Used Car News 1/18/2021

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Used Car News

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1/18/2021 Simple solutions for complicated times

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Industry’s Challenges Remain in 2021

By Jeffrey Bellant

IN THIS ISSUE:

• NIADA CEO • FLOOR PLANNING

Rush - Dated Material

• RETAIL MARKETS

A year after COVID-19 hit America’s shores, the idea of trying to forecast the future seems more challenging than ever.

But auto industry experts always have to look ahead and 2021 is no different.

One area that should see a tidal shift this year is regulation as a new president takes office this month.

Attorney Eric Johnson, of the Maryland-based Hudson-Cook law firm, expects big changes in Washington and in the states.

He predicts that changes at the Consumer Financial Protection Bureau will result in more investigations and enforcement actions.

Johnson predicts Democrats will push for an expansion of access to credit by creating a public credit reporting agency within the CFPB and require its use by all federal lending programs.

A renewed emphasis on fair lending and racial equity by the Department of Justice, with a more liberal U.S. Attorney General, will likely be

a trend as well, he said.

“We could see more investigations by the DOJ, leading to more enforcement actions and settlements with dealers and their principals for alleged criminal activity,’ Johnson said.

State attorneys general will work closely with the CFPB, leading to more AG activity against dealers.

“As far as opportunities in 2021, I think the opportunity is there for dealers to distinguish themselves from other dealers by way of shoring up their compliance efforts,” Johnson said.

Lou Tedeschi, president of the National Independent Automobile Dealers Association, is worried about regulations as well as continued lockdowns.

But with new NIADA Chief Executive Officer Bob Voltmann at the helm, Tedeschi said the group is well-positioned to face the challenge.

“We’re hopeful we can get back to normal as soon as possible,” he said.

This year will see more cooperation from NIADA with state IADA presi-

dents and the associations’ executives, Tedeschi said.

Inventory will remain a struggle for dealers.

“I don’t see it getting any better until the auctions open back up,” Tedeschi said.

The good news is NIADA plans a return to a live convention in June at the Wynn, he said.

“We get so much more done when it’s in person,” he said. “And this year is our 75th anniversary.”

Cox Automotive recently offered its predictions for 2021. For those hoping for a return to normal, experts at Cox said it’s not likely this year.

However, Cox Automotive also believes the industry will emerge stronger from the pandemic.

Cox anticipates inventory will remain tight and that 2021 will be the tipping point for digital retailing.

Cox also predicts competition in the electric vehicle market will slow the growth of Tesla.

Lastly, the pandemic should boost vehicle ownership in 2021, while causing a decline in ridesharing.

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Used Car News 1/18/2021

New NIADA Leader: “It’s Always About the Members” Bob Voltmann, 61, was hired in November as the new chief executive officer for the National Independent Automobile Dealers Association. He has decades of experience in trade associations and in Washington D.C. UCN: Could you tell our readers about your background?

Voltmann: My wife, Ginger, and I met in Houston when we were both working for state lobbyists. We never expected to live in Washington for 32 years. We came to Washington in 1989 to serve in the first Bush Administration. I was at the Interstate Commerce Commission in the Office of the Commissioner. My wife was at the Treasury Department.

When President Bush lost to President Bill Clinton in 1992, I moved over to a trade association representing manufacturers. (There) I was engaged in negotiating the transformation rules for NAFTA (North American Free Trade Agreement) and finishing the job of economic

Bob Voltmann deregulation of transportation that began under the Carter administration in the late ’70s.

From there, I went to an association representing third-party logistics companies – TIA (Transportation Intermediaries Association) – and that’s where I was for the past 23 years. I took them from a struggling, nearly bankrupt association to one worth $7.5 million in revenue and significant reserves. It’s now a successful vibrant organization, worthy of its industry.

“COVID-19 offered me the opportunity to seek a new challenge. I was looking for an organization that was

essential to rebuilding the economy whose members were entrepreneurs and the NIADA ticked all of those boxes. Doing my research – meeting with members and vendors prior to my interview with the board – I knew this was going to be a great fit, challenge and opportunity. So, they hired me on Oct. 25 and it’s been non-stop since then. Now my wife and I get the opportunity to come back (to Texas) to work in this amazing industry.

UCN: What are some of the opportunities and challenges you see at the NIADA? Voltmann: This is a terrific organization with great members essential to the economy. What needs to be done with the NIADA is just tweaking around the edges – refocusing it. It had really rapid growth under Steve Jordan (former CEO).

In some areas, the tail began wagging the dog. So, we’re going to bring back the focus on the members.

One of those things with trade associations is that you always have to keep telling yourself, “It’s always about the members.” That may not be where the money comes from – that’s from the exhibitors and sponsors. But they are doing that because they want to see the members.

From listening to their stories, I got great ideas from people. The staff will be restructured a little bit. I’ll be presenting a strategic plan draft to the board at the winter meeting in February. That will have new initiatives and map out where we’re going into the next five years.

Membership is at 14,000 and it’s been as high as 20,000. We need to get back at that.

We’re also going to work to strengthen the states (IADAs) so that the states are more effective at delivering services to the members.

(We want to work at) delivering a common, basic level of service so that when you join NIADA, you have an expectation of what you’re going to receive. And that expectation will only be exceeded.

UCN: What threats do you see on the horizon?

Voltmann: The threats we have identified include unlicensed dealers and curbstoners, regulations and the challenge of forced electric vehicles. There is a threat from franchised dealers selling more used cars, which goes to the lack of inventory, which is another challenge.

There is a lot of concern ex-

Photo Courtesy of NIADA TEAM HUDDLE: New NIADA CEO Bob Voltmann (right) stands with NIADA CFO Melanie Wilson and Senior Vice President Scott Allen as leadership looks ahead to a strong year.

pressed by members about the lack of clarity for auction fees. The lack of universal condition reports and inconsistent arbitration. They also brought up the (challenge) of banking relationships.

UCN: What were the things that impressed you about the association when you came in?

Voltmann: What I saw were passionate members, passionate staff and passionate state executives who all know that the organization can be better but just didn’t know how.

Or they knew pieces of it but didn’t know how to make it happen. I know how to make those things happen.

Two-thirds of our membership is small dealers. That’s who we need to be helping. That’s what it was all about.

UCN: How will your background in Washington D.C. help you in your current role based in Texas?

Voltmann: I’ve had remote teams for years. I’ve operated remotely. I believe in management by written objective.

In a normal year, the process that we’ll use is that when the board adopts a strategic plan, staff will then come back with the annual budget draft with a draft of milestones to achieve.

So, to move the strategic plan forward, I’ll say we need to do these things in this coming year.

Then the board might say, “no, we don’t think this should be the priority, what about this?” Then it will adopt milestones and we manage to that. It’s the yardage markers. That’s how you keep moving the ball forward.

The association is there to support dealers as they establish, grow, manage and protect their dealerships.

Everything we do is going to be about those things.

3

News Briefs

UCN usedcarnews

1/18/2021

NIADA Warns of PPP Scams The National Independent Automobile Dealers Association urges its members who have received Paycheck Protection Program loans to be wary of any communications purporting to be affiliated with the PPP, the Small Business Administration or your PPP lender.

In December, the Small Business Administration released public data about businesses that received loans through the PPP. That information – which includes all PPP borrowers’ names, addresses, exact loan amounts and the lender that provided the loan – was released in accordance with a court order that resulted from a Freedom of Information Act lawsuit filed by the Center for Public Integrity and joined by 11 news organizations, including The New York Times and the Washington Post.

The disclosure includes all businesses that received a PPP loan, including loans that have already been forgiven, those in the process of re-

questing forgiveness and those that have not yet applied for forgiveness.

Unfortunately, third-party businesses can use the information in the court-ordered disclosure to target marketing materials toward PPP loan recipients.

Those materials could reference the PPP lender and might even imply they have a relationship with the lender. Dealers are urged to check with their lender or the SBA to confirm any such claims.

NY Dealer Sentenced to Prison Richard C. Giza, 65, of Lancaster, N.Y., was sentenced by Erie County Court Judge Kenneth F. Case to an indeterminate sentence of three to six years for crimes related to his two car dealerships.

He was sentenced as a second felony offender.

The defendant admitted that, while operating KPS CARRS in Buffalo and Premier Motocar in Williamsville from May 2010 to May 2016, he accepted payments for

vehicles and never transferred the titles or filed the proper paperwork to the purchasers.

The defendant further admitted that he falsified Department of Motor Vehicles forms by failing to indicate that he sold vehicles in order to avoid detection by the DMV. Additionally, the defendant admitted to filing false insurance applications that overstated business assets and forged documents such as lien releases from various creditors.

Giza stole a total of $122,190.45 in the form of sales tax collected in connection with the sale of vehicles that he failed to forward to the proper authorities.

Giza pleaded guilty to Grand Larceny in the Second Degree, Forgery in the Second Degree, Insurance Fraud in the Third Degree, Falsifying Business Records in the First Degree and Scheme to Defraud in the First Degree.

He pleaded guilty to these charges on Nov. 1, 2017, but his sentencing was delayed numerous times at the request of his defense attorney citing the defendant’s medical issues as well as the pause of the courts due to the COVID-19 pandemic. .

NHTSA Issues Odometer Update The National Highway Traffic Safety Administration is reminding consumers that, as of Jan. 1, 2021, odometer disclosures will be required for every transfer of ownership for the first 20 years, beginning with Model Year 2011 vehicles.

Model Year 2010 and older vehicles will continue to be subject to the previous 10-year disclosure requirements and thus are exempt from extended federal odometer disclosure requirements.

The U.S. fleet of vehicles is, on average, older than ever, and NHTSA finalized this rule late last year to address an increase in odometer fraud involving older vehicles.

Model Year 2011 or newer vehicles will only be exempt from the odometer rules after 20 years.

To comply with federal law, anyone transferring ownership of a model year 2011 or newer vehicle will be required to provide an odometer disclosure to the new owner.

Model year 2010 and older vehicles will continue to be exempt from federal odometer disclosure requirements.

Sellers of model year 2011 vehicles must continue to disclose odometer readings until 2031.

4

Volume 26 | No.14 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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UCN PAGE 14 usedcarnews

News 1/18/2021

Floor Plan Vets Offer New Choice for Independents

By Jeffrey Bellant

“A true independent partner for the independent dealer,” is how one of the executives of Kinetic Advantage describes the new floor plan financing company that hit the market in November.

“That’s really why we exist and that’s what we believe,” said Chief Operating Officer Randy Dohse.

Marty McFarland, president and chief executive officer, wants to be clear that the vision of the company is to service independent dealers.

“We are incredibly myopically focused on the independent dealer to provide them with the tools they need to succeed in what’s becoming a more challenging environment.”

McFarland said he put together “really solid talent” to lead his new firm, an experienced group of friends and industry professionals that work with passion and work well together.

Kinetic Advantage may be a new company, but it has some familiar names associated with it. McFarland calls them “industry veterans who are the best of the best.”

McFarland was the co-founder of Dealer Services Corp. in 2003, so he brought on some of his former DSC team, including Dohse and Chief Information Officer Chris Brady.

Joe Keadle, formerly of Automotive Finance Corp. is senior vice president of operations and Joe O’Brien is SVP of sales and marketing.

“We’ve got a really deep bench of deeply experienced folks who have been there and done that before,” McFarland said.

“They also bring a clean whiteboard vision to this industry. It’s really exciting.”

McFarland said, as a past CFO of J.D. Byrider, he knows both the used-car market and the needs of the independent dealer.

He also worked with Mike Hockett at the beginning of Auction Broadcasting Co. and then partnered with John Fuller to start Dealers Services Corp.

McFarland also was a co-founder of NextGear UK and later was involved in a private equity-backed firm in the subprime indirect auto space.

“So, yeah, I’ve had a lens into all sorts of different segments in the

auto industry,” he said.

But McFarland, who has a quarter century of experience in the industry, sees a huge opportunity in the floor plan business through helping independent dealers succeed.

So, if hitting the market in the midst of a global pandemic may seem like bad timing, McFarland and Dohse would disagree.

“It’s a really good time to stand up a new floor plan company for a whole host of reasons,” McFarland said.

“One is independent dealers have more challenges now than they’ve ever had.”

He said those challenges include COVID, the retail market and competing with the big box franchises across the street.

“The independent dealer really has a tough go of it,” McFarland said.

“But what I’ve always admired about the independent dealer, frankly, is their tenacity through it all.”

Both he and Dohse used the word “resilience” several times when discussing the mom-and-pop dealers they hope to service through Kinetic Advantage.

The key idea is an independent serving independents.

“We want dealers that sell five cars up to dealers that sell 100,” Dohse said. “That would mean lines of credit at $50,000 starting out, then upwards of $1 million-plus.

Kinetic doesn’t want to be a lender giving out more than $3- $4- or $5 million – a market better served by larger players, Dohse said.

The market is wide open for Kinetic Advantage, McFarland said.

“We believe the market is right for an independent floor plan provider,” Dohse said.

“The big names out there are captive to their parents.”

Transparency and simplicity are two other important qualities that reflect Kinetic’s vision, Dohse said.

Transparency means being clear and honest about expectations and the pricing models they put out in front of independent dealers.

“Also, the independent dealers don’t want complexity,” he said.

“They want simple solutions that are fast, efficient and effective.”

For example, floor planners have a regular process of collateral audits that happen every month.

Continued on next page

Floor Planning 1/18/2021

Kinetic – Continued from prior page It’s a process that really hasn’t changed much over the years, Dohse said.

“In fact, many dealers in this space want to charge for the collateral audit,” he said.

Kinetic’s leaders determined they would not charge for those audits.

“To audit our inventory, there is no charge,” Dohse said.

“Instead of passing technology charges onto the dealer, we’re going to realize that as a cost of doing business.”

Kinetic Advantage will make it simple by conducting the audits using technology such as OBD (onboard diagnostic) devices and geostamping through a dealer’s cell phone without requiring a person to visit the dealership.

The firm will also eliminate administrative fees.

“We are a fee-based lender, but it’s one fee. It’s transparent pricing,” Dohse said.

He also praises Brady for develop-

6

ing great dealer-friendly technology that rivals the systems from longerestablished competitors.

For example, Kinetic Advantage eliminates the need for new passwords by allowing customers to use current passwords they already have through Google or Microsoft.

The company also offers tools like DocuSign and online notarization.

McFarland added that his team, because of its experience and reputation, has been immediately accepted across the industry.

Through its experience, technology and leadership, it’s drawn a tremendous amount of capital investment, including from Altamont Capital Partners, McFarland said.

At press time, dealers can use the Kinetic line through more than 350 Marty McFarland Randy Dohse venues, he said.

“Nobody from the major venues er-focused” firm started fast out “We went live in November and, has said ‘no, we don’t want to do of the gate and looks forward to a frankly, we’ve been killing it,” business with you,’” Dohse said. strong 2021.

McFarland said.

McFarland said the “highly, deal-

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Retail Markets 1/18/2021 Compiled by Ed Fitzgerald

ALASKA Thomas Haas, general manager, Frontier Auto Sales, Anchorage, Alaska “We’ve been in business 12 years.

“In the very beginning of COVID there were many regulations, but we sell some new RVs and those can be regarded as dwellings so we stayed open. We have created a safe environment. We hired a couple more employees. We made a separate area for returning test-drive cars.

We delivered vehicles to people’s houses. We created more of an online presence and are trying to get people to make appointments.

“Our inventory averages between 80 and 100 vehicles.

We sell probably between 35 and 50 a month.

“We have customers that buy trucks and we have customers that buy SUVs. We sell all different types of ve-

8

hicles. Trucks may go faster in the winter. Sedans go faster in the summer. SUVs are pretty consistent.

“We probably sell a few more domestics than imports.

“We buy our cars locally.

Dealers Auto Auction is just a quarter-mile away from us.

“We try to get a minimum of 10 percent down on sales.

The average length is 60 months.

“Our reconditioning costs are probably the highest of anyone in Alaska. We do a lot of work and inspect every single vehicle. We do a lot of repairs. We outsource the work.

“As far as tips for new dealers, I find that some people try to do too much at once.

I think the smart thing is to try to master one thing at a time. We’re about more than just selling cars. Our mission is to build long-lasting

relationships. We want to see customers send us their family and friends.

“We use Craigslist, Facebook Marketplace, Carfax, Cars.com, TrueCar, and we have our website.

“Our average model year is probably 2012.

“The last car I sold was a 2016 Jeep Cherokee. It had only 25,000 miles and I sold it for $19,000.”

TEXAS Greg Phea, owner, Austin Rising Fast Motor Cars, Austin, Texas “I’ve been in business 34 years. I had a business out in Lubbock, and I moved to Austin in ’99.

“We’re an essential service so we did not have to shut down for COVID. The mayor of Austin deemed the businesses of used cars and new cars as central services. We thought we were going to

have to shut down, but they sent the list out and we were on the list. Our association, Texas Independent Auto Dealers Association, helped get us through the crisis.

“We do thorough cleanings of the dealership facilities daily. Sanitizing gel and foam stations are available.

Our staff has been given specific instructions on the importance of staying home if they feel ill. We adhere to the recommended six feet of social distance from other staff and customers.

“Our average inventory is about 50 cars, during COVID we sometimes got down to 25. COVID, as you know, caused a shortage of cars. We sell about 30 cars a month.

“We get our cars from trade-ins or new-car stores.

“Trucks are tougher to get and higher on price. We specialize in imports, and the domestics we sell are

usually trucks. Our inventory usually consists of clean high-end automobiles. If we don’t have it in stock, we can locate it.

“It’s strange, in the last few days our down payments have jumped up to $2,500$3,000. Prior to that the average down payment was $1,500 to $3,000.

“Our reconditioning costs have hit $900. Tires are expensive, the service, the parts, everything went up with COVID. A lot of the parts come from China. The parts are now double, or even triple in price. We do about 75 percent of the recon (in-house).

“The average age of our cars is five years, with mileage clocking in at 65,00070,000.

“The last car I sold was a 2014 Mercedes CLA 250 with 50,000 miles. I sold it for $23,000.”

WE ARE OPEN! WELCOMING DEALERS & DRIVING VEHICLES THROUGH THE LANES!

Wholesale Markets 1/18/2021 Compiled by Jeffrey Bellant

NEBRASKA Ryan Durst, vice president, Lincoln Auto Auction, Waverly, Neb.: “This will be our 29th year in business.

“We’ve got four lanes and we’re running all four.

“Volumes were down during the holiday week. But they picked up right after.

Volumes were back to normal at our (Jan. 6) sale.

“We run between 250 and 300, week to week. We sold 78 percent at our (Jan. 6 sale). We focus on sellers, guys that want to sell the car.

I could probably draw in 30 or 40 more cars, but only sell two. There’s good consignment and bad consignment.

You cater to the dealers that (sell).

“Our average conversion rate was 79 percent for 2020.

We had a couple of sales that were 95 percent.

“We sell in the physical

lanes and have modified things since the pandemic began. When you have to change things you’re doing, you actually find better ways to do things.

“Dealers are really happy to come here because of the customer service they don’t get in other auctions, which have been pushing (for online-only) sales forever. At the end of the day everybody still wants a physical auction.

“We’re about 90 percent dealer consignment and 10 percent fleet/lease repo.

“We also have a GSA sale once a month. It’s been phenomenal. The percentage of what we’ve been getting compared to Black Book has been off the charts. We’ve been getting 100 to 120 units.

Our next GSA sale is Jan. 20.

“For our regular sale, the online participation really spiked in March and April. I

would say it was in the 15 to 20 percent range during the pandemic.

“The average price in the lane, overall, is $4,609. I just checked that. We’re probably up $300 or $400 from this time last year.”

PENNSYLVANIA Clint Weaver, general manager, America’s Auto Auction – Harrisburg, Mechanicsburg, Pa.: “We’ve been in business 37 years this year.

“We’re running live sales with dealers in the lanes.

Because of COVID-19 and the volume being down a little, we’ve got dealer and fleet/lease running together through six lanes.

“For volumes, we’ve been running right around that 1,000-car-a-week mark. In a regular year it would be 1,300.

“Every single person that

comes in on a sale day gets their temperature taken at the gate. Then we put a wrist band on them to tell them they’ve passed the temperature test.

“We still have 90 percent of our building locked down.

They can still only go into one area, which is right off the lanes. Dealers are not allowed into the lanes or in that part of the building without a mask on.

“The two weeks during the holidays were tough, but we had a pretty consistent year in that 65 to 75 percent (conversion rates) range. We had some weeks that we hit in the 80s.

“We’ll see what tax season will bring if there is any tax season. Without people working this year there may not be a lot of returns to get.

“We’ve gotten a lot of new customers because of this since we opened our doors

to physical sales.

“At our Jan. 7 sales, we had 578 dealers (participating in the sale). About 200 of those were online. Normally, we’d have 10 to 15 percent of dealers online, where these days it’s more like 30 to 35 percent.

“Our volume mix hasn’t changed. It’s 60 percent dealer consignment and 40 percent lease.

“In our regular sale, our average price is in the $5,500 to $6,000 range.

“We also do a specialty sale which is heavy trucks and equipment. We run a lot of that for ARI and Element and have built that sale off of them. On a typical week we’ll run about 25 (units).

“I’m feeling good about 2021. After 37 years we’ve got a very loyal customer base. Also, being open and driving cars through the lanes helps us.”

IN STOCK FOR

2021 TAX SEASON SALES

Whether you purchase virtually or in-person, Chrysler Capital is proud to present some of the most popular off-lease trucks and SUVs. Visit a Chrysler Capital auction partner or ChryserDirect.com to get up-to-the-minute off-lease vehicles and boost your winter and tax season inventory.

New or normal?

The new normal isn’t always different from the old normal.

Santander Consumer USA is as committed as ever to maintaining strong relationships with our customers whatever the challenges.

That normal attention to relationships kept business on track in 2020 and has made us one of the largest remarketers of certified

Visit ChryslerDirect.com to view available vehicles. ©2021 Chrysler Capital. Chrysler Capital is a registered trademark of FCA US LLC and licensed to Santander Consumer USA Inc. CC_DLR_201209_010421 Lease agreements are owned by CCAP Auto Lease Ltd. and serviced by Chrysler Capital.

Jeep and Ram are registered trademarks of FCA US LLC.

10

reconditioned vehicles in the country. And it’s why you should be doing business with us in 2021.

©2021 Santander Consumer USA Inc. All Rights Reserved. SC_DLR_201209_010521

Wholesale Numbers UCN usedcarnews 1/18/2021

Type

Model

2020-01-01

2020-07-01

2021-01-01

2022-01-01

2023-01-01

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

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

Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Mustang Hyundai Sonata Ford F150 Chevrolet Silverado 1500 Ram 1500 Toyota RAV4 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Mustang Hyundai Sonata Ford F150 Chevrolet Silverado 1500 Ram 1500 Toyota RAV4 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Mustang Hyundai Sonata Ford F150 Chevrolet Silverado 1500 Ram 1500 Toyota RAV4 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma Honda Civic Toyota Camry Toyota Corolla Nissan Altima Ford Fusion Chevrolet Malibu Nissan Sentra Hyundai Elantra Ford Mustang Hyundai Sonata Ford F150 Chevrolet Silverado 1500 Toyota RAV4 Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 Toyota Tacoma

10350 10550 9250 9000 9400 10950 7650 7350 13150 9150 22400 23900 20000 12400 10650 14850 10200 17400 24000 22425 11200 11900 10700 10750 11000 11800 8950 8850 14600 10400 24200 25200 21700 13850 12125 18125 11300 19700 25500 23725 12800 15300 12050 12250 12100 13550 10150 10100 15900 12300 25400 26500 22800 15600 14550 20225 12950 22575 27500 25275 14600 16300 13250 13600 13850 14300 11300 11150 17750 14550 27500 34400 18450 17050 23950 15600 26075 34000 26825

9600 9750 7750 7450 8000 10725 5800 6100 13100 8350 21500 23100 19500 11700 10000 14150 8800 16750 22900 21400 10750 11375 9800 9300 10300 11900 7650 8150 14600 9700 25100 24900 21500 13250 12425 17475 10750 19550 24400 24150 12450 14050 11150 10775 11400 13250 8950 9100 16150 11375 26800 26400 23300 15275 13850 19425 11850 21325 26000 25500 14200 15200 12250 13075 12850 14275 10350 10800 19000 13575 28000 31000 18250 15200 23625 14450 24500 31500 27150

9600 9800 7900 7800 8550 9875 5900 6900 14500 8700 24500 26700 22800 12750 10200 16275 9300 16550 26500 24350 10850 11800 9450 9800 10550 11750 8300 8450 16050 10250 27000 28700 25400 14525 12250 19950 11050 20425 28000 25875 12550 14350 10900 11300 11800 12775 9950 9800 17475 11950 29300 30700 27300 16400 13225 21450 12700 21500 30600 27475 13950 15200 12300 14025 13000 14100 11300 11350 19100 13750 31300 35400 19350 14950 23275 14900 23025 35200 29475

7600 7400 6250 5725 6475 7500 4125 4875 10150 6750 18375 20350 16075 9550 6200 10775 6050 10850 21200 18950 8700 8775 7400 7050 8000 8950 5675 6025 11400 7900 20350 22100 17975 10825 7600 13125 7100 13175 22775 20400 10075 10700 8550 8175 9025 9925 6925 7025 12625 9200 22700 23900 19600 12225 8600 14425 8225 14400 25075 21850 11350 11525 9650 9950 10125 11250 8075 8225 13875 10600 24700 27625 14500 9975 16300 9775 16175 29025 23475

6700 6575 5500 5025 5350 6200 3500 4000 8400 5700 15225 17350 14150 8325 5075 9225 5200 8925 18100 17300 7725 7675 6475 6050 6575 7400 4700 4950 9525 6625 16925 19000 15875 9375 6250 11125 6000 10600 19750 18875 8950 9375 7450 7025 7475 8325 5825 5800 10725 7675 19425 20725 17525 10600 7450 12500 7000 12025 21900 20350 10225 10250 8400 8525 8500 9700 6900 6850 11800 8850 21450 23975 12650 8800 14575 8400 14050 25425 21925

Actual Wholesale and Projected Residual Values

M/Y

Source: Black Book

Wholesale Markets

UCN usedcarnews

Business As Usual?

Not Quite!

The staff at Used Car News is working 24/7 to keep you informed about COVID-19 and how it affects our industry. Stay up to date at Usedcarnews.com

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UCN usedcarnews

Disconnected Jottings From

Tony Moorby 1/18/2021

Forecasting in this current state of affairs would be about as useful as a chocolate fire screen! I willingly observe that businesses have to plot their intended paths and that can only be achieved with information that’s current and accurate.

Fortunately we have huge computing capabilities to help identify and deal with some of the market zigs and zags. But as they say: “All the best laid plans of mice and men…”

We’ve all witnessed the power of Mother Nature to alter the course of all kinds of events from the local effects of tornadoes to the ongoing global pandemic.

The likeliest forecast to make is that things will get worse before they get better.

From politics to plague, I don’t believe we’ve seen the worst of things yet. Our economy has gutsily pulled

through with sustenance from various quarters, not the least of which has been fueled by the innovative thinking on the fly of many business sectors. The government too has chipped in, no matter how curmudgeonly.

Newton’s third law of motion says that every action has an equal and opposite reaction; it applies to other disciplines too – economics, politics, international diplomacy has its tit-for-tat routines and so on. I’m not going to rattle on about politics one way or the other.

Expressing opinions these days invites the wrath of Kahn.

Our new administration is going to be taxed (!) to find ways to refill coffers, as someone will have to pay the piper for helping people through the pandemic.

The economy probably

won’t sustain growth unaided for a while yet and inventory pipelines for all kinds of materials are draining and will take time to recoup their normal levels.

My buddy is a builder and told me this morning that lumber prices have gone up by as much as 120% in six months.

There is distrust in diplomatic relations all over the globe and we have some mighty reparations to make before our international believability is once again worth its handshake. Gladly all doable if the will is there.

It’ll take time though to turn the commitments into viable policies that will suit mutual global stability and growth. Every country has its individual ways of dealing with the pandemic, for instance and it’s a case of ‘let’s fix ourselves first’ before being able to help oth-

By Myles Mellor

31. Brake system part

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32. Where a dealer keeps vehicles, 2 words

6. Indian company that bought Land Rover

5. Pontiac car produced in 34. And so on the 2000s 35. Former Geo compact 8. Cylinders in a Lexus car RX 350 36. Le Car manufacturer 10. Oldest U.S. hoops 37. Seattle’s state contest 38. Hold up 11. Abbr. after a seller’s 40. Sales target, e.g. suggested price

7. Popular Toyota

12. Toyota pickup named for a U.S. city

41. Construction vehicle maker

19. Chrysler truck

14. Outstanding player

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15. Basketball association, abbr.

43. Ford F-150 ____ truck

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44. Unpredictable

22. Street address abbr., perhaps 23. Traffic problem 25. Porsche model 26. Golf event 29. Average, abbr.

8. Chevy subcompact

1. Nissan auto 2. Crossover from Buick 3. Kia subcompact 4. Automated cash provider

1

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3

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

cally believe that we have to start thinking a little more alike – take on a wartime mentality – to get things to turn around quickly. That won’t maintain so long as folks feel that their freedoms are being thwarted by the necessity to wear a mask.

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28. Press it to accelerate, 2 words

34. Small luxury SUV from Buick

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40. Letters at the end of a proof

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Solution to this puzzle in the 2/8/2021 issue. Call 1.800.794.0760 for a FREE subscription.

14

• 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

10

9. Dec. holiday

27. Easier than stick-shift Down

Tony Moorby

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

Across

20. Popular car color

ers.

Even in a country as sophisticated as ours we can’t come up with an equitable and auditable routine to vaccinate the population.

The distribution systems and methods are as varied as the amount of people involved in their oversight. I emailed my doctor’s office to get some idea of a schedule of availability, bearing in mind that I don’t want to jump the queue but do have some conditions that may render me more susceptible. I got back a page full of gobbledygook that told me basically that they had no more idea than the man in the moon and that I should keep in touch with my pharmacy. That’s not difficult as I take enough pills to fill a maraca!

This all sounds very pessimistic coming from an eternal optimist, but I realisti-

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Solution to the 12/14/2020 puzzle