Used Car News 2/8/2021 by General Media LLC

UCN

Used Car News

usedcarnews

2/8/2021

NADA Holds Digital Convention Hall for ’21

Simple solutions for complicated times

The National Automobile Dealers Association enters the new world of online events with NADA Show 2021. A year ago, NADA was the last big industry event held in-person when its annual show took place in Las Vegas. NADA now joins trade groups like the National Independent Automobile Dealers Association and the International Automotive Remarketers Alliance in holding its main event online. NADA Show 2021 will be held from Tuesday, Feb. 9, through Thursday, Feb. 11, and will offer more than 60 educational workshops and sessions, franchise meetings with OEM partners, an online NADA Expo and more. The event will also feature NADA Academy instructors, legislative and regulatory experts and other top industry professionals with a full program of class-leading education, best practices and new tools to adapt to a changing business landscape—all in a virtual environment. As usually, the conference education offerings will cover the gamut of dealer operations, along with a special “digital super track” to address the current challenges of a COVID world. Other categories include fixed and variable operations, marketing, legal & regulatory, human capital and leadership. Altogether there are more than 15 tracks along with 25 rolling meeting invitations to directly connect with attendees and exhibitors. Keynote speakers involve legendary investigative reporter Bob Woodward, author of “All the President’s Men” and Ford CEO Jim Farley. It will be the first NADA event with new President and Chief Executive Officer Mike Stanton, who

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IN THIS ISSUE:

• NADA Preview • Milestones

Rush - Dated Material

• Retail Markets

replaces Peter Welch, who announced his retirement last May but finished out the year before stepping down. Welch held the

job since 2013. Stanton served as NADA’s chief operation officer since 2018 and previously served as vice president and COO of the NADA Used Car Guide, which was sold to J.D. Power in 2015. Stanton has also had roles within NADA’s industry relations team advocating for dealers. He has been a regular presenter at NIADA’s National Quality Dealer of the Year event. “NADA is a great organization representing one of America’s most important industries,” said Stanton, when his appointment to the position was announced last fall. “It is an honor to be chosen for this role, in this pivotal time for dealers, and I am excited to get started.” Stanton was selected and approved by a NADA Board-led search committee. International

search firm Spencer Stuart, which also oversaw NADA’s CEO selection process in 2012, handled the selection process. Also, last fall, NADA’s Board of Directors elected Minnesota dealer Paul Walser as its 2021 Chairman. “I’m humbled by the continued confidence of my fellow dealers,” said Walser, who represents Minnesota’s new-car dealers on the NADA Board. “I promise to do the very, very best I can, and I will be looking for a lot of hand-raisers, because this will be a team effort.” Walser succeeds previous Chairman Rhett Ricart.

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NADA Preview 2/8/2021

J.D. Power: Strong Market Dealer Panel Looks Ahead By Jeffrey Bellant

Photo by Jeffrey Bellant BANKS SHOT: Jonathan Banks, of J.D. Power, is shown (right) at a past industy convention. He recently discussed the used-car market at a J.D. Power online event By Jeffrey Bellant

A strong used-car market will continue this year, but dealers still need to master digital retailing and remain diligent on fundamentals, according to a presentation from the recent J.D. Power Automotive Summit. Jonathan Banks, vice president and general manager of vehicle valuations, said when people talk about “bubbles” they’re not really talking about the used-car market. “The reason is the processes are grounded in really strong fundamentals,” he said. Banks described the used-car market as “counter-cyclical,” doing better in times of economic uncertainty. In this situation, consumers lean to more affordable used vehicles. Banks added that used supply is going to be at “a relatively stable level,” maybe even a bit tighter with the pullback in fleet sales. “It will continue to be tight over the next three years because of the pullback in lease maturities and then because of the (drop) in newvehicles sales,” Banks said. He disagrees with anyone who would describe the current used-car market as a bubble. “Underlying fundamentals don’t make a used-car market a bubble, but a strong market,” Banks said. With transaction prices and payments higher in 2020, the question remains what will happen with values as those units are traded in. “If there is a continuation of the strength in the new-vehicle market,” Banks said, “we’ll continue to see that strength in the used-vehicle

market.” One key factor is whether the supply of late model used cars will be either stable or going down, he said. J.D. Power’s “Voice of the Customer” studies also show that vehicle quality is getting better while there is also a bigger mix of quality vehicles. He said that should keep prices stable into the future. Going forward, dealer knowledge and participation on the digital side are critical. Trends in digital retailing were accelerated because of the pandemic, Banks said. Market evaluations show that “low-touch” or touchless operations are becoming the more profitable ones. “If you look at their market evaluations, the investors seem to really align with some of the digital retailing processes.” At press time, for example, he said the market cap of Carvana rivaled that of Ford Motor Co. Also, despite electric vehicles being the hot topic on the new car side, there’s more ambivalence on the used-car side. “The resale values on electric vehicles are getting better,” Banks said. “They’re nowhere near the retention percentage (i.e., the used value divided by original purchase price) of a normal gas engine but they are getting better.” Banks said there is one outlier – Tesla. “It proves out that if you have the right vehicle, whether it’s electric or non-electric, it will have high resale values,” he said.

Franchise dealers from across the country discussed challenges from the pandemic year during the firstever Cox Automotive Experience event online in January. What could have been an industry crushing pandemic, has proved to be an obstacle that pushed dealers to better serve customers, panelists said. John Malishenko, chief operating officer of Germain Automotive Group in three states; joined Damian Mills, president and CEO of Mills Automotive Group with stores in the Carolinas and West Virginia; Mike Gingell, chief operating officer for Ford Direct; and Josh Aaronson, dealer principal owner, Island Auto Group NYC, for the discussion moderated by Rich Contu, senior vice president, enterprise sales, for Cox Automotive. Malishenko said the pandemic shut his stores down, sending everyone home. It was a challenging time, he said. When stores opened up in April, they were basically being run by a skeleton crew of managers. Like the rest of the industry, business went online. “It was certainly a more virtual process,” he said. “I think 70 percent of the business we were doing was virtual, almost double what we were doing before.” Malishenko said the company utilized its most skilled people with the most autonomy and experience taking phone calls and managing leads. Asking one simple question, “why do you want to buy a car,” helped them to streamline and make sales more quickly. Aaronson said it used to be a big step for a customer to give out information online or fill out a credit application. “That’s all changed,” he said. The trend is to allow and encourage customers to do as much as possible from their homes, just short of coming in to pick up the car. There’s still room for improvement, but consumers have come a long way, Aaronson said. Challenges still remain in connecting the DMS to the CRM to a digital retailing tool. Toyota has already been able to let customers do the entire deal, apart from the DMV, online, Aaronson said.

Other manufacturers will follow, he said. Mills said digital sales had been moving at a “snail’s pace,” since the industry didn’t need to do it. But being forced to move quickly on digital retailing has been a good thing. “I think in a lot of ways it’s made everybody better,” Mills said. “It’s given the consumer the information to operate at the pace they want to operate at. “But it’s also given the industry and the dealerships the opportunity to personalize the purchase process and selling process for the individual consumer.” As a result, the process is more consumer friendly, dealer friendly and process friendly, he said. Efficiency, throughput and margins have been a result of the change, Mills said. “What started out as painful and uncertain, has probably led to us being more successful in a lot of ways,” he said. It also allows Mills to see what his people are capable of achieving, as well as consumers. Contu also said this will make the industry stronger. Gingell agreed with the consensus view about how the challenges actually improved businesses. “What we saw across our dealers is just the amazing resiliency of dealers,” he said. “It’s the process of figuring out something that’s unknown and turning it into a business practice.” Gingell said the purchase of a vehicle is huge and a lot of emotional drivers are attached to it. “So, allowing consumers to have that sense of control in how they want to buy that vehicle and the steps they want to take online…is a foundational shift,” he said. Like his fellow panelists, he said it is good for both dealers and consumers. However, like Aaronson, he says connecting all of the online tools and dealer tools together so they flow smoothly on the backend is a process that still has room for improvement. Mills added that even though dealers need to follow steps to a sale, it was important to help employees improve the steps that remove friction for the consumers. “We’re all having to be comfortable being uncomfortable,” Mills said.

News Briefs

UCN usedcarnews

2/8/2021

Cox Names Woman of the Year

Milestones James David “Dave” Power III, founder and retired chairman of J.D. Power, died in January at the age of 89. “The world has lost a true pioneer and we have lost a visionary spirit that has continued to inspire, inform and galvanize our company’s growth for over 50 years,” said Dave Habiger, president and CEO of J.D. Power. “Those who were lucky enough to have worked closely with Dave remember a larger-than-life creative presence who encouraged constant innovation and close collaboration with a relentless focus on the values of independence, integrity and quality.” Power was widely credited with transforming the auto industry by channeling detailed customer experience data into practical insights and critical intelligence that changed everything from manufacturing to marketing. He founded the company in 1968 with his wife Julie, and together they quickly built J.D. Power into one of the world’s most

recognizable brands. Power was constantly motivated to bring attention to the “Voice of the Customer.” And he would often express his immense pride in his colleagues making such ground-breaking contributions to the company. Data and analytic insights enabled significant quality improvements across every major automotive manufacturer. As J.D. Power studies began to detect nascent industry trends and critical quality flaws, the industry began to embrace the company’s data as a critical source of industry intelligence, and a key component to product strategy. That recognition was memorialized in 1992 when Power received the Automotive Hall of Fame’s Distinguished Service Citation. In the years that followed, Power successfully diversified the business into financial services, healthcare, and other industries. Power stepped back from day-to-day leadership in 2005 but remained involved in an advisory capacity for many years.

Cox Automotive recently presented its annual Barbara Cox Woman of the Year Award to Corina Diehl, owner and president of Diehl Automotive, a five-dealership group headquartered in Butler, Pa. Named after Barbara Cox, the late co-owner of Cox Enterprises and daughter of the company’s founder, this honor is awarded to women who demonstrate business leadership and community advocacy, and a commitment to advancing the automotive industry. The winner was announced by Cox Automotive President Steve Rowley during the Cox Automotive Experience. “We choose one of our clients to receive this award who reminds us of Barbara Cox and carries those same characteristics – a strong, skilled and determined woman who cares about people, her business and her community,” said Rowley. Diehl is a pioneer in the auto industry having started her own auto exporting company in the early 1990s. After Diehl and her husband, Matt, bought their first dealership with a partner in 1995, the Diehls took sole ownership of that dealership and created Diehl Automotive in 2002. Shortly after purchasing the dealership, Diehl’s husband died suddenly, and she became sole owner and president. Diehl took over the operations and turned Diehl Automotive into one of the top-performing stores in Western Pennsylvania. She later purchased other stores in Pennsylvania. “What an honor and how humbling to receive the Barbara Cox Woman of the Year Award,” said Diehl after receiving the award. “The fact that Barbara Cox was such as amazing woman and leader in our industry … for me to receive this award is truly humbling and such an honor in our space. On behalf of Diehl, Cox Automotive will present a $10,000 Barbara Cox Memorial Scholarship to Angelena Brindley, a Northwood University student studying automotive aftermarket. “The fact that a young woman is getting a scholarship through Northwood and (we’re) promoting women in this industry, which is what Barbara Cox did. I’m so honored and can’t thank you enough.” Diehl Automotive supports numerous community projects, including the nationally recognized Bantam Jeep Festival and other community projects, including “A Night to Remember,” a formal event for special needs children and young adults.

Volume 26 | No.15 Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas Founder (1947-2002) Lynda R. Thomas, Publisher Emeritus Colleen Fitzgerald, Publisher Editorial: Jeffrey Bellant, Managing Editor Ed Fitzgerald, Staff Writer Advertising: Shannon Colby, Account Manager Tony Moorby Columnist: Circulation: subs@usedcarnews.com Production: Tom Savage, Production Manager Cee Lippens, Web Master Used Car News is published every third week. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher. OUR ADVERTISING APPROVAL POLICY Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by the USPS. The advertising reservation deadline is 12:00 noon Thursday, 11 days prior to the issue cover date. Ad materials are due by 5 pm Friday, 10 days prior to issue cover date. For advertising specifications please email colleen@usedcarnews.com.

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Used Car News 2/8/2021

KAR Global Economist Discusses Inventory, Repossessions By Jeffrey Bellant

Light inventory on both the newand used-car sides of the business will keep prices from falling in the near term. The average price of wholesale used vehicles peaked in August 2020 but slipped during the last four months of the year, according to the December edition of Kontos Kommentary, from KAR Global Chief Economist Tom Kontos. “I guess new-car volumes were so low last August that they were probably scrambling for any type of inventory they could get,” Kontos said. “Off-lease units and off-rental units were still in good supply then. So, demand was high, supply wasn’t overabundant and there wasn’t newcar supply, so it was maybe a perfect storm, if you will, in August.” As of late January, Kontos said many of those factors are still

in place. “With the (semiconductor) chip shortage, there really hasn’t been a full recovery in vehicle production,” he said. “So, dealers aren’t flush with inventory on the new-car side.” Kontos added that indicators on the used-car side show that dealers are “a little better off in terms of used-car inventory.” At press time, Kontos did not have his January report finished, but late in the month, he said it was “so far, so good.” He predicted a little bit of a resumption of the usual seasonality the market started in January. “Prices are usually stronger out of the box in January,” he said. The Kontos Kommentary also separated out the numbers the fleet/ lease sales of three-year-old vehicles with mileage in the 36,000 to 45,000 range in 2020. In December 2020, the midsize fleet/lease car in this category av-

eraged $12,056 across the block, a nearly 4 percent increase from December 2019, when the price was $11,601. In the midsize SUV/CUV category of three-year-old units with 36,000 to 45,000 miles, the December 2020 price was up to $20,478, a nearly 5 percent increase from 2019. According to KAR Global Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale prices in December averaged $12,161, up nearly 10 percent year-over-year. To show how things have changed, however, that figure is down 2.2 percent compared to the previous month, but up nearly 5 percent from pre-COVID February 2020. There is support for late-model vehicles because of new-car supply. In terms of repossessions, the volumes are light. During the onset of the pandemic shutdown, lenders

were required to hold off on repos. Then some lenders were reluctant to repo vehicles because of how it might look during a pandemic. “The deferral programs are a big factor, too,” Kontos said. “The lenders in the automotive space, in general, are looking to keep the person in the car, if at all possible.” Stimulus money and the extra federal unemployment money offered in 2020 has likely helped consumers stay on top of payments, Kontos said. Some businesses are struggling while others are doing better. “With that K-shaped recovery, I think unemployment will linger for quite some time,” Kontos said. “That will have a tendency to result in more repos. The short answer is, we do expect more repos in 2021, but exactly when, I don’t know. Will they put any downward pressure on the wholesale prices to this point? I would say no.”

Manufacturers 2/8/2021

GM Plans Green Future General Motors announced that it plans to become carbon neutral in its global products and operations by 2040 and has committed to setting science-based targets to achieve carbon neutrality. The company has also signed the Business Ambition Pledge for 1.5 C, an urgent call to action from a global coalition of business and industry leaders. “General Motors is joining governments and companies around the globe working to establish a safer, greener and better world,” said Mary Barra, GM chairman and CEO. “We encourage others to follow suit and make a significant impact on our industry and on the economy as a whole.” In addition to GM’s carbon goals, the company worked with the Environmental Defense Fund to develop a shared vision of an all-electric future and an aspiration to eliminate tailpipe emissions from new lightduty vehicles by 2035. GM’s focus will be offering zero-emissions vehicles across a range of price points and working with all stakeholders, including EDF, to build out the necessary charging infrastructure and promote consumer acceptance while maintaining high quality jobs, which will all be needed to meet these ambitious goals. “With this extraordinary step forward, GM is making it crystal clear that taking action to eliminate pollution from all new light-duty vehicles by 2035 is an essential element of any automaker’s business plan,” said Environmental Defense Fund President Fred Krupp. “EDF and GM have had some important differences in the past, but this is a new day in America — one where serious collaboration to achieve transportation electrification, science-based climate progress and equitably shared economic opportunity can move our nation forward.” To reach its goals, GM plans to decarbonize its portfolio by transitioning to battery electric vehicles or other zero-emissions vehicle technology, sourcing renewable energy and leveraging minimal offsets or credits. The use of GM’s products accounts for 75 percent of carbon emissions related to this commitment. GM will offer 30 all-electric models globally by mid-decade and 40 percent of the company’s U.S. models offered will be battery electric vehicles by the end of 2025. GM is investing $27 billion in electric and autonomous vehicles in the next five years – up

from the $20 billion planned before the onset of the COVID-19 pandemic. This investment includes the continued development of GM’s Ultium battery technology, updating facilities such as Factory ZERO in Michigan and Spring Hill Manufacturing in Tennessee to build electric vehicles from globally sourced parts and investing in new sites like Ultium Cells LLC in Ohio as well as manufacturing and STEM jobs. More than half of GM’s capital spending and product development team will be devoted to electric and electric-autonomous vehicle programs. And in the coming years, GM plans to offer an EV for every type of customer, from crossovers and SUVs to trucks and sedans. The company will also continue to increase fuel efficiency of its traditional internal combustion vehicles in accordance with regional fuel economy and greenhouse gas regulations. Some of these initiatives include fuel economy improvement technologies, such as Stop/Start, aerodynamic efficiency enhancements, downsized boosted engines, more efficient transmissions and other vehicle improvements, including mass reduction and lower rolling resistance tires. To address emissions from its own operations, GM will source 100 percent renewable energy to power its U.S. sites by 2030 and global sites by 2035, which represents a five-year acceleration of the company’s previously announced global goal. Today, GM is the 10th largest off-taker of renewable energy in the world and in 2020, the company received a 2020 Green Power Leadership Award from the U.S. Environmental Protection Agency. To account for the expected remaining carbon emissions, GM expects to invest in carbon credits or offsets. The company will assess credit and offset solutions in the coming years as the most efficient, equitable and inclusive ideas mature. The company recognizes offsets must be used sparingly and should reflect a holistic view of mitigating the effects of climate change. GM’s carbon neutral commitment applies to its global product portfolio and owned operations. The company is implementing plans today to reduce the impact associated with its supply chain while supporting grids and utilities to power electric vehicles with renewable energy.

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Retail Markets 2/8/2021 Compiled by Ed Fitzgerald

SOUTH DAKOTA Bob Zwart, co-owner, Dells Auto, Dell Rapids, S.D. “We opened in November 1999. This is our 21st year. We’re located just north of Sioux Falls. “We didn’t have to shut down for COVID. I would’ve been one of the guys you see on the national news if they had tried to shut us down. I would’ve protested. “Here, it was a countywide decision, and we didn’t come close to shutting down. “COVID has messed up the pipeline for getting parts. “The average size of our inventory is 115-120 vehicles. “The auction prices are high now. I made a lot of money at the beginning. “There was a panic at the auction, and I was buying with both hands. “Right now, you’re looking

at the cars on a monitor at the auction. “They don’t drive the cars through; the exception to that is Omaha. “The auctions are getting better with their condition reports and have made it a little easier to buy online. “I do very little buy-here, pay-here. It’s a whole other entity. I would probably get a different sales force. “Our average down payment is low, probably zero to $500. “Ninety-nine percent of the deals are for 72 months. “Our reconditioning costs have gone up, too. “I have a separate facility to do that. Sometimes I think I should just farm it all out. “We do mostly digital advertising. “The last car I sold was a ’16 Malibu with 17,000 miles. They paid $14,500.”

VIRGINIA Don Sullivan Sr., owner, Sullivan Auto Trading, Fredericksburg, Va. “We have been in business since 1990. “Most of my career was in the wholesale business until 2008 when my sons decided they wanted to start a new venture in retail. “Last year, the first 15 days of March, we were having a very profitable month until the COVID shutdown. Like most everyone, the next 6-8 weeks was the opposite. “If you are a new dealer, I think it is imperative you join your state trade association. Our trade association, the Virginia Independent Automobile Dealers Association, and our lobbyist, were very aggressive and proactively contacting our governor to let us remain open. “Craig Amelung, the general manager at Manheim

Fredericksburg, which is right across the street from us, did a great job keeping us updated. He kept the auction open online and worked very hard. “In the previous 10 years, we had an inventory of 230275 on average. I made a decision to lower the inventory by 100 units to better manage and process them quicker. “Our service side includes transport, auto repair, body shop, and reconditioning. “Our grosses have escalated and cost after the sale has gone down. The Internet has changed the industry. “My opinion is that the lot attendants are the most important people in the dealership. When the vehicles hit the lot for sale that’s when the managing begins. They need to start the cars often, wipe them down continuously, drive them from time

to time, and love them until the day they leave. “We have always averaged around 60 percent turn. We sell mostly trucks and SUVs, and 25 percent import cars. “Our reconditioning cost is around $1,200 per unit. Most all our reconditioning is done in-house. “In this current market, we buy almost all of our cars from auctions. We purchase cars from Manheim, ADESA, and America’s Auto Auctions, and others. “Our average inventory is 2-5 years old with an average cost of $18,000 and mileage of 60K. “Our average down payment is around $1,500. We are not in the buy-here, payhere business, all conventional financing. “The last vehicle we sold was a Jeep Wrangler that we customized, for $49,887. The mileage was 11,970.”

Wholesale Markets 2/8/2021 Compiled by Jeffrey Bellant

FLORIDA Nate Simonson, general manager, America’s Auto Auction Pensacola, Pensacola, Fla.: “We’ve been owned by America’s Auto Auction for more than 10 years. We have four lanes. “We are running like a normal sale, running at limited capacity, trying to keep it safe. “When everything hit, we closed down just to access what was happening. Within 30 days, we were able to be fully staffed again. We all became true family going through this together. “We run about 30 percent lease and repossessions, so with the pandemic, repossessions stopped. “But we quickly adapted and dealers have been very receptive. We did everything possible to help them sell cars, move them in and

out. We gained a lot of new accounts on the dealer side and a lot more loyalty. “The last six months, volumes have been around 275, with maybe a 300-car sale here and there. Our conversions have gone up. Where we’d normally have a 60-percent sale, we now average 75 percent and even getting 80-percent sales. “We ran 350 at a recent sale with 70 percent sold. “For America as a whole, for a company that normally runs 30 percent repos, it slows volumes down. “Our volume is 75 percent new-car trades, 5 percent independents and the rest is 20 percent commercial. The average price across the block is around $6,500. “We run Multi-List so any car that doesn’t get sold in the lanes gets sent out to SmartAuction, OVE and OpenLane.

“This recent sale I had 106 dealers online buying cars. Edge Pipeline helps us out a lot with that. “The buy-here, pay-here dealers are on fire because of the stimulus. “We’ve learned a lesson about selling online and America’s Auto Auction has started Auction 365, America’s marketplace, which will be our own version of OVE. “But our mantra is brickand-mortar and we’re going to stick with that.”

OHIO Chad Bailey, president, Akron Auto Auction, Akron, Ohio: “We’ve been in business 47 years. We have six lanes. “We just need more staffing. We’re looking for people in every facet of this business: inside staff, condition report writers, drivers, recon staff, security – anything and everything I need.

“We’re just growing. “One of the keys in my world during the pandemic was that everyone couldn’t come to the auction. My dilemma was, if I wanted to survive, I had to teach these older car guys how to get online and bid and buy. Their condition report was their eyes. So, they had two options, learn how to do it digitally or die on the vine. “I had to up my game so that my condition reports could be their eyes. I don’t care if it’s a $1,200 car, we have to CR all of them. That’s a lot of work. “When coronavirus hit, we had to cancel a physical sale and go digital and we weren’t prepared. So, we closed down for two weeks and basically called every dealer and educated them on how to get online, log on, set up their accounts and how the system works.

“Before I might have had 30 or 40 guys online and they maybe buy 10 cars. Now I’ll have 200 online and one week they might buy 1/3 of the sale and one week they might buy 1/2 of the sale. “This probably sped up what I needed to do anyway (digitally). “In years past, if I had a winter storm on sale day, dealers just couldn’t come. If I can get the guys online now, even with bad weather, they’ll still be able to buy. “Our volumes are normally at 1,000 to 1,100, but we’re now around 900 because of repos. “In late summer, conversion rates were 90 percent, Then from Thanksgiving to Christmas they (dropped). But we’ve been back in the low to mid-70s in January. “Everybody selling for me is wishing they had more cars.”

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Wholesale Numbers UCN usedcarnews 2/8/2021

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make/model/name ---------------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

2020-01-01 ---------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

2020-07-01 ---------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

2021-01-01 ---------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

2022-01-01 ---------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

2023-01-01 ---------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 --------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

Wholesale Markets

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6/19/20 7:30 PM

Disconnected Jottings From

Tony Moorby 2/8/2021

Congress is acting like the orchestra on the Titanic; making a lot of noise as chaos reigns around them and disastrous consequences loom from every direction. Unprecedented schisms at every level of society or political leaning are cleaving relationships to points that do not bode well for a population that needs healing in more ways than just the COVID pandemic. I’ve always felt reasonably comfortable living as most Americans, working hard to fend for family and a future and enjoying a society that cared to preserve simple pleasures and expectations of civil surroundings. Whichever side of the political fence you’re on, and trust me, allegiances have been sorely tested in the last few years, it used to be that your opinions were exactly that – yours. It now seems

that if someone disagrees, you’re no longer allowed to hold your views in peace. Social media has seen to that. It should now be called anti-social media as it contributes very little to inform or improve civil communications. Stories or tales of events get skewed every which way to the point of not knowing the truth anymore. Dealing with the coronavirus has been shrouded in a miasmic fog of posturing, politicking and pandering to confuse an already convoluted subject that no one has had to face before. I said in my last column that we should adopt a wartime mentality – that didn’t mean a warlike mentality! But we need a universal, top down approach to vaccination that everyone understands and can easily follow. I appreciate States’ Rights but

the higgledy-piggledy way of sorting priorities is bordering on dangerous. In our state, Tennessee, the priorities are set by county, all 95 of them. Gov. Lee is highly unlikely to know who’s doing what, why, where or how. It’s a disgraceful mess as there are probably as many ways to deal with the vaccination process as there are counties. Compound this approach throughout the states and you end up with the blind leading the blind. I heard that the government is looking at all kinds of ways to distribute the coronavirus vaccine. Obvious candidates to bolster efforts through Walgreens and CVS pharmacies include Walmart and staging areas large enough to handle long lines of cars such as football stadiums and other sporting facilities.

By Myles Mellor

Across 1. Toyota SUV being revived 4. Early luxury auto company that started making cars in 1899 10. Lubricate 11. Pipes for the gas at the pump 12. The U in SUV 14. Tree fluid 15. Contend (for) 16. Mitsubishi model 19. Billions of years 20. Ending for west or east 21. 1989 Jaguar XJS ___ 22. Start for fold or sign 23. Buick sedan 25. Lotus model 28. Indy entry, 2 words

29. There’s one under the driver’s feet 31. Compact Honda 33. Company that made the Watson computer 34. Chevy SUVs 36. Makers of the Insight and the Clarity 38. Longtime Chevy model 40. Hyundai Santa ___ 42. Aluminum and titanium 44. Mid west city, for short 45. Dodge SUV 46. Mr. politely Down 1. Compact SUV from Hyundai 2. Show affection, in a way 3. The A in AWD

This pandemic had seeded more rumors than Carter has pills. Even Starbucks has got an honorable mention. Starbucks? I suppose getting an extra shot in your latte macchiato would mean rolling your sleeves up. Can your average barista lean that far out the drive-thru window? Seriously, coordinated efforts need to be undertaken the sooner the better with clear leadership from Washington, which Biden looks like he’s trying to achieve. This will test whether there’s any commitment from either party to serve the country rather than themselves. Something about leopards and spots comes to mind! We need to start seeing some successes to get back the confidence of our people. But we’re in, what seems to be, a vicious circle.

• 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

I’m convinced that antivaxxers and no-maskers impede the progress we might otherwise make as a singleminded nation. That’s the wartime mentality to which I was referring; a singular approach to get mended – health wise and as a nation.

Play Online at Us e d C a r N e ws. c o m 4. One may be a backseat driver

5. Two-door auto

6. Do-it-yourselfer’s purchase

14 16

7. Wheel correction

22 23

8. Steer the car 9. Porsche luxury crossover

27 28

13. Whitewalls, for example

36 37

17. Half a Latin dance 18. Makers of the Macan

24. Slang for makers of the Huracan 36. Chrysler engine 26. Q50 and Q70 37. Provided that 27. Junked

I 16

N I

A S

A M

E 26

39. Printer paper size

A M

I 32

U M

35. Stranded cell stuff, abbr.

X M

30. Grand __ car 32. U-Haul rental

28. Former VW sedan

S B

R 23

C 18

A 14

O M A

O 17

C 11

41. Ford’s __boost

M 37

W A

T I

A 43

43. Nurse (abbr.)

Solution to this puzzle in the 3/1/2021 issue. Call 1.800.794.0760 for a FREE subscription.

Tony Moorby

R 44

Solution to the 1/18/2021 puzzle

Your source for quality, selection and value: A broad selection of pre-owned vehicles from an industry leader. February 2021 Chase High Lines, featuring: 1 1

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Southern AA February 3 860-292-7500

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Manheim New Jersey February 3 609-298-3400

Manheim Phoenix February 11 623-907-7000

Manheim Orlando February 2 800-822-2886

Manheim Riverside February 4, 18 951-689-6000

Manheim Atlanta February 24 404-762-9211 Manheim Dallas February 2 877-860-1651

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Manheim Fredericksburg February 4 540-368-3400

Manheim Pittsburgh February 3, 17 724-452-5555

ADESA Salt Lake February 16 801-322-1234

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Columbus Fair AA February 10 614-497-1177

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Chase High Lines, featuring:

ADESA Golden Gate February 23 209-839-8000

Manheim Dallas February 2 877-860-1651

Manheim Nashville February 10 615-773-3800

Manheim Pennsylvania February 11, 25 800-822-2886

Manheim Atlanta February 24 404-762-9211

Manheim Milwaukee February 3 262-835-4436

Manheim Palm Beach February 17 561-790-1200

Manheim Phoenix February 11 623-907-7000

Manheim Riverside February 4, 18 951-689-6000

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.

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