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UCN 6/14/2021

Used Car News Auction 20 Group Members Thrive By Jeffrey Bellant

IN THIS ISSUE:

Rush - Dated Material

• TAXES • NUMBERS • RETAIL MARKETS

Twenty Groups are normally associated with franchise and independent car dealerships. But one 20 Group brings 16 independent auctions together and has built friendships while making those sales stronger. The Founders Auto Auction Network, moderated by NCM’s Steve Kain, is more than 15 years old and brings together veterans from across the United States. Like regular 20 Groups, the auctions meet three times a year and try to include one site visit to a member auction. Each auction provides financials, which Kain puts together in a composite report so that each member can compare how it is doing with each other member. The composite is critical to the success of the group, said Peter Saldamarco, president of Central Auto Auction. “We share our most intimate business knowledge and trade secrets with each other,” he said. “I think that’s what separates this group from others.” The meetings offer an opportunity to share ideas and suggestions and members said the process helps boost the bottom line. Russ Smith, of Dealers Auto Auction of Idaho where the next site visit will happen, said the group has a unique perspective. “Each of us built our sales from the ground up and in most cases, we worked every job from janitor to auctioneer. This experience allows us to understand what it takes to make sure the customer and our employees are well served. “We all truly work together to help each other achieve the highest level of success.” Ryan Durst, vice president of Lincoln Auto Auction in Nebraska, first

went to the 20 Group meetings more than a decade ago. At that time, his dad, Phil, the owner, was running the auction. “I didn’t really know much, so I would just listen,” he said. “My first meeting I realized these are some smart people in the group.” Durst said the composite is a very helpful tool. It made him aware of an area where the auction was “screwing up” and paying thousands of dollars a year for a product/tool he doesn’t use. That money adds up and it’s something he might not have noticed as quickly without the group. Kristie Letizia, president of Greater Milwaukee Auto Auction, agreed. It was D u r s t w h o pointed out an issue to her that made her realize she could opt out of an unused service that cost her more than $1,000 a month. Letizia joined the group a decade ago. “My accounting firm actually thought it would be a good idea to see if my expenses were in line,” she said, “because they didn’t have any other auto auctions in their portfolio.” Right away, she found out through the composite report that she was spending a lot more on security than everyone else, as well as promotions.

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Used Car News 6/14/2021

Twenty Groups Cont’d from 1 Letizia also dodged what could have been a major problem because of a tip from another auction owner. “I had opened a body shop in the same building as my detail shop,” she said. “Another auction owner had warned me, ‘Be careful because the detail (chemicals) will go through the same HVAC system and get into your paint.’” That owner noticed peeling with his paint because of the same problem and it took a long time to figure out, Letizia said. Letizia avoided that problem by building a separate HVAC system for the body shop. The COVID-19 pandemic really proved the value of the 20 Group. Once the pandemic hit, Kain began scheduling weekly Zoom meetings for the members. Those lasted for months and they were a lifesaver, members said. Each region was dealing with dif-

ferent lockdown restrictions but sharing issues with each other helped members come up with best practices and understand that they weren’t alone in the struggle. Letizia, like other owners, said the Zoom meetings were a big benefit “therapeutically alone” for something that was uncharted territory. “We helped each other through it,” she said. Durst offers a comment that was also echoed by several of his fellow group members. “The people in the group are pretty much like family now,” he said. “I talk to two or three people in the group every week.” Several members said no matter what problem or struggle one auction may have experienced, another auction has gone through something similar. It’s these shared experience that help make the group and individual

auctions stronger. Next generation auction leaders like Durst and Kyle Clopton, director of sales for Oklahoma Auto Exchange, are glad to be part of this group’s history. “There’s a wealth of knowledge in our group and I appreciate getting to learn from people who have been in the business significantly longer than I have,” Clopton said. “The group has a very diverse age range, too, so there’s lots of different viewpoints on many different topics.” Mike Clopton, the general manager of the auction and Kyle’s dad, said the next generation has a lot to offer. “I am especially proud of Kyle,” he said. “At a very young age, he had to take over the auction while I was dealing with bypass surgery. While I was gone, we became a better auction in so many ways.” After more than a decade, Durst now feels he contributes as much as

the other members and he’s grateful that he can help. Mike Clopton said the input of the next generation, like Kyle and Durst, makes the group stronger. “A few years ago, the voices in the meetings were the old guys like me who brought up and discussed older and drier topics,” he said. “The group has evolved into a group where the younger members have become the focal point and the group has benefited from their energy and ability to stay informed with current trends in the auction business. “The older guys have learned from the younger ones and there is a good mix.” Durst said the education he receives from this group is unmatched anywhere. “I’d rather go to one meeting on a weekend with these guys than four years of business school,” Durst said. “You’re going to learn more.”

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News Briefs 6/14/2021

Tesla Recalls Vehicles Tesla Inc. is recalling certain 2019-2021 Model 3 and 2020-2021 Model Y vehicles. The brake caliper bolts may be loose, allowing the caliper to separate and contact the wheel rim. The National Highway Traffic Safety Transportation reports nearly 6,000 cars could be affected. Tesla Service will inspect and tighten, or replace the caliper bolts as necessary, free of charge. The manufacturer has not yet provided a schedule for owner notification. Tesla’s number for this recall is SB-21-33-002.

Mid-State Celebrates 38 Years Customers gathered in the lanes and online to join the team at MidState Auto Auction in celebrating 38 years of business in New York Mills, Minn. The auction’s anniversary sale, held on April 16th, included a consignment of more than 800 vehicles and $10,000 in prizes. Auction owner Rob Thompson reported that excitement was high

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and sales were brisk as 160 online customers joined 241 dealers in the lanes to bid on vehicles from Muscatell Automotive Group, Nereson Chevrolet, Gateway Chevrolet, Bedrock Motors, BTS Auto Brokers, Hanson’s Auto & Implement, Miller Hill Subaru, Mills Automotive Group and more. “An already-hot spring market was made even more exciting at our anniversary sale,” said Thompson. “Buyers couldn’t get enough of the great vehicle consignment, and we wound up the day with an 82% sale. “It has been a long year for everyone, and we all enjoyed being back in a live-sale environment, greeting friends in the lanes and sharing a great day of buying and selling.” The anniversary sale included a free barbecue lunch served at sale’s end. Customers also gathered for the gift drawings, 57 in total, which included cash prizes and other prizes ranging from Apple AirPods to a Nespresso Machine, Nintendo Switch Bundle and an Oculus Quest Virtual Reality Headset, among other prizes.. Also offered at the event was a

$60-for-60 Days promotion, provided by AFC & Mid-State Advantage, the auction’s in-house financing arm. Mid-State Auto Auction was founded by the late Robert E. Thompson in 1983. His son, Rob, soon joined him in the business and together they grew the facility from a one-lane outdoor auction located in a creamery to a four-lane facility on 68 acres. Rob’s son, Brandon Thompson, recently joined the family legacy as a third-generation auction owner.

Bel Air Wins Awards BSC America’s Bel Air Auction has been honored by Santander Consumer USA/Chrysler Capital and OVE. The auction led the country for Santander Consumer USA/Chrysler in the Lease Category in its 2020 Auction Excellence Awards, receiving the company’s Operational Excellence Award. The annual program recognizes top performing auctions for exceptional success in operational excellence, strategic planning, customer service, value achievement and residual enhancement. Bel Air Auto Auction took honors in OVE’S 2020 Awards, receiving a total of three citations: Highest Digital Mix, Highest Growth of New Sellers, and for being one of OVE’s Top 10 Dealer Sales. “Bel Air Auto Auction is committed to providing a consistent level of award-winning service,” said BSC America President R. Charles Nichols. “The circumstances of 2020 and COVID-19 inspired us to focus on helping our customers in all ways possible to navigate the many challenges of the pandemic. “We’re grateful that Santander/ Chrysler and OVE have recognized those efforts, and we pledge to continue providing service on the same scale moving forward.” “We also congratulate our sister ServNet auctions who joined us among OVE’s Top Ten auctions in 2020: Clark County Auto Auction and Greater Rockford Auto Auction.” Bel Air Auto Auction is the flagship auction of the BSC America Auto Auction. The auction’s Clayton Station facility handles the sale of rental scratch & dent units, donations, salvage and in-op units. It also holds a monthly Tuesday sale with powersports units, heavy trucks and equipment.

Volume 27 | No.4 Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at : Used Car News P.O. Box 80800 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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C R O S S WO R D PAGE 14


News 6/14/2021

Tax Policy Draws Attention By Jeffrey Bellant

Tax experts recently held an online discussion regarding national and global trends. CLA (CliftonLarsonAllen), a firm offering tax, audit and consulting, kicked off its webinar by focusing on the tax debate going on in Washington D.C. “It’s garnered a lot of attention over the past couple of weeks,” said Leslie Boyd, a CLA managing principal. “We just got the ‘Green Book,’ which has laid out a few details of the Biden tax plan.” The “Green Book” is the General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals, which is the Department of Treasury’s description of tax proposals. “I think if we have one takeaway from the proposals is that rates are increasing,” said David Springsteen, also a managing principal at CLA. The corporate tax rate now is 21%, the green book has it at 28%. “Some commentary has suggested key Democrats do not want that rate going above 25%,” Springsteen said. He said this is more of a starting point for negotiation and he was proved right a few days later. In an effort to get Republican support for Biden’s proposed infrastructure plan, the president proposed a 15 percent minimum corporate tax rate in exchange for passage of his massive infrastructure plan. Nothing had been decided at press time. Another part of the Biden tax proposal would increase funding for the Internal Revenue Service (IRS) by $1.3 billion. “They hope – over 10 years – they will be able to recoup over $778 billion worth of taxes.” However, it sounds like that would affect companies with international business. Springsteen suggests that businesses should look at the current proposals and model out how those might affect their specific businesses. Business owners can also model out minor variations in case those proposals are tweaked. “What the modeling might show is that there could be a cash tax detriment to the current rates,” Springsteen said. “But if we start thinking about restructuring the business, there are other costs, intangible and hard costs to plan into another tax (situation).” Boyd transitioned into a discussion about mobility and people working

from different places and jurisdictions. CLA’s Kirthi Mani said as a result of the pandemic, businesses are looking toward designing a more virtual global workforce. “Bringing work to the people rather than people to the work,” she said. Springsteen said embracing a mobile workforce is a good opportunity, but if businesses “stub their toe” on a business issue, regulatory issue or tax issue, “it could be costly.” Due diligence will be key. Mani also discussed the problem of a talent shortage, which is a global trend. “What we suggest our clients consider is what skill sets will be needed in the post-COVID-19 world and begin to increase your reskilling programs during these down times,” she said. Some of the skill sets needed include, obviously, a more digital mindset. “When COVID hit, the businesses that did really well, that soared, were all digital,” Mani said. “There’s been tremendous growth in digitization.” She said one positive trend coming out of the pandemic is innovation. “When human beings are faced with challenging situations, that’s when our creative skills and juices begin to flow,” Mani said. “So, there’s been tremendous growth in digitization in everything from customer service to remote working, to supply chain reinvention to the use of AI to improve operations. “In the third quarter of 2020 alone, there were more than 1.5 million new business applications in the United States – almost double the figure for the same period in 2019.” The other opportunity is the green economy. “Companies are seriously making the shift,” Mani said. Mani also warned businesses to also think about security online. At press time for example, an oil pipeline, a meat-processing plant and an East Coast ferry had been hit with ransomware attacks. Another theme going through several countries is the idea of a “global minimum tax.” Springsteen said the U.S. has said it will propose this. “The threshold is very high. So (it would affect) U.S. companies with $2 billion in gross receipts,” Springsteen said. But the concern is that it would come down and affect more businesses.

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Auctions 6/14/2021

Akron Aquires Value Auto Auction By Jeffrey Bellant

After 48 years of success in Northeast Ohio, the Akron Auto Auction expanded last week by acquiring Value Auto Auction, with the goal of taking its blueprint and implementing it in Southeastern Ohio. “We truly believe that this auction is a diamond in the rough. A strong dealer base, staff focused on exceptional customer service and exponential growth made this a no brainer,” said Chad Bailey, president of Akron Auto Auction. Value Auto Auction, founded by brothers Chris and Robert Fahey, is situated on 32 acres in Crooksville, Ohio. The Thursday sale began in 2004 with one lane and 70 units and has grown to six lanes averaging over 600 units, making it the fastest growing weekly auction in the Midwest. Value Auto Auction offers pre- and

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post-sale inspections; maintains a state-of-the-art photo booth and carwash; is fully simulcast with a growing online presence and has a full transportation fleet including seven and four car carriers, rollbacks and tow trucks. “What sealed the deal was talking to Bob and Chris and seeing their commitment to their customers and staff as well as their desire to grow on multiple levels,” said Bailey. “Being able to utilize our strong online and national presence as well as focus on the growing markets in southeast and central Ohio, gets our blood pumping on many levels. Factor in our strong in-house finance company and we truly believe we are poised for massive success.” Bob and Chris will stay on as consultants as Akron’s management/ ownership staff will be onsite for the foreseeable future. Current Akron partners, Jeff Bai-

ley, Joel Hamsher and Tricia Short joined Chad for the official “first sale” and ribbon cutting on June 3 with Chris and Robert Fahey present to pass the torch. “I think what made the first sale so special DEAL: Chad Bailey (center) president of Akron Auto Auction, cuts was not only the ribbon to celebrate a deal to acquire Value Auto having my uncle Auction. present, who smile knowing each generation has was the second generation of Akron, continued to grow the family legacy but having Joel and Tricia there as and brand.” well, as they coupled with manageThe Akron Auto Auction currentment. It truly made this transition ly consigns 1,000+ vehicles weekly. seamless,” Bailey said. “I know my Combined auction staff will exceed grandfather Don Bailey, one of the well over 300 employees who will be original founders at Akron, was cross-trained to work at each sale. looking down from heaven with a


Retail Markets 6/14/2021 Compiled by Ed Fitzgerald

NEW HAMPSHIRE Mike Phillips, owner, Phillips Auto Sales, Chichester, N.H. “We’ve been in business 42 years, all in the same location. My folks started the business in 1979. “Normally, with normal being the key word, we keep 40-50 vehicles in inventory. Right now, we have 10 or 11 vehicles. In a typical month we would sell 15-20 vehicles. “For us it’s about a 50-50 split between selling cars and trucks. “As far as imports, Honda and Toyota are the strongest. That being said, it’s also hard to acquire those vehicles, we usually have to pay a premium. The domestic demand is stronger than it used to be because the quality is there now, as opposed to the ‘80s or ‘90s. “We go to Auto Auction of New England, which is in

Londonderry. Many of the larger new-car dealerships bring their trade-ins there. We acquire 75 percent of our inventory there; the other quarter comes from folks who come to us to sell their car outright. “I’m one of those oldschool guys who like to touch and feel the cars. Luckily (the pandemic lockdown) only lasted for a couple months, but the guidelines are still affecting our ability to acquire vehicles, and new-car production isn’t what it’s supposed to be. The supply and demand scales are so out of whack. “Our average down payment is probably $1,000, over four years.” “We spend $100 on detailing and cleaning. But overall (recon is a) few hundred dollars per car. I outsource it to another shop. “Craigslist is at the top of

our online advertising, and CarGurus. “Our average model year is probably 2013, 2014. The average mileage would be right around 80,000 to 90,000. “Dealers starting out should try to be frugal and wise with their spending. Most importantly: be ethical. “The last car we sold was a 2015 Nissan Rogue, with 82,000 miles and it sold for $11,900.”

TEXAS Rick Maroney, general manager, Maroney Auto Sales, Humble, Texas “I’ve been in business about 25 years, this is my third location. “We never had to shut down for COVID, we have a service department. We didn’t do too bad in 2020, which is kind of bizarre considering COVID was such a catastrophic event.

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“I’m an independent dealer and our business model is set up similar to CarMax or Carvana, as far as the type of cars we buy. But when you have corporate money behind you, you can purchase vehicles for $1,000 to $2,000 more per unit than we can. “We try to keep about 60 cars in inventory, 70 would be ideal. “Trucks and SUVs make up about 65 percent of our sales, the rest would be cars. Most of the SUVs we purchase are imports, but almost all of the trucks are domestics. “We purchase from ADESA, Manheim and America’s Auto Auction. Another thing we do, which I would recommend, is to reach out to private owners. We’ve also developed a good relationship with four or five credit unions. We’re small, but if we can get five or 10 cars off the street, and then work

with the credit unions, it helps us a lot. “We spend about $600650 in reconditioning per car. We do about 80 percent of the mechanical in-house and the rest we farm out. “Our down payments are around $2,000-4,000, with maximum 48 months in-house. The banking financing is entirely different where we might do 60 months. “The main tip I have for new dealers is to stay engaged. That’s the No. 1 problem. Some dealers don’t know the rules and then the regulatory division shows up at their doorstep and catches them doing some things incorrectly, and that can cost a lot of money. It all changes so fast. “The last car I sold was a Hyundai Sonata, with 74,000 miles, and that was in-house so we got about $17,000.”

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The tradename “Subaru Motors Finance” and the Subaru logo are owned / licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail/Loan and lease accounts are owned by Chase.

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The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A.(“Chase”). Retail/Loan and lease accounts are owned by Chase.

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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. Retail/Loan and lease accounts are owned by Chase. Maserati North America is solely responsible for its vehicle products and services and for promotional statements about them and is not affiliated with Chase or its affiliates.

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The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. The Land Rover word mark, the Land Rover and Oval logo and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail/ Loan and lease accounts are owned by Chase.

Neither JPMorgan Chase Bank, N.A. 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. Dealer communication only; not intended for retail purchaser. ©2020 JPMorgan Chase Bank, N.A. Member FDIC

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Wholesale Markets 6/14/2021 Compiled by Jeffrey Bellant

MONTANA Jake Gertsch, sales manager, Auto Auction of Montana, Billings, Mont.: “We went straight from winter to summer, it seems. We had a snowstorm that closed down roads (in late May) and by June 3 it was near 100 degrees. “We’ve owned the auto auction for 18 years. We have four lanes, but can run double-blocks in two lanes, so we can run six. However, recently we’ve been running four lanes. “Volumes have actually been up. For the last four or five weeks, we’ve been between 550 and 600 (units), so we’re pleased with that. Pre-pandemic we would have been between 600 and 700. “Conversion rates have been good, 75 to 80 percent. That’ll change, but if we can stay close to 500 (sold) we’ll

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be happy. “Online presence has been much stronger because of (the coronavirus). I think a lot of that came when we were open early while other auctions were closed. So, we pulled in some buyers that we didn’t have before. We typically have between 250 and 300 registered dealers between online and on the floor. “Fleets are down. There are no rental cars or lease returns, really. We sell a fair amount of Canadian imports since we’re close to the border. That’s been good for us over the past five or six years. “We also have a GSA sale, which is normally once a month, sometimes twice. But the volumes have been down. “I think the market is going to still be strong because of supply and demand.

“Average price across the block is between $27,000 and $29,000. We’re selling more $60,000 and $70,000 diesel trucks and SUVs.”

NEVADA Joe LeMonds, general manager, DAA Las Vegas, North Las Vegas, Nev.: “Before I came here, I was assistant general manager at Carolina Auto Auction, another ServNet Auction. I took over here in September shortly after the acquisition and merger with the McConkey Auction Group (MAG). “We’re a six-lane auction, but we’re currently running four. “We’ve been able to see significant growth from when we took over in late August and September. “Volumes have been averaging about 300. “We run about 67 percent dealer cars. We have some

pretty strong anchor (dealership) accounts. Lithia has just moved into the Las Vegas market. They just bought three Hyundai stores and MAG has had a strong relationship with Lithia. “The majority of what we’re selling now from the commercial segment are repos. “We’ve had dealers in the lanes since last year. It’s probably about a 60/40 split. There’s that ever-growing segment that has transitioned online and are more comfortable doing that. “The strategy that MAG has positioned itself – as it recently transitioned the ownership in ABS to EBlock – we are committed to our foundational business, the in-lane auction. However, we understand the growth in the future is going to be about leveraging technology for online sales.

“Overall, since MAG has come into Las Vegas, we’ve seen growth in a shrinking market. Our bidder count is up 60 percent from the end of last year. Our sales are up 30 percent. “We’re trying to bring back the personal touch types of things that MAG is known for into the Las Vegas market. It’s something guys haven’t seen in this area for a while. “So, we’re drawing dealers not only from the local market, but we’re seeing a significant growth of regional buyers. “We also just recently opened up a 50,000-squarefoot vehicle intake facility. We’re able to increase our capacity for both dealer growth and consignor growth. We can do CRs, details, photos and mechanical work all, essentially, under one roof.”


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Manheim Riverside July 8, 22 951-689-6000

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Wholesale Numbers 6/14/2021

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

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 Honda CR-V Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 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 Honda CR-V Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 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 Honda CR-V Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500 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 Honda CR-V Chevrolet Equinox Jeep Grand Cherokee Ford Escape Ford Explorer GMC Sierra 1500

2020-06-01 ---------9050 9900 7350 7300 7550 10275 5350 5900 12400 8300 21200 23000 19300 11450 12925 9500 14150 8800 15900 22300 10300 11525 8950 9050 9900 11200 7200 7450 13850 9650 23100 23800 20400 12950 16475 11025 17725 10250 18950 23800 12000 14100 10350 10625 10850 12650 8500 8300 15050 11325 24200 25500 22000 14875 19100 12550 19425 11450 20725 25300 13650 15400 11600 12525 12250 13675 9900 9900 17350 13525 25500 29700 17850 20625 13900 23700 14350 23775 31000

2020-12-01 ---------9750 10150 8150 8100 8800 10250 6200 7000 14825 8800 25700 27000 23500 13150 14675 10400 16500 9600 16875 27500 10750 12175 10000 10200 10950 12125 8600 8700 16300 10350 28400 29200 26200 15100 17675 12350 20250 11450 21425 29000 12750 14800 11300 11700 12100 13025 10600 9850 17850 12050 30500 31100 27900 16975 20000 13600 22100 12950 22225 31000 13950 15750 13050 14425 13250 14500 11700 11250 19500 13850 32300 35800 20000 22300 15075 24200 15050 23400 37000

2021-06-01 ---------12250 12350 11100 10125 11400 11950 8400 9600 17450 10850 28300 30000 25800 16450 16925 11700 17750 10600 19075 31000 13850 14825 12950 13200 13650 15100 11050 11600 19175 12875 32500 33000 29800 17650 20800 13925 21750 13325 22075 32000 16000 19225 15300 14950 15750 17000 14100 13500 20575 15275 36600 36500 32100 19925 22375 18050 23900 15575 24650 35500 17300 20250 17400 19000 17250 18875 16900 15300 22350 17250 39000 40500 22325 25500 19275 25925 17350 26700 39700

2022-06-01 ---------9350 9000 7950 7200 8500 8300 5800 6400 12025 7950 19625 22975 18200 12125 13100 7975 12225 6975 12900 24050 10650 10675 9225 9150 10325 10400 7575 7800 13400 9375 22450 25400 20925 13075 16175 9625 14850 8575 14825 25300 12425 13725 10850 10425 11925 11850 9650 9075 14650 11050 25875 28225 22825 14750 17550 12675 16500 10050 16950 28200 13575 14675 12325 13025 13175 13475 11525 10400 16000 12525 28050 31700 16825 19950 13900 18425 11425 19075 31950

2023-06-01 ---------7625 7625 6550 5850 6850 6525 4700 5050 9675 6425 16700 19475 16100 10300 11125 6175 9625 5725 10350 20725 8775 8900 7575 7225 8325 8075 6075 6225 10925 7500 19050 21625 18425 11150 13800 7550 11575 6900 11775 22250 10225 11300 8850 8250 9600 9275 7700 7275 12150 8750 22350 24125 20325 12600 15125 9975 12975 8100 13825 24900 11375 12275 10025 10175 10800 10800 9125 8425 13325 9950 24650 27275 14575 17125 11225 14925 9375 16100 28450

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


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Disconnected Jottings From

Tony Moorby 6/14/2021

Today’s dealers are about as close to chameleons as any comparison I can think of to describe the amount of clever ways they find to survive. In the last couple of years, the environment for dealers has so radically changed in almost every aspect imaginable from inventory acquisition to serving a retail customer. The competition has also grown intensely. New players using different methods to access the multibillion-dollar used vehicle market, with all its layers of complexity, are disrupting accepted customs and practices. “It’s a jungle out there,” says it all. Obstacles appear at every direction from legislation to lay-offs and production to the pandemic. You need eyes to see from back to front at the same

time to assess the landscape and any opportunities or potential threats. As the shape of the business changes, a successful dealer will move with it, changing tactics to suit the new surroundings, sometimes without even realizing the subtleties of change, transforming like altering camouflage to take advantage of a new position or blend in with others to move ahead. It helps to maintain a tight grip as with disciplines that have served and suited a dealer best through fair or foul conditions, using experience and judgment to feel confident in any environment. When a prize is in sight – a customer, a monthly profit goal or some great buys – deft and decisive actions are needed to strike and get an

advantage. To beat the competition, dexterity is key like a chameleon’s lightningquick tongue to seize its prey. An edge is always so important in this business. Things have also changed on the supply side. Remarketing actions and timing decisions often used to be made on the basis of experienced fleet and manufacturers’ managers’ senses of the market – not exactly seat of the pants but a lot of gut feel. Seasons often had an influence on when to sell or to hold. Much is now driven on the basis of statistics and computer-generated data. Masses of national information gathered, sorted and regurgitated in forms that almost make decisions for you. Responsibilities now shared with machines could make a blameless society if

By Myles Mellor

Across

28. Lexus SUV

1. Lincoln pick-up truck

30. Subcompact from Kia

6. Ferrari ___ Spider 9. One of the gear positions 10. Leganza and Nubira

31. Car with a removable top 33. Hybrid advantage, abbr.

we’re not careful. Who could have predicted a global pandemic (some did but no one listened) and the depth of changes that were and still are being made to every part of our business? Used car values have gone through the roof as new car supply has faltered due to shortages of essential parts and equipment. Many things in the market have run counter intuitively as people have rushed to gain back what is now starting to be interpreted as a new normal. House prices going crazy, supermarkets charging whatever they can while the government is propping up the non-working classes and employers unable fill spots at the lower wage end of the scale. It feels like things are moving from calm to chaos.

Tony Moorby • 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

As with all these affairs, I’m sure things will settle; where, when and at what level is yet to be discovered. Maybe we’ll all turn into chameleons if we’re going to do well in our new surroundings.

Play Online at Us e d C a r N e ws. c o m 4. Recommended after 3000 miles (2 words)

1

2

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5. Dakota makers 12

6. Former Honda sports car 7. Looks for a bargain

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17

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12. Gear tooth 13. Before, for short 14. LA Guardian Airport code

35. Drink that is served hot and cold 36. Popular 37. Urban road

15. BBQ remains

39. ____ Spectra

16. Full size luxury car from Hyundai

41. Stopwatch

17. Sure thing! 20. Wall Street locale, abbr. 22. Sell online 24. Play __ the book 25. Jeep SUV 27. Style of poker

42. Automobile pioneer Gottlieb Down

8. Put together 25

26

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29

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19. A car like this would be way too small for a soccer mom (2 words)

36

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21. Radio type 23. Ford or Cadillac, for example

30. The R in MSRP

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Solution to this puzzle in the 7/5/2021 issue. Call 1.800.794.0760 for a FREE subscription.

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Solution to the 5/24/2021 puzzle

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ADEDOYIN FALOYE SALEX AUTO SALES

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