Used Car News 09/21/2020

UCN

Used Car News

usedcarnews

9/21/2020

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A Presidency Decades in the Making Lou Tedeschi is the incoming president for National Independent Automobile Dealers Association. He is the president of A.S.P.I. Motor Cars in Dedham, Mass. He’s been in business independently for nearly 36 years.

The NIADA/NABD Virtual Convention runs for three consecutive Tuesdays – Sept. 22, Sept. 29 and Oct. 6. For information, go to NIADA. com.

UCN: Could you tell our readers about your background and operation? How did you get into the car business?

IN THIS ISSUE:

• NIADA • Auto Finance • Retail Markets

Tedeschi: I started in the car business in 1980 for Oldsmobile as a line technician. I left there in 1985 to open up a two-bay gas station. We did used car service and stickers, stuff like that. I had that for about a year-and-half. We were so busy we needed a bigger place, so we moved to Dedham. At the time, we were big into the restoration stuff, selling restored cars. We had a problem getting our dealers license. So, after two years, the building next door became available and it was double what we had so we bought that. We finally got our dealers license in 1988. In Massachusetts, it’s really strange. The cities and towns issued the licenses. It was all political, who you knew, who you were taking care of, that sort of thing.

We do subprime and straight retail. We have a related finance company. We do some in-house, but mostly it’s retail.

We’re an (NIADA) average dealer.

We sell 15 to 20 a month. We sell between 15 and 25.

UCN: How did COVID-19 affect your business?

Rush - Dated Material

Tedeschi: It didn’t affect us as

much. We had the service business, thank God. Car dealerships had to close down the sales side. Business was cut in half. We weren’t able to sell vehicles but we were able to service them and do other stuff that we normally do, which is accessories and detailing. It didn’t affect us as much as others. Service makes up about 50 percent of our bottom line.

UCN: All business owners have to be leaders. What is the experience that you bring going into the top spot for NIADA? Tedeschi: I’ve been involved roughly 16 years in the state and national associations. Three years after I joined the Board of Directors in Massachusetts, I moved to the president’s position for the Massachusetts IADA. We took over the New England IADA during that period and I became president of that group from 2009 to 2010. By that point, I was on the Board of Directors of NIADA. I plan on bringing the same philosophy to the NIADA presidency that I brought to the state of Massachusetts. When I took over the state presidency, we had 232 members. When I left my presidency, we were at 568. The reason we were able to build that relationship with our dealers is because we were out in the lanes, bringing dealers things they needed and thinking outside of the box. Over the years, between myself and about five others that came after me, we were all on the same page.

The only way that you get any-

where is having people on the same page to achieve the goals you need to achieve for dealers.

You have to look and find out what your dealers need. Our average member is five to 20 cars (sold) per month. Nobody realizes that.

Everybody thinks our dealers are all selling 100 to 200 a month. That’s not our membership. Our membership is people like me. Nothing against the bigger dealers, but they don’t think like the smaller dealers.

They have F&I guys, people doing their in-house cleaning, we don’t have that. A small dealership is one where the guy doing F&I is the same guy cleaning the bathroom.

There a lot more mom-and-pop dealerships out there than the big guys. That’s the biggest thing I want to bring to the NIADA level. Some other guys would go along to get along, to put in their time.

That’s not me. I want to accomplish something.

Continued on page 3

WE’RE OPEN JOIN US AT THE LANES OR BID ONLINE Atlanta • Houston • Los Angeles • Orlando www.AutoNationAutoAuction.com

JULIE, THE ROAD IS YOURS. Colleague, visionary, leader. Congratulations for carrying on NAAA’s mission to serve as a strong, unified voice of our members and the wholesale auction industry. Manheim proudly supports you all the way.

Julie Picard, NAAA President

NIADA Convention 9/21/2020

NIADA President – Continued from page 1 I’d say to dealers, ‘You cannot complain unless you’re willing to get involved to change it.’ They would then go and sign up to be a member.

We also made the benefits easy to use. You have to have a hook or the dealer will put you off.

UCN: What is your mindset as you take over during such tumultuous times?

Tedeschi: The bottom line is we’ve been doing Zoom calls – and by that, I mean I’m doing five a week. We haven’t missed a beat. With Shaun Petersen (senior vice president of legal and government affairs) able to step in as interim executive vice president behind Steve, well, he was a man behind the scenes anyway. We don’t know who the new executive director is going to be. We’ve had more than 200 people apply for the job and interviewed a half-a-dozen

very qualified candidates at press time. Our biggest goal – mine, outgoing president Henry Mullinax and Joe McCloskey who will follow me after my term – is to make sure we bring someone in who is going to be there for every member in the association. That’s the biggest key.

For example, we want to adapt the 20 Group program to the smaller dealer.

The smaller dealer can’t spend the money that you normally need to spend in a 20 Group. We’re going to try and take that program virtual so that everybody can afford to be in a 20 Group.

It’s the same with the Certified Master Dealer program. CMD is important to us, getting a designation that separates a dealer from another down the street.

We want to bring that program back and tie it into the 20 Groups so dealers can continue their educa-

tion. Education is invaluable. When you have the education to run your business properly, you’re going to be much more successful without doing as much value. That’s what the key is. You don’t have to sell 60 cars a month to be successful. You can sell 10 cars a month and be successful. Some guys don’t get that. If you know how to sell 10 cars a month, with ancillary products – service contracts, GAP, whatever it might be – you’re going to make more money than the guy selling 60, because his staff and overhead is eating him up.

We also want to have the state IADAs be an extension of NIADA. If you’re an affiliate of NIADA, you are part of NIADA and we have to put things out there to help you grow your state affiliation.

has it affected what you’ve tried to do moving into the top spot?

Tedeschi: Other than the fanfare, it didn’t affect anything. I don’t get to go to the podium and speak and I feel that’s unfortunate. I’d love to address the dealer board and members. But, honestly, it’s not going to affect us that much. Obviously, I think it’s much easier to address your peers and explain in things to them in person.

UCN: What would be a successful term as president for you?

Tedeschi: To get to 20,000 members. We’re at about 16,000 now. To get the states involved with NIADA is to show them the value. Especially now with COVID, these dealers need to rebuild. They need profit centers and something besides used UCN: With the COVID shut- cars to survive, whether it’s ancillary downs and the NIADA \NABD products, or service departments, Convention going virtual, how detailing, etc.

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Auto Insights

UCN usedcarnews

9/21/2020

By Jeffrey Bellant

Experts from J.D. Power updated the Automotive Press Association last month on the status of auto sales and finance in the auto market and there were a lot of positives.

The team making the presentation was led by Tyson Jominy, vice president of data and analytics, followed

by Jim Houston, managing director of consumer lending and automotive finance, and then Robert Lajdziak, senior consultant of automotive intelligence.

Jominy said his team was powered by information it gets directly from dealers’ DMS systems, or transactional level data.

“We get exactly what the dealer has recorded for the sale in the system that the OEM doesn’t even get to see,” Jominy said. “We get about 6 million transactions on the new side and about an equal amount on the used side.”

As a result, the team is just “swimming in data.”

Looking forward, there are two

aces for the auto industry.

One is that the mix of who is in the market is dramatically different from where it was during the Great Recession. During that time, it was the oldest, more mature buyers, that were ready to buy.

Now it’s reversed, since older folks are more susceptible to the virus.

“But they’re the ones with all the money,” Jominy said. “So, we’re still doing great and we don’t have our best buyer demographic.

“The youth are carrying us.”

Manufacturers’ incentives made a big leap in March and April offered 0-percent, 84-month financing.

On top of that for some pickups, dealers offered up to six-month payment deferral, Jominy said.

“That’s going to take you from this recession to the next recession and probably outlast your marriage,” he said.

Hyundai and Volkswagen also offered assurance programs for customers who lost their jobs.

Pickups and SUVs were strong while cars and sedans were being

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discontinued. In fact, the subcompact cars that accounted for 40 percent of subcompact sales in 2019 have been discontinued.

“They are gone,” Jominy said.

“They are not coming back. My guess is, large cars are going to suffer a similar fate coming out of this, too.”

As a result, there is not inventory for trucks because of the incredible demand in May and June, although July looked a little better.

“What we’re seeing in the data is that 41 percent of the vehicles are turning in under 20 days,” Jominy said.

Because of those trends it was clear what would happen next – new-car dealers looked to used-car sales.

From May to the end of July, usedcar prices rose 25 percentage points.

“What does it look like (new-car sales) for the year?” Jominy said.

“We just came up five straight years of 17-million-plus. Our forecast for the year is somewhere between 13 and 14 million.”

The biggest challenge is the need for finding cars to sell, especially since it’s unknown when the coronavirus problems will end.

But a 15-million SAAR number is still a healthy industry, Jominy said.

“Automakers and dealers can make a lot of money during that time,” he said.

Houston discussed trends on the auto finance side, looking at July to July, year over year.

“Last year in cash/financed/lease deals, the percentage totals were 16 percent cash, 54 percent financed and 30 percent lease,” Houston said.

However, in July 2020, cash is down to 14 percent. Direct financing is almost 60 percent and leases have dropped down to 27 percent, Houston said.

A lot of consumers are taking advantage of the 72- and 84-month finance deals.

Also, looking at last July, about 10 percent of all transactions were going out the door at 0 percent, Houston said.

“That’s 21 percent now,” he said.

Now, about 10 percent is at 1- to 2-percent (interest rate), 12 percent at 2- to 3-percent, 14 percent at 3- to 4-percent and 43 percent at 4 percent plus, Houston said.

However, the subsidized rates are pushing more customers to the captives and away from the banks and credit unions.

“A lot of folks ask, has credit dried up?” Houston said. “Credit is clearly available.

“There are no liquidity issues from the banking and captive finance perspective.”

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Dealers 9/21/2020

Dealers Fight for Inventory

By Jeffrey Bellant

Inventory acquisition and keeping a business model profitable remain top challenges for independent dealers.

A panel of independent dealers recently talked about the biggest challenges and trends of the industry during a discussion for the International Automotive Remarketers Alliance Summer Roundtable.

The late-August panel was moderated by Steve Jordan, who is leaving as CEO of the National Independent Automobile Dealers Association at the end of the month.

The panel included Mark Jones, COO of Texas-based Mike Carlson Motor Co., Dan Reel, president of Reel’s Auto in Ohio and Luke Godwin, president of Godwin Motors in South Carolina.

Dealers face a unique time with pressures of the pandemic and general economic challenges.

Jordan said that NIADA’s recent surveys of its dealers listed some of the top COVID-19 concerns of its members, starting with the biggest challenge they face coming back from the pandemic.

Cars, cash and customers were the top issues.

“No. 1, we have to get cars,” Jordan said. “We have to find inventory, it’s the lifeline of our business. Then we have to get customers back in the dealership.

“On top of all that, we need cash.

We need floor planning, assets and financial capacity to meet all the demands of our business.”

Jones said acquiring inventory has been an expensive proposition.

“No doubt, we are having to pay, pretty much retail, to get the quantity of cars we need,” he said.

Jones said that may work in a 20to 30-car-a-month model. But for his larger operation, he’s going to more auctions and having to do it online, as opposed to in-person.

But the good news is there are a lot more options than there were in the past with Backlot Cars, Carwave, TradeRev, etc. In the past, these sources would make up 10 percent of acquisitions, Jones said.

“All of the sudden, this is 60 to 70 percent of the way we’re acquiring inventory,” Jones said.

Reel said he’s gone from 90 percent of the time buying in the lanes of Manheim, ADESA and independent auctions to now buying a lot online.

“However, over the past few months, I’ve put together Google campaigns and I’ve been buying cars off the streets,” Reels said. “We’ve probably bought 40 to 50 cars off the streets over the last two weeks.

Frankly, that’s where we make the most money.

“I always try to find the path of least resistance to get inventory.”

Godwin said he used to buy 90 percent of his inventory from Manheim but that figure has dropped to 25 percent, with similar percentages from ADESA and independent auctions.

With those changes, however, the issue of shipping has affected their business model.

Transportation costs are sky high, with dealers sometimes unable to get units in a timely fashion, even if they can find a shipper.

Godwin, a buy-here, pay-here dealer, said the changes have forced his ACV to rise $1,200.

“That’s a huge jump and it’s the same kind of car we were buying in January,” Godwin said. “That puts a big cash crunch on a buy-here, payhere dealer.”

It also puts a crunch on customers who have seen their down payments and payments go up. The term length has gone up one month on average, and payments have recently gone up $20 per month, Godwin said.

Carlson, who also has a buy-here, pay-here model, faced the same challenge.

“We had to tweak our model quite a bit over the past four months,” he said. “We can only term out these buy-here, pay-here customers so long.”

Carlson, like other dealers, has pointed to the concerns over auction fees and how they really hurt dealers. He said when he has to pay additional fees for buying nicer certified cars at auctions, it’s a problem.

“As a dealer, that’s very irritating,” he said. “Our margin is down about 6 percent.”

Jones said his ACV is up $2,000 and he’s buying cars from outside the market, which adds transport costs to transport.

Reel, a retail dealer, doesn’t have the cash flow issues that Godwin and Jones have. He said he’s been able to leverage the backend through dealer reserves/participation, service contracts, GAP, etc.

“I sell them at cost sometimes and still make a handsome profit, luckily,” Reel said.

Consignor News 9/21/2020

Consignors See Prices Rise, Rely on Auctions to Set Floor

By Jeffrey Bellant

Getting the best price through the best venue remains the main priority during the COVID-19 era, and consignors are doing it in different ways.

Moderator Steve Greenfield, of Automotive Ventures, led a consignor panel discussion during the recent International Automotive Remarketers Alliance Virtual Summer Roundtable.

Panelists included Brent Huisman, of Exeter Auto Finance; Melanie Glaze of U-Haul; Darrin Aiken, of Wheels; Patrick Huibers of Honda Financial Services and Douglas Campbell of Avis Budget Group.

Campbell said Avis Budget typically sells a one-year-old car, though recently the company has engaged with Uber and Lyft.

“Obviously, that business has been adversely impacted,” he said.

“Having to bring those to market

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quickly, we weren’t quite prepared to start remarketing them.”

Huisman said at the start of COVID-19, there was not an appetite for any vehicles at all.

However, by April, a $2,000 price car – that low-priced segment – sold great.

Glaze said that since auctions have opened up, it’s difficult to keep up.

“Everybody always wants more,” she said.

Aiken said he saw similar trends from a fleet-management perspective, especially with the lower-priced units.

“The (auction) closures were killing us at first,” Aiken said.

However, being a fleet-management company with an open-ended lease, the clients are responsible for their residual value.

“So, if we couldn’t sell anything, we’d just sit tight,” he said.

Aiken added the company sells over 50 percent of its vehicles to

simulcast buyers anyway, so not having dealers in the physical lanes wasn’t a big deal.

“But I think the auctions have done a great job of at least trying to give dealers access to the inventory ahead of time,” Aiken said.

It was a big change going from seeing 80 to 90 dealers on simulcast to now seeing more than 200, he said.

“Let’s be honest, the prices we’ve been getting have been insane,” Aiken said.

Huibers said more dealers are picking up units at the residual value rather than moving those units straight to auction. He said this had made it harder for independent buyers to find units that they normally would have access to.

Aiken said on the fleetmanagement side, more drivers and employees have been snapping up the vehicles.

Panelists were asked how they are

setting floor prices in such a crazy market.

Huisman said the key to setting a floor is knowing the local market.

“We rely on our auction managers all over the country,” he said.

“They’re the experts. That helps a lot.”

Campbell and Aiken agreed.

“I think an auction is still important to have dealers there,” Aiken said. Often transactions get made when dealers are in the lanes that you might not get otherwise.

Glaze said it’s important to have buyers in the lanes discussing what they’re seeing with other buyers and how things are selling.

“That’s a huge feature we’re missing with the online status,” she said.

Huisman said for Exeter, the hybrid of online and in-lane sales is crucial for the firm.

Here we grow again! ... And we’re bringing some friends along.

McConkey Auction Group saw the chance to serve the dealers of the Southwest, and we took it. MAG is growing – and so is DAA Las Vegas.

We’re proud to announce the addition of Honda Remarketing and Acura Remarketing to our Las Vegas lanes beginning October 14th.

As part of a like-kind-exchange program, all of American Honda Finance Corporation’s rights (but not its obligations) on behalf of Honda Lease Trust (HVT, Inc. for New York and Virginia residents), to sell this vehicle have been assigned to Honda Finance Exchange, Inc., acting as a qualified intermediary.

Retail Markets 9/21/2020 Compiled by Ed Fitzgerald

NEW YORK Dave Donlick, owner, CNY Auto Hub, Dryden, N.Y.: “I’ve been here for two years. We are located about 10 minutes from Ithaca.

I’ve been in the car business for 26 years. In college I detailed cars and delivered auto parts. I worked as a general manager for a large import dealership. I’ve worn all the hats.

“When COVID hit in the middle of March, we had a great month, I can’t complain. But when April rolled around things got a little scary. Coming out of that, following the CDC guidelines, and selling cars by appointment, we’ve been pedal to the metal, full speed ahead. We’ve been cranking.

“The inventory issue has been the biggest thing. I use the expression, ‘You better have a chair when the music

stops.’ I’ve seen a lot of people pay way too much money for cars.

“I’m also a new-trailer dealer. You take that out of the equation and I usually keep about $150,000 of used car inventory. Last year I averaged selling 15 vehicles a month, this year it’s been 12.5 vehicles. The Haulmark trailers are good for another 10-12 units a month.

“Selling cars against trucks has been consistent, pretty much one-to-one. But in the last two and a half months, it’s definitely been heavier toward the pickups. These people are coming out of small SUVs and are new to the pickup market.

“I usually stock more imports, but I’ve got a couple domestic makes that are tried and true.

“I get vehicles from a nearby independent auction, Statewide, a great auction.

UCN

I’ve also been buying online through Edge Pipeline and Manheim Express.

“All our cars are handpicked. We prefer cars from Pennsylvania or farther south. Prior to delivery we complete a New York State Safety Inspection.

“I did buy-here, pay-here 25 years ago for people I knew. I don’t want the headaches and hassles.

“My mechanical reconditioning costs are probably $1,200 a unit. Then there are a couple hundred dollars for miscellaneous items like wheel covers or a new set of floor mats. We detail and recondition the cars to make them the best they can be.

“I don’t like to keep cars very long. When you get to 30 days you have an issue, when you get to 60 days you have a bigger issue.

“I do mostly digital advertising. My online advertising

is very simplistic: CarGurus, Facebook Marketplace.

“Our philosophy ‘forward together’ means that customers and a small business should grow together.

“The last car I sold was a 2011 Dodge Ram 2500. It had 79,000 miles on it, and we sold it for $19,995.”

WISCONSIN Henry Kopacz, owner, Hank’s Used Cars, Nekoosa, Wis.: “I’ve been in business for 66 years.

“The COVID virus has been a bad situation. Luckily, I have not come into direct contact with it.

“I’ve gotten inventory at Central Wisconsin auto auction near Wausau, Wis. They were shut down for a while (because of COVID) then they did it online. Then they sold in-person and now they

do it both ways.

“I have about 40 cars in inventory. Years ago, I might have 300.

“I try to get cars about 10 years old. The problem now is financing. It’s hard to get anyone to finance anymore.

“I might sell half-dozen cars a month now. I’ve always been good with vans, they have moved pretty good, and lower priced fourwheel-drives. Pickup trucks are expensive, the market has gone crazy. It’s $162 now just to get a title.

“I have never been a buyhere, pay-here dealer. It’s always been cash.”

“I might spend $200-400 on reconditioning. I used to have 30 people working for me, body guys, mechanics.

I would wholesale a lot of cars.

“The last car I sold was a 2006 Caravan. It had 140,000 miles and I got $2,800 for it.”

Business As Usual?

Not Quite!

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Wholesale Markets 9/21/2020 Compiled by Jeffrey Bellant

CONNECTICUT Peter Saldamarco, president, Central Auto Auction, Hamden, Conn.: “In Connecticut, there are no specific restrictions on auto auctions. Of course, we’re using best practices and all that, social distancing, wearing masks, etc. Bidders are in lanes and we have simulcast.

“But we are not driving cars through lanes now and maybe never. It’s more profitable for us to not drive the cars through the lanes. Plus, being a smaller auction, the capacity of the facility increases dramatically when you don’t drive cars through the lanes.

“There’s definitely pros and cons to it. But we all know, nothing beats a live sale. I think that’s indisputable. Nothing beats driving a car through the lane.

But considering: the safety

factors in play during recent years; the lower overhead with drivers not being paid; the ability to expand the business without buying property – those are big pluses.

“People are getting acclimated to this new way, They’re not jumping up and down for it, but they are getting acclimated to it.

“We’ve been averaging about 225 units a week.

Down from 300 before COVID. Our inventory is low, but our sales percentage is high. We hit 80 percent and we’ve been averaging about 75 percent.

“Our sales are on Tuesday morning and dealers can come and preview the cars all day Monday and for an hour before the sale on Tuesday morning. Or they can hire us to do a pre-sales inspection, including a rideand-drive for $50. “I would

say 30 percent of our conversions are on simulcast.

The GSA has more than 60 percent conversions on simulcast. Our donation business is stable, up maybe a tick. We run close to 100 cars a week, almost half our sales.

“Independents in the lanes are saying they are busy, they need cars.

The new GSA contract starts October 1. We just got another five-year renewal.”

FLORIDA Billie Jo Graham, general manager, Orlando Auto Auction, Orlando, Fla.: “The auction has been in existence for 44 years, but it’s been under the current owner, Joe Barron, since 2013.

“We closed the whole month of April for COVID. We opened our doors back again in May for the first sale of the month. We have been

cruising right along since.

We’re following all of the county mandates with lower capacity, etc. The good thing is with an auction you can open the doors and people can go outside if you’re not in the lanes.

“We have the floors marked, we have gloves and masks and hand-washing stations.

“We’re running close to 300 or 325, which is more than what we’d normally run. We’re probably about a 250 to 275 sale.

“We’ve almost doubled our bidder count for this time of the year. We’re around 270.

“That’s all in-lane. We haven’t really pushed for an online sale because of our market. We sell the lower end cars. So online presence for us isn’t a big thing.

“Our bidder count doubled because Manheim and everyone else said, ‘you can’t

touch the cars’ and we do it here. We’re normally a 55- to 60-percent sale. Now we’ve been in the 80s.

“A lot of businesses didn’t fare so well under COVID, but we’ve definitely come up on the better side of things.

“Every buyer is hating the prices because they are so high.

“It was the perfect storm for us, in all honesty. Retail customers are buying the cheap cars and my dealers are buying the cheap cars and everyone seems to be relatively unscathed.

“We had a Sept. 10 GSA sale and it was the largest volume in the country. We ran 252.

They buy American-made, so they were Chevys, Fords and Dodges.

“We sold 100 percent.

“We also do donation accounts. That volume hasn’t really stopped. So, people are still donating cars.”

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Manheim Fredericksburg October 1, 15, 29 540-368-3400

Manheim Seattle October 7, 21 206-762-1600

ADESA Kansas City October 6, 20 816-525-1100

Manheim Milwaukee October 14, 28 262-835-4436

ADESA Lexington October 1, 15, 29 859-263-5163

Manheim Minneapolis October 7 763-425-7653

Manheim Southern California October 8 909-822-2261

ADESA New Jersey October 8, 22 908-725-2200

Manheim Nashville October 14, 21, 27, 28 615-773-3800

Manheim Tampa October 8, 15, 22 800-622-7292

2

ADESA Boston October 2, 16, 30 508-626-7000

Manheim Atlanta October 8 404-762-9211

Manheim Pennsylvania October 2, 8, 16, 30 800-822-2886

ADESA Charlotte October 8 704-587-7653

Manheim Dallas October 14 877-860-1651

Manheim Phoenix October 15 623-907-7000

ADESA Chicago October 16 847-551-2151

Manheim Detroit October 22 734-654-7100

Manheim Pittsburgh October 28 724-452-5555

ADESA Golden Gate October 20 209-839-8000

Manheim Fredericksburg October 1, 29 540-368-3400

Manheim Riverside October 13, 27 951-689-6000

ADESA Houston October 7 281-580-1800

Manheim New Jersey October 14, 28 609-298-3400

Manheim Seattle October 7 206-762-1600

Columbus Fair AA October 28 614-497-2000

Manheim Orlando October 6, 20 800-822-2886

Manheim Tampa October 15 800-622-7292

Southern AA October 14, 22, 28 860-292-7500

3

Chase High Lines, featuring:

4

ADESA Golden Gate October 6 209-839-8000

Manheim Milwaukee October 14 262-835-4436

Manheim Phoenix October 1, 29 623-907-7000

Manheim Atlanta October 7 404-762-9211

Manheim Palm Beach October 28 561-790-1200

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

Manheim Dallas October 13 877-860-1651

Manheim Pennsylvania October 8, 22 800-822-2886

ADESA Boston October 2, 9, 30 508-626-7000

Manheim Fredericksburg October 15 540-368-3400

Manheim Pittsburgh October 28 724-452-5555

ADESA Salt Lake October 13, 27 801-322-1234

Manheim New Jersey October 28 609-298-3400

Manheim Seattle October 7 206-762-1600

Columbus Fair AA October 21 614-497-1177

Manheim Orlando October 27 800-337-8491

Manheim Southern California October 8, 22 909-822-2261

Manheim Denver October 14 800-822-1177

Manheim Pennsylvania October 9, 23 800-822-2886

Southern AA October 14, 28 860-292-7500

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

Contact auctions directly for current sale information.

1

The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by JPMorgan Chase Bank, N.A. ("Chase") is under license. * The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by JPMorgan Chase Bank, N.A. ("Chase") is under license.

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

4

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

Neither JPMorgan Chase Bank, N.A. ("Chase") nor any of its affiliates are affiliated with ADESA, Inc. or Manheim, Inc. Each auction is solely responsible for their website content, sales events, promotions, fulfillment and operation of the auction. Š2020 JPMorgan Chase Bank, N.A. Member FDIC (20-0010) 10/20

Wholesale Numbers UCN usedcarnews 9/21/2020

seg_type -------Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck Truck Car Car Car Car Car Car Car Car Car Car Truck Truck Truck Truck Truck Truck Truck Truck Truck

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 3 4 5 6 7 8 9 10

make_model_name --------------Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Nissan Sentra Hyundai Elantra Ford Mustang Volkswagen Jetta Ford F150 Ram 1500 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma Chevrolet Tahoe Jeep Cherokee Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Nissan Sentra Hyundai Elantra Ford Mustang Volkswagen Jetta Ford F150 Ram 1500 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma Chevrolet Tahoe Jeep Cherokee Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Nissan Sentra Hyundai Elantra Ford Mustang Volkswagen Jetta Ford F150 Ram 1500 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma Chevrolet Tahoe Jeep Cherokee Honda Civic Toyota Camry Toyota Corolla Nissan Altima Chevrolet Malibu Ford Fusion Nissan Sentra Hyundai Elantra Ford Mustang Volkswagen Jetta Ford F150 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma Chevrolet Tahoe Jeep Cherokee

2019-09-01 ---------10950 11700 10400 10000 11700 10550 8700 8500 14850 9000 26200 22800 12150 17950 11650 19600 27100 25175 34800 11475 12200 13250 11500 11800 12600 11950 9950 10250 16750 10350 28200 24800 13625 20425 13150 21300 29100 26400 37000 13200 13750 16400 12700 13450 14250 13050 10950 11150 18700 12300 29000 26000 16525 22975 15250 24600 31200 27975 39500 14675 15050 18100 13550 14800 15300 14350 12000 11750 20650 13900 32400 19150 26175 17650 27925 35700 29475 43500 15800

2020-03-01 ---------10450 10500 9150 8800 11000 9150 7450 7150 12800 8400 22000 20100 10700 14625 9900 16775 23500 21975 31200 10175 11500 12250 10400 10500 12100 11250 8900 9000 14300 10250 24200 21900 12325 18825 11400 20200 24900 23775 33900 11850 13100 15350 11900 12050 13700 12250 9850 9850 15750 11350 25800 23400 14250 21125 12750 22375 26400 25500 35500 13225 14550 16650 13200 14350 14600 13950 11000 11050 18000 12800 27700 16350 24825 15150 25300 33500 27250 40600 14600

2020-09-01 ---------11750 11000 9400 9150 11525 9800 7250 7950 16500 9750 25800 22500 11600 15850 10400 17750 26500 26375 31150 10675 13000 13425 11950 11800 13800 12350 9900 10300 18000 11600 31000 25500 13950 21575 12550 22000 27500 29775 34625 12550 14550 17100 13700 13325 14850 13650 11700 11500 19600 12850 33800 27000 16100 23725 13950 24050 29700 31425 37600 14725 16300 17875 14950 16450 16800 14800 13050 12400 21400 15500 34300 17775 26300 16450 26225 36200 32800 42725 16600

2021-09-01 ---------8050 7850 6675 6450 8300 6900 4725 5400 10800 6275 18075 17100 7200 10525 6875 11675 20525 19350 21725 7875 9050 9450 8300 8125 9975 8650 6375 6975 12000 7700 21625 19375 8800 14000 8200 14225 21750 21875 24700 9350 10200 11950 9425 9275 10950 9675 7700 7900 13275 8700 24275 20825 10525 15775 9250 16100 23750 23300 27600 10975 11600 12725 10350 11250 12675 10725 8675 8725 14575 10475 25200 11900 18050 11050 18350 28700 24500 31975 12525

2022-09-01 ---------7200 7050 6000 5825 6925 5675 4025 4550 9125 5075 16025 15500 6525 9875 6250 10225 19250 18350 18550 7025 8200 8325 7325 7175 8300 7050 5325 5875 10275 6300 18925 17550 8000 12750 7350 12225 20775 20750 21500 8400 9325 10425 8325 8225 9275 7950 6550 6725 11575 7200 21750 19175 9900 14650 8400 14275 22900 22300 24625 9800 10700 11300 9225 10050 10950 8975 7425 7575 12725 8800 23200 11425 17225 10125 16900 27425 23625 29000 11325

Actual Wholesale and Projected Residual Values

my --------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 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019 2019

Source: Black Book

Registration Includes:

• Access to all virtual events over 3 weeks • 3 tracks of education • Vehicle Acquisition & Wholesale Market Changes • Online Retailing & Contactless Transactions • Cash, Credit and Financial Markets

Access to meet with leading industry • vendors in our Virtual Expo • Access to review On-Demand content *A portion of your registration fees will benefit your state association. Contact your state association to learn more.

Disconnected Jottings From

Tony Moorby 9/21/2020

The NIADA has been in existence for 74 years. Retailing automobiles has changed a lot since 1946 and I know that sounds trite, but it remained fairly similar for the first fifty years of serving cars to the public in some sort of formal way.

It’s well documented that all kinds of jiggery-pokery went on over the years, including such scurrilous things as putting two halves of separate, previously damaged cars together to make one “good” one, an activity then known as “Cut and Shut.” Title washing was another activity that enabled a vehicle’s previous history to disappear without a trace and come to life again as a low-mileage retail piece.

These things were enabled by states with little policing or oversight and even less concern for a consumer’s rights in an era of

caveat emptor – buyer beware. Used vehicle warranties, to a great extent, were the things of pipe dreams.

By the mid-nineties, new expectations of customers’ rights were being understood and even written into law.

Above all, technology became the enabler of better and more immediate information. So a new cleaner, clearer retailing environment came about. Even one where new entrants got into the business besides the increased participation by new-car dealers.

The used-car business has now got the shimmer and shine of the cars they sell and from facilities that look as good as the mall or even in “vending machines” à la Carvana.

The breadth of NIADA’s influence, along with its new partner, the NABD,

the National Alliance of Buy Here, Pay Here Dealers continues to grow and with changes at the top as Steve Jordan resigned as CEO to pursue other opportunities within the business, new challenges are out there for the new administration to embrace and deal with in this unprecedented time.

NIADA has benefited enormously from the leadership of some top-rated presidents who, while normally only in the spotlight for one year, these folks have worked tirelessly within the structure and contributed to the work of the Executive Committee in preparation for the office.

This year was slightly different as Henry Mullinax was called upon to step up from Executive Vice President to President earlier than anticipated. I’ve known Henry for many

By Myles Mellor

Across 1. ____ GT 5. Kia model 9. Lower headlight strength 10. Tech expert 11. VW model 12. Debtor’s note 13. Place for cars for sale 14. 50s models, Standard ____ (UK) 17. Branch 18. Light brown color 20. Bentley model 23. Mulsanne maker 26. Military term: right arm, abbr.

27. Service station offering 29. One from the 1946-64, as a demographic, 2 words

33. Chassis 34. Made in ___ 36. Ford pickup 38. Former Mitsubishi model 39. Link together 42. Braking system, 2 words 44. Beetle relatives 45. Dirt collector in a car 46. Ascent and CR-V 47. Type of nut Down 1. Tesla ___ Y 2. Speed you can’t exceed 3. Nissan SUV 4. Has to have 5. Street, for short 6. Open-bodied auto 7. Frontier maker

years as a colleague, a customer and mentor and I can positively say that he brings polish and prestige to a position in an industry to which he has given as much as it has given to him. His experience has been shared with his Alabama association, too.

The association still has much to do – the goal posts are always moving but the field is growing, too. The concerns of the small dealer have ever been high on the association’s agenda, it might play well to entice some of the big moneyed companies to get on board to help underwrite the directions that must be taken in the future. The frontend of used car retailing is changing drastically and bringing in bigger players.

Better to have their influence and concerns considered within the association

• 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

rather than from without.

It can’t be denied that they will carry some legislative clout.

Never forget that the used car business is served at many economic levels and each is dependent on the other to run smoothly from top to bottom.

Play Online at Us e d C a r N e ws. c o m 8. Midsize car from Kia 15. Quill point 16. Instinctive, as a reaction 19. Distress cry 20. Chevy SUV 21. Category for mpg 22. Beam of sun 24. Financial subj. with graphs, abbr.

25. Engine part 27. Highly rated, 2 words 28. Nebraska state neighbor, abbr.

30. __ __ rule (usually) 31. Classic VWs 32. Ford SUV 35. Rental car groupings 37. ___ de Janeiro

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Solution to this puzzle in the 10/12/2020 issue. Call 1.800.794.0760 for a FREE subscription.

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Tony Moorby

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Solution to the 8/31/2020 puzzle

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