheim Pennsylvania October 11, 25 800-822-2886

ADESA Chicago October 18 847-551-2151

Manheim Detroit October 24 734-654-7100

Manheim Pittsburgh October 16 724-452-5555

ADESA Golden Gate October 22 209-839-8000

Manheim Fredericksburg October 3, 31 540-368-3400

Manheim Riverside October 1, 15, 29 951-689-6000

ADESA Houston October 9 281-580-1800

Manheim Nashville October 2, 16, 30 877-386-5004

Manheim Seattle October 9 206-762-1600

Columbus Fair AA October 2, 30 614-497-2000

Manheim New Jersey October 2, 16, 30 609-298-3400

Manheim Tampa October 17 800-622-7292

Southern AA October 16 860-292-7500 3

Chase High Lines, featuring:

4

ADESA Boston October 4 508-626-7000

Manheim Detroit October 10 734-654-7100

Manheim Pennsylvania October 25 800-822-2886

ADESA Salt Lake October 1, 15, 29 801-322-1234

Manheim Fredericksburg October 17 540-368-3400

Manheim Pittsburgh October 16 724-452-5555

ADESA Boston October 25 508-626-7000

Manheim Dallas October 15 877-860-1651

Manheim Palm Beach October 2, 30 561-790-1200

Columbus Fair AA October 23 614-497-2000

Manheim Milwaukee October 2, 30 262-835-4436

Manheim Seattle October 9 206-762-1600

ADESA Golden Gate October 8 209-839-8000

Manheim Milwaukee October 16 262-835-4436

Manheim Pennsylvania October 10, 24 800-822-2886

Manheim Dallas October 2, 30 877-860-1651

Manheim New Jersey October 2, 30 609-298-3400

Manheim Southern CA October 24 909-822-2261

Manheim Atlanta October 9 404-762-9211

Manheim Nashville October 23 877-386-5004

Manheim Riverside October 3, 17, 31 951-689-6000

Manheim Denver October 16 800-822-1177

Manheim Orlando October 15 800-337-8491

Southern AA October 16 860-292-7500

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles.

Contact auctions directly for current sale information.

1

The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license.

2

The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase.

3

The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”).

4

The tradename “Maserati Capital USA” (MCUSA) as well as the Maserati Trident and Maserati Capital USA logos are owned by Maserati S.p.A. or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”).

Neither JPMorgan Chase Bank, N.A. nor any of its affiliates are affiliated with ADESA, Inc. or Manheim, Inc. Each auction is solely responsible for their website content, sales events, promotions, fulfillment and operation of the auction. ©2018 JPMorgan Chase Bank, N.A. Member FDIC (19-0010) 10/19

14 • September 16, 2019

USED CAR NEWS

DISCONNECTED JOTTINGS FROM When is a bribe the same as a donation? Actually, by definition, never. The recent fracas over payments to individuals who can sway college entrance decisions is making the determination preciously difficult.

Off course it’s not fair to bend the rules to someone’s betterment, especially in terms of entrance to some of the most prestigious colleges in the country, thus pushing opportunities away from those more academically deserving.

Some candidates postured that they could contribute athletic prowess to the school’s roster, overriding any lack of academic talent. Athletic capabilities, when questioned, could be as equally distant as their brainpower. Perhaps they could polish the oars of the rowing club or sweep the floors of the changing rooms. Meanwhile pockets of professors got padded as a lot of ‘looking the other way’ was going on. So powerful people were exerting their

TONY MOORBY

financial strength and rot was being set in the system.

As the network of students and desperate parents grew then so did the enablers until, inevitably, the word got out and lawsuits started flying around.

Two companies were formed by one individual who became the peddler of money for places and in some instances bribing college administrators by keeping a distance as a middleman on behalf of wealthy families, some in the entertainment business where personal reputation carries so much weight these days.

The company also postured some of the ‘gifts’ were donations to the school or their sports’ programs.

The federal prosecutors’ allegations were of a very serious nature as the scheme involved bribing exam administrators, allowing cheating on entrance exams. Bribing coaches to allow unqualified applicants as recruited athletes and money laundering through

a charitable organization.

Mail fraud and other crimes are also named in 51 prosecutions.

As always, there are two sides to the story and while there was pressure from the parents to allow this to happen, in the ensuing investigations it was discovered in some internal memoranda from top administrators that schools would view the children of top donors advantageously, implying that the parents could pay their way in for the kids. I’m sure we haven’t heard the last of these double standards as the authorities are still digging to assess the extent of the schools’ involvements.

I get offended when schools concoct some scheme to attract vast amounts of new money when their fees go up exponentially every year. No wonder student loan debt is the highest it’s ever been $1.5 trillion as of now plus another $120 billion in privately funded loans.

The availability of big money to colleges of all stripes is

incongruously large, especially when access to sports broadcasts is so widespread today. I get torn over the status of amateur athletes not being allowed income or emoluments of any kind while the college is raking in untold millions. It would be easier to swallow if the money were to be distributed more evenly for the direct benefit of the students. But the ideal of keeping amateur status as pure as possible still has an enormous appeal.

I could think of a million ways to share the wealth in

Tony Moorby • 50-year veteran of the industry • President from 1997–2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer • IARA Circle of Excellence

To see past columns from Tony Moorby, visit www.usedcarnews.com/columnists/tony-moorby Digital version available at usedcarnews.com

C R O S S WO R D

By Myles Mellor

Across 1. Porsche sports car 7. Grille covering 10. ____ Talbot, classic British car 11. Either partner 12. Along the way, 2 words 14. Pontiac Grand __ 16. Protege creator 19. Clients 23. ___ glance, 2 words 24. SAT ____ (directional assistance) 25. Renault Alpine ____ 27. Racing car, goes with 32 down 30. Dodge SUV 32. Autumn month, abbr.

33. Sue Grafton’s “___ for Alibi” 35. Not often found, like some classic cars 36. Airline abbreviation 37. Scold 38. CVT alternative

39. While 40. Tech department 41. Tire holders 43. See 4 down 46. Engine strength measurement, abbr.

47. Pilot’s announcement, briefly 49. Electric car from Honda 52. Hyundai cars 55. South African car company that made the ___ GTE 56. Sailor, for short 57. Luxury sports car 58. Buick SUV

Down 1. Luxury car maker in the early 20th century, 2 words 2. Kia hybrid hatchbacks 3. Guinness Book suffix 4. French for street 5. Indefinite article

improvements for students – better accommodations, better classrooms and laboratories, more open access to poorer but intelligent students, etc. I could go on ad nauseam.

These college officials all need some serious deeper scrutiny. I feel they’ve been getting away with all kinds of miscreant deeds including turning their heads from crimes, up to and including sexual predation.

These people’s pedestals are not so high that they can’t be toppled.

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Solution to this puzzle in the 10/7/19 issue. Call 1.800.794.0760 for a FREE subscription.

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Solution to the 9/2/2019 puzzle

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ally.com/dealer With 3,400 dealers visiting daily and 58 different makes sold, SmartAuction is an industry-leading tool to help you manage your inventory, straight from your computer.

Just another example of how we’ll do anything, seriously anything to help build your business.

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©2019 Ally Financial Inc.

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