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UCN

Used Car News

usedcarnews

3/16/2020

karglobal.com

IN THIS ISSUE:

• Caruso Retires • Auto Subscriptions

Rush - Dated Material

• Curbstoners Busted

CAR Moves Ahead Despite COVID-19 The show must go on. Despite fears over COVID-19, the disease caused by a new coronavirus, the 25th anniversary of the Conference of Automotive Remarketing in Las Vegas on March 24-25 was expected to go forward at press time. The event took a hit when KAR Auction Services and Manheim announced that because of companywide travel restrictions, they will not be attending. CAR still features a packed lineup including the top names and companies in remarketing, The conference is held in conjunction with the International Automotive Remarkerters Alliance and the National Auto Auction Association. The IARA kicks off the two-day event with keynote speaker Cedric King, a retired Master Sergeant of the U.S. Army, who received a Bronze Star, Purple Heart and the Meritorious Service Medal. In 2012, during his second tour of Afghanistan, he suffered life-threatening injuries due to an improvised explosive device, leading to the amputation of both legs. Just 21 months after his doubleamputation, the former Army Ranger completed the Boston Marathon on prosthetic blades. He has since gone on to complete in the Ironman Triathlon, New York marathon and other endurance events. Another keynoter at CAR is Melinda Zabritski, senior director for Experian Automotive, where she serves as the company’s primary analyst and spokesperson regarding key automotive finance trends. Scott Stratten, president of UnMarketing, a firm that has worked for PepsiCo, Microsoft, Fidelity and

Century21, will also give a keynote address. Other sessions will also include people ranging from Darrin Aiken of Wheels Inc. and Debbie Boyce of LeasePlan, to auction veterans Jeff Barber of State Line Auto Auction and National Auto Auction Association President Laura Taylor, among others. CAR organizers said in a state-

ment they have taken precautions to keep attendees safe. “We are adhering to the suggestions of the U.S. and state public health guidelines as they are developing with regards to the COVID-19 virus. As the COVID-19 situation is evolving, we strongly advise that all exhibitors and visitors review, from the most trusted source, the

U.S. Centers for Disease Control and Prevention (CDC) travel health notices related to this outbreak. As a precaution, we are implementing

a range of additional hygiene measures at our events from increased cleaning and disinfection across all high-volume touchpoints and availability of sanitizing and disinfection materials for public use, to onsite emergency medical personnel.” Organizers are discouraging anyone who has flu-like symptoms from attending. CAR is restricting attendance for those who have recently visited China, Italy, UK, UAE, Iran, South Korea and Hong Kong, based on the State Department guidelines.

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Auctions 3/16/2020

Auction Vet Retires after 40 Years, Numerous Honors By Jeffrey Bellant

KAR Auction Services’ Tom Caruso, a long-time industry vet, is ending his career after 40 years in the auction industry. Caruso, 60, spent the majority of that time at ADESA and later KAR, winning a trunkful of industry awards along the way. Caruso spoke with Used Car News in a phone interview from his office at ADESA Boston and he was asked what made this a good time to retire. “You know, it’s one of those things, 60 was kind of a milestone for me,” Caruso said. “The grandkids are starting to grow and we’ve got another one on the way. “I don’t want to miss those swimming lessons and skating lessons. It’s just a good time.” Forty years ago, after previously working at a car dealership, Caruso took a job at Concord Auto Auction. Within weeks of employment at the auction, Caruso became fleet/ lease manager and assistant general manager – at the age of 20. In 1992, ADESA acquired the sale and Caruso has never left the industry. One of Caruso’s biggest challenges came early on in his time with ADESA, when the company opened ADESA Boston. “It was a 3-million-square-foot General Motors plant that was in mothballs for 10 years,” he said. “We were able to purchase the building and within nine months we were selling cars and we were cashflow positive.” The site was purchased in 1993 and it opened in 1994. The move took dealers from five lanes to 12 lanes within one week. Getting that done was a big challenge for Caruso. “Another time was back in 20082009, when I became CEO of ADESA,” Caruso said. “That’s when there weren’t many cars in the pipeline.” Caruso joked that this was the time Jim Hallett, chairman and CEO of KAR Global, decided to throw him the keys. But he added that Hallett has always been a great leader over 30 years of working with him “I can’t thank him enough,” Caruso said, “for all of his support. “We just kind of dug in there and never looked backwards. We were going to get through it all.”

Caruso also credited the first person who hired him – Joe Bellino, a former auction vet, Navy captain and a Heisman Trophy winner, who died last year. “Joe was a super individual,” he said. “The car business back in the early ’80s was kind of the Wild West. But Joe made sure we always did the right thing.” Hallett offered his own praise of Caruso in the company’s announcement about his retirement. “Tom is a true legend and his positive influence can be seen across every corner of our industry,” Hallett said. “Every handshake with Tom is a promise and his hard work, dedication and never-quit attitude helped shape our company and our industry. “He is a mentor to many, a friend to all and the shadow he casts will no doubt inspire the next generation of leaders.” Caruso said it was the people and the group he worked with over the years that kept him in the ADESA/ KAR Auction Services family. “The people were always loyal and we all had a servant’s attitude,” he said. Caruso added there was always a great core of customers. “They are the ones who come out in the snow or the 100-degree weather,” he said. Technology was one of the biggest changes over the years and now it changes daily, Caruso said. Some employees would push back, wondering why there had to be this change or why they had to sell cars remotely. “But if we don’t do it, our competitor’s going to do it. We need to change with the times,” Caruso said. “I was fortunate over the last couple of years to work with the TradeRev team, visiting dealers to explain and sell that product. It’s very cool.” Caruso knew his own limitations when it came to tech. “For me, it was accepting I wasn’t the 25-year-old, so I had to let the people who understood it run with the ball,” he said. “Then I would step back and think, ‘where can I add the most value to KAR?” For Caruso, it was about working and leading people. “I loved doing employee meetings. I really enjoyed getting the troops together and holding kind of a townhall meeting. It was a combination of all that (which made ADESA a

Photo by Jeffrey Bellant ACCOLADES: Tom Caruso, who is retiring after 40 years in the automotive industry, is seen above in 2012 receiving the National Independent Automobile Dealers Association’s Ring of Honor award, one of many awards he’s received through out his career.

great place to work).” Despite the move to online sales, Caruso said the live physical lanes are still special. “I always called it ‘game day,’” he said. “They still like to show up and look at the cars, talk to people and socialize. At the end of the day, it’s still the auction, whether the cars are sold virtual or in-lane. It’s exciting.” Caruso has won all the top awards in the industry, from the National Auto Auction Association’s Hall of Fame award, to the National Independent Automobile Dealers Association’s Ring of Honor. Caruso has also been involved in the National Vehicle Leasing Association and the Massachusetts Independent Automobile Dealers Association. The Massachusetts IADA eventually gave Caruso its highest honor in 2012, a Lifetime Achievement Award. He said all of the awards have special meaning to him. But Caruso said one honor meant a lot. “I remember back in the early ’80s and seeing other people (serve as president) and thinking how these were the icons of the industry,” Caruso said. “For me to be elected NAAA President, it was a great moment.” It gave him time to get to know Frank Hackett, NAAA CEO.

“I can’t say enough about Frank Hackett,” Caruso said. “Frank is truly just a great individual, a great leader and great spokesman for the auction industry.” Caruso said he’ll miss his friends in the industry the most. But even so, he said when he announced his retirement, his “phone started blowing up.” He got many texts and emails wishing him well. “With social media, I think we’re more connected,” he said. “I’m going to miss people, but I do think that social media will help me continue those relationships.” He said recently he was in Florida playing golf with past NAAA President Jay Cadigan, showing that the relationships in the industry will continue. In terms of the future of the industry, Caruso believes it will continue to grow, no matter the platform. “I was at the corporate office of KAR Global recently and seeing some of the things we’re doing at KAR – there are a lot of exciting things,” he said. Caruso’s son, Joe, is also in the business. He is executive director of online for KAR, showing that another Caruso will continue to contribute to the industry.. Caruso said the bottom line is auto auctions are here to stay. “Everybody drives a used car, nobody drives a new one,” he said.

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News Briefs

UCN usedcarnews

3/16/2020

Cox Names Woman of the Year Cox Automotive presented its annual Barbara Cox Woman of the Year Award to Liza Myers Borches, president and CEO of Carter Myers Automotive, a fourth-generation family- and employee-owned business. Named after Barbara Cox, the late co-owner of Cox Enterprises and daughter of the company’s founder, this honor is awarded to women who demonstrate business leadership and community advocacy, and a commitment to advancing the automotive industry. The award was presented by Cox Automotive President Sandy Schwartz during the Northwood University Dealer Education Award annual breakfast on Feb. 16, at NADA Show 2020. “Liza exemplifies this award by sharing many of the qualities and values that we admire in Mrs. Cox,” said Schwartz. “Being part of a multi-generational, family-owned business, Liza shares a close connection with the Cox family story. Like with the Cox family, dedication

to employees and the communities served has always been a priority at Carter Myers Automotive.” Borches oversees dealership operations and is dealer principal for Carter Myers Automotive, including 15 dealerships with 17 new car franchises in Virginia. Borches joined the Carter Myers Automotive team in 2003 after seven years working with American Honda. In October 2011, Borches was the fourth generation of her family to be named Carter Myers Automotive president. She now serves as president and CEO for all Carter Myers Automotive businesses.

Rock & Roll Sale Turns 25

They plan to release their next record, “Van Weezer,” this spring – just months before DAA’s Rock & Roll Sale. “We’re seeing more dealers in their twenties, thirties and forties these days,” says McConkey Auction Group president and CEO Bob McConkey. “We’ve also got a great team of young leaders emerging throughout our company. The Rock & Roll Sale’s 25th Anniversary will be a great time to showcase a new generation of international headliners as well.” DAA Northwest’s Rock & Roll Sale will take place Wednesday and Thursday, July 15th and 16th. The event includes a 1,000-unit Wednesday sale, a Wednesday evening private catered party and concert for DAA’s customers and guests, a 3,200-unit Thursday sale, and thousands in post-sale prizes.

DAA Northwest has announced that Weezer will perform at its 25th Annual Rock & Roll Sale. Prior to this year, the auction has featured headliner acts from the 1960s, 70s and 80s. This summer, Weezer will catapult the event into AG Sues Warranty Co. a new era. The American rock band Attorney General Josh Shapiro was formed in 1992 and has sold announced that his Office has filed over 35 million albums worldwide. a civil lawsuit against extended automobile warranty company Delta Auto Protect to get money back for consumers and repair shops which Still searching for the right auto auction? YOU FOUND IT! fell victim to its car repair scam. Delta is operated by Omega Vehicle Services LLC and its managing member Charles Seruya. The lawsuit alleges the company I N advertises and sells vehicle service C and repair contracts to thousands of Chicagoland’s Only Independent Since 1947 consumers in multiple states from a virtual office in Exton, Pa., but re641 Joliet St., Dyer, IN 46311 fuses to honor the contracts it sells Ph: (219) 865-2361 Fx: (219) 322-1761 and, after accepting payment from consumers, refuses to cover the necessary repairs promised under conDEALERS tract. WEEKLY “Many customers of Delta Auto Protect of Exton have complained EIGHT LANES to my Office, and they’re not happy,” Lease/Repos/Banks/Donations AG Shapiro said. “We are listening, 950 + UNITS WEEKLY and we are taking action to get their 70% SOLD money back.” Dealer Consignments The Attorney General said he SIMULCAST SALES wants restitution for Delta customers who: paid for warranties and FIFTY ACRES didn’t get the coverage they were Video Tow TWENTY-FOUR promised; paid out-of-pocket costs HOUR SECURITY to repair their vehicles, and tried to cancel their policies but didn’t reRECON SERVICES ceive refunds. ON-SITE MECHANICS Shapiro said he is also seeking resMany late model 16’s, 17’s & 18’s titution for repair shops that didn’t get paid. Cash Drawings CHICAGO The lawsuit states, in some inEarly Bird / Progressive Pot stances, Delta placed a condition on payment that required a consumer The Visit our website: www.dyerauction.com to remove their negative reviews of largest for pre-sale inventory! the company. independent Multiple consumer complaints alMember of: auto auction in the National Auto Auction Association / Indiana Independent Automobile lege the company failed to pay reDealers Association / Independent Auto Auctions Chicagoland area funds for contract cancellations. Auto Check • Auto IMS • ASPA

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Volume 25 | No.22 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 Columnist: Tony Moorby Circulation: subs@usedcarnews.com Production: Tom Savage, Production Manager Cee Lippens, Web Master Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher. OUR ADVERTISING APPROVAL POLICY Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by the USPS. The advertising reservation deadline is 12:00 noon Thursday, 11 days prior to the issue cover date. Ad materials are due by 5 pm Friday, 10 days prior to issue cover date. For advertising specifications please email colleen@usedcarnews.com.

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UCN PAGE 22 usedcarnews


News 3/16/2020

Association Helps Bust Massive Curbstoning Scheme By Jeffrey Bellant

Dave Warkentin, executive director of the Arizona Independent Automobile Dealers Association, has been working with the state legislature for years to crack down on curbstoning. Last month, that work paid off. The task force created to combat curbstoning announced on Feb. 26 that it had broken an operation that illegally produced tens of thousands of titles for vehicles being sold in 42 states. A release from the Arizona Department of Transportation spells out the massive scheme. “With seven arrests made on Wednesday, Feb. 19, this is by far the largest operation broken up since Governor Doug Ducey signed legislation in 2018 creating the Arizona Curbstone Enforcement Joint Task Force, which combines the resources of ADOT’s Office of Inspector General, Arizona Department of Revenue and Arizona Independent Automobile Dealers Association. “This task force combats vehicle sales made in violation of state laws governing dealer licensing, a practice known as curbstoning. “Our partnership with the Department of Revenue was invaluable by

bringing their investigators in to assist,” said Lt. James Warriner with ADOT’s Office of Inspector General, part of the agency’s Enforcement and Compliance Division. “Together, our agencies are delivering a one-two punch to stop curbstoning and illegal vehicle sales in Arizona.” The case involves a scheme in which individuals allegedly subscribed to one of several websites identified by investigators to obtain wholesale and retail dealer license credentials from the suspects, rather than the state, for a monthly fee, usually in the hundreds of dollars. These credentials allowed about 1,500 individuals to attend and bid on vehicles at wholesale auctions in their states. The operation also altered vehicle titles from these subscribers for about $100 per title to make it appear as though the individuals bought the vehicles from one of the suspects’ 31 operations with dealer licenses. More than 31,000 titles were processed this way over the past couple of years, and many of the vehicles involved were never in Arizona. The operation has generated around $7 million fraudulently over the past couple of years, according

to the task force. Larry Laskowski, executive director of the Independent Automobile Dealers Association of California, credited Warkentin’s work on the issue over the past several years in making this investigation possible. “We passed the first curbstoning legislation in 2014,” Warkentin said. “Then two years ago, we passed legislation that created the task force.” It took a year or two to get going, but things have been “hopping” during the past six months, Warkentin said. “They’ve been very strategic and deliberate about it,” he said. “It’s not a shotgun approach.” It turned out that 31 dealers in Arizona were “leasing” their licenses to these nefarious agents. “It definitely sent reverberations nationwide,” Warkentin said. Recently, he spoke to Shaun Petersen, SVP of legal & government affairs for the National Independent Automobile Dealers Association. “Petersen said that he was in Washington D.C. for meetings and the people there were talking about it,” Warkentin said. “We’re pretty proud.” Having a task force that knew how to work cases like this made it a suc-

cess, Warkentin said. Part of this new law will allow some of the money and assets seized to go into a fund to pay for curbstoning enforcement, Warkentin said. “What a victory,” Laskowski said. “Warkentin’s legislation created the task force. Without being able to do that, I don’t think this would have worked.” The genesis of this investigation started when a California dealer received a toll violation for a car he sold to an Arizona dealer. The toll violation occurred in Florida, which tipped the California dealer that something was amiss. “They set up these shell dealerships and then they add agents (to buy on behalf of the “dealership),” Laskowski said. “But they will never add an agent from Arizona to an Arizona dealership.” If the buyer and the dealer were from the same state, the local officials would be more able to discover the scheme. “States now have evidence of the magnitude of how big this (scam) can be,” Laskosir said. “If we can eliminate all the places these can be, then we’ve solved a problem.”

Manheim Nashville ‘Severely Damaged’ by Storm By Jeffrey Bellant

Manheim Nashville suffered damage after severe storms and multiple tornados ripped through three counties and the City of Nashville in the early morning hours of March 3. At press time, the Tennessee Emergency Management Agency reported 24 confirmed weather-related fatalities. More than 70,000 homes and businesses were without power after the storms damaged four substations and 15 primary lines. “As a result of powerful storm conditions that swept through Nashville on March 3, Manheim Nashville remains closed,” stated Patrick Brennan, Manheim senior vice president, marketplace in a March 5 release. “We are grateful to report that all 619 of our team members have

been accounted for. With several buildings on our property severely damaged, services such as reconditioning are not available. We are working very closely with clients to find alternative solutions. For safety reasons, property access is restricted to emergency personnel and limited Manheim staff. We are working as quickly as we can to resume operations and ask our clients to please refrain from visiting our facility at this time. “Our Manheim Nashville family has been truly moved by the outpouring of support we’re receiving from Cox and Manheim teams and our industry partners who have rallied to help. This is a true embodiment of the Cox spirit and industry camaraderie, and we couldn’t be more grateful,” Brennan stated.

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News 3/16/2020

Used Cars Become Newer, Franchises Face Challenges By Jeffrey Bellant DETROIT – Consultants from McKinsey & Co. recently discussed how various topics within automotive are starting to come together and what this means for the industry. They also discussed a category of “young, used cars” and how they fit in. Ben Ellencweig and Inga Maurer, both partners at McKinsey & Co., discussed a range of these issues during a January event for the Automotive Press Association here. “It feels like everything is converging these days,” Ellencweig said. Global trends, ranging from urbanization to regulatory actions and trade wars all will have an effect on the automotive industry. The standard definition of “used” is changing. “We estimate that by 2022,” El-

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lencweig said, “60 percent of the used-cars coming into the market will be thee-years and younger.” These are higher-priced, highercontented used cars. McKinsey has segmented out the five types of used-car segments and they include bargain buyers, which Ellencweig said he considers the typical classic used-car buyers. A new segment of used-car buyers is the “tech-oriented achievers,” which make up 29 percent of the market. Other segments include nohaggle retailers, high-flying fighters and negotiators. On the wholesale side, Maurer said the younger used cars work well for a digital auction rather than a traditional auction. She said franchise dealers have extreme challenges, the main one which is trying to be profitable, “no matter how much money you put on the hood.” Because of this, service and back-end money will be critical to a franchise dealer’s success.

Photo by Jeffrey Bellant TRENDING: Inga Maurer, a consultant with McKinsey & Co., discusses future trends in the auto industry at a meeting of the Automotive Press Association.

In the U.S., the features that matter are the ownership experience, the performance and interior functionality, she said. In Europe and China,

powertrain is a big issue. In Europe it’s important based on sustainability and in China it’s driven by regulation.


News 3/16/2020

Auto Subscriptions Offer Opportunities to Industry By Jeffrey Bellant

DETROIT – Players in the car subscription market discussed how this new trend could help dealers, OEMs and customers, during a presentation here earlier this year. The panel was one of several that took place in Detroit as the city prepped for this summer’s North American International Auto Show. Vince Zappa is president of Clutch Technologies, a software company founded in 2014. He gave some background on the subscription space. Zappa said back in 2014 subjects like electrification and autonomous cars were already in the headlines. The question is, how are these markets changing and how will future customers respond to these ideas. “How will the Millennials react to being able to push a button and have transportation,” Zappa said. “Will they want to buy cars in the future? Will it be the same? Clutch looked at it differently as a software company. “There’s the biggest part of the market – from an alternative perspective – that the entire industry is missing completely,” Zappa said. “That is, the majority of the industry, which is traditional ownership.” But Zappa said there is a “substantial opportunity to reshape the relationship between the consumers and the vehicles they drive.” The industry is asking customers to extend their leasing terms or financing terms to have the same car for many years. “We thought it would be interesting to change that,” Zappa said. The last time the auto industry really changed the financial relationship between a consumer and their car would be leasing in the 1970s, Zappa said. Zappa said there is a way to deliver automotive full-time vehicle transportation that provides simplicity and flexibility for customers to go in and out of that car as they see fit, with one simple payment. Clutch thinks about mobility in two major buckets – on one side, it’s defining ownership – like buying and leasing – to rental cars on the other side of the continuum. “Where a lot of innovation is occurring is exactly in the middle,” Zappa said, A vehicle subscription is where a person subscribes to one vehicle.

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Zappa believes this can be a good option for vehicles coming off leases. “We also believe vehicle subscriptions present a really interesting opportunity for new cars in the long run,” Zappa said. “I’ll contend that I think a single vehicle subscription plan will ultimately compete with the lease as we know it today.” Another option is plan-based subscription, like Mercedes, Porsche and other dealerships, which offer different vehicles you can choose from at the push of a button. “This is kind of the mountaintop, if you will, of consumer experience that the automotive industry can strive for,” Zappa said. A third model that’s popping up is “rental on-demand.” In this case, vehicles that are being provided as subscription vehicles may end up idle at some point when a customer is using a different car or when a subscription ends. The dealer, OEM or fleet operator in these cases, can rent those vehicles out, further monetizing the assets. For example, Clutch runs Porsche’s Fast Forward, which is the automakers subscription service. On the same platform, simultaneously, Clutch also offers Porsche Drive. Clutch said instead of keeping these units of silos – rentals in one, subscription or fleet in another and used cars in a third silo – Clutch believes pulling all of these together offers interesting opportunities to increase profit. Sonya Harbaugh, co-founder and CEO of Steer, adds that her company has a specific niche in this market. “Steer is a revolutionary new subscription service,” she said. Unlike other services, Steer focuses strictly on hybrids and electric vehicles. She also described the company as “brand-agnostic.” Third, it is a women-led startup backed by Exelon, a Fortune 100 company that Harbaugh said is the nation’s largest provider of clean energy. Popular plans at Steer include the Toyota RAV4 and the Hyundai Kona. Clutch, as a result of its innovation, was able to increase its rooftop count by almost 800 percent in 2019, Zappa said. Other programs in the industry include an Audi program, which links the experience of owning an Audi, with the rental experience of leveraging Audi’s Silvercar service.

Photo by Jeffrey Bellant CLUTCH PERFORMANCE: Vince Zappa, president of Clutch Technologies, discusses subscription programs for cars during a presentation in Detroit earlier this year.

Volvo has its own program, as well and Cadillac will be relaunching its subscription program this year. Zappa said all of these programs are currently very small, but he said they are green shoots ready to grow. “There are some great things happening,” Zappa said. “So, from our perspective, 2019 is the year we saw a lot of foundational bets being made.” Zappa believes the future can be in building mobility hubs for dealers and fleet operators. “We need the entire ecosystem to participate,” he said. Financing is the one area that needs improvement to move this mobility trend forward. Zappa said most of these programs are financed by captive finance arms or dealer floorplans. “So, there’s a lot of work to do there,” he said. But one part of the industry has been receptive to the new trends. He said the insurance carriers have been receptive to these new models. Lastly, infrastructure providers will be critical for the electric vehicles. Subscription programs and mobility will help ease their EVs into the market, Zappa said. Harbaugh, whose firm works in that EV space, added one of the biggest appeals to her customers is the service. “One of our members recently left us a review and said, ‘I came for the cars, I’m staying for the service,” Harbaugh said. “That service is extremely important.” Profitability of these services depends on some of the typical attributes of any successful business,

Zappa said. “It depends, in many ways, on how you price things, how you operate and how well you do all things together,” he said. Harbaugh admitted it does take a bigger investment to get these types of programs off the ground, she said. However, there is a real opportunity for new players, she said. Harbaugh said she believes that having an EV subscription service can help drive success for EVs in the marketplace. Zappa said diving into the subscription business doesn’t have to be expensive. Dealers can start out with a small fleet. He said these programs can only increase the number of vehicles a dealer sells, especially in a multi-plan-based subscription service. Harbaugh, however, said Steer doesn’t have a mission to sell cars, so it can build a cooperative relationship with the dealer. Manheim Chief Economist Jonathan Smoke said one of the biggest challenges for subscription services is that consumers often don’t have any idea of what they spend on vehicles. “They have no concept of combining what their insurance payment, along with maintenance and repairs and licensing costs,” Smoke said. But he is bullish on subscriptionbased plans. “I think out of all the long-term horizon things we’re looking at,” Smoke said, “subscriptions have the most potential to grow and change dramatically in the near term.”


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By Jeffrey Bellant

Determining which vehicles will be in demand and learning how to spot units that need work can help dealers boost efficiency and improve inventory management. Kevin LeSage, director of digital marketing at Autotrader, said there are tools that can help dealers do just that. “We completely redesigned our analytics platform to make sure we’re delivering dealerships realtime analytics on how their inventory is being managed online,” said LeSage. It will help dealers learn how best to contact customers, what engagements are they having at Autotrader, what they are clicking on, etc. “There’s a percentage of a dealer’s inventory that’s going to do very good on its own,” LeSage said. These are cars that the dealer knows are marketable in their area and will sell relatively quickly and for a high gross. But another segment of inventory, which might not be as attractive, will require a strategy to bring more attention to those cars. That makes it easier for dealers to determine which vehicles are more likely to sell, so they can move those units quickly through the recon process, LeSage said. A vehicle with a lower score, may need a little more work that takes time, while the dealer looks for a different strategy to sell it. “One of the key features we have in our analytics dashboard, that we just released, is actually merchandising opportunities,” LeSage said. It will show a dealer in real time that, for example, a dealer has 200 vehicles on the lot, but with only one custom photo. Or 27 vehicles that had no comments. Dealers can see those problems and address them right away, adding quality custom photos. Autotrader and Cox Automotive have “started scoring the quality of every single VIN on their lot,” LeSage said. “They’re leveraging that info across all Cox brands. For example, DealerTrack processes credit applications. If the system sees a credit app reviewed online for a specific VIN, it’s going to tell Autotrader that the vehicle is getting engagement and therefore the score of that car will be increased. Successful dealers know that “turn ratio” is one of the most critical fac-

Kevin LeSage tors for a dealer’s success. “If we can help dealers identify which segment of inventory is going to do well on its own and which segment needs help, then it becomes much more efficient – and datadriven – to actually manage that inventory online,” LeSage said. LeSage said it also helps a dealer who is getting a trade for similar reasons, determining if the car is worth reconditioning or would it be better to wholesale out of it. Through the platform, dealers can convert more leads with detailed insights into important factors like inventory age, pricing, penetration and likelihood to sell. Depending on their results, they can then manage their inventory to increase the probability of a sale. Leveraging a consumer’s browsing history, dealers now have the ability to display personalized carousels that showcase relevant inventory with exclusive placements on the dealership homepage and across other third-party pages. This increases impact and exposure by showcasing the most relevant searches that are available to the right consumer throughout their shopping journey. These tools help dealers obtain high quality leads, which are vital to a dealer’s success. A white paper released by Cox Automotive last fall showed that dealerships have as much as 11 wasted hours per month chasing bad leads. The key to success is quality of leads over volume or quantity. LeSage said using tools like Autotrader’s will help dealers convert leads.


Digital 3/16/2020

Artificial Intelligence Finds New Customers for Dealers By Jeffrey Bellant

Artificial Intelligence may sound like something just for high tech industries, but it offers the average car dealer a whole new toolbox for boosting sales. It also can put independents in a prime position to compete with larger dealers and franchises. A new book – “Accelerating Sales with Artificial Intelligence: Employing Intelligent Tech to Improve the Auto Buying Process” – lays out a blueprint for using AI to boost business and target customers. The author of the book is Chase Abbott, vice president of sales for VinSolutions, Dealer.com and digital retailing at Cox Automotive. Dealers who take on this could be like the ones who were early adopters of the Internet and get ahead of their competitors. “If I know anything about car dealers, they are hesitant about change,” he said.

“The dealership I worked at for six years was no different.” Moving dealers toward Artificial Intelligence in their businesses faces the same pushback as the online sales did earlier. Dealers may look at AI as just another way to work a lead, but Abbott said there is a lot more to offer. “Other industries are leaving the auto industry behind in that there are tools out there today where we can get a ton of shopper behavior, customer insights, buying signals – all these different things we can do to make it seem like coincidence, powered by technology,” he said. Like anything, it’s about getting the “right message, at the right time, to the right audience.” Abbott said back in the day, dealers would send out direct mail targeting specific ZIP codes. “We’d call that, ‘hope and spray,’” he said. “We’d just hope for the best.” He remembers sending out free Hibachi grills to draw in customers.

Photo Courtesy of Cox Automotive BOOK IT: Chase Abbott, vice president of sales for VinSolutions, Dealer.com and digital retailing at Cox Automotive, has written a book to show how artifical intelligence can help dealers find customers.

“Today, that seems absolutely sil- active in utilizing the latest tech to ly,” Abbott said. move metal. As older folks adopt technology Continued on page 14 more quickly, dealers have to be pro-

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12


People in the News 3/16/2020 Compiled by Jeffrey Bellant Company Adds CRO AutoAlert announced that it has added Jim Huston to its executive team as chief revenue officer. Huston most recently served as Senior Vice President of Client Services at email and marketing juggernaut Epsilon, (acquired by Publicis Groupe in 2019), and is known as a leader in analytic-centric marketing. An automotive industry veteran, he brings nearly 40 years of connecting consumers and brands via innovative marketing and advertising, including three decades in senior executive roles. Huston joins AutoAlert’s team to direct the company’s marketing efforts and revenue

generation. He will oversee the company’s sales, marketing, and customer care divisions. “As we continue to build a better way for dealerships to connect with customers and grow relationships, we are thrilled to have a pro of Jim’s caliber on board,” said Mike Dullea, CEO of AutoAlert. Black Book Promotes Executives Black Book announced several promotions as a result of the company’s continued expansion and success from key product launches. The announcement was made by Black Book President Tom Cross and

the promotions are effective immediately. Alex Yurchenko, Ph.D., is promoted to senior vice president, data science with responsibility for the U.S. and Canada. Yurchenko joined Black Book in 2015 and was most recently vice president of data science, leading the company’s data science and analytics team in the U.S. Yurchenko holds a Ph.D. in mathematics from Georgia Institute of Technology and a master’s degree in mathematics from Penn State University, both with specializations in Dynamical Systems. Laura Wehunt is promoted to vice president, automotive valuations with responsibility for setting

wholesale and residual values in the U.S. Wehunt was most recently principal automotive analyst. Since joining Black Book eight years ago, she has led in the development of sophisticated tools and methods that are now used daily to establish Black Book’s industryleading wholesale and residual values. Wehunt holds bachelor’s and master’s degrees in Applied Economics and Statistics from Clemson University. Kyle Luck is promoted to vice president, product management with responsibility for the U.S. and Canada. Luck has worked in the automotive industry for almost two decades. He joined Black Book

in 2013 and was most As part of this leadrecently director of ership change, Jochen product management Zeitz has also been in the U.S. named chairman of the board and will remain CEO Steps Down chairman once a new H a r l e y- D av i d s o n , CEO is appointed. CurInc. announced that rent chairman of the Matthew Levatich has board, Michael Cave, stepped down as presi- is now presiding direcdent and CEO and as a tor. member of the Board of Zeitz said, “The Directors. Board and Matt mutuThe Board of Direc- ally agreed that now tors has appointed cur- is the time for new rent Board member leadership at HarleyJochen Zeitz as acting Davidson…On behalf president and CEO. A of the Board, I would board committee will like to thank Matt for be formed, and the his 26 years of service company will utilize an to Harley-Davidson.He external search firm to has worked tirelessly find a new CEO, and a to navigate the comfurther announcement pany through a period will be made at a later of significant industry date. Levatich will as- change while ensursist with the transi- ing the preservation of tion through the end of one of the most iconic March. brands in the world.”

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A.I. –Continued from page 12 “Seventy-four percent of consumers want a more personalized experience before they come into the store,” Abbott said, comparing the idea to Amazon recommendations or playlists from Spotify. The book, which leverages data from VinSolutions’ “Technology and Transformation of Retail” study, shows the “untapped opportunities” that AI can deliver. “Taking tension out of the deal would be a big (win), Abbott said. “Make the deal less adversarial.” He said this sounds the opposite of what dealers have typically done – pressuring to close the deal. AI can help shorten the time a customer takes to get through a carbuying purchase. Some steps can be completed before a customer walks in the door. A dealer can also get a better feel for a customer’s ability to pay. For example, if a customer comes in looking to have a zero-down purchase or $1,000 down payment, the dealer can use AI to explore their shopping behavior. Maybe they see that the customer has been looking around at dealers and looking for $2,000 down payment offers. That would show that the customer may have a little more money to spend. A dealer may also be able to look at shopping behavior to see what cars a customer has been searching for online. Maybe a customer has been rejected for trying to apply for credit on a Yukon Denali. If so, the dealer can use AI to see what a customer’s second vehicle of interest was, and maybe that will be a vehicle that a customer can afford, Abbott said. A dealer may have a similar vehicle on the lot and steering the customer toward it may be easier, knowing the customer has already shown interest in it, Abbott said. It even helps after a sale. If a customer tells a dealer they don’t plan to replace a car for another four years, a dealer through digital retailing can learn that maybe in only two years, the customer is doing a lot of searching online for cars. Abbott said the dealer can learn they are in the market and reach out to her. Abbott said he saw an interview with Amazon founder Jeff Bezos who talked about “obsessing over the customer’s experience,” something dealers need to do more. “I think he was spot on,” Abbot said. “I think some dealers put

their own interests over the customers.” Benefitting from AI, however, first means getting buy-in from the dealership and staff. Dealers have to sell the process to their employees in the same way they sell vehicles to their customers. “We show them the return on their investment (time, effort) that they can get,” Abbott said. “‘Salesperson, you spent an hour less time doing recon on your customer to provide that good experience.’” Abbott said if dealerships provided better tools for employees and a more successful work environment, there wouldn’t be the 70-percent turnover rate among sales staff. Setting a baseline beforehand – average days to sell; CSI score; average per copy; time it takes to do a deal – is critical to tracing success. Abbott said dealers often will simply track the number of sales and base success on that. But if the sale costs more money and requires more time and effort, then cars-sold it is not a clear indication of success. Abbott said running those stats and showing the staff how digital technology has helped them in those categories will go a long way to getting buy-in. If a salesperson sees she can cut the time it takes to sell a car from three hours to an hour-and-a-half, she can see how it will make her more successful, “The technology is doing all of the heavy lifting,” Abbott said. “It’s going through all the thousands of lines of shopping behavior and finding the best of it and bringing the best to the dealership.” Abbott said VinSolutions also has a tool, Sentiment Analysis, which analyzes every email and text sent by the dealership to the customer. It looks for “negative connotations” and/or “positive connotations,” then lifts up problems and opportunities to sales managers. It allows the dealers to find a negative contact to the dealership that maybe a sales staffer may have buried or deleted because it was negative, Abbott said. A.I. allows the dealer to reach out and keep the customer when they might have lost them in the past. The book is available via download through the VinSolutions website.


194

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Retail Markets 3/16/2020 Compiled by Ed Fitzgerald

TENNESSEE Jordan Haislip, vice president, Nolensville Road Auto Mart, Nashville, Tenn. “We’ve been here since 1963. I’m the third-generation. “We had two locations in a half-mile stretch, but we’ve got one big location now in south Nashville. “We were not affected by the recent tornadoes as far as damage, but a couple of our customers were. “We’re doing what we can to help them, probably defer a payment or two. “We’ll be donating to local charities. “We’re a family business and we consider our customers family. “The Manheim auction looked like all the steel buildings were thrown around like rag dolls. “They had a tremendous

16

loss of materials. It was awful. “We normally have about 100 cars in stock, give or take 10. “We probably sell about 35-40 a month. “We are buy-here, payhere. Our average model year is probably 2011. Mileage is right about 100,000 on the miles. “We sell a lot of SUVs and the generic four-door sedan right behind that. “And then (we’ll buy) pickup trucks, if we can find them. They’re like gold these days. “We’ve reduced our reconditioning costs from about $1,200 down to $650. “We got a new mechanic and he’s working wonders. “The last car I sold was this morning. The car was a 2013 Nissan Altima SL, with 135,00 miles. It sold for $8,495.

WASHINGTON Jim Jahn, owner, Auto Connections, Seattle, Wash. “I’ve been in business 15 years. I keep an average of 45-50 vehicles in inventory. I define sales as deals because I do some dealer-todealer wholesale. We do an average of 25-30 a month. “The only thing I buy at auction are donation cars. I buy from a couple new-car stores and an auto broker. I have customers calling me daily offering me cars and I have a couple of fiduciary estate companies that I work with. “Our average down payment is $1,500 to $2,000. We do more cash purchases than finance deals. “I don’t play in the latemodel markets. If I’m doing my job I’m finding those 10-year-old cars with 50,000 miles on them, right?

I would say on average it’s 80,000 to 120,00 miles. “I’d say it’s 60 percent (Asian) imports, 35 percent European and 5 percent domestic. “With my reconditioning, everything is vendored out. I put a motor in a Subaru Forester so I spent $5,200 on that car. Last month I probably spent an average of $1,200 to $1,400 a car. “We do Craigslist and a little Facebook Marketplace, Autotrader, Cars.com and TrueCar. I’ve got a son with a business degree so he may come in and start kicking up my social media. I’m in my mid-50s so it’s not something that I had a lot of exposure to. I did not go to college, so it was all selftaught. “It’s an evolving industry that continues to make it more and more difficult for independents and small lots

to obtain inventory. I’m a guy who utilizes resources and referrals. I work with insurance companies and cars with clean titles that were stolen from your house and recovered three weeks later with no damage. “Subaru is a really good product for us. I had one that would’ve cost someone four grand to do a head gasket and belt work, and I can do that for $1,500-1,800. “Here in Seattle we have had maybe 20 cases of coronavirus. I haven’t had a customer who didn’t want to shake hands. You know politicians, especially with the Republicans and Democrats now, if they can throw the other under the bus they’ll take advantage of that. “The last car we sold was a 2000 Toyota Avalon with 190,000 miles on it for $2,000.”


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Wholesale Markets 3/16/2020 Compiled by Jeffrey Bellant

INDIANA Kevin Brown, managing partner, Indiana Auto Auction, Fort Wayne, Ind.: “We’ve been here more than 50 years. The Stanley, Autenrieth Auction Group has owned it since 2007. I came from Missouri Auto Auction, where my former partner bought me out. So, I came here to help Eric (Autenrieth) with his two auctions. After I came here we bought our competitor – Fort Wayne Auto & Truck Auction – in September 2019, and now we’re just blending the two and building an auction. The old facility was purchased by Copart and we took the business. “We went from, probably, a 450- to 500-car sale to a 650- to 800-car sale. We run eight lanes. “We’re probably 60 percent dealer business and 40 percent fleet. We sell for

CPS (Consumer Portfolio Services), First Investors Financial, Defi, VRS, Credit Acceptance Corp., United Auto Credit Corp., etc. “We’re probably getting 400 bidder badges in the lanes. We’re probably up 100 bidder badges. Our conversion rate is right at 60 percent. “The tax money has started to hit. “For dealers, retail was slow up until the end of February. It’s starting to pick up and trend in the upward direction. Dealers are starting to move cars. “We use Pipeline for online. We’ve been getting really good activity online. “We also do a heavy-duty truck and equipment every other Wednesday. That’s been really good. We’ve doubled out volume on that. We’ll offer 250 every other week – between 200 and

300. We sell over-the-road trucks, box trucks, bucket trucks, a little of everything. “We have a GSA sale. It’s usually every month, but it all depends on their volume. On a good week we’ll have a 100. “It’s starting to come together as we blend two different (auction) cultures together. Plus, I came in with my own ideas, so it’s like blending three auctions. “I’m excited. Fort Wayne’s a great car town. We’re looking forward to 2020. We’re seeing positive trends.”

TENNESSEE Gary Montgomery, general manager, Dealers Auto Auction of East Tennessee, Bluff City, Tenn.: “The location has been here about nine years, but Dealers Auto Auction has owned it for about a yearand-a-half.

“We run four lanes. “Volumes have been picking up. This past week (end of February), we ran 364 and sold 182. “Tax money here (picked up) recently. We have a couple of dealers who are here weekly. One of those guys sold 75 cars in two days and another guy sold 29 in three days. “We are dealer consignment. We don’t have any fleet/lease accounts. But we will run some repos for a couple of small finance companies. “We have Pipeline for online sales. Of course, we’ve got our own marketplace that’s tied into the Dealers Auto Auction website. That has cars from all seven of the auctions. It’s growing every week. Prior to Dealers Auto Auction buying the auction, the online presence was non-existent. This past

week, we had 52 bidders online. “In-lane, we probably have somewhere between 130 and 150 dealers a week. Of course, we’ll have another 25 to 40 online every week. “As I said, tax money recently hit and the new-car dealerships – the franchise dealers– are saying they’re busy as well. For buy-here, pay-here guys, this is their time of the year to make hay. They are really excited about what’s going on. “We run some specialty units each week. We’ll run some side-by-sides, golf cars, as well as some boats from a boat dealer. “For our regular sales, the last two, three or four months, the average price in the lanes has been $5,700 to $6,000. “January was a great month for us and February was also a great month.”

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Your source for quality, selection and value: A broad selection of pre-owned vehicles from an industry leader. April 2020 Chase High Lines, featuring: 1 1

ADESA Boston April 3, 10, 17, 24

ADESA Salt Lake April 14, 28 801-322-1234

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ADESA Boston April 10 508-626-7000

Manheim Dallas April 14 877-860-1651

ADESA Brasher’s April 28

ADESA Tulsa April 10 918-437-9044

Manheim Orlando April 7, 14, 21, 28 800-337-8491

ADESA Golden Gate April 21 209-839-8000

Manheim Milwaukee April 1, 29 262-835-4436

ADESA Charlotte April 9, 23

ADESA Washington DC April 1, 29 703-996-1100

Manheim Palm Beach April 15 561-790-1200

Manheim Atlanta April 22 404-762-9211

Manheim Palm Beach April 15 561-790-1200

ADESA Chicago April 3

Columbus Fair AA April 8, 15 614-497-2000

Manheim Pennsylvania April 3, 9, 10, 17, 23, 24 800-822-2886

ADESA Cincinnati/Dayton April 7

Manheim Atlanta April 9, 22, 23 404-762-9211

Manheim Phoenix April 2, 9, 15, 16, 23, 30 623-907-7000

ADESA Golden Gate April 7, 21

Manheim Dallas April 1, 14, 15, 29 877-860-1651

Manheim Pittsburgh April 1, 29 724-452-5555

ADESA Houston April 8, 22

Manheim Denver April 1, 29 800-822-1177

Manheim Riverside April 2, 14, 16, 28, 30 951-689-6000

ADESA Indianapolis April 7, 21

Manheim Detroit April 9, 23 734-654-7100

Manheim Seattle April 8, 22 206-762-1600

ADESA Jacksonville April 23

Manheim Fredericksburg April 2, 16, 30 540-368-3400

Manheim Southern California April 9, 23 909-822-2261

ADESA Kansas City April 7, 21

Manheim Milwaukee April 1, 15, 29 262-835-4436

Manheim Tampa April 2, 9, 23, 30 800-622-7292

ADESA Lexington April 16

Manheim Minneapolis April 22 763-425-7653

Southern AA April 1, 29 860-292-7500

ADESA New Jersey April 9, 23

Manheim New Jersey April 1, 15, 29

Manheim Pennsylvania April 9, 23 800-822-2886 Manheim Phoenix April 15 623-907-7000 Manheim Riverside April 2, 16, 30 951-689-6000

2

ADESA Boston April 3, 17 508-626-7000

Manheim Atlanta April 23 404-762-9211

ADESA Charlotte April 23 704-587-7653

Manheim Dallas April 1, 29 877-860-1651

ADESA Chicago April 3 847-551-2151

Manheim Detroit April 9 734-654-7100

ADESA Golden Gate April 7 209-839-8000

Manheim Fredericksburg A April 16 540-368-3400

ADESA Houston April 22 281-580-1800

Manheim New Jersey April 1, 15, 29 609-298-3400

Columbus Fair AA April 15 614-497-2000

Manheim Orlando April 7, 21 800-822-2886

Manheim Pennsylvania April 3, 17 800-822-2886 Manheim Phoenix April 2, 30 623-907-7000 Manheim Pittsburgh April 1, 29 724-452-5555 Manheim Seattle April 22 206-762-1600 Manheim Tampa April 2, 30 800-622-7292

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Chase High Lines, featuring:

4

ADESA Boston April 10 508-626-7000

Manheim Dallas April 14 877-860-1651

ADESA Golden Gate April 21 209-839-8000

Manheim Milwaukee April 1, 29 262-835-4436

Manheim Atlanta April 22 404-762-9211

Manheim Palm Beach April 15 561-790-1200

Manheim Pennsylvania April 9, 23 800-822-2886 Manheim Phoenix April 15 623-907-7000 Manheim Riverside April 2, 16, 30 951-689-6000

ADESA Boston April 17 508-626-7000

Manheim Fredericksburg April 2, 30 540-368-3400

Manheim Pittsburgh April 1, 29 724-452-5555

ADESA Salt Lake April 14, 28 801-322-1234

Manheim New Jersey April 15 609-298-3400

Manheim Seattle April 22 206-762-1600

Columbus Fair AA April 8 614-497-1177

Manheim Orlando April 28 800-337-8491

Manheim Southern CA April 9 909-822-2261

Manheim Denver April 1, 29 800-822-1177

Manheim Pennsylvania April 10, 24 800-822-2886

Southern AA April 1, 29 860-292-7500

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 JPMorgan Chase Bank, N.A. ("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 JPMorgan Chase Bank, N.A. ("Chase") is under license.

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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 JPMorgan Chase Bank, N.A. ("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

Maserati Capital USA, the Maserati logo and model designations are registered trademarks used by JPMorgan Chase Bank, N.A. ("Chase") under license from Maserati S.p.A.

Neither JPMorgan Chase Bank, N.A. ("Chase") 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. Š2020 JPMorgan Chase Bank, N.A. Member FDIC (20-004) 4/20


Wholesale Numbers UCN usedcarnews 3/16/2020

SEG/TYPE ID

2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015

Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck

2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016

MAKE/MODEL/NAME

2019/02/01

2019/08/01

2020/02/01

2021/02/01

2022/02/01

Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Focus Volkswagen Jetta Ford F150 Chevrolet Silverado 1500 Ram 1500 Chevrolet Equinox Ford Escape Toyota RAV4 Jeep Grand Cherokee Ford Explorer Jeep Wrangler Nissan Rogue

9050 10100 8600 9150 9300 9700 7250 7650 7250 7950 23700 23400 21300 10900 10750 12150 15375 16750 24400 11850

9000 10100 8250 8650 8900 9150 6200 7100 6750 7350 23500 23800 21300 10650 10400 12500 15500 15875 23850 10700

7750 9200 7350 6900 8050 8300 4600 5900 5200 6450 20500 20800 18600 8900 8800 10950 13250 13575 22250 8850

6725 7775 6225 6075 6550 6650 4100 4925 4300 5200 18275 19125 16075 7225 7475 9725 10675 11650 20175 7725

5900 6800 5325 5375 5525 5400 3425 4075 3575 4225 15575 16900 13975 5700 6275 8450 8650 9750 18150 6625

Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck

Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Focus Volkswagen Jetta Ford F150 Chevrolet Silverado 1500 Ram 1500 Chevrolet Equinox Ford Escape Toyota RAV4 Jeep Grand Cherokee Ford Explorer Jeep Wrangler Nissan Rogue

11350 11700 9950 10150 11150 12150 8200 9000 8350 8900 25700 26500 23000 12700 12100 13600 16500 18700 25875 13150

10700 11600 10250 10000 10500 11650 8050 8500 8300 8750 26400 27100 22700 12200 11650 14400 18050 19400 25825 12350

10200 10500 9050 8850 9600 10900 7100 7150 7200 8300 22000 23300 19900 10500 9900 12200 14775 17125 24025 10400

8675 8900 7650 7575 7650 8700 5550 5875 5625 6625 19450 21650 17450 8525 8575 10950 12250 14525 21750 8950

7500 7750 6425 6550 6450 7075 4450 4875 4550 5300 16750 19150 15425 6800 7175 9550 10175 11950 19550 7650

2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017

Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck

Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Focus Volkswagen Jetta Ford F150 Chevrolet Silverado 1500 Ram 1500 Chevrolet Equinox Ford Escape Toyota RAV4 Jeep Grand Cherokee Ford Explorer Jeep Wrangler Nissan Rogue

13050 13050 11000 12000 12500 13150 9550 9950 8950 10750 26700 28500 24000 14700 13500 15250 19125 20950 27650 15250

12200 13250 11400 11800 11900 12550 9050 9950 9350 10500 28000 28200 24400 13675 13150 15900 20125 20900 27275 14100

11200 11900 10500 10550 11000 11800 8450 8850 8150 10100 24000 24800 21700 11925 11000 13700 18525 19800 25425 12350

9600 10050 8625 8950 9075 9600 6550 7200 6550 8250 21200 23175 19150 9850 9550 12225 14900 16550 23100 10725

8450 8750 7275 7650 7700 7975 5325 6000 5300 6675 18400 20750 17050 7925 8000 10650 12275 13650 20875 9125

2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018

Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck

Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Focus Volkswagen Jetta Ford F150 Chevrolet Silverado 1500 Ram 1500 Chevrolet Equinox Ford Escape Toyota RAV4 Jeep Grand Cherokee Ford Explorer Jeep Wrangler Nissan Rogue

14750 16250 12600 13100 14050 14850 11150 11350 9700 13450 28000 29800 26200 17300 15450 16250 21275 24375 28150 16550

13750 16550 12750 13200 13000 14350 10250 10850 10750 12600 29000 30000 25800 16475 15400 17450 22775 24300 28400 15550

12750 15300 11850 12000 12100 13600 10000 10000 9600 11600 25500 26300 23200 14150 12650 15500 20925 22375 26850 13550

11025 12800 9900 10275 10125 11150 8075 8300 7900 9500 23200 24750 20725 12300 11050 13825 17025 19625 24800 12250

9725 11025 8325 8800 8700 9300 6650 6975 6425 7750 20875 22450 18925 10300 9325 12075 14275 16600 22725 10450

Actual Wholesale and Projected Residual Values

M/Y

Source: Black Book


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Disconnected Jottings From

Tony Moorby 3/16/2020 Tony Moorby There are lots of things whirling around right now; The coronavirus seems like it’s in the air we breathe, the stock market is on a helterskelter ride – up one day, down the next and finally we had awful, deadly tornadoes here in Nashville Tennessee’s nickname is ‘The Volunteer State’, for good reason; a total of four tornadoes ripped through the Mid-State and five to our north, in southern Kentucky. They made their appearance during extremely unsettled and stormy weather between 12:30 and 1:30 in the morning. While it’s scary to think of these monsters roaming in the darkness, in a way it was a blessing. The types of places that were hit would have been swarming with people in the daytime; schools, light industrial facilities and storage warehouses, restau-

rants, apartments, churches and healthcare buildings all razed to look like a war zone. Twenty-two fatalities occurred mainly in sleepy subdivisions in Cookeville, a little way east. As if that’s not bad enough, it could have been many times worse as a daytime event. As daylight came, bewildered people were walking around like zombies, stultified by what they saw. Houses were lifted from their foundations and cars were thrown around like toys. Nothing was left standing for a forty-mile stretch of its path which, at times, was a half a mile wide. Manheim’s Nashville Auto Auction suffered considerable damage and will be closed for a while. I had built a showroom, recon center and 14 dealer offices adjacent to the auction back

in 2003 and sold it five years ago to a huge wholesale operator – nothing’s left but rubble. Since the very morning after, the air has been abuzz to the chorus of chainsaws. Almost any tool that could be thrown into the back of a pickup truck has been employed by a veritable army of volunteers, coming from all directions to help get things back to some semblance of order. Cookeville had a two-mile tailback on the main road into town – volunteers made a traffic jam of the best kind of people itching to help out. The utility companies had to ask folks to stay away for a day so they could safely get to repairs. How come we have to wait for disasters to be nice to one another? There are, of course, the scumbags and cockroaches of society who

By Myles Mellor

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35. Ford crossover SUV

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36. Gear component

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38. You and me

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12. Brought in from outside the USA

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47. Reduce speed, 2 words

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Solution to this puzzle in the 4/6/2020 issue. Call 1.800.794.0760 for a FREE subscription.

22

how connected the world is. The markets are keenly aware that supply chains are under pressure internationally and many products will be more difficult to source. Our self-subsistence will be truly tested. Prices may go up as employment slows down – there’s a double whammy. I hope we can borrow some of Tennessee’s spirit throughout the U.S., throwing selfishness to the wind in favor of charitable giving. Remember the feelings immediately after 9/11, when everyone was kind and giving? That’s what I mean.

31

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

Play Online at Us e d C a r N e ws. c o m

Across

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• 50-year veteran of the industry • President from 1997– 2000 of ADT Automotive

are only too ready to swoop on the less fortunate and make them even worse off. Looters and scam artists should be taken out and shot at dawn in a public square, as far as I’m concerned. Now that the coronavirus has reached us, the gougers are out and about, emptying shelves and reselling on eBay and Amazon, preying on the fears of the frightened. Let’s hope that folks realize you can make your own disinfectants, and face masks aren’t that effective at keeping out the virus so that these robbers get caught with thousands of dollars’ worth of inventory stuck sideways where the sun don’t shine! Speaking of there; Costco has had a run (pun intended) on toilet paper. Why? That’s the wrong end. I think we are just being made awfully aware of just

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Solution to the 2/24/2020 puzzle

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The more things change, the more they stay the same. May 2020

Profile for Used Car News

Used Car News 3/16/2020  

Used Car News 3/16/2020