Used Car News 6/8/2020

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UCN

Used Car News

usedcarnews

6/8/2020

National Quality Dealer Opens Strong By Jeffrey Bellant

karglobal.com

IN THIS ISSUE:

• Auto Finance • Retail Markets

Rush - Dated Material

• Numbers

TROY, Mich. – National Quality Dealer Otto Hahne was already busy when the state of Michigan approved by-appointment sales for auto dealers on May 26. Hahne’s dealership City of Cars is an Internet seller, so it started doing remote sales in April. And business is booming. “We just sold a 2019 Tesla here last week,” Hahne said from his immaculate showroom. “That’s already been shipped to California.” During the month of May in 2019, City of Cars sold 51 units. Last month, the dealership had sold 62 by May 29. “In April, we were only open two Photos by Jeffrey Bellant weeks, and sold 34 units,” Hahne said. “Last year, we sold 39 when BACK IN BUSINESS: Otto Hahne, owner of City of Cars in Troy, Mich. (clockwise from left); his son Evan, a buyer for the store; and Alan Surprenant, general manager (center of group), get we were open the whole month.” ready for in-store customers as Michigan opens up for appointment-only sales. The wholesale market has also exAnnette Chapman, executive di“One thing, as car dealers, this has ploded for City of Cars. Sales on the wholesale side tri- taught us all how to operate dif- rector of the Michigan Indepenpled, said General Manager Alan ferently,” he said. From email ne- dent Automobile Dealers Associagotiations to e-docs, everything is tion, said one of the big challenges Surprenant. “Everybody’s having such a hard changing. More and more custom- for dealers was getting paperwork time getting inventory right now, ers are expecting home delivery, for finished through the Secretary of State, which had been shut down. the prices are skyrocketing,” he said. example. “The Secretary of State had been The COVID-19 crisis has also seen On the retail side, with appointnice enough to open up early just ment-only sales, there are obvious Hahne’s market area expand. “Our business model has changed for the dealers to finalize unprochanges. The dealership is limited to 10 people or fewer. Employees drastically,” he said. “Over the past cessed deals at the end of May,” are wearing masks and Hahne of- six weeks, I would say 60 percent of Chapman said. “The people in the Secretary of fers masks, gloves, wipes and eye our sales have been out of our area. Before that, it would have been 30 State have been helpful in this proprotection for customers. cess.” “So, if a customer doesn’t have ev- percent.” That move helped Hahne deliver The store has an average invenerything, we give it to them,” Hahne said. “We also sanitize our cars be- tory of 220 cars, including highline a car to a customer that was held up units like the Tesla and an $85,000 three weeks because of the title. fore they go.” “We can’t believe how many cusHis son, Evan, a buyer for the Mercedes G-550 that sold before store, also showed how he places the shutdown. It typically sells 50 tomers waited for their cars,” he a clear blue film over the steering retail and 100 wholesale units per said. When the state offices opened, the wheel and shifter as additional pro- month. There were still challenges, even dealership had 94 titles ready to go. tection. “People still need cars. Everybody Hahne wanted to wait until June as cars were selling. “We had cars we sold over the past is saying that the economy is in for a 1 before officially opening up his physical showroom to make sure five or six weeks, but we didn’t have rough ride,” Hahne said. “You can’t titles,” Hahne said. tell it here at City of Cars.” everything is compliant first.

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Finance 6/8/2020

State of Auto Finance Shows Strength Going Forward By Jeffrey Bellant

The auto finance market remains strong for certain segments, but it will be competitive moving forward. Industry leaders discussed the State of Auto Finance during a recent webinar. Ken Shilson, president and founder of Subprime Analytics, said capital providers are anxious about the disruption in the market. It doesn’t mean they are sitting on their hands. “All of them have said they want to continue lending to the automotive and subprime space,” he said. But there are some expectations for dealers in a market that is unlikely to be the same as it was before the pandemic. Lenders want operators who will maximize their cash flow and be responsible financial partners, Shilson said. “They expect you are going to work with them,” he said. They want dealers to focus on communication, collateral and collections, Shilson said. Independents have funding options. “Our access to capital is strong,” said Doug Marohn, president and CEO of Nicholas Financial, a deep subprime indirect lender in the Southeast and Midwest. Over the past several weeks, there’s been an uptick in applications, customer payments, dealer activity and used-car values, he said. Micky Watts, senior vice president of indirect lending at Anderson Brothers Bank, said despite a 50 percent drop in originations at the start of the shutdowns, starting in midApril, things have improved. Anderson Brothers Bank does business in the Carolinas and Georgia. “The month of May has almost been like tax season for us,” Watts said. “In our market, things have been going quite well.” Ofer Alon, of Quality Acceptance, a subprime company, focusing on independent dealers in Texas, Nevada, Arizona and California, has about 225 dealers. Unemployment in his region and the closing of motor vehicle bureaus have been challenging, Alon said. All this has hurt cash flow. Alon said if a dealer is a good operator, he or she should get credit from a lender for that. But the unemployment numbers are concerning to Alon.

Photos By Jeffrey Bellant TALKING FINANCE: NIADA leaders Chuck Bonanno (left) and Shaun Petersen, shown at a past industry conferences, recently discussed the state of auto finance in a webinar.

In California, because of restrictions, most dealers are barely working and only making walk-in appointments, at press time. California dealers also are very highly leveraged, Alon said. Marohn said he is starting to see lenders contract a little bit and tighten up in certain markets. He said that’s not a bad thing. “What you’re seeing is each fighter returning to their respective corner of the mat and kind of where they belong,” Marohn said. “So, we don’t have to worry about a near-prime or a prime lender moving into our space as much. “We’re now able to compete on pricing that matches the risk and it’s appropriate for the risk,” Marohn said. “Other lenders will be able to offer lower margin, lower priced lending that is for lesser risk customers. “We’re going to see some contraction or sure. It needed to happen for a long time. In physics, there’s something called gravity and it applies to life, too.” Chuck Bonanno, NIADA vice president of dealer development, said this era has caused one trend to speed up. “We had a push a few years ago to go to digital marketing,” Bonanno said. “Then we had a push to go to digital retailing and virtual sales and closings. That’s sped up in the last two months.” Marohn pushes dealers to email deals in, but about 50 percent of them were still sending them by

FedEx before COVID-19. When everything closed up, he warned his dealers that those FedEx deals will sit on a desk until things open back up. “Lo and behold, we have 100 participation in email funding,” Marohn said. Shilson said one dealer in an area hard hit by COVID-19 is closing deals via Skype. “This pandemic is a game changer,’ he said. “Things are not going to be the way they were before.” Shaun Petersen, NIADA senior vice president of legal & government affairs, said a big debate in Washington D.C. is the issue of lawsuits related to COVID-19 and the workplace. In discussions for a new stimulus package, the business community, including NIADA. Is pushing for a liability safe harbor, Petersen said. “Something along the lines of: if businesses are following CDC and OSHA guidance and putting together best practices to keep employees safe then there would be a shield, of sorts, to protect them from liability in these lawsuits.” In late May, a House bill was approved that would change the 75/25 split in the Paycheck Protection Program about how to spend that money. Instead of 75 percent payroll to 25 percent other expenses, it would change to a 60/40 split. “It also would change the deadline for rehiring employees from June 30 to Dec. 31,” Petersen said. “It would take the eight-week period for spending the funds and extend it to

the end of the year. It would change the term for any non-forgivable note from two years to five years.” Another benefit would allow companies that get loan forgiveness to continue to defer payroll taxes. What do leaders in auto finance think about recovery? “As we come out of this thing, it’s going to be highly competitive,” Shilson said. “Education and training have never been more important.” Marohn said the subprime market, which is based more on primary transportation than luxury or recreational units, will have a quicker recovery. Although that customer base has been hit the hardest, it’s also an income that’s easier to replace. Alon said dealers should be careful not to take advantage of people. “At the end of the day, you have to respect poor people, because they don’t understand cash flow,” Alon said. “I try not to squeeze my customer. That is my philosophy.” Bonanno said he was once asked about recessions and their effect on the buy-here, pay-here or deep subprime customers. “I said, ‘They live in a recession. They are more resilient in these tough times than you or I are,’” Bonanno said. Watts expected this downturn to be worse that it has been. “We have about 95 percent of our portfolio that’s performing quite well,” Watts said. “We’re full steam ahead.”

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Milestones

UCN usedcarnews

6/8/2020

Volume 26 | No.4 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

Opie Hendricks

Scott Lilja

Lester Oden

Opie Hendricks, a past president of the National Independent Automobile Dealers Association from McKinleyville, Calif., died Easter morning, April 12, at the age of 90. Hendricks served as president of the IADA of California in 1992-93 and was NIADA president in 200203. He owned and operated Opie’s Fine Cars, the McKinleyville dealership he opened in 1968, for almost 50 years until his retirement. Born in Center Ridge, Ark.,

Hendricks joined the Army in 1948 and moved to California in 1950, where a year later he married Imogene, his wife of 69 years. Hendricks is survived by Imogene; children Dennis Hendricks (Kathi), Greg Hendricks (Karen), Debra Littlefield (Chris) and Michelle Hendricks-Pollace (Dan); eight grandchildren and two great-grandchildren, as well as his brother, Wayne Hendricks.

Scott Lilja, NIADA’s vice president of member services., died May 3 after a long battle with multiple myeloma. He was 58. Lilja was described by NIADA as “a giant in the used car industry.” His lengthy career in the auto industry earned him many accolades, including induction into NIADA’s prestigious Ring of Honor in 2002. Lilja earned that distinction during his tenure as vice president and chief operating officer of NADA Used Car Guide. He joined NIADA in 2009. “It’s always tough to lose such a great friend and close colleague,” NIADA CEO Steve Jordan said, “but I’ll forever remember how Scott was always so positive and inspiring in the face of repeated adversity. “He will be greatly missed by Team NIADA and the auto industry he loved so much.” Lilja is survived by his sister, Amy Griffith (John), nephews Patrick and Jack Griffith, and nieces Kirsti and Katie Lilja. He was preceded in death by his parents Thomas and Jo Ann Lilja, wife Linda Lilja and brother Eric Lilja.

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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.

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Longtime Alabama auto dealer Lester Earl Oden died on April 2 after a long battle with cancer. He was 73. Oden was the founder and president of MTO Motor Leasing (MTO Motors), in Birmingham, Ala., for the last 35 years. Oden was an accomplished race car driver in the modified production classes in the late 1960s and early 1970s. Oden founded and owned many businesses through the years. He was preceded in death by his parents Ray Oden Sr. and Perlie May Kirk. He is survived by longtime companion Linda Lampkin, his son Todd Oden (Gina Oden), grandson Michael Oden and brother Owen Ray Oden.

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.

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UCN PAGE 14 usedcarnews


Economy 6/8/2020

Reopening Means Cleaning, Training and Documenting By Jeffrey Bellant

As dealerships re-open to customers, following a set of best practices is critical to keeping employees and customers safe. Craig Downey of KPA, a safety and compliance firm, recently offered dealers tips on how to maintain a safe environment and keep dealerships out of trouble. Dealers should have a “hierarchy of controls” when using best prevention practices. Using face masks and other personal protective equipment (PPE) is critical, as well as using certain controls in service and sales, along with disinfecting the workplace. Downey, who has a degree in environmental engineering, said the first step is looking at how to eliminate the hazard in the first place. At one end of the spectrum, closing a dealership or working remotely

are ways to prevent problems from COVID-19, which is what states did early on. Once businesses are opening back up, engineering controls are another way of keeping things safe. Things like isolating employees from one another and practicing social distancing. Also, the dealership can help isolate customers from one another by eliminating coffee stations and snack areas. Spreading out seating in a waiting area is another solution. It’s about keeping everyone safe and separate, Downey said. “Another method of protection includes administrative controls, from required handwashing to spacing employees in every other seat, disinfecting areas or adding sanitation products in easily accessible areas. Disinfecting desks, door handles, common surfaces and areas throughout the day is also critical.

Doing these things is just one part of the system. “It’s really important that we document all this stuff on a regular basis,” Downey said. “If you have a process in place and if you train your people, this should be documented.” Having items like soap, disinfectant and gloves available to employees and customers helps protect from the virus and keeps people safe. Downey said using PPE means making sure employees are trained on how to wear it. The CDC recommends masks and in some states people are required to wear them. Masks are different than N95 respirators and offer different protection. Facemasks are more loose-fitting and are more about preventing the person wearing it from making someone else sick, Downey said. If a dealership requires an employee to wear an actual respirator

– N95, for example – the dealership must follow OSHA regulations. “(In that case) certain criteria must be met,” Downey said. “You’ve got to have a written program. You’ve got to have a fit-testing. You have to be trained on the use of that respirator, have a medical evaluation and be documenting how often these things are changed out.” When it comes to gloves, the CDC requires disposable exam gloves – such as nitrile or latex – or something greater. Dealers should stock up on these since frequent changing is recommended, Downey said. Downey added there is a process for taking gloves off. He said a training session in which the gloves are covered with shaving cream will help employees practice the importance of being careful when taking off used gloves without contaminating something else.

Continued on page 6

Buy Here Pay Here Dealers! Special COVID-19 “Pause Payments” button now available! Frazer has added a new feature to help you better manage your customers through these troubled times. Update your Frazer and you’ll find a new green button on your Customer Activity window. It allows you to pause the account, moving your customer’s due date into the future. It freezes the account for the number of payments that you choose, interest stops being earned, and then starts up again on the date you select. Your customer still has to make all of their payments, just not right now. And you eventually earn all your interest as if you didn’t do the pause. It’s a nice option to offer your customers who are temporarily unemployed. And you can continue to call Frazer to learn about this, or anything else, such as running your Frazer from home. We are open for business!

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News 6/8/2020

Shoppers Ready to Buy Again By Jeffrey Bellant

Cox Automotive’s COVID-19 Digital Shopping Study 2.0 showed that more than 60 percent of both new- and used-car shoppers are concerned about sanitization procedures and social distancing before engaging with a dealer. At least half of those surveyed – both new and used shoppers – also want to know about specific purchasing steps that can be taken online. Despite those concerns, nearly half of “delayed new-vehicle shoppers” will be comfortable and ready to transact within the next 30 days. Shoppers also want to know about all the ways they can contact the dealership for information and learn up-to-date store hours, the survey showed. At least 20 percent of new- and used-car shoppers also want to know about the dealership’s coronavirus-related community outreach. The survey revealed that 36 percent of new-car shoppers are more likely to consider air quality features inside their vehicle. Nearly half of used-car shoppers are willing to accelerate their purchases as governments lift quarantines and COVID-19 cases start to decline. More than 40 percent of both used- and new-car shoppers are waiting until their personal/ family employment situation looks secure. Nearly half of shoppers surveyed are waiting on a better deal or incentive to buy.

The survey also showed that 22 percent of Gen Z shoppers are more likely than Gen X (11 percent) to purchase online. Cox’s shopper survey showed that nine out of 10 new vehicle shoppers expect a good deal. The top favorable terms shoppers in the survey wanted are the final sales price (62 percent), interest rate/APR (49 percent), add-ons like free or reduced priced maintenance (35 percent) and the amount offered for a trade-in (31 percent). About half of shoppers surveyed said they have reconsidered their down payment and vehicle price range – expecting those to decline. As a result of COVID-19, 10 percent of used-car shoppers switched to new and 10 percent of used-luxury shoppers switched their preference to new. The survey showed that 2/3 of shoppers are more likely to buy a vehicle 100-percent online than they were before. Sixty-two percent of consumers surveyed said they are more likely to complete steps of their purchase process online because of COVID-19. However, 57 percent of shoppers prefer to negotiate in person, with 39 percent of those surveyed believing that a vehicle purchase is too large of a financial commitment to handle online. Another 41 percent said there are too many details of a car deal to handle online. Thirty-six percent of shoppers said they wouldn’t trust that personal information would be secure.

Reopen –continued from page 5 However, he added that wearing gloves does not replace actual handwashing. Bar soaps work as well as liquid soap and water temperature does not matter. Hand sanitizer must have at least 60 percent alcohol and grease or dirt are a barrier that may prevent the sanitizer from working. “Washing your hands is certainly the best approach,” Downey said. Disinfecting the building means everything from door handles, to flush handles, counter tops, faucets, paper towel/toilet paper dispensers, furniture, light switches and railings. Disinfecting vehicles should include hot spots like steering wheels, cup holders, seat buckles, seat ad-

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justers, door handles, gear shifter, turn signal, buttons and touch screens, glove boxes and the center consoles. In the service department, employees should wear different gloves with each vehicle, limit using touch screens, phones or computers while wearing contaminated gloves and limit the sharing of tools. “Again, whatever your process is, your employees should be trained on it,” Downey said. “And make sure you document it.” Since the virus is not expected to go away, dealers should continue these best practices in the coming months, even after the immediate crisis passes, Downey said.



Retail Markets 6/8/2020 Compiled by Ed Fitzgerald

OHIO Chris Deiderick, owner, Deiderick Motors, Sandusky, Ohio “I’ve been in business here for 10 years, all in the same location. “Independent shops without a garage were supposed to shut down although they came out after that and said we weren’t considered an essential business. So we shut down in the middle of March and we only delivered vehicles we had preordered. We opened up officially May 8 for the public. “We try to keep in stock somewhere between 20 and 30 units. We usually sell between 10 and 15 a month. “We tend to go a little heavier on transportation, like cars and crossovers and SUVs. We try to keep the inventory price at $15,000 or below. There’s always demand for trucks in this area,

but anything over $20,000 becomes problematic. “We do very few imports. We’re only two hours away from Detroit, still in the Rust Belt, so people still have the mentality for domestics. “We’ve tried Hondas and Toyotas, but we just don’t have luck with them. “I was buying a lot online when it was sort of a secret and I was able to get good bargains. “But I’ve gone back to the auctions, which I prefer to do anyway. I’m 57 years old and I’ve been in the car business for 25 years. I’m just more comfortable with that. “We work with a great credit union. Relationships are still key in this business, sometimes we lose track of that. We send them some pizzas and stuff like that when we have a good month. “We try to stay between 2010 and 2017 model years.

That’s what the credit union likes. I’d say the average mileage is 80,000. I try very, very hard to stay under 100,000 miles. Before this pandemic I think we were averaging about a $1,500 down payment. I would say the average term would be 54 months. “I’m probably spending $700-$800 per unit for reconditioning. I always got chewed up for that in my 20 Group. “I have a body shop, two body shop guys, and an ASE certified mechanic I’ve been working with for 25 years. They’re worth their weight in gold. “We do Facebook ads and Carfax. I do some minimal radio and newspaper advertising. “The last car I sold was a 2016 Dodge Journey SXT for $12,488 with 70,000 miles on it.”

SOUTH CAROLINA Tommy Parker, owner, Parker’s Used Cars, Blenheim, S.C. “I’ve been in business for 37 years, all in the same location. “With the COVID virus, we were lucky. Here in South Carolina, we didn’t have to shut down. We were careful and we kept our distance from the customers. For about 10 days or two weeks we were down, but now we’re back to normal. It’s been really good. “We keep an inventory of about 600. I keep more than I need. My wife says I like to collect cars more than I like to sell them. I sell about 100 a month. “We sell mostly trucks. We’re in a rural area. Truck prices are really high now because of the limited supply. They (factories) are not making a lot of them right

now. We get our cars from new-car dealers, the tradeins. They have to keep some of those trade-ins now because they’re not getting enough new cars. “We sell more domestics than imports. My average down payment is about $2,000. The term length is 72 months. “The average reconditioning cost is probably $300. We buy good cars that are priced ready to sell. You think you’ve got a good deal and it can turn into a headache. “We’ve been in business so long we sell to three different generations. We’ll get granddad coming in with a grandkid. We get mom and dad. People send their friends and family. “The last car I sold was a 2015 Jeep Wrangler with 13,000 miles. I sold it for $26,995.”

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Wholesale Markets 6/8/2020 Compiled by Jeffrey Bellant

NEBRASKA Ryan Durst, vice president, Lincoln Auto Auction, Waverly, Neb.: “We were in one of the seven states that did not have a stay-at-home order. Still, we’ve spent extra money sanitizing the facility. We have handwashing stations set up. We shut the office down and we are social distancing. It’s well worth it. “We did not furlough anybody. A lot of our drivers are older and retired. So, if people feel concerned (about COVID-19) and they want to stay home, I let them stay home. We’re kind of running on a skeleton crew. “Online, we have Edge Pipeline. We have a good online presence. “Normally our volumes are between 250 and 300. When this first hit in mid-March. The world just fell in on itself.

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“But our consignments have increased progressively every week. We ran over 200 on May 20, before the Memorial Day week. “So, our consignments are near 80 percent of what we normally were. In early March our conversion rates were in the high 50s, but then they went to mid-70s to mid-80s over the next four weeks. For the last two weeks of May we ran 90plus percent sales. “Our average prices were right around $3,900 to $4,100 rang, which is where we live. That hasn’t changed much. “Attitudes from dealers are probably the best I’ve ever seen this month, after the gloom-and-doom in mid-March. Dealers are just happy to be at the auction and buying cars. “Consignors are very happy. If you’re from this (re-

gion), you should be running here. At our 95 percent sale, every new-car store sold 100 percent. Every single one. For the whole sale, we only missed on 10 cars. “I anticipate a shortage of volume through the summer until new cars ramp back up.”

NEVADA Russ Norrish, general manager, Dealers Auto Auction of Las Vegas, North Las Vegas, Nev.: “We’ve been in business going on 5 ½ years. We have six physical lanes and usually run four to five. But we’re doing simulcast-only since early April. “When (the shutdown started) we had to furlough about 26 employees. We have people that had to stay here for the FedEx workers delivering titles. As checks came in, we also had to have

people do deposits. We also had people to pick up cars, but we were running very small. “(As of May 29) we held seven sales since the shutdown. “The first simulcast sale we did was a terrible. Absolutely terrible. We sold a few cars, but it was mostly buyers trying to ‘steal’ stuff. It was really tough. After that, each week got better and better. “We’re selling mainly newcar-store trades and the market is strong right now. “Our volume is still only 1/3 of what we normally have. But we’ve got a lot of irons in the fire. “Once this thing opens up, I think it’s going to be very beneficial. “I had one account that is a finance company and they kind of sat there for three weeks. On May 27, they just

said, ‘Let’s get these cars sold.’ They did very well with a 90 percent sale. “Sales percentages have been around 72 to 74 percent. “What’s selling right now are cars $7,000 and under. Those are very strong. We had a car (May 27), a 2007 Toyota Tacoma. It had 158,000 miles. It was floored at $6,500 and sold for $9,500. “There are so many cars grounded right now throughout the country, even here in Las Vegas. My opinion is, once those actually get back into the market, they are going to flood it. Sellers are going to have to start lowering their prices to get the cars sold. “I’m feeling pretty positive. The car market is already showing it’s coming back.”



Wholesale Numbers UCN usedcarnews 6/8/2020

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id -1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10 1 2 3 4 5 6 7 8 9 10

make_model_name --------------Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Hyundai Elantra Nissan Sentra Ford Focus Ford Mustang Ford F150 Chevrolet Silverado 1500 Ram 1500 Toyota RAV4 Honda CR-V Chevrolet Equinox Ford Escape Jeep Grand Cherokee Ford Explorer Jeep Wrangler Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Hyundai Elantra Nissan Sentra Ford Focus Ford Mustang Ford F150 Chevrolet Silverado 1500 Ram 1500 Toyota RAV4 Honda CR-V Chevrolet Equinox Ford Escape Jeep Grand Cherokee Ford Explorer Jeep Wrangler Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Hyundai Elantra Nissan Sentra Ford Focus Ford Mustang Ford F150 Chevrolet Silverado 1500 Ram 1500 Toyota RAV4 Honda CR-V Chevrolet Equinox Ford Escape Jeep Grand Cherokee Ford Explorer Jeep Wrangler Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Hyundai Elantra Nissan Sentra Ford Focus Ford Mustang Ford F150 Chevrolet Silverado 1500 Ram 1500 Toyota RAV4 Honda CR-V Chevrolet Equinox Ford Escape Jeep Grand Cherokee Ford Explorer Jeep Wrangler

2019-06-01 ---------9300 10350 8600 9150 9600 9200 7550 7450 6600 13900 23900 24500 20800 12900 13300 10900 10450 15075 16300 24100 11400 11900 10200 10500 12200 10900 8800 9250 8500 15550 26500 26900 22200 14900 15900 12300 11800 17950 19500 25800 12700 13400 11250 12100 13150 12600 10350 10300 9750 17500 28100 28000 24000 16400 19300 14000 13200 20125 21400 27275 14300 16450 12850 13300 14950 13600 11300 11250 10850 20100 29200 29600 25500 17650 21750 16800 15650 22475 24625 28600

2019-12-01 ---------8300 9500 8100 7500 8750 8450 6650 5700 5750 12200 22000 22500 19000 11550 11950 9400 9200 14425 14500 23000 10550 11000 10000 9450 11300 10100 8100 8300 7900 13650 23300 25300 20000 13100 13850 11050 10600 15950 18100 24775 11800 12450 11250 11150 12150 11600 9750 9600 8950 15350 24500 27000 21200 14550 17600 12625 11800 19425 20500 26275 13400 15750 12500 12800 13950 12550 10900 10800 10350 16650 26000 28700 22400 16250 20600 15250 13550 22125 23575 27750

2020-06-01 ---------6700 8425 6050 6125 7475 6000 4650 3700 3900 11100 19000 19500 17800 10250 11050 7600 7150 12750 13025 20200 9050 9900 7350 7300 10275 7550 5900 5350 5700 12400 21200 23000 19300 11450 12925 9500 8800 14150 15900 21875 10300 11525 8950 9050 11200 9900 7450 7200 6700 13850 23100 23800 20400 12950 16475 11025 10250 17725 18950 23450 12000 14100 10350 10625 12650 10850 8300 8500 8200 15050 24200 25500 22000 14875 19100 12550 11450 19425 20725 24875

2021-06-01 ---------5850 7250 5300 5450 6150 5150 3950 3250 3400 9025 15900 17150 14700 8800 9925 5800 6250 9850 10100 17525 7700 8475 6275 6550 8350 6400 4975 4475 4750 10200 17800 20225 16275 9925 11625 6875 7600 11275 12300 18950 8875 9825 7700 8000 9300 8225 6250 5975 5575 11550 19575 21575 17525 11225 14525 8175 8825 14025 14575 20400 10350 11975 8775 9425 10625 9175 7100 7200 6900 12825 21125 23175 19075 12875 16825 10875 10025 15800 16575 21725

2022-06-01 ---------5400 6500 5000 4975 5200 4575 3575 2975 2975 7775 13950 15375 13025 8075 9025 4775 5775 8475 8575 16075 6950 7525 5850 5900 7000 5575 4400 3900 3975 8900 15575 17975 14575 9150 10550 5700 6875 9925 10300 17350 8075 8675 7075 7075 7925 7075 5550 5100 4650 10200 17225 19425 15875 10300 13125 6850 7925 12150 12100 18700 9400 10550 8075 8325 9150 7975 6375 6275 5750 11475 19300 21125 17700 11775 15150 9225 9125 14000 14175 20200

Actual Wholesale and Projected Residual Values

my --------2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018

Source: Black Book


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Disconnected Jottings From

Tony Moorby 6/8/2020

We are devoid of a dog! Lacking a lap snatcher. Minus a mutt. At last. Terry recently helped a friend run a small business, which meant she would be gone for a lot of the week. She must have heard me muttering under my breath that the last thing I wanted was to be the canine custodian. I also pointed out that she rarely lavished any open affection for Millie but merely scowled at her when under her feet. A longtime friend heard of the rumblings and had always said that she would love to take Millie – that she could give the dog a more loving home than she had with us. I could not dispute her observations and even Terry had to finally agree. Remember this was dog number seven or eight, I’ve lost count. A day later all evidence of Terry’s dog’s domicile was

gone without a trace; dog, sleeping kennel, food and water trays and toys were relocated to Millie’s new home. Millie is ecstatic, having another dog to share her new home and she is spoiled to the point of syrupy sweetness. Tonsured to look like a powder puff as white as the driven snow, now the two dogs are preened and prissy as though they were on parade at the Westminster Dog Show. They even have matching coats for different days of the week! Similarly I’m as thrilled to have the house to ourselves. I can cast around the patio or the yard without pausing for poop or evading excrement. So you think the family has shed a dog? Not so fast. Robby, who was an early instigator of our family’s involvement with dogs – he enjoyed their company without the usual responsibilities of

feeding, exercising or cleaning up after them – now has a place of his own. Of course a house is not a home as far as he’s concerned, unless its environs are graced by a dog. He’s been down this road before but that was in an apartment that didn’t have room to swing a cat, let alone a dog! So Branson was dispatched to a friend’s farm to join three other space-loving critters. This latest adoption is an English Lab-Retriever. Lean, taut, svelte even and cream colored. I’ll bet you thought I was totally incapable of recognizing any admirable qualities in dogs. Not true, so long as it’s from afar, like, someone else’s and elsewhere. I always refer to the everyday downsides of keeping canines. Long hair accumulating around the skirting boards and hardwood floors (and God knows where else)

By Myles Mellor

Across 1. Maker of the xB and tC 4. Cayman and Carrera 9. Former Pontiac 11. Auto chassis 13. Toyota SUV 16. Integra and RDX 18. PC’s are part of it, abbr. 19. Radial pattern 21. Ford commercial vehicle brand 23. Minor setback 25. Job application requirements 26. Veyron, for one 28. Overtime, for short 29. Arrange 30. Needing to be replaced, as tires

31. Motor mechanics’ org. 33. Civic competitor 34. Former range of sedans made by Ford 36. Having a lot of business 37. VW hatchback 38. Swedish-made autos

8. Wall Street’s city, abbr. 10. Roman 7 12. Dodge SUV 13. Outlook and Vue 14. Intrigue or Silhouette maker 15. Italian racing cars, for short 17. Go downhill fast 20. Good repayment conditions- 2 Down words 1. Fill in (for) 22. Midsize crossover 2. Hyundai hatchback from Subaru 3. Compass direction 24. Profit 4. Tire pressure letters 26. ____ Air: upscale 5. Former UK car area of Los manufacturer that Angeles made cars for 27. Model S and niche markets Model Y makers 6. Trucker’s radio 30. Opera cheer 7. Lotus car

will test Robby’s housecleaning capacity to the max. I can see it now; fluff balls accumulating like tumbleweed. He maintains that it’s all part of loving a dog. That gene was missing from my side of the family. Remember Charlie? He now eats more than Olivia and her boyfriend combined. The Hound of the Basketcases is a bruiser with a stare that sends shivers down your spine to add to this corporeal colossus’ intimidating stance. But looks can be deceiving. Charlie is friendly, amusing, clever and very smart – somewhere else! Charlie takes Olivia for a walk at least twice a day – because he can. Actually she could probably ride on him! Her sofa has now become his as he takes up the whole thing when he reclines. Bella, Mike’s mixed monster, is getting used to me. I’m

• 50-year veteran of the industry • President from 1997– 2000 of ADT Automotive • Served as ADESA’s executive vice president of sales and marketing • Moorby & Associates 2006–present • NAAA Hall of Famer • IARA Circle of Excellence To see past columns from Tony Moorby, visit www.usedcarnews.com/ columnists/tony-moorby

afraid I can’t return the compliment. Kevin, Ally and Aiden’s Frenchie, is simply a noisy menace and has the most excruciating, ear-piecing bark of any dog on this planet. And it’s uglier now than ever!

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Solution to this puzzle in the 6/29/2020 issue. Call 1.800.794.0760 for a FREE subscription.

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Solution to the 5/18/2020 puzzle



Santander Consumer USA and Chrysler Capital are proud to announce the winners of their 2019 Auction Excellence Awards. This annual program recognizes top performing auctions for exceptional success in the areas of operational excellence, strategic planning, customer service, value achievement and residual enhancement.

The winners of the 2019 Auction Excellence Awards are:

RETAIL CATEGORY NATIONAL AUCTION OF THE YEAR

Manheim North Carolina

REGIONAL AUCTION OF THE YEAR CENTRAL REGION

Manheim Texas Hobby

MIDWEST REGION

Manheim Louisville

NORTHEAST REGION

Manheim Baltimore-Washington

SOUTHEAST REGION

Manheim North Carolina

WEST REGION

ADESA Boise

LEASE CATEGORY NATIONAL AUCTION OF THE YEAR

Manheim Detroit

OPERATIONAL EXCELLENCE

ADESA Syracuse

Congratulations to all of the winners! We thank you for the outstanding results!

©2020 Santander Consumer USA Inc. All Rights Reserved. SC-AD_200513-0_052820 ©2020 Chrysler Capital. Chrysler Capital is a registered trademark of FCA US LLC and licensed to Santander Consumer USA Inc.