Used Car News 4/6/2020

UCN

Used Car News

usedcarnews

4/6/2020

Dealers Make Battle Plans in Midst of Crisis

By Jeffrey Bellant

karglobal.com

IN THIS ISSUE:

Rush - Dated Material

Information regarding the coronavirus pandemic is constantly changing. Used Car News is committed to bringing any breaking news to its readers. Some of the information in this issue may have changed after publication.

For the latest on COVID-19, readers are encouraged to use online resources from CDC, WHO and local public health departments. We are updating our website daily. Visit us at usedcarnews.com and subscribe to our e-newsletter here: https://mailchi.mp/usedcarnews/newsnow or email subs@usedcarnews.com.

In the midst of a global pandemic and business restrictions that change almost daily, independent dealers continue to battle, hoping to outlast the effects of COVID-19.

Dave Andrews, CEO of City Enterprises, owns seven wholesale auto auctions and nine car dealerships across the Southeast.

“We’re all kind of changing our lives, for sure,” said the Florida resident with business offices in Memphis and Nashville.

At press time, City Auto’s retail locations were still open, though some areas in the state were shut down. His auction group is made up mostly of digital sales, with a couple of live sales that were still running cars at press time.

“When we have a live sale, though, we’re limiting the number of people attending,” he said. “We’re certainly practicing social distancing.

“Volumes are way down.”

Andrews said no business could have prepared for what’s happening now.

“You could have graduated from Harvard Business School and not been prepared for something like this,” he said. “It’s the duration that’s the wild card.”

Andrews hopes this ends sooner rather than later.

“But if this thing drags on for another six months, then it’s going to be a very big deal. It won’t be like coming back from vacation.”

President Donald Trump had been suggesting that Easter could be a time when the country starts going back to work, but he later pulled back on that optimistic target.

Andrews said it is critical to get back in business as soon as the industry is safely able to do so.

He said that doesn’t mean places like New York City would be able to

open up at that time, but maybe other places and services could open.

Either way, it’s a serious situation.

“But we’re just dealing with it,” he said.

come out and ordered people to shelter-in-place. We’re considered an essential business,” he said.

“We’re working with a skeleton crew, so to speak. We sent home

Andrews’ top management team holds a meeting every day for updates, because of the fluidity of the situation.

As of March 25, the company had not laid anyone off.

“We’re all concerned about our people,” he said. “They’re family.

It’s not like they’re just a bunch of people we hired off the street yesterday.”

For those who are 70 or older, the business is letting them go home to keep them safe.

The approval of the $2 trillion CARES Act relief package may help dealers fight through this shutdown and its challenges.

In Durham, N.C., the city was under a “stay-at-home” order for nonessential businesses at press time.

Michael Darrow, president of The Auto Finders in Durham, was still open for business.

“Different municipalities have

our sales staff yesterday (March 25). We’re working with just a few people to keep the store open and answer phones. If we get that rare customer to call, we may bring it right to them in their driveway and see if we can work a deal.”

Although Darrow is allowed to have people at his lot, customers are still a little leery to come out, he said.

“It seems like a lot of folks are really freaked out and they’re staying at home,” Darrow said. “Our email lead count is down, our phone calls are down and, obviously, the lot visits are down.

“We’re just trying to be creative and see how we might be able to help customers out.”

Darrow said safety and convenience are both factors in offering to bring vehicles to customers if there is a concern.

Continued on page 9

Copart GO App

Directly connecting Sellers' offsite vehicles with

Buyers around the world!

Ready to get started?

Learn more at Copart.com/Go

NO WORRIES. JUST DRIVE RESULTS. You’re on the road to your goals—let us be your copilot. We can help drive results from your used-car operation with the right F&I products, profit-building programs, training and dealership development.

Take the wheel.

GWCWARRANTY.COM/DRIVERESULTS

AN APCO HOLDINGS BRAND ©2020 GWC Warranty and No Worries. Just Drive are registered trademarks of GWC Warranty Corporation.

Independents 4/6/2020

Dealer Associations Lobby for ‘Essential’ Designation

By Jeffrey Bellant

Dealer trade associations across the country are struggling to help their members work through shutdowns caused by the coronavirus (COVID-19) pandemic, while lobbying the government to define car sales an “essential business.”

At press time, the federal government had not deemed car sales as essential, while some states did and others did not.

On March 24, Steve Jordan, CEO of the National Independent Automobile Dealers Association, wrote a letter to President Donald Trump asking him to amend federal guidelines so that car sales join auto repair facilities as essential businesses. He pointed out that a consumer may be unable to get a car fixed, or the car is “worn out” or it’s a total loss. Under the guidance, a customer would be stuck with no car and out of luck.

There had not been a response by the administration at press time.

NIADA, like other businesses, has suspended some travel, put in a hiring freeze and added other cost-containment measures. The 2020 annual convention scheduled for June will likely be rescheduled to the fall.

Also, the group will combine the NABD BHPH Subprime Conference with the NIADA show this year.

Lou Tedeschi, NIADA’s presidentelect, said associations at the local level are trying to help dealers with some challenges that don’t make the front page.

“We’re been trying to help dealers find places to get vehicles registered, if they have to register them,” he said. “A lot of times, just because you’re closed down doesn’t mean you didn’t have five deals in the queue.”

One of the biggest challenges for state independent automobile deal-

Photo by Jeffrey Bellant ADVOCATE: Steve Jordan, CEO of the National Independent Automobile Dealers Association is leading the charge to make auto sales an “essential business” nationwide, as some states and localities have shut them down as “non-essential.”

er associations is interpreting state shutdown rulings that are, in some cases, unclear whether dealers can

Continued on page 6

BUY ONLINE | CFAA.COM

We Only Sell Service COLUMBUS FAIR AUTO AUCTION List your units, increase exposure • CFAA Marketplace • OVE • SmartAuction Buy online, build your lot • Intuitive Simulcast • Proxy bidding • Create wish lists XLerate GROUP AUCTIONS

XLerateGroup.com

3

News Briefs

UCN usedcarnews

4/6/2020

Cox Offers Relief

Cox Automotive’s Keith Jezek has announced the Cox Automotive Retail Solutions COVID-19 Assistance Program.

For the months of April and May, Cox will provide a 50-percent discount on Retail Solutions Dealer Subscription Product fees that include the following: Autotrader Subscription Listings; Dealer.com Websites and Digital Retailing; Dealertrack DMS; Dealertrack F&I; Dealertrack Registration & Titling Subscription Products; HomeNet Automotive; Kelley Blue Book Instant Cash Offer; vAuto; VinSolutions amd Xtime.

This reduction applies only to Cox Automotive Retail Solutions subscription fees. Associated fees from non-Cox Automotive entities remain the domain of those entities for their services. If any DMS provider lowers or waives their fees to Cox Automotive, Cox will pass the entire savings along to customers.

AFC Launches Program

Automotive Finance Corporation, a business unit of KAR Auction Services, announced the launch of its AFC Customer Relief Program. Under the program, eligible customers can choose to defer curtailment payments due through May 31, 2020, on eligible unsold units, including principal, fees and interest on those vehicles. Customers benefit by having the option to make no payments on any new or existing unsold eligible vehicles coming due between now and the end of May. “Small businesses have been hit especially hard during the current economic events, and the health and economic well-being of our customers is paramount to all of us here at AFC,” said Jim Money, president of AFC. “I want to personally reassure our customers that AFC is here for you in this time of great need. We’ll continue to monitor market conditions and review any program adjustments we can make to help customers further.”

The Customer Relief Program is

designed to provide additional support to customers who may experience longer turn times and other business challenges during the COVID-19 coronavirus pandemic and its impact on the economic environment.

AFC’s March interest rate decrease (150 basis points in the U.S. and 100 basis points in Canada) offers customers some of the lowest interest rates available.

Ally Supports Dealers

Ally Financial launched a comprehensive set of financial support initiatives to help the people and communities it serves to withstand the extraordinary pressures triggered by the COVID-19 health crisis and be better positioned to recover quickly from its effects.

Ally is taking the following steps to provide support to its customers, auto dealers, communities and employees.

In recognition that auto dealers are fundamental economic engines for their local economies, Ally is working closely with its network of approximately 18,000 dealers to navigate changing market dynamics, assess their specific needs and develop individualized solutions.

This includes offering consumer incentives that help dealer customers, as well as specific solutions to help dealers with their loan funding needs.

Ally also is making its dedicated credit and funding staff available to dealers as needed to provide fast and efficient funding options that help them maximize used and new vehicle sales.

Santander Helps Auto Sellers

Santander US announced that it is taking steps across its businesses to assist and support its customers, employees and communities impacted by the coronavirus pandemic.

“Banks are a critical part of our national infrastructure and community fabric, especially in difficult times such as the current coronavirus pandemic, and we take very seriously our responsibility to help our customers, employees and communities,” said Tim Wennes, Santander US CEO. For its Chrysler dealers and prospective Chrysler Capital customers, the company is partnering with FCA to launch new programs, including: first payment deferred 90 days on select FCA models; 0 percent Annual Percentage Rate for 84 months on select 2019/2020 FCA models.

4

Volume 26 | No.1 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 Emeritus Colleen Fitzgerald, Publisher Editorial: Jeffrey Bellant, Managing Editor Ed Fitzgerald, Staff Writer Advertising: Shannon Colby, Account Manager Tony Moorby Columnist: Circulation: subs@usedcarnews.com Production: Tom Savage, Production Manager Cee Lippens, Web Master Used Car News is published every third week.

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.

Join the Conversation!

Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

UCN PAGE 14 usedcarnews

Dealers 4/6/2020

REMARKETING

NY Dealers Get Big Win

By Jeffrey Bellant

New York automobile dealers are essential after all.

After the State of New York ordered nonessential businesses to shelter-in-place – “New York on Pause” – independent dealers lobbied hard after they were left off the “essential businesses” list.

Efforts by the dealers through trade groups like the New York Independent Automobile Dealer Association (NYIADA) succeeded in changing the government’s position.

They lobbied Gov. Andrew Cuomo, The White House and Empire Development Corp. requesting essential status.

On March 26, the Empire State Development Corp. authorized dealer sales with a new phase among the list of essential businesses: “Automotive sales conducted remotely or electronically, with inperson vehicle return and delivery by appointment only.”

Paula Frendel, executive director of the NYIADA, issued a press release about the change.

“This language allows dealers to sell vehicles over the phone and over the internet and schedule in-person vehicle return and delivery by appointment only.

“This change allows our independent dealers to continue to sell vehicles to our population, who need vital transportation for individual and family safety and maintenance purposes during this time. This will mitigate negative economic repercussions, which would have occurred for a full closure as well.”

Frendel was thrilled with the result of the group’s work.

“I’ve just been getting so many phone calls thanking me, but I said, ‘this is why you need to support the association,” she said in a phone interview shortly after the change.

“This is why you need to join the association. We have to work together.

We are a unit. We have to support each other during these difficult times. We’re in this together.

“It’s a big win for the association and for the consumers.”

Frendel and NYIADA’s board members discussed their efforts that same day, before getting the good news.

Frendel, along with board President Fred Donnelly of Hunts Point Auto in the Bronx and Board Directors Rick and Dana Bress of Galaxy Auto Place in West Seneca discussed how keeping dealers closed hurt businesses and consumers.

Frendel said she spent each day since the original order was issued answering phone calls and emails “until 11 o’clock at night.”

One of the biggest problems with the original order was that it only hurt New York dealers.

“There are other auto sales companies whose platforms are online that are able to sell to New York and drop off cars,” Frendel said, “even though our dealers could not.”

Donnelly dealers aren’t the only ones hurt by this.

“If a police officer, fireman or worker in this industry need a car to get to work, what is the alternative?” he said. “Public transportation is a petri dish for this virus.”

Rick Bress said another problem was that the order froze inventory, preventing dealers from even liquidating their vehicles since it prevented even wholesaling.

Dana Bress also pointed out the sales taxes dealers generate.

She explained her frustration about the original “essential business” list.

“I received an email from our dry cleaner,” she said. “They’re still open and running. Nothing against dry cleaners, but how are they essential?”

ARTIST OR SCIENTIST?

Shannon Colby, Used Car News

PARTNERSHIP PROMOTES PROGRESS INSTINCT IGNITES INNOV ATION Successful business people become stronger together, drawing on each other as catalysts for expansion and originality in their professional lives and beyond.

We congratulate and celebrate with Used Car News during their 25th anniversary. Thank you, Shannon Colby and the rest of the UCN crew, for being a valued partner to AutoIMS.

CONNECTED INVENTORY MANAGEMENT | CUSTOM TECHNOLOGY SOLUTIONS

Learn more: 888-683-2272 WWW.AUTOIMS.COM

5

IADA

FLEXIBLE CAPITAL for all your dealership needs!

• Local Point of Service in YOUR Market • Bulk Purchase Program with NO Hassles • Payment Stream Advances (6-15 months) • Aged Pay Share Program that gives you Capital and Cash Flow!

• Floorplan for select BHPH Dealers with NO Audit Fees!

• Servicing for all types of Auto Receivables

®

CAR FINANCIAL SERVICES, INC. Dealer Solutions

1.877.570.8857 www.carfinancial.com 6

4/6/2020

IADAs – Continued from page 3 sell cars.

Wendy Rhinehart, executive director of the Ohio Independent Automobile Dealers Association, said dealers are confused.

“It depends on who you ask – and what day and time –what they think dealers are allowed to do,” she said Some states will allow auto repair businesses, but not sales.

“Dealers without service wonder why it’s OK for the other person to sell.

“The fact that we don’t know when it will end (is what’s frustrating),” Rhinehart said.

Dealers want to have the choice of shutting down for safety, but then be able to open within a certain time period.

Rhinehart said states like Illinois, where car sales are allowed by appointment, strike a good balance.

Gordon Tormohlen, chairman of the Illinois Independent Automobile Dealers Association, said Illinois is like other states where the policies involving what’s an “essential business” that can stay open can be confusing or contradictory.

“Holy cow, I’ve got an inch-anda-half’s worth of paperwork on this thing,” he said. “We’ve got the proclamation, which was pretty vague.

So, we broadcast that dealers were allowed to sell.

“But the very night we told them that, two dealers were asked to close their doors after 5 p.m. that Saturday by the Secretary of State’s police. It was like, ‘oh crap.’”

After seeking clarification from the governor, the state ended up allowing car sales.

“Their hot button is they don’t want a lot of people on the showroom floor,” Tormohlen said.

“It’s to keep distance, six feet away and all that. That’s where the solution came to making sales by appointment.”

He said the sales staff at his dealership work leads when they are not selling and if someone tries to come in, they ask the customer to exit the showroom, call the store and make an appointment.

“Then we walk right back out and talk to them,” Tormohlen said.

Illinois dealers have an additional challenge over a new law that capped the maximum trade allowance for tax purposes at $10,000.

He said for a customer that brings in a $25,000 trade-in, “they’ll get dinged an extra $900 in tax.

The law is not widely understood by customers and traffic was already

off in high-dollar retail stores before COVID-19 hit the state.

“We had worked hard last year to get it changed, but we failed,” he said. “We worked with a group of senators together to correct the tax problem. Ironically it was scheduled to be voted on the week of March 16 and that’s the week the legislature decided they would no longer meet.”

Larry Laskowski, executive director of the IADA of California, struggled in March to give guidance to dealers.

Gov. Gavin Newsome’s original shelter-in-place order only included car repair shops as essential. Counties offered conflicting lists.

“We’ve seen two counties (Los Angeles County and Sacramento County) that specifically state that auto sales are considered an essential business and will still open during this crisis,” Laskowski said at the time.

However, Newsome’s order appears to overrule counties and Laskowski has asked dealers to consult their attorneys before doing anything.

In Texas, the state had not issued any shelter-in-place orders as of March 26, but a number of the state’s 254 counties had issue restrictions.

Chris Templin, president of the Fort Worth Independent Automobile Dealers Association, said his county is under a stay-at-home order.

He praised the Texas IADA, which is putting together a web page to show the status of all of the state’s counties.

“These counties are doing their own thing,” Templin said. “Some counties have written stay-at-home orders and listed dealers as essential businesses and others have them listed as non-essential businesses,” Templin said.

“Everything is moving so fast and it’s not being thorough or collaborated. Not everyone is on the same page. I think that’s what’s really scaring America. We’re not on the same page.”

Rhinehart said the joke around all of the shelter-in-place rules is that in nine months there are going to be a lot of new babies.

But she said there may be another result, as manufacturers roll out 84-month financing, 0-percent interest deals, and offers of three to six months of no payments.

“In 12 months, the repo sales will be off the hook,” Rhinehart said.

For Safety, Our Sales Are

ALL DIGITAL LIVE AUCTION LANE BIDDING

Make Sure You Are

Registered Online

Sign In Before Sale

Check Our

Inventory & Run Lanes

March 18–April 23

*Does not include test drives, mechanical, or drivetrain.

If you need Carolina AA online sales assistance, Call Haylee Mauldin at (864) 231-7000

• • • • • •

• • • • • •

FREE 5–Point Condition Report Inspection* for all Dealer Cars

Form of Payment Please consider using these preferred payments:

Wire Transfers ACH Floorplan

If you need Indiana AA online sales assistance, Call Amber Johnson at (260) 489-2776

CAROLINA

INDIANA

online Wednesdays at 9:00am:

online Thursdays at 9:00am:

CarolinaAutoAuction.com

IndianaAutoAuction.net

140 Webb Rd. | Williamston, SC | (864) 231-7000

4425 W. Washington Ctr. Rd. | Fort Wayne, IN | (260) 489-2776

Auctions 4/6/2020

IAG, NAAA Work Together to Support Auto Auctions

By Jeffrey Bellant

Auctions and their trade groups are working together to help members during the global pandemic caused by the coronavirus (COVID-19).

Leaders from the National Auto Auction Association, the Independent Auction Group (IAG), Manheim and ADESA hold weekly conference calls to discuss the continuing challenges of the viruscaused shutdown.

NAAA’s CEO Frank Hackett facilitates the weekly conference calls. After the March 23 discussion, Hackett said the NAAA suspended dues payments for member auctions. The NAAA also moved up its $3,000 dividend check for each of the 260 auctions to that week. When auctions participate in AuctionNet, allowing NAAA to gather their data, they receive an annual dividend check.

As a result of NAAA’s move, it is providing more than $1.4 million in relief to auctions at the outset of this economic shutdown.

Hackett singled out Lynn Weaver, IAG executive director, and his group for doing their part to support independent auctions in their time of need.

IAG had sent out its dues bill to its 196 members in January and had gotten about half of the payments back at the time of the crisis.

“We decided we would refund those and suspend dues through 2020,” he said. “At the same time, we gave back the dividend checks our larger members give us voluntarily.

“It gives people some money back in their pockets. It’s not a ton of money, but it’s something. Everyone is scrambling for any kind of revenue. If there’s anything we can do to help them, we want to do that.”

Weaver said, at press time, the

challenge remains the confusing and sometimes conflicting rules put out by states, counties and local municipalities.

Even if auctions are allowed to open, there are still things they have to do to keep the environment safe. “(Focusing on) cleanliness, social distancing, especially when dropping off paperwork and checks – and determining how many people you need for that,” Weaver said.

Independents face a daunting task that the corporate chains don’t have.

“I don’t know if we’re going to lose any because of this,” he said. “For these auctions that have been told to close, it’s been a huge financial burden. It’s like nothing we’ve ever done before.”

Weaver said he talks to Hackett every day to get updates and share information.

“It’s a very difficult and confusing time, especially independent auc-

tions who rely on their own street smarts and experience to make decisions,” he said. “The other problems are what to do with our people, the staff. Some are going to have to lay them off and then be in position to bring them back and get onboard quickly to get back in business as fast as we can.”

With the same hardships being felt by auto dealerships, it raises the question of how quickly the industry can ramp back up after it gets through this challenge.

Weaver believes things can rebound if the crisis passed quickly, but he remains concerned about the future.

“If this ends in a week or two weeks, and we start opening up things again, we’ve got a lot of 2020 left and we can make up a lot of ground,” he said. “If this drags on into the summer, I don’t know how the economy is going to come back.”

CASH TIED UP IN INVENTORY, A TITLE’S MISSING WITH A BUYER ON THE WAY AND OUR STREET IS CLOSED FOR ROAD WORK IT’S A...

...KIND OF WEEK.

8

Dealers 4/6/2020

Dealers – Continued from page 1 Darrow said he’s talked to dealers across the country who are asking what they should be doing.

“There’s no playbook that we can open up and say, ‘Well, last time this happened, we did such and such.’”

Darrow added that safety at this time applies to financial positions, as well.

“I think cash preservation is the most important thing you can do right now,” he said. “Keep working capital as healthy as you can so you can weather through this and continue to have employees when you come out the other side.”

Darrow said in the Great Recession of 2008-2009, the strategy worked for his dealership and he’s trying to follow that plan again.

“Don’t make any rash decisions,” he said.

He praises the new economic re-

lief plan that was being approved at press time and feels it will help small businesses.

“In 2008 and 2009, there wasn’t anything for us,” he said.

In Illinois, the state was allowing auto sales by appointment only and that was helping dealers survive in this crisis, at press time.

“Actually, I’m doing very well,” said Gordon Tormohlen, of Gordon Tormohlen’s Good People Automotive in Freeport, Ill. “I have the buy-here, pay-here model and we’re quite stable.”

Although he has a business model that relies on cash flow, Tormohlen doesn’t sound stressed out.

“We’re making payment arrangements with a handful of customers.”

He said working with customers in a buy-here, pay-here dealership in this environment is not a one-size-

fits-all situation.

“It’s almost got to be a case-bycase basis,” he said. “Then, as long as they will do anything to acknowledge their payment – even if it’s $20 a week, we’ll work with them. We realize we will have to push the reset button when it’s all settled.”

Lou Tedeschi, president and owner of A.S.P.I. Motor Cars in Dedham, Mass., is stuck in the middle of essential and non-essential businesses.

Massachusetts was a shelter-inplace state – from March 24 to April 7 at press time.

Like many places, auto sales were ruled non-essential, while auto service was ruled essential. Tedeschi has both businesses.

“The sales department is closed, but our service department is open,” Tedeschi said. “The service business has actually been steady. We had a

lot of stuff on the back burner that is keeping my guys busy.”

The service department has a drop-off and pick-up policy in place to keep everyone safe.

Like Darrow, Tedeschi is reminded of the Great Recession.

“Anybody who’s been through this before plans ahead. You have to stock a little bit of money away and watch your floorplan. We don’t floorplan,” he said.

One challenge for dealers is if banks pull their credit lines. In 2008, a bank pulled Tedeschi’s $5 million credit line back to what he owed, even though he’d never missed a payment.

“So, I had to put personal financials into the business and use those to run the operation,” he said. “They don’t realize the harm they do to dealers when they do that.”

IT HAPPENS. Don’t let one bad week bring you down. NextGear Capital has the industry-leading tools, resources and expertise to help you keep business moving no matter what comes your way.*

For MORE details, visit nextgearcapital.com

*Certain conditions apply. All rights reserved. Dealers should refer to the terms and conditions of their Demand Promissory Note and Loan and Security Agreement and any other agreements with NextGear Capital for complete details, terms and conditions. This offer has no cash value. All advances made in California by NextGear Capital are made pursuant to NextGear Capital’s California Finance Lender License, #603G505.

9

Retail Markets 4/6/2020 Compiled by Ed Fitzgerald

IOWA Ron Rude, co-owner, Don’s Sales & Service, Decorah, Iowa: “I’ve been in business 16 years. We keep about 30 cars in inventory. I’m not sure how many we sell a month; it’s been bouncing around so much.

“Trucks have fallen off the lot for us, they’re so expensive. The majority of what we’re stocking now is SUVs. The Sorrentos are good, they’re all built down in Georgia now. I remember when we first started, we had a Sorrento and we almost had a wine-tasting party when we sold it. We’re a small town of 8,000 and a foreign exchange student bought it. Then in 200405 we started getting the Amanti in and we sold a ton of those. For a used car dealer to deal with, the Kia dealer was by far the most

accommodating. Now we’ve got a Buick dealer next door to us that is also just a super group to work with.

“We get cars from Manheim and ADESA. We’re also doing more and more business with Enterprise.

We’re buying online, even with the $50 extra charge of using online, which everyone has had for years.

“We’re probably 65 percent domestics sold, though it’s getting hard to classify imports. Even when you look back, there were a lot of GMs that were built in Canada.

“We do our own certified used, so we recondition them, and run them through the shop. You know, I even watch how many key fobs are in the car. If there’s a good reconditioning report on the vehicle from the auction house, then I’ll spend top dollar. We’ve got a full

shop, it’s really equal to a new-car shop.

“Our average car is maybe three-and-a-half years old.

Our cars have average miles on them, meaning 15,000 miles a year. I’ve got a ’16 RAV4 out here with only 8,000 miles on it. “(With the coronavirus) the town’s whole main street is shut down. But people need to get their cars repaired. We’re advertising that we’ll pick them up and then deliver them back.”

“The last car I sold was a 2004 Chrysler Town and Country Limited for $14,600.”

NORTH CAROLINA Carl Eldridge, owner, Eldridge Motors, Mills River, N.C.: “I started my business in 1966.”

“I just counted my inventory yesterday and it was 71

OUR 2020 VISION is about next-level remarketing …

DETAILS We sweat the DETAILS for our dealer customers, not just move vehicles. It is worth the effort when we deliver inventory our dealers can sell.

That attention to the details has made Santander Consumer USA one of the largest remarketers of certified reconditioned vehicles in the country – and why you should be doing business with us. ©2020 Santander Consumer USA Inc. All Rights Reserved. SC-AD_81203-0_031120

10

cars. I usually keep around 75. Up until this year (my sales) were really good. Our area has been kind of hard hit, and I don’t mean this coronavirus. We lost a lot of industry. My sales now are about 14-15 a month.”

“I buy most of my cars locally. I have had a problem with getting rusty cars from up North. The people down here do not want rusty cars.

I have a sign up, huge sign, that says we buy ‘clean, latemodel, local cars and trucks.’

I am amazed at what people are bringing me that they bought from other dealers.

“I used to sell 1- to 3-year old cars. Now with this economy it’s not uncommon for me to have a 7-year-old car.

“I am not buy-here, payhere. I do not use GPS or starter interrupt; I have no need for that.

“To be frank, my recondi-

tioning costs have gotten absolutely ridiculous. I figured it out and last year I was spending $1,250 a car. Now that I’m buying more local I’ve got that down to $400500. We have our own shop and it is open to the public. If (the shop) is full, I’m not going to run my cars ahead of my customers’ cars. That’s when I sub my cars out to have them serviced in other shops.

“Right now, I’ll be honest with you, I’m selling more imports than domestics. It used to be just the opposite.

“As a general rule, I’m selling trucks, SUVs and cars, in that order. Cars are probably no more than 10 percent of my sales right now.

“The last car I sold was a 2005 Toyota Highlander, it was like in the wrapper. I sold that for $9,595. I paid top money for it, but I got top money.”

SPRING INTO ACTION! IT’S TIME TO HEAT THINGS UP WITH VEHICLES THAT SIZZLE. Build your CPOV and other used vehicle inventory with some of today’s hottest trucks and SUVs! Visit a Chrysler Capital auction partner or ChryslerDirect.com today and get up-to-the-minute off-lease vehicles.

Visit ChryslerDirect.com or ADESA.com to view available vehicles. ©2020 Chrysler Capital. Chrysler Capital is a registered trademark of FCA US LLC and licensed to Santander Consumer USA Inc. CC-AD_81130-0_031220 Lease agreements are owned by CCAP Auto Lease Ltd. and serviced by Chrysler Capital.

Ram is a registered trademark of FCA US LLC.

Wholesale Markets 4/6/2020 Compiled by Jeffrey Bellant

MARYLAND Charles Nichols, president, Bel Air Auto Auction, Belcamp, Md.: “We’re coming up on our 73rd year in business. We’re entering our third year at our new location.

“We’re selling everything simulcast (because of the coronavirus). It was our second (all) simulcast sale. Everything we did used remote rep. We have used simulcast for major snowstorms, that experience helped us navigate our way through it.

“We are deemed an essential business in Maryland, but we decided to go all simulcast to follow the social distancing (recommendations).

“Staff is working out fine.

We have a number of folks who are little bit older and they stayed home so that we could follow those (COVID-19) best practices. We

listen to what the CDC says and just worked through it.

“We ran about 1,500 units.

It was off. We’d normally do over 2,000. We had about a 40 percent sale. Typically, we’d sell 75 to 80 percent.

“What’s different about the simulcast sale is you’re missing the attendees. That’s the biggest change. No cars are going through the lanes either, so it’s a different dynamic.

“We didn’t have any (tech) problems.

“We are about 50/50 (dealer consignment versus commercial consignment).

“I’m not sure what the average price across the block was for this recent sale, but I bet it was between $8,000 and $9,000. It would be a little bit more for a regular sale.

“We’re still transporting and reconditioning cars.

“In our county and our

area, we’ve had a pretty low rate of COVID-19. Part of me thinks, it’s probably going to be another couple of weeks, but I don’t know. I certainly hope it won’t be more.

“The auction business has always been the stock market of the auto business.

Commerce is continuing and we’re still providing the service to buyers and sellers.

That’s the important part.”

OKLAHOMA Mike Clopton, co-owner, Oklahoma Auto Exchange, Oklahoma City, Okla.: “We’ve been in business 15 years.

“We had a good sale on March 25 with good attendance, but not good for a normal time. We had about 125. We actually have a cleaning crew at the sale.

Anyone who touched anything, it was disinfected immediately. I think that made

Chase is your source for quality, selection and value.

When you're searching for a wide variety of the right vehicles for your customers, look to a nationwide industry leader. Look to Chase.

Chase is your source for: •

A broad range of vehicle makes and models — from economy to luxury — upstream and through preferred auctions nationwide

•

Convenient online and in-lane vehicle availability with on-site Chase remarketers

Put Chase to work for you.

Visit ADESA.com and Manheim.com Your Source. Chase.

1 4

4 2

3

1 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”).

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 JPMorgan Chase Bank, N.A.(“Chase”).

3

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”).

4 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 Chase is under license.

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.

Dealer communication only; not intended for retail purchaser. © 2019 JPMorgan Chase Bank, N.A. Member FDIC.

12

people more comfortable.

“We sold almost 50 percent of our cars. There are people out there selling 10 to 15 percent all over. Our sale is usually mid-60s.

“At our restaurant, we provided to-go meals only, before and after the sale. So, we did little things like that.

“We’re an auction, we run cars through the lane. That’s what we do. There’s a risk every sale. Whether it’s a virus or a car that gets away from a driver, we have risks every day. For me, I’m going to trust God with those things.

“For our employees that are 60 and over, we’ve asked them to just wait for this thing to calm down (before coming back). When the concern goes away, then we want them back. We’ll pay them, of course. As much as we like them here, we’d rather have them safe. Obviously,

that’s a lot more important.

“We do have a duty to those who are vulnerable.

The mood was good in the lanes. People were concerned, obviously. It’s not like we’re not aware of what’s out there.

The residuals for the lease companies have been high.

That led to us getting more repos and more cars.

“Retail traffic has slowed down for some. For some dealers, two weeks ago was no different than last week or two months ago. You’re seeing a little bit of everything.

“In our regular sale, we average $5,118 in the lanes. “(As far as the future) I’m optimistic and excited about it. People are going to have money in their pockets, the government is freeing up some money. There’s nothing better to do with that money than to buy a car.”

UCN usedcarnews

Working from home?

Social Distancing?

Keep receiving Used Car News whereever you are!

Send your updated address to subs@usedcarnews.com or read the digital edition at usedcarnews.com.

Don’t miss our daily updates!

Subscribe to NewsNow for the latest industryrelated COVID-19 news!

Visit https://mailchi.mp/ usedcarnews/newsnow Questions?

Call 800-794-0760 x 101

Stay informed!

UCN usedcarnews

Disconnected Jottings From

Tony Moorby 4/6/2020

I lost my identical twin brother in England on March 28 to this filthy plague, coronavirus or Covid19. I can’t be there for the normal mourning processes, my sister-in-law is bereft at home on her own and their children can’t be there to console her, or her them.

She can’t go to the hospital to see his corpse or collect his things.

If anyone is unsure of the misery this virus leaves behind, I can share painful and awful testament to anyone who doubts what we are trying to protect here.

He suffered badly before being taken to hospital, too late to react to a respirator and antibiotics for a growing monster of pneumonia as early testing and results were unavailable. He was sedated and intubated, where they put an air tube directly down his airway di-

rect to his lungs and upped the doses of medications.

After four days his organs started collapsing, first the kidneys, the heart and so on, probably as a result of sepsis, the blood infection that destroys life giving cells.

No one was there to visit or encourage recovery – at a loss and alone. I’m weeping as I write this.

I write this not for sympathy but to bring an exquisite focus to the horrors of this pestilence and the responsibilities we all bear to stop its spread. There’s a supreme irony here – THE LESS WE DO, THE MORE WE HELP, in other words, if we stay at home we can arrest the growth and eventually overcome this dreadful virus.

I don’t do Facebook or Twitter or other social media, as a rule. We do have a local network called Nextdoor. It’s useful for up-

dates on local events, recommendations for goods and services and warning neighbors about crimes or suspicious goings on (I had some garden furniture stolen) and alerted the locals to keep a special watch.

Most of the time, the spirit of the content is pleasant but sometimes can grow to being vitriolic and mean if a divisive issue comes up.

This coronavirus is just such an issue; now we’re asked to self-quarantine and schools are out, we all have a responsibility to comply.

Seeing kids on the playgrounds has people at odds as to who has the right to do what, where and how.

Bold statements about personal rights and living and letting be are misguided.

No one has the right to expose others to what my brother went through and

By Myles Mellor

Across 1. Lincoln midsize model 5. Makers of the Macan 9. Italian autos 10. Ghibli and Levante 11. Toyota hydrogen fuel cell car 13. Radiator top 14. Called 17. Hyundai model 21. Nissan ___ hatchback 23. Vermont’s state, abbr 25. Economize 27. Reasons to buy now 31. Ford Mustang ___ , 2 words

32. Coolers for the car 34. Yes vote 35. On a trip 36. BMW sports car, 2 words 37. Energy saving light 38. Madame, for short 41. Braking system 42. Black as ___ 43. Auotmotive service chain Down 1. ____ Romeo 2. Like Ferraris 3. Electrical pioneer Nikola 4. Tach readings, abbr.

what I’m experiencing right now.

These times are demandng unprecedented strictures on society and commerce, unlike anyone living today has ever seen and hopefully will never see repeated.

We need to support the medical community in any way we can.

The president’s posture that we can get back to normal sooner rather than lat-

Play Online at Us e d C a r N e ws. c o m 5. VW sedan 6. Not often found 7. Old Olds 8. Standard ____ Saloon 12. Junior’s junior 15. Seemingly forever 16. Gear setting 18. Brink 19. Ave. intersector 20. Nissan 4 door 22. Stretchable bandage 24. Whiplash preventer 26. W2 and W8 supercars 28. Made the engine roar 29. Transmission and others

1

2

3

4

9

5

6

11

12

13

8

14

15

16

17

18

19

20

21

23 25

7

10

22

24

26

27

28

29

30 31

32

33

34

35

36

37

38

39 41

40

42

30. A beautiful Bugatti 31. Miata is one of its models 33. Coke companion 39. Old British sports car 40. Pontiac Grand ___

43

1

2

P

A

3

C

E

4

5

E

T

O

T

R

6

O

N

9

A

O

7

8

B

A

C

A

R

O

R

T

J

A

E

D

10

L

11

H

D

12

L

O

R

E

A

N

I

M

P

13

I

S

N

S

14

S

15

P

A

R

E

N 16

E

E

17

I

G

N

A

18

H

19

T

O W N

O

N

20

A

I

D

21

D

22

U

R

A

N

23

G O

S

I 24

O

U

L

A

S

25

E

O 26

G

27

L

N

R

28

A

D

29

I

A

T

O

E

M

L

M O

32

S

O

N

33

T

E 30

R

31

L

34

A

Y

C

A

J

E

35

N

E

36

D

G

37

E

C

T

T

O G I

R M

S

I

M

38

A 39

G

A 40

A

44

E

W E 41

L

L

S 42

A

R

D

43

O

45

S

T

S

I

A

O

46

L

O

L

O W D

R

E

K

47

Solution to this puzzle in the 4/27/2020 issue. Call 1.800.794.0760 for a FREE subscription.

14

ter is far too optimistic and even unrealistic. His position and politics have little to do with the everyday functions of figuring this thing out. Posturing for political gain is misplaced and dangerous.

His ‘stream-of-consciousness’ announcements should be left to the experts.

Tend this beautiful country with a good conscience and lay low. Please.

48

O W N

X

E

C

H

Solution to the 3/16/2020 puzzle

O

Copart GO App

Directly connecting Sellers' offsite vehicles with

Buyers around the world!

TOP FEATURES List cars from your lot in seconds –––––––––––– Receive instant offers from Buyers via push notifications

Work with Buyers from anywhere in the world –––––––––––– Counter-offer or accept offers in real time

Available on Apple and Android devices –––––––––––– Work your offers as they come in

FEE STRUCTURE $0 FEE TO LIST ——————— 3% SALE FEE

$100 MINIMUM ——————— $300 MAXIMUM

Ready to get started?

Learn more at Copart.com/Go