Used Car News 7/20/2020

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Used Car News

usedcarnews

7/20/2020

NAIAS Remains Optimistic for 2021 Show

By Jeffrey Bellant

karglobal.com

IN THIS ISSUE:

• Manheim Index • CFPB Ruling

via livestream and multiple television outlets.

The Frankfort Auto Show is also undergoing a transformation, moving to Munich in 2021 with a backdrop of Oktoberfest. Even Paris will not have another show until 2022, with a possible name change, Alberts said.

Live shows remain vital to check out the physical vehicle and for direct access to executives, among other benefits, Alberts said.

“We’re creating a multidimensional sensory experience,” he said.

“In the car business, the vehicles need to be seen, touched and driven – even smelled.”

Doug North, NAIAS chairman, reminded folks that next summer’s event will be a “citywide showcase of new vehicles, innovative technology and dynamic experiential displays and activations.”

The show will also include an allnew street festival featuring British and Italian supercars.

North said if there’s any silver lining to the cancellation of this year’s NAIAS, it’s that organizers have more time to refine the event.

Alberts added the event will remain flexible as it may still have to make adjustments for the c o r o n av i r u s .

Having a larger indoor and outdoor venue will help with spacing while there is the possibility of limiting Charity Preview attendance and/or capping press preview credentials. Distancing, cleaning and other safety protocols will likely be part of the event.

He expects the cancellation will only build anticipation for 2021.

“Sometimes it takes something like what we’re going through to rekindle a love affair with what we have,” Alberts said.

“Let’s face it: People love their cars, trucks and SUVs. Auto shows that promote these things will continue to be an important part of vehicle marketing.”

Rush - Dated Material

• Numbers

Detroit was expected to host the annual North American International Auto Show last month, marking a first-ever summer show with new attractions.

COVID-19 may have caused the cancellation of NAIAS, but organizers already are looking ahead to the summer of 2021 for the big event.

Leaders of the auto show joined a webinar hosted by the Automotive Press Association to discuss the future of the event and the need for auto shows.

Rod Alberts, NAIAS executive director, said COVID-19, ironically, has made personal car ownership more attractive.

“I don’t see ride-sharing and crowded public transportation replacing personal mobility anytime soon,” he said. “Because of what we’re going through in this pandemic, the pendulum is swinging back to owning and leasing vehicles.”

He said as recent as a few months ago, some said that ridesharing would replace personal vehicles.

The New York Times even had an article suggesting that owning a car would soon be as “quaint as owning a horse,” Alberts said.

The auto show landscape was already changing before this year.

The timing of new-model releases and the ways that manufacturers introduce those new models were disrupting old norms before coronavirus. At press time, even the new Ford Bronco was being introduced

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Used Car News 7/20/2020

Manheim Index Hits Record, Future Still Murky

By Jeffrey Bellant

Manheim’s 2nd Quarter Vehicle Market Insights report shows a strong quarter and high values, but the shadow of COVID-19 continues to loom over the future.

Manheim Chief Economist Jonathan Smoke said the downturn in the market caused by the coronavirus and subsequent state shutdowns clearly hurt the industry.

There was an eventual recovery in June as the number of infections dipped.

“Unfortunately, we are also seeing another exponential rise in (virus) cases,” Smoke said on July 8.

At press time, the U.S. had more than 3.4 million confirmed cases and rising, but Smoke said the hope is that it finally peaks by late July.

The new wave of cases is occurring in places that were previously not hard hit.

“Major markets with the most intense case growth include Los Angeles, Phoenix, Dallas/Fort Worth and Miami,” Smoke said.

Linked to those shutdowns were an unprecedented number of job losses – 22 million in March and April. It hurt self-employed people, too.

While May and June employment reports show 7.5 million jobs recovered, 19.3 million remain on unemployment benefits Smoke said.

“It is highly likely that the jobs recovery has stalled out as the rise of COVID-19 cases is spiking again,” he said.

Smoke added that as of July 6, consumer sentiment has dropped 24 percent since the end of February.

However, the new-vehicle side has seen a steady recovery since April, said Zo Rahim, manager of economic and industry insights for Manheim.

“We’re still down year over year, but we have seen improvements month-over-month,” he said.

The June SAAR came in at 13 million, a decrease from last year’s 17.2 million, but up from May’s 12.3 million rate.

“Combined rental, commercial and governmental purchases of new vehicles were down 69 percent year-over-year in June,” Rahim said.

“New-vehicle sales into the rental channel fell 95 percent year-overyear in June.”

In terms of brand success, Chevrolet, Kia and Mazda were big winners, while Nissan, Dodge, Buick

and BMW dropped market share the most.

Pickup truck sales have been “central to the new-vehicle recovery,” Rahim said, which is why brands that have robust light-truck product portfolios have seen share gains.

Looking at the digital side, Manheim has shown how the COVID-19 era has affected so much of whole-

“Earlier this summer, we began welcoming sellers back on the block to represent their cars,” she said.

Buyers were also allowed to walk the lots and preview the cars.

Manheim has recently allowed bidders back in the lanes at 17 select locations via the Digital Block format as of July 8.

Some buyers remain reluctant to

sale and retail activity.

Whitney Gerkin, director of Manheim’s digital marketplace, said clients access inventory through Simulcast, OVE, Manheim.com, Manheim Express and the newest tool, Digital Blocks, through in-lane bidding.

For Digital Block sales -- first opened in Manheim Tucson and Manheim Houston – bidders can be in-lane, although cars are not driven through lanes. Photos are posted on monitors for bidding.

Manheim did not allow clients at its sales throughout the spring and some auctions had to close altogether, depending on the state, Gerkin said.

buy digitally and prefer being in the physical lanes.

Despite these challenges, Gerkin said it hasn’t affected sales rates.

One example is flagship auction Manheim Pennsylvania, which sold more than 8,200 vehicles in a single week in June, beating the same week in 2019 by 900 units, Gerkin added.

“Manheim’s sales rates are now higher than pre-COVID levels,” she said.

This includes record sales efficiency, meaning that more cars are being sold the first time they’re offered than the company has ever seen before, Gerkin said.

“Between January and June, Manheim experienced more than 1.5

million digital transactions, which is more than 20 percent higher than the same period in 2019, despite significant disruptions this spring,” she said.

OVE saw sales up nearly 70 percent compared to last year, according to Gerkin.

Simulcast attendance has more than doubled and bids per-vehicle have tripled.

“We expect to remain heavily digital for the foreseeable future,” Gerkin said.

Focusing on general wholesale numbers, the Manheim Used Vehicle Value Index showed a recordsetting rebound in wholesale prices at Manheim auctions.

The Index takes all Manheim U.S. sales, classifies them by market segment – accounting for differences in mileage – and weighs these numbers to provide a smoother segment mix and seasonally adjust it to make the Index comparable over time.

At the end of the first quarter, the Index was down 1.1 percent.

In April, there was a historic decline of 11.4 percent, pulling values down more than 9 percent yearover-year, Smoke said.

“But in May, the recovery began,” he said, “and we saw a 9 percent rebound.”

June also began strong, as wholesale prices increased 8.95 percent from May 2020 and up 6.3 percent from June 2019.

“This brought our Manheim Used Vehicle Value Index to 149.3, a 6-percent increase from a year ago and a record high for the Index,” Rahim said.

Used vehicle values are back to pre-COVID strength, Rahim said at press time.

Smoke said Manheim’s MMR date on 3-year-old vehicles typically shows these vehicles being worth more in March – around tax season – than at the beginning of the year.

Normally, depreciation kicks in so that average 3-year-old vehicles lose about 10 percent of their value by the end of the year compared to the start.

Although these vehicles saw the typical spring bounce in week nine, it didn’t last long.

“We peaked in week 11 and started the slide down that lasted until week 18,” Smoke said.

“We have since seen a full recovery and now new record highs in prices (at the end of June).”

Retention values also ended June up 1.9 percent compared to 2019.

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News Briefs

UCN usedcarnews

7/20/2020

ACV Hits Milestone ACV Auctions Inc., a digital automotive marketplace for dealers and commercial partners, continues to experience significant momentum and announced that May and June 2020 were the largest sales months in the company’s history.

The company sold 31,350 wholesale vehicles of the 45,000 unique vehicles listed on the platform in May and 40,242 of the 53,000 listed in June. By the end of June, the sellthrough rate climbed to nearly 75 percent of overall unique vehicles listed.

Feds Convict Dealer George Hajati, 41, of Cromwell, Conn., was sentenced to 27 months of imprisonment, followed by five years of supervised release, for operating an auto loan fraud scheme while he was on federal supervised release from a prior federal conviction. U.S. District Judge Robert Chatigny also ordered Hajati to serve the first six months of his supervised release in home confine-

4

ment, and to perform 120 hours of community service.

According to court documents and statements made in court, Hajati and employees at his direction, submitted documents to lenders that falsely represented the borrower’s employment, salary, etc. Hajati defrauded victim lenders of $654,952.56 and is required to pay full restitution.

Hajati was arrested on a federal criminal complaint and pleaded guilty on Dec. 20 to one count of wire fraud.

Hajati was previously convicted of federal conspiracy and fraud offenses related to a mortgage fraud scheme and was on supervised release at the time of this recent crime.

Ford Issues Recall Ford Motor Company is issuing two safety recalls in North America.

Details are as follows: Select 2011-15 Ford and Lincoln vehicles for a door latch issue.

Affected vehicles may not have had all door latches replaced or correctly replaced when repaired

by dealerships under safety recalls 15S16 or 16S30. Safety recalls 15S16 and 16S30 were issued to replace door latches with latch pawl spring tabs that were susceptible to cracking and failure in areas with high thermal loads (i.e., a combination of outdoor air temperature and solar radiation).

A door latch with a fractured pawl spring tab typically results in a “door will not close” condition. If the door latches after repeated attempts to shut it, there is potential for the door to unlatch while driving, increasing the risk of injury.

Ford is not aware of any reports of accident or injury related to this condition.

This action affects approximately 2.15 million vehicles in the United States and federal territories.

Affected vehicles are as follows: • 2011-14 Ford Fiesta vehicles built at Cuautitlán Assembly Plant, Jan. 26, 2010, to Oct. 31, 2013 • 2012-15 Ford Focus vehicles built at Michigan Assembly Plant, Oct. 4, 2010, to Jan. 31, 2015 • 2013-14 Ford Fusion vehicles built at Hermosillo Assembly Plant, May 11, 2012, to Oct. 31, 2013 • 2013-14 Lincoln MKZ vehicles built at Hermosillo Assembly Plant, July 19, 2012, to Oct. 31, 2013 • 2013-15 Ford Escape vehicles built at Louisville Assembly Plant, Dec. 23, 2011, to Jan. 31, 2015 • 2013-15 Ford C-MAX vehicles built at Michigan Assembly Plant, Feb. 2, 2012, to Jan. 31, 2015 • 2014 Ford Fusion vehicles built at Flat Rock Assembly Plant, June 18, 2013, to Oct. 31, 2013 • 2014-16 Ford Transit Connect vehicles built at Valencia Body and Assembly Plant, from Aug. 9, 2013, to Feb. 1, 2016 • 2015 Ford Mustang vehicles built at Flat Rock Assembly Plant, Feb. 14, 2014, to April 30, 2015 • 2015 Lincoln MKC vehicles built at Louisville Assembly Plant, Nov. 18, 2013, to Jan. 31, 2015 Owners will be given the option to inspect the door latch date codes and child safety locks and submit latch date codes online to confirm if repairs done under safety recalls 15S16 or 16S30 were completed correctly. The online system will provide instant validation that the door latches are OK or the latches cannot be confirmed.

If a customer does not want to do the inspection, has difficulty completing the inspection, or receives an indication that the latches cannot be validated, dealers will inspect the latch date codes and replace latches as needed. The Ford reference number for this recall is 20S30.

Volume 26 | No.6 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.

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Legal News 7/20/2020

U.S. Supreme Court Rules Against CFPB Structure

By Jeffrey Bellant

The U.S. Supreme Court ruled that the head of the Consumer Financial Protection Bureau can be fired by the President and that the structure of the body violates the Constitution’s separation of powers.

“We hold that the CFPB’s leadership by a single individual removable only for inefficiency, neglect, or malfeasance violates the separation of powers,’” the Court stated.

The 5-4 decision allows the President to fire the head of the agency at will but does allow the agency to continue to operate as is. The Court also voted 7-2 that the change does not invalidate the entirety of the law that created the body – the DoddFrank Wall Street Reform and Consumer Protection Act. The case, Seila Law v. CFPB, involved a challenge to the constitutionality of the CFPB’s structure, an

independent agency led by a single director. The CFPB is funded in potion by the Federal Reserve — not Congress. Before the Court decision, the director could only be fired for cause.

President Donald Trump’s Justice Department asked the Supreme Court to take up the issue after the U.S. Court of Appeals for the District of Columbia Circuit Court ruled the CFPB’s structure constitutional.

Since the CFPB’s inception in 2011, following the 2008 financial crisis, it has been a political lightning rod.

The National Independent Automobile Dealers Association spent the last several years lobbying the bureau on dealer issues, two of which have been arbitration and open recalls.

“I’m not at all surprised about the outcome (allowing) the ability to remove the director,” said Shaun Petersen, NIADA’s senior vice presi-

Photo Courtesy of NIADA TALKING SHOP: Kathy Kraninger, CFPB director, talks with NIADA’s Shaun Petersen at the association’s 2019 National Policy Conference in Washington D.C.

dent of legal & government affairs. the original structure was problem“Nor am I surprised at the pass at atic.” declaring the whole thing unconstiMichael Benoit, a partner with tutional.

Hudson-Cook, when asked about “The insulation that was built into Continued on page 6

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Auctions 7/20/2020

CFPB – Continued from page 5 the issue last year, predicted the Court would give the President more authority to remove a director.

“I’d be totally shocked if it was a decision that had the Bureau folding tent and going home,” he said last fall.

Petersen said NIADA would still prefer for the CFPB to be a bipartisan commission with staggered terms in a structure like the Federal Trade Commission.

Benoit agreed with Petersen that an FTC structure would be best.

Then it could fall under the appropriations process.

Petersen joked likewise that parents often are able to keep their kids in line because they hold the purse strings.

He added that under the single director set-up, policies could change from one President to the next, making it a challenge for those who have to abide by CFPB rules.

In a presidential election year, the Court’s decision means that if the Democrats win, a new CFPB director would be a likely result.

NIADA has had a “good working relationship” with current CFPB Director Kathy Kraninger, even meeting face-to-face with her at NIADA’s 2019 National Policy Conference in Washington D.C. last fall.

Petersen said it was a great experience for the association.

“We had a nice little fireside chat,” Petersen said. “We were very excited and thoroughly enjoyed getting to know her, her vision and the things that the Bureau is working on.”

Kraninger responded to the June 29 Court decision on Twitter that day.

“Today’s Supreme Court decision finally brings certainty to the operations of the Bureau. We will continue with our important mission of protecting consumers with no question that we are fully accountable to the President.”

One of the majority votes on the Supreme Court came from Justice Brett Kavanaugh, who coincidentally wrote an earlier opinion for the D.C. Court of Appeals before he was appointed to the Supreme Court.

That decision also ruled against the constitutionality of the CFPB’s structure.

When the high court took up the issue last year, Benoit questioned whether Kavanaugh would recuse himself from the case.

“If it were me, I would probably recuse myself,” Benoit said.

But he added Supreme Court justices are not required to recuse themselves.

Kontos: Auctions See Newer Units KAR Global Chief Economist Tom Kontos said that while used-car prices made a comeback in May, the remarketing industry faces other challenges going forward.

The economist, in his regular Kontos Kommentary market analysis, said “(On) an aggregated basis, wholesale used vehicle prices in May appeared to more than make up for losses in March and April resulting from the COVID-19 pandemic.

“However, with the remarketing industry having undergone significant changes in sales volumes and composition, aggregated numbers often mask lingering weakness in wholesale prices relative to pre-COVID levels that are revealed when disaggregating the data by sale type, model year, model class, etc.”

Kontos said auctions are wholesaling newer and lower-mileage cars, which are more expensive units. He

attributes this to more factory and captive finance sales, as well as more sales from commercial consignors.

“This ‘richer mix’ of vehicles is biasing average prices upward. And sales volumes in May were 75 percent of year-ago and pre-COVID/ February levels, thus representing a more restricted picture of total market conditions,” Kontos stated.

“Nevertheless, wholesale prices in May did experience a significant rebound and represented a healthy balance between offered supply and dealer demand.”

According to KAR Global Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale prices in May averaged $11,743 — up 22.1 percent compared to April and up 0.7 percent relative to May 2019.

“Average prices for dealer consignors were up 15.3 percent versus April but down 3.6 percent relative to May 2019,” Kontos stated.

Retail Markets 7/20/2020 Compiled by Ed Fitzgerald

MONTANA Paul McMenamy, owner, A-Plus Auto, Great Falls, Mont.: “As A-Plus Auto I’ve been in business since 2008, but I’ve been in this business for 38 years, all in Montana.

“Montana wasn’t (hit hard) by the COVID, but it’s getting more active now.

The problem is, I do a lot of business with farmers and ranchers and the commodities have been hit bad for the last couple of years. So, we didn’t have a lot of traffic for the whole year.

“I sell a new style of travel trailer, the Aliner, and we sold out of them so you can tell that people are getting out and about in Montana. I could sell more trailers but the factory in Pennsylvania was closed. The trailers really saved my bacon.

“The people did what they were supposed to do and

stayed home. We didn’t get the spring crops put in. We have Malmstrom Air Force base with some military people, and I think some other people have been using their stimulus checks.

“We keep an average of 50 cars in inventory. Now, if we have a great month, we sell 10-12 a month. It’s been down to maybe one sale for a couple months this year.

“We sell mostly trucks.

We do more with domestics than imports.

“We get vehicles from the Auto Auction of Montana in Billings. On the Internet we buy from Salt Lake and Spokane.

“We don’t do financing here. We’re old-fashioned cash. People work with their banks. It works really well.

“For reconditioning, we spend $225 to $250 for everything, per vehicle.

“We advertise in a couple

papers, Mickey’s Auto Chaser and Trader’s Dispatch, a farm and ranch magazine.

“We try to stay at twenty grand and below for our vehicles. We get close to 80,000 and 90,000 miles and we sell some over 100,000.

“The last car we sold, believe it or not, was a ’13 Ford F-250 Quad Cab and we sold it for $14,000. It had 98,000 miles.”

LOUISIANA Alex Katz, owner, NOLA Motorcars, Metairie, La.: “I’ve been in business for seven years, since 2013, all in the same location.

“I’m passionate about cars, you might even say obsessed.

My earliest memories are entwined with everything that had to do with vehicles.

Whether it was pushing Hot Wheels cars around, or spending time in the driver’s seat of my family cars, when

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they were parked. Instead of reading books like other children, I read only car magazines. While most kids collected baseball cards, I collected license plates.”

“I obtained a bachelor’s degree in business from the A.B. Freeman School of Business at Tulane University, with a specialty in marketing and entrepreneurship.

“I secured a position with a luxury auto broker and started out taking photos for their website. But before long I was buying inventory for them and other dealers in the region.

“My goal now is to match each buyer with the perfect car for his or her needs and price point, while delivering superior personalized customer service.”

“As far as the coronavirus, we were never shut down by force, but we volunteered

to shut down because there was no business, for about four weeks. And then it started coming back really strong and now it’s busier than ever.

“Normally we keep 20-25 cars at a time, and we probably sell an average of 25 per month.

“I primarily sell cars and SUVs. I sell maybe 80 percent imports and 20 percent domestics.

“We source our cars from everywhere, and we have a Manheim auction nearby.”

“We spend about $1,000 a car in reconditioning, and we sub it out.

“We do all Internet advertising.

“The average model year is 2018, with probably 20,00025,000 miles.

“The last car I sold was a Tesla Model X with 25,000 miles and we sold it for $58,000.”

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

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ADESA Charlotte August 13, 27 704-587-7653

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Manheim Orlando August 4, 11, 18, 25 800-822-2886

Manheim Atlanta August 12 404-762-9211

Manheim Palm Beach August 5 561-790-1200

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Columbus Fair AA August 5, 26 614-497-2000

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ADESA Cincinnati/Dayton August 25 937-746-4000

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ADESA Indianapolis August 11, 25 317-838-8000

Manheim Detroit August 13, 27 734-654-7100

Manheim Riverside August 4, 6, 18, 20 951-689-6000

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Manheim Fredericksburg August 6, 20 540-368-3400

Manheim Seattle August 12, 26 206-762-1600

ADESA Kansas City August 11, 25 816-525-1100

Manheim Milwaukee August 5, 19 262-835-4436

ADESA Lexington August 6, 20 859-263-5163

Manheim Minneapolis August 12 763-425-7653

Manheim Southern California August 13, 27 909-822-2261

ADESA New Jersey August 13, 27 908-725-2200

Manheim Nashville August 4, 5, 19, 26 615-773-3800

Manheim Tampa August 13, 20, 27 800-622-7292

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ADESA Boston August 7, 21 508-626-7000

Manheim Atlanta August 13 404-762-9211

ADESA Charlotte August 13 704-587-7653

Manheim Dallas August 5, 19 877-860-1651

ADESA Chicago August 21 847-551-2151

Manheim Detroit August 27 734-654-7100

ADESA Golden Gate August 11, 25 209-839-8000

Manheim Fredericksburg August 6 540-368-3400

ADESA Houston August 12 281-580-1800

Manheim New Jersey August 5, 19 609-298-3400

Columbus Fair AA August 5 614-497-2000

Manheim Orlando August 11, 25 800-822-2886

Manheim Pennsylvania August 7, 21, 28 800-822-2886 Manheim Phoenix August 20 623-907-7000 Manheim Pittsburgh August 5, 19 724-452-5555 Manheim Riverside August 4, 18 951-689-6000 Manheim Seattle August 12 206-762-1600 Manheim Tampa August 20 800-622-7292

Southern AA August 5, 19 860-292-7500

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Manheim Milwaukee August 19 262-835-4436

Manheim Phoenix August 6 623-907-7000

Manheim Atlanta August 12 404-762-9211

Manheim Palm Beach August 5 561-790-1200

Manheim Riverside August 6, 20 951-689-6000

Manheim Dallas August 18 877-860-1651

Manheim Pennsylvania August 13, 27 800-822-2886

ADESA Boston August 7, 14 508-626-7000

Manheim Fredericksburg August 20 540-368-3400

Manheim Pittsburgh August 5, 19 724-452-5555

ADESA Salt Lake August 4, 18 801-322-1234

Manheim New Jersey August 5 609-298-3400

Manheim Seattle August 12 206-762-1600

Columbus Fair AA August 26 614-497-1177

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Manheim Southern California August 13, 27 909-822-2261

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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").

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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").

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Wholesale Markets 7/20/2020 Compiled by Jeffrey Bellant ple of weeks of COVID. The shutdown was on March 20, my birthday, so I’ll never forget that. The first few weeks were pure hell.

“I was able to get some repo accounts because some of the bigger auctions weren’t even accepting cars.

We got a really good account with Consumer Portfolio Services. We also just signed up U-Haul.

“Now I am limiting buyers to around 250 to 300 inlane. The only difference is, I have a lot more online buyers. We’re averaging right around 250.

“Inventory is my biggest struggle. We have a Tuesday sale and a Friday sale. For both sales combined, we’re running a weekly average of 550. Conversion rates are very high. We had an 84 percent sale in July, which was a record high.

“Dealers – the moms-and-

CALIFORNIA Justin Soghomonian, vice president, All Valley Dealers Auto Auction (AVDAA), North Hollywood, Calif: “We’re running a live sale, but we’re still not driving the cars through the lanes.

“We’re doing that for safety. We’re also making sure people are not gathering in a big group around a car. I’m requiring masks and trying to keep people from large groups.

“We have three 75-inch TVs. One shows all the information on the car on the block. Another TV goes through a slideshow of photos of that vehicle. The third TV has the next car coming up. I call it the ‘on-deck car.’

“We allow previews of cars Monday through Friday, instead of just the day before.

“We had to be only online at first, during the first cou-

pops – have been having record sales and selling cars like hotcakes. In the beginning, the prices were so low, some dealers were stealing cars.

“During the first week of July, I sold a $200 car and I’m proud to say I sold a $182,500 2019 Mercedes G63 with a factory blackmatte paint finish. I got $10,000 more than the actual sticker on the car. It only had 200 miles and we sold it to a Michigan buyer.”

MICHIGAN Greg Price, owner/operator, FastLane Auto Exchange, Mt. Morris/Flint, Mich.: “It’s been a unique learning experience over the past four months. It’s made it difficult for a smaller independent sale.

“This gave us a big spring-

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board to a lot of new customers online.

“We had a sale on July 8 and had an 87 percent sale.

“For a little while, we were one of the only sales in Michigan with people in the lanes. We started out small in mid-June with 50 dealers in the lanes, then 100 and then 125. Now we’re at pretty much full force.

“We recently had 240 inlane dealers and about 160 online. We’ve got a couple of new accounts. We have Automobiles En Direct, it sells a lot of late-model, high dollar pieces.

“We’re running cars across the block. We have plexiglass and hand-sanitizing stations. All of the employees have gloves. We sanitize every single car at check-in.

“The participation of the dealers is great. Everybody’s being pretty cognizant of the social distancing. I also

have an ambulance out front checking temperatures.

“We haven’t had a sale under 80 percent in the first four weeks of (in-lane) sales.

We only ran 480 on July 8.

(Pre-COVID).

“The retail stores are selling so many cars, it’s tough to get these cars in. We’re 80-percent dealer cars and 20 percent fleet/lease/repo.

We have a strong Canadian presence (inventory).

“Our average price is about $8,000 across the block, but at our July 7 sale, with additional later model units, it jumped up to $11,300.

“The used cars have gone crazy because of the government money and extra unemployment money. In Michigan, if you count the winter and then COVID, everybody has been cooped up for eight months.

“I’ve never seen a market like this.”

Wholesale Numbers UCN usedcarnews 7/20/2020

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

2019-07-01 ---------9100 10250 8600 8950 9350 9050 7500 7150 6550 13800 23700 24000 21200 12800 12950 10750 10400 14975 15950 24100 11000 11750 10250 10300 12000 10700 8750 9050 8550 15350 26500 27000 22600 14750 15400 12300 11650 17850 19500 25800 12500 13350 11400 12100 12900 12100 10050 10050 9550 17050 27600 28100 25000 16250 19000 13825 13150 20125 21000 27275 14100 16450 12950 13400 14700 13050 10850 10950 10650 19150 29000 30100 26400 17600 21650 16625 15500 22775 24425 28600

2020-01-01 ---------7900 9200 7450 7050 8400 8050 6150 5300 5350 11700 21300 21200 18800 11100 11500 9150 8900 13325 13800 22575 10350 10550 9250 9000 10950 9400 7350 7650 7200 13150 22400 23900 20000 12400 13400 10650 10200 14850 17400 24400 11200 11900 10700 10750 11800 11000 8850 8950 8400 14600 24200 25200 21700 13850 17050 12125 11300 18125 19700 25800 12800 15300 12050 12250 13550 12100 10100 10150 10000 15900 25400 26500 22800 15600 20050 14550 12950 20225 22575 27250

2020-07-01 ---------7050 8175 6600 6225 7525 6650 5000 3900 4350 11900 19200 19100 17500 10300 10925 7800 7150 12650 13500 21325 9600 9750 7750 7450 10725 8000 6100 5800 6000 13100 21500 23100 19500 11700 12750 10000 8800 14150 16750 23275 10750 11375 9800 9300 11900 10300 8150 7650 7300 14600 25100 24900 21500 13250 16275 12425 10750 17475 19550 25250 12450 14050 11150 10775 13250 11400 9100 8950 8750 16150 26800 26400 23300 15275 18800 13850 11850 19425 21325 26350

2021-07-01 ---------5950 6900 5275 5325 6200 5275 3900 3425 3675 9125 15875 17000 14425 8725 10150 5750 5875 9125 9800 17625 7850 8200 6200 6625 8625 6475 4750 4750 4875 10225 17850 20475 16375 10000 11925 6825 7075 10575 12075 19275 8925 9550 7725 8350 9750 8075 6200 6225 5850 11500 20800 22425 18200 11350 14600 8125 8525 13025 14125 21075 10400 11850 8850 9700 11050 9325 7425 7500 7150 13025 22575 24200 19850 13100 16950 10825 9600 14950 16025 21850

2022-07-01 ---------5375 6225 4925 4850 5200 4625 3475 3000 3200 7825 14200 15425 12925 8175 9375 5075 5350 8350 8575 16450 6925 7300 5750 5900 7125 5575 4200 3975 4100 8850 15925 18350 14750 9375 10975 6075 6350 9875 10400 17900 7975 8425 7000 7250 8150 6925 5450 5175 4875 10100 18400 20225 16450 10575 13475 7325 7500 12025 12075 19525 9275 10400 8025 8425 9350 8000 6500 6325 6000 11550 20650 22075 18375 12150 15525 9800 8575 14050 14125 20650

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 7/20/2020

When you’re forced to slow down and stay home, strange things happen; time is going by so fast. Maybe Einstein had a theory for that. Seriously, I’ve been keeping in touch with folks back in England and weeks have come and gone in the blink of an eye. I have a great friend over there who’s Jewish, so every Friday afternoon I call and wish him, “Shabbat Shalom” for good wishes over the Sabbath. We now both agree that each time, it feels like I said it yesterday and the intervening week has gone in a flash.

I’ve written before that we’ve tried to stay busy but while time is flying by I’ve found time to see things and watch things that would normally miss my attention.

I’ve mentioned that no effort was made this year to primp and priss the patio.

Nature has filled in the gaps with self-seeded gifts from I don’t know where. Plants I would have normally plucked from encroaching on expensively acquired blooms have been left to fend for themselves. Presto!

Weeds turn into Weigela, seedlings into Speedwell and last year’s leftovers into Lantana. It’s been fascinating to watch everything at close quarters with time on my hands.

Cardinals, Chickadees, Wrens and Robins have all nested in various spots around the house and it’s been a pleasure to watch the activities of building, singing, feeding and fledging.

The wrens have come back for a second brood, entertaining with their trilling song. How does such a tiny thing have such an enormous voice? The Cardinals’ insistent ‘ptchoo – ptchoo –

ptchoo’ in the mornings and evenings flaunt their flashy red regalia.

Robins, on the other hand, try their hardest but loudly and repeatedly atonally miss notes. No matter how many times they try the same tune, they go off key.

Our locals can start as early as three in the morning and keep it going, non-stop till breakfast time.

Chipmunks’ alarms sound like birds on alert; chip, chip, chipping in time with tails flipping up and down.

They can be a nuisance but they are hilarious as they taunt a rat snake on patrol for easy pickings.

Our house is adjacent to an old golf course. When in the height of our lockdown phase we’ve been visited by so many deer with their young, I wonder we haven’t lost our roses. A rafter of twenty turkeys came strut-

By Myles Mellor

Across 1. Aston Martin model 4. Deville makers 8. Lamborghini’s “little bull” 10. Hyundai sedans 12. Grazing ground 13. Honda model 15. The first of these VW models were hatchbacks 17. St Paul’s state 18. Silvery-gray 21. Headlight sends it out 22. Hot stuff 24. Former Saturn sedan 27. One of Greyhound’s fleet 28. Belief system 29. Former Jeep model 30. One billion years

31. Climbing plant 32. Technology giant 34. Ford in-vehicle system 36. VIP vehicle 37. Bag 39. Toyota hybrid 40. Former Isuzu SUV 41. Dangerous road surface 42. Make, as profit 43. Horn blast 44. Air conditioning, for short Down 1. VW SUV 2. Panamera or Taycan 3. Medical pro 4. Low-cost 5. Genetic stuff

ting down the middle of our street as if they owned the place. Toms colorfully blown up and showing off like flashers with no shame.

The coyotes’ howling and wailing, sometimes started by and in tune to police sirens, is a signal to take in small pets lest they become coyote comestibles. It’s an exciting but eerie sound, especially in the middle of the night. Because of the lack of people around, they’ve become brazenly bold and encroach into areas previously off limits without caution or care. It’s as though Mother Nature is taking back what was hers in the first place.

Meanwhile, the world is going hurdy-gurdy with no sense in sight. “Easing” back to some form of social intercourse has turned into a flood of selfish humanity, sending Covid cases skyrocketing

• 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

to new levels. If I offend by these statements then so be it. The loss of a loved one to this plague puts me square in the spot of indignation at the behavior of people who couldn’t give a tinker’s cuss for their own, but more importantly, others’ health and safety.

Play Online at Us e d C a r N e ws. c o m 6. Formula 1 sports brand 7. ___ general rule, 2 words 9. Cutlass maker 11. Former UK car company that made the Talbot and the Rapier 14. Truck owned by Fiat Chrysler 16. Honda SUV 19. Makers of the Kona and Ioniq 20. Makers of the EX 35 and EX 37 22. Auto category 23. Kind of driver no one likes 25. Former Kia sedans 26. Radiator top

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Solution to this puzzle in the 8/10/2020 issue. Call 1.800.794.0760 for a FREE subscription.

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Tony Moorby

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