Used Car News 12/20/2021

UCN 12/20/2021

Used Car News 2021 Movers & Shakers

Longtime NIADA member and past National Quality Dealer Joe McCloskey became the president of NIADA. The soft-spoken leader is well-liked and respected among his fellow dealers and his deep roots in the association make McCloskey a great choice.

In the smoothest leadership transition ever, Tricia Heon took over the reins as NAAA’s new CEO. The longtime member of NAAA’s team moved up from her COO position after Frank Hackett’s retirement, making her the new sheriff in town.

Last year, Chad Bailey handed over the gavel from his term as NAAA president. This year, Akron Auto Auction’s president acquired Value Auto Auction and then took the helm as ServNet president.

If the Cleveland Browns make the playoffs, it will be a perfect year.

The year looked like the old video game Pac-Man as businesses swallowed up other businesses.

To kick off the run of acquisitions, Cox Automotive took over Fyusion, a computer vision company and leader in immersive vehicle imag-

ing solutions for several industries, then added Spiers New Technologies in September.

In October, KAR Global gobbled up CarWave for $450 million in cash. In July, XLerate acquired Liquid Motors, but later Brightstar

Capital, a private equity firm, acquired a majority stake in XLerate.

Asbury Automotive made several moves, including a $3.2 billion deal for Larry H. Miller Dealerships, followed by a $715 million deal for Stevinson Automotive in December.

All it takes is a drive down your local dealership row to see the result of the semiconductor shortage.

Car lots looked almost abandoned as dealers scrambled to find cars that crushed book values.

If a car lot can even fill up its

frontline, a peek past it will reveal an ocean of pavement. Ironically, a glance at airport parking lots shows bumper-to-bumper vehicles just waiting on those chips to arrive.

In the auction lanes this year, general managers worked overtime to

find product to fill the lanes.

Throughout the year, many auctions routinely reported 80%+ conversion rates as values skyrocketed amid in-lane and online bidding wars.

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Industry Update 12/20/2021

General Motors CEO Mary Barra Reflects on 2021

By Jeffrey Bellant

General Motors CEO Mary Barra participated in a fireside chat with the Automotive Press Association in Detroit as the auto exec discussed a range of topics with the group.

Wall Street Journal reporter Mike Colias, who conducted the interview in downtown Detroit’s Gem Theater, asked Barra to reflect on the past year and its many challenges.

“There are so many lessons we learned, especially if you take 2020 and 2021 (together),” Barra said.

She said safety for employees and customers was the primary concern, along with the balance sheets.

But once safety issues were addressed, she said the company accelerated in doing the business of an automaker.

The focus shifted to EV acceleration, investment in autonomy and “dramatic investment in the vehicle as a software platform,” Barra said.

As terrible as the pandemic has been, it did push dealers to adapt to digital retailing and GM has helped with that transition.

“Whether it’s our Shop, Click, Drive or now our digital retail platform, we’ve given them tools they can use,” Barra said. “We use data analytics to help them order the fast-moving products. We’ve given them insight into the pipeline from the factories, so they know what’s coming.

“A lot of time with our dealers, the vehicle is sold before it hits the lot. That has all improved their cost structure.”

Barra also praised her suppliers, who faced monumental challenges

with the chip shortage, something she first became aware of last December.

“I’ve been in this business for 40 years and never have seen anything that had this long-lasting (effect),” she said.

She said even the disruption of the 2004 earthquake and tsunami in Asia did not compare to the magnitude of the semiconductor issue.

Barra said GM worked with its suppliers and partners in China to reallocate chips to vehicles most indemand.

She also took time to praise her team in its efforts to manufacture tens of thousands of ventilators during the pandemic.

“Ventilator speed gave our team incredible confidence,” Barra said, “and we take that into how we approach launching electric vehicles.

“It really was a cultural shift for GM. I am so proud of our General Motors team.”

That team is comprised of about 40% salaried employees who have been at GM for less than five years.

Barra also praised her company’s efforts creating a dedicated EV platform while some other companies are only talking about it.

“We have one that can go from a truck like the Hummer all the way to the Lyriq,” she said. “We’re just accelerating and it’s off of a platform that gives us scale and gives us speed.”

GM’s plan is to release 30 EV models globally by 2025.

Asked about the attention and respect that “pure play” EV companies get, Barra said older established companies get overlooked.

Photo Courtesy of GM HAIL TO THE CHIEF: Mary Barra, General Motors Chief Executive Officer, met with members of the Automotive Press Association in Detroit to discuss the state of the industry.

“We have demonstrated at Factory Zero right down the street that we can leverage and go faster because of the existing footprint that we have and the trained workforce that we have,” she said.

Unlocking shareholders’ value and focusing on their best interests is always front of mind, she said.

Barra was asked about employees at some firms who try to push their corporate bosses to take political positions on issues like social justice.

“The way I look at it, I think our employees can hold us accountable to live the values that we’ve stated and the values and behaviors we’ve asked them to live by as well,” Barra

said.

“When something is consistent with the company’s values and GM’s leaders think it’s important to share their perspective, they will do it.

“But we’ve been very clear with employees, we’re not going to speak out on everything,” Barra said.

“We’re running a company. We have business to do.”

“We also have a very wide employee base, stakeholder base and consumer base.

“We are more about inclusion and respecting everyone’s point of view as opposed to identifying with one very narrow point of view.”

“That’s what we work on.”

Dealer Association Raises $500,000 for Charity Fund There was no shortage of generosity during the 2021 CIADA Charity Gala organized by the Colorado Independent Automobile Dealers Association.

More than $500,000 was raised by the association for the Used Car Dealers of Colorado Charity Fund.

The charity was founded by the CIADA in 2014.

David Cardella, CEO of the association, said the event showed how much the industry cares about giving back.

“We had our largest turnout ever with 576 people attending,” Cardella said. “We even had more than 100

people on a waiting list that also wanted to join us.”

The previous high was just over 400, he said.

“We help individuals who don’t have access to other money or help,” Cardella said. “It’s not just for car people.”

Whether it’s paying for someone’s funeral when the family can’t afford it or supporting someone who’s struggling through cancer treatments, the charity looks for those in need.

“We also gave $2,500 scholarships to each of 12 students this year,” Cardella said.

The event brings together dealers and supporters of the charity for both a silent and live auction.

“Then we announce our Quality Dealer of the Year and induct a dealer into the Hall of Fame,” Cardella said.

“This year’s Quality Dealer of the Year was Gaylord Sales & Leasing (Aurora, Colo.) and we inducted Joe McCloskey into our Hall of Fame.”

McCloskey is also president of the National Independent Automobile Dealers Association.

“We also pick one charity that we specifically highlight and do a fund-

raiser for,” Cardella said.

After the silent and live auctions closed, the CIADA held the special fundraiser to fight a skin disease, epidermolysis bullosa, the so-called “Butterfly Disease.”

“The fund we targeted is called the Butterfly Children Fund,” Cardella said.

“Children’s Hospital of Colorado is one of only four hospitals that are able to treat these kids.”

The rare skin condition affects the collagen that binds the layers of skin together; it is painful and limiting, according to the website for The Butterfly Children Fund.

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Milestones 12/20/2021

The used-car industry lost two longtime leaders in recent months.

Tim Swift, an NIADA past president, died on Nov. 18 in North East, Pa. He was 61.

Swift attended Northwood Institute for a two-year degree in the automotive industry. He enjoyed collecting and trading cars for most of his life. He started his career at Mackay Swift Dodge in North East and went into the auction business for many years. Along with being a National Independent Automobile Dealers Association past president,

he was past president of the Pennsylvania association. Swift also was a member of Park United Methodist Church in North East.

Mike Linn, CEO Emeritus of NIADA, was good friends with Swift and even spoke to him the night before he died.

“He just absolutely loved people,” Linn said. “He was one of those people who continued to keep in touch with me and (to support NIADA) long after he was president.”

Henry Mullinax, also a past NIADA president, said he and Swift came up together through NIADA, both attending the Certified Master Dealer class in 2005.

“Timmy had a big ol’ heart,” Mullinax said, “He really did. He loved everybody and gave to everybody.

He was a great leader for NIADA. He served the association all his life.”

Swift also worked the World Automobile Auctioneering Championship in recent years.

In addition to his parents, Swift is survived by his brother, Tad Swift of Erie, his uncle, Wayne Swift of Flori-

da, his aunt, Lynda Semelka of North East, and several cousins, nieces and nephews. He is also survived by his former wife, Paula Swift.

Jan Merritt, of Lincoln, Neb., died Oct. 19.

She was 82.

In 1967, Merritt went to work for Bernie Hart as his secretary for the National Auctioneers Association and the National Auto Auction Association, a job that allowed her to travel to 48 states. In 1977, she became a business partner and helped create the Nebraska Independent

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

Automobile Dealers Association.

That same year they opened MerHart Furniture Mart. In 1996, Jan bought out Bernie’s interest in MerHart Furniture. In 2000, Bernie retired as executive director of the Nebraska IADA and Jan was moved from assistant director to executive director. She held that position till she retired in 2016 after 39 years with the association.

Merritt was named Executive Director Emeritus until 2017 to give her the honor of 40 years of service to the Nebraska IADA. Mike Linn said people from other state associations would sometimes underestimate her because of her age or gender.

“It would tick me off, because they didn’t know half of what she knew about the auto industry,” Linn said.

“Jan was always one of my favorite people.”

One of the first times he interacted with Merritt, he realized she was someone special, someone smart who he could call with questions any time.

Merritt was inducted into the NAAA Hall of Fame in 1989, the second woman inducted. In 2006 she was awarded Executive of The Year by the Association Executive Council of NIADA. Merritt is survived by her children, Gary (Kate) Merritt and JoDell (John) McMurray; four grandchildren and three great-grandchildren.

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Volume 27 | No.13

Production: Tom Savage, Production Manager Cee Lippens, Web Master Used Car News is published every third week.

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C R O S S WO R D PAGE 14

Economy 12/20/2021

Manheim Used Vehicle Value Index Jumps 43% from 2020 Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 3.9% month-over-month in November.

This brought the Manheim Used Vehicle Value Index to 232.5, a 43.5% increase from a year ago. The nonadjusted price increase in November was 1.9% compared to October and 43.8% year-over-year.

Manheim Market Report (MMR) values saw weekly price increases decelerate and reverse over the course of November. Over the full four weeks in the month, the ThreeYear-Old Index increased a net 1.9%.

Over the month of November, daily MMR Retention, which is the average difference in price relative to current MMR, averaged 99.4%, which meant that market prices were behind MMR values. The average daily sales conversion rate also declined in the month to 59%, which remained elevated for the time of

year. For example, the sales conversion rate averaged 52% in November 2019. This indicates that buyers remained more aggressive in buying than is typically the case in the fall but were less aggressive than in October.

On a year-over-year basis, all major market segments saw seasonally adjusted price increases in November.

Vans had the largest year-over-year performance, while the pickup and luxury car segments lagged the overall market. On a month-over-month basis, no segment saw declines, with compact cars outpacing the market and remaining segments.

According to Cox Automotive estimates, total used vehicle sales were down 2% year-over-year in November. Cox estimated the November used SAAR to be 37.2 million, down from 38.1 million last November and flat compared to October’s 37.2 million SAAR. The November used re-

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to a year ago and up 25% monthover-month.

Consumer Confidence according to the Conference Board declined 1.9% in November, and October’s index was revised down as well.

The declines left confidence down 17.4% compared to February 2020.

Confidence has declined in four of the last five months and is now at the lowest level since February.

The underlying measures of present situation and future expectations both declined with present situation declining the most. Plans to purchase a vehicle in the next six months declined to the lowest level since 2010.

Plans to purchase a home also declined to its lowest level since 2010.

In comparison, the sentiment index from the University of Michigan reported a 6.0% decline in November, leaving it down 33% since February 2020.

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tail SAAR estimate is 20.4 million, up from 20.2 million last year and flat month-over-month.

Using a rolling seven-day estimate of used retail days’ supply based on vAuto data, Manheim sees that used retail supply peaked at 114 days on April 8, 2020. Normal used retail supply is about 44 days’ supply. It ended November at 49 days, above normal levels. Manheim estimates that wholesale supply peaked at 149 days on April 9, 2020, when normal supply is 23. It ended November at 29 days. The final week of November brought large fluctuations in supply metrics due to the Thanksgiving holiday.

The average price for rental risk units sold at auction in November was up 46% year-over-year. Rental risk prices were down 6% compared to October. Average mileage for rental risk units in November (at 76,000 miles) was up 39% compared

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1 The tradename Subaru Motors Finance (SMF) and the Subaru logo are owned by Subaru of America, Inc. (Subaru) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

2 The tradename Maserati Capital USA and the Maserati logo are owned by Maserati North America, Inc. (Maserati) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

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3 The tradename Aston Martin Financial Services and the Aston Martin logo are owned by Aston Martin Lagonda of North America Inc. (Aston Martin) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance accounts are owned by Chase.

4 The tradenames Jaguar Financial Group and Land Rover Group and their respective logos are owned by Jaguar Land Rover North America, LLC (JLR) or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (Chase). Auto finance 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. ©2021 JPMorgan Chase Bank, N.A. Member FDIC

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News 12/20/2021

Safeguards Rule Changes

By Jeffrey Bellant

Auto dealers will face a host of changes under the Federal Trade Commission’s updated Safeguards Rule going into effect in 2022.

Ignite Consulting hosted a December webinar with attorney Randy Henrick and Ignite’s Chief Compliance Officer Steve Levine, who discussed how dealers can navigate the changes.

Both urged dealers to consult with their own attorneys and compliance people regarding this issue.

The FTC enacted the Safeguards Rule in 2001. It requires dealers to design an information security program that is appropriate to the size and complexity of the dealership, the nature and scope of its activities and the sensitivity of its customer information.

In October, the FTC announced changes to the rule, requiring minimum standards of conduct for entities subject to the Safeguards Rule.

“It’s designed to make auto dealers – and other financial institutions broadly defined – to be covered with respect to safeguarding their customers’ information,” Henrick said.

The good news is the effective date for most portions of the new rule is not until the fourth quarter of 2022.

“But this is complicated and complex, so you better start sooner rather than later,” Henrick said, There are five changes in the Safeguards Rule. The first is that dealers must have a written risk assessment that identifies security risks – internal and external – confidentiality, and integrity of customer information, Henrick said.

Dealers need to look at their systems for handling consumer information along with paper and physical records. Dealers must identify risks to the systems, evaluate the adequacy of existing controls for addressing risks and identify how these risks can be mitigated.

“It’s your IT people who will be able to give you this information,” Henrick added.

Henrick said the goal is to know where all your data information is located, from DMS and CRM systems to cloud providers, vendors or others. Then you can know what the risks are and how to eliminate those risks.

“This is an ongoing process,” Henrick said.

The second change is to name an

individual who is qualified to head up your information security program. Qualifications will depend on the size and complexity of a dealer’s information system. The individual must have some level of information security training and knowledge.

Henrick added the individual must report in writing, at least annually, to the dealer’s board of directors, or equivalent, concerning the business’ Safeguards program.

The third critical change is that all customer data must be encrypted at all times. Service providers must encrypt your data and if they won’t, a dealer may have to find another provider.

Dealers should have multi-factor authentication for persons accessing customer information, “You must limit access to customer information, in electronic and physical form, to people who need it and only to the extent they need it to do their job,” Henrick said.

Dealers must also keep an electronic record of anyone who accesses customer information – and when they do it – to create audit trails. Procedures are also needed for the secure disposal of customer information two years after the last time the information is used in connection with providing a product or service to the customer. There are also various testing and vulnerability scans that dealers will be required to do every six months.

The fourth change includes several parts: general employee training, use of qualified information security personnel, and verification that security personnel are taking steps to maintain current knowledge on security issues. It also includes service providers, who must contractually agree to safeguard customer information under the dealer’s standards.

The fifth change includes other requirements, such as evaluating and adjusting your information security program in a list of testing, security events, or material changes in operations or business arrangements, Henrick said.

One important requirement is preparation of a written security incident response plan designed to promptly respond to, and recover from, any security event materially affecting customer information in the dealer’s control, he added. Henrick said some specialized companies handle data breach events.

Finally, dealers should work with their attorney to help understand their requirements.

Retail Markets 12/20/2021 Compiled by Ed Fitzgerald

ARIZONA Preston Gilbert, owner, Scottsdale Imports, Scottsdale, Ariz.

“I’ve been in business less than a year. Before I became a dealer, I worked for about 10 years as a partner in the Automotive Training Network (in Scottsdale). I’ve been working with dealers and managing dealerships for quite a while, but I got tired of traveling around so much. So, I recently opened up an operation of my own.

“I opened this dealership post-COVID, but before that we did have to shut down most of the other operations.

We continued to do remote servicing of our clients. We got through it.

“We did more online, absolutely, and we were trying to figure out to what degree, especially in Arizona, how we can do more online transactions. Of course, the

state still wants wet ink on most of their (forms). We’re really trying to push for electronic documents to be accepted because that’s the model we’re hoping to pursue. I think the state has said, overall, that electronic signatures are acceptable, but ADOT has still been picky about what forms they’re willing to allow electronic signatures on.

“Our average inventory is probably about 20 vehicles.

“We are not imports-only, but we do a lot of MercedesBenz and Audi. I will try to make the right deal on a domestic, or on a truck.

“I go to auctions. I’m buying mostly from ADESA this year, there’s one in Phoenix.

But we’ve used Manheim.

I’ve bought from a lot of other markets, too.

“I’m ordering vehicles from outside the area. We’ve got someone driving one

down from Idaho right now.

I’m looking at some markets where other dealers might not be looking, and the markets where vehicles are worth less than here.

“Costs have gone up in reconditioning. The bigger factor is the turnaround time. Trying to get the parts that are needed – there’s a huge backlog.

“I try to find vehicles that are less than five years old, and under 70,000 miles – under 60,000 if I can.

“I don’t do any direct mail advertising. I use digital and third-party sites.

“Dealers just starting out need to identify their niche.

If you try to be everything to everyone, you’re not going to be deep enough to have any kind of relevance.

“The last car I sold was a 2017 GMC Yukon Denali with about 70,000 miles, and we got about $53,000 for it.”

ARKANSAS Spencer Wrigley, salesman, D3 Auto Sales, Des Arc, Ark. “We did not have to shut down because of COVID. We did more online. We were able to keep going to auctions, those did not shut down.

“We concentrate on selling trucks. We sometimes get into commercial trucks if there’s a deal to be made.

“We keep about 100 vehicles in inventory.

“We sell somewhere between 70 and 100 per month.

“Our trucks look different because they are. We’re known for our customized lifted and leveled Ram, Chevrolet, Ford, and GMC trucks.

“We beat the OEM vehicle selection, interest rates, insurance and warranty quotes.

“We won’t sell a car that

we wouldn’t drive ourselves.

All vehicles have an extended warranty and we have a 10-bay service department.

If you buy a service contract from us and something happens to your car, we’ll give you VIP service.

“Our down payments differ for everyone. With the stimulus money, we burned through that last summer. It was pretty crazy, that’s for sure.

“Our reconditioning costs are about $500 per vehicle, sometimes more, sometimes less.”

“We do advertising online, TV and radio. We use Facebook and CarGurus.

“We don’t look for a particular model year, whatever’s hot at the moment. We ride the wave of the market.

“The last vehicle we sold was a 2017 Chevy Silverado, with 86,000 miles. The listed price was $35,500.”

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Manheim Denver January 5 800-822-1177

Manheim Pittsburgh January 5 724-452-5555

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

Manheim Detroit January 13, 27 734-654-7100

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

ADESA Indianapolis January 11, 25 317-838-8000

Manheim Fredericksburg January 6, 20 540-368-3400

Manheim Seattle January 12, 26 206-762-1600

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

Manheim Milwaukee January 5, 19 262-835-4436

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

ADESA Lexington January 20 859-263-5163

Manheim Minneapolis January 5, 26 763-425-7653

Manheim Tampa January 6, 13, 27 800-622-7292

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

Manheim Nashville January 18, 19 615-773-3800

Manheim Texas Hobby January 13, 27 713 649-8233

ADESA Salt Lake January 18 801-322-1234

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

Southern AA January 5 860-292-7500

ADESA Tulsa January 14 918-437-9044

Manheim New Orleans January 19 985-643-2061

Manheim Atlanta January 26 404-762-9211

Manheim Riverside January 6, 20 951-689-6000

ADESA Boston January 21 508-626-7000

Manheim Fredericksburg January 6 540-368-3400

Manheim Pittsburgh January 5 724-452-5555

ADESA Salt Lake January 18 801-322-1234

Manheim New Jersey January 19 609-298-3400

Manheim Seattle January 26 206-762-1600

Columbus Fair AA January 12 614-497-2000

Manheim Orlando January 25 800-337-8491

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

Manheim Denver January 5 800-822-1177

Manheim Pennsylvania January 14, 28 800-833-2886

Southern AA January 5 860-292-7500

ADESA Golden Gate January 25 209-839-8000

Manheim Milwaukee January 5 262-835-4436

Manheim Atlanta January 26 404-762-9211

Manheim Nashville January 19 615-773-3800

Manheim Dallas January 4 877-860-1651

Manheim Palm Beach January 19 561-790-1200

Manheim Pennsylvania January 13, 27 800-833-2886 Manheim Riverside January 6, 20 951-689-6000

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Contact auctions directly for current sale information.

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Wholesale Markets 12/20/2021 Compiled by Jeffrey Bellant

MICHIGAN Greg Price, owner/operator, Fastlane Auto Exchange, Flint, Mich.

“We are in our fourth year, as Fastlane, but the auction itself has been here 40 years.

“We’ve got eight lanes and we’re currently running six lanes. We’ve been averaging 650 to 700 units every week for probably all year. We really haven’t seen a dip.

“We’re probably 90% dealer, 10% fleet/lease.

“But we also do a lot of Canadian business, which is about 40% of our business. That’s the big plus.

Our Canadian consignment hasn’t decreased at all, so that’s a big plus. That’s been fortunate for us. Also, they just opened the border up so dealers/sellers can come over. As far as the cars coming over, that was never shut down since we were an essential business.

10

“We average about 350-355 dealers in-lane and about 185 online. That’s one dealer for every two cars. We’re averaging 64-68% (conversion rates).

“From what I’ve been hearing from the dealers just recently is that the retail side has slowed down just a tick.

The price seems to be leveling a bit.

“Some later-model stuff doesn’t seem to be selling at the higher price that it was 30 days ago. But the $10,000-and-under cars are still pretty steady. I think a lot of guys still anticipate a strong tax season. I don’t know, though. It seems like we’ve been in a tax season all of 2021.

“Dealers are being very cautious with what they’re buying now, more so than 30 days ago. If the market takes a shift, they’re nervous they’ll be stuck with this in-

ventory that depreciates 3040% overnight.

“Our current price in the lanes is $8,000 to $9,200.

“Pre-COVID we were at about $6,500.

“My gut tells me we’re going to be pretty steady going into next year. When chips come in and I don’t have any inside information – I still think it’s going to be more like a trickle than a flood.”

WASHINGTON David Blake, general manager, DAA Seattle, Auburn, Wash.

“We’ve been in business nine years; it will be 10 years in May. We have five lanes.

“Our regular physical sale is Fridays. We ran about 700 at a recent sale, which was a promo week. So, volume levels are not where they were.

That’s just a reality of the industry.

“We also run a Wednesday

sale that’s completely digital on our EBlock platform, which is our MAG Now sale.

We run about 50 units on that weekly.

“In the Friday sale, 70% of those sales still take place online. For a recent physical sale, we had 500 bidders, with 120 of those in-lane.

“We’ve always had a solid online presence. We’ve been writing CRs on vehicles on this company for over the last 10 years. That’s why the adjustment to being able to provide CRs for online purchasing on the digital platform was a reasonably easy – though I wouldn’t say comfortable – transition. “(In the physical sales) I think it’s just a surprise to some of the dealers about where the values actually are, what they’re paying.

But that’s the demand and where the prices are right now. There are challenges in

delays in parts, for example, but people understand that these are some of the dynamics we’re dealing with.

“It’s nice having the physical lanes open because you can connect with people and our customers.

“We have a Motorsports sale the third or fourth Wednesday every month.

We have Harley-Davidson as a manufacturer account. In some ways, that inventory is even leaner.

“We run 25 to 35 units of Harley-Davison product.

We’ll also have some dirt bikes, some side-by-side, some off-road vehicles and a few boats that trickle in.

“I think next year will kind of look like this year, but not enough of an increase (in volume) to make a major impact. I think there will just be a trickle effect, but it takes a while to get the pumps primed again.”

Wholesale Numbers 12/20/2021

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 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 Corolla Nissan Altima Ford Fusion Nissan Sentra Hyundai Elantra Chevrolet Impala Kia Soul Kia Forte Chevrolet Camaro Ford F150 Chevrolet Silverado 1500 Ram 1500 Jeep Grand Cherokee Ford Explorer GMC Sierra 1500 Nissan Rogue Ford F250SD Chevrolet Tahoe Chevrolet Silverado 2500 Honda Civic Toyota Corolla Nissan Altima Ford Fusion Nissan Sentra Hyundai Elantra Chevrolet Impala Kia Soul Kia Forte Chevrolet Camaro Ford F150 Chevrolet Silverado 1500 Ram 1500 Jeep Grand Cherokee Ford Explorer GMC Sierra 1500 Nissan Rogue Ford F250SD Chevrolet Tahoe Chevrolet Silverado 2500 Honda Civic Toyota Corolla Nissan Altima Ford Fusion Nissan Sentra Hyundai Elantra Chevrolet Impala Kia Soul Kia Forte Chevrolet Camaro Ford F150 Chevrolet Silverado 1500 Jeep Grand Cherokee Ford Explorer GMC Sierra 1500 Nissan Rogue Ford F250SD Chevrolet Tahoe Chevrolet Silverado 2500 Honda Civic Toyota Corolla Nissan Altima Ford Fusion Nissan Sentra Hyundai Elantra Chevrolet Impala Kia Soul Kia Forte Chevrolet Camaro Ford F150 Chevrolet Silverado 1500 Jeep Grand Cherokee Ford Explorer GMC Sierra 1500 Nissan Rogue Ford F250SD Chevrolet Tahoe Chevrolet Silverado 2500

2020-12-01 ---------10750 10000 10200 10950 8600 8700 12950 9900 10200 18500 28400 29200 26200 20250 21425 29000 12250 31500 34375 30400 12750 11300 11700 12100 10600 9850 14400 11175 11000 20200 30500 31100 27900 22100 22225 31000 13975 34000 36200 32400 13950 13050 14425 13250 11700 11250 16750 12300 12050 22050 32300 35800 24200 23400 37000 15775 37400 40875 37300 15650 14400 16325 14450 14300 12700 19600 14775 14350 25500 36400 38000 27225 30700 41200 17400 41500 45200 42300

2021-06-01 ---------13850 12950 13200 13650 11050 11600 14800 10925 12500 21150 32500 33000 29800 21750 22075 32000 15475 36500 36325 34500 16000 15300 14950 15750 14100 13500 17075 12650 14150 22675 36600 36500 32100 23900 24650 35500 18200 39500 41800 37500 17300 17400 19000 17250 16900 15300 20125 13800 16450 24150 39000 40500 25925 26700 39700 19900 42000 46475 41000 18800 18950 20775 19100 18300 17350 23125 16225 18200 25775 42200 43500 30125 32925 42500 21500 45500 51800 46700

2021-12-01 ---------15550 14600 13400 15750 12300 12550 15650 12600 14150 20700 29500 31600 29000 22350 23500 30550 17425 37100 38900 35400 18100 17150 16250 19100 15100 14900 18950 15075 16250 23900 33100 36000 32000 25250 26550 33550 21325 40400 43775 38400 19400 19500 21350 20400 17800 16550 22975 17175 19250 25875 38000 39500 27875 29150 39550 23225 43450 49150 40400 21050 21200 22825 22750 20850 18850 26025 19275 20850 27750 41000 41500 32025 34275 42100 25675 46250 54100 46900

2022-12-01 ---------12050 11250 9975 11675 9350 9200 11825 9675 10525 16675 24025 25950 23700 16525 17225 25000 12800 29750 29050 29175 13900 13175 11975 13875 11450 10975 14300 11550 12450 19100 27450 29625 26350 18825 19675 27800 15675 32900 33300 31875 15325 14800 15500 15050 13600 12450 17300 13175 14800 20925 31625 32875 21200 22225 32825 17250 35900 38175 33925 16850 16700 16850 17300 16075 14550 19825 15350 16300 22925 34875 35075 24950 26900 35325 19325 39225 43125 40000

2023-12-01 ---------9800 9225 7800 9175 7400 7100 9475 7775 8400 14250 20675 22425 20400 12925 13400 21475 10175 25275 23000 25550 11325 10750 9325 10850 8975 8425 11350 9250 9900 16075 24125 25550 22800 14800 15625 24000 12350 28225 26825 28125 12700 12075 11800 11975 10625 9700 13625 10575 11925 17825 27850 28600 17000 18100 28375 13675 31300 31350 30250 14175 13925 13025 13875 12775 11575 15825 12475 13275 19925 31350 31025 20450 22450 30775 15525 35025 36300 36075

Actual Wholesale and Projected Residual Values

MY -----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 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020

Source: Black Book

Disconnected Jottings From

Tony Moorby 12/20/2021 Tony Moorby It used to be this business had some reliability in forecasting. Total industry volumes in new and used vehicle sales, split between cars and trucks, plus heavy duty vehicles, could easily align within the political and financial sensibilities that prevailed at the time.

Granted, the interest rates of the early eighties predicated that appetites for spending on anything other than groceries were considered frivolous. But postrecession vigor was quickly resumed and growth in the retail markets was remarkable. Americans have a terrific capacity for bouncing back.

Having been absent from the everyday hubbub of the car business for a number of years now, I fail to see how it’s even reasonably possible to review a past year to

predict what happens in the next.

So many influences exert pressure on every step of the manufacturing and sales processes. As we’ve seen this last year, demands and availabilities can change in the blink of an eye. The Covid pandemic has stood the world on its backside, turning expected outcomes upside down; I would have thought house prices would have come down as employment teetered. Not! Stayat-home habits changed the hows, whys and the wheres of people’s living expectations, moving out of cities and going big instead of downsizing. The ready availability of credit and some generous federal funding put money where people’s mouths were and now we’re staring at inflation instead of predicted recession.

Politicians as well as businessmen, often in spite of one another, drive economies. Politicians like to steal the limelight of economic success whether they influenced outcomes or not.

Nowadays major decisions are made or not made based on who is in power.

Bear in mind that, a few years ago, the political spectrum only really varied in shades of gray; the colors of political conviction today range across every prism of the rainbow! Business success can be undermined at the whim of someone’s social media standing at the time.

I sometimes wonder if we’re now fed too much information and too fast to absorb or make sense of it; Abraham Lincoln said that the best thing about the future is that it happens one day at a time. The trouble

By Myles Mellor

37. Mentor

6. 500X and 500L

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38. Land of the brave and free

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pickup, 4 words 9. Federal state where BMW is based

39. Lay odds

10. Compact Hyundai 13. Give the OK 14. All-nations org.

15. Selects 16. Kelly Blue book entry, e.g.

44. Lost traction on the road

11. Waikiki wear 15. Porsche sports cars

22. Saturn compact

19. Ford SUV

50. Fix in a garage

23. By ___ of (owing to)

34. New Kia subcompact

25. Jeep Wrangler ____ 36. Arrange a time 27. East Coast state, 40. Jaguar E-____ abbr.

41. One round the 29. ____ control racetrack 32. Shelby sports car 42. Pen 33. Popular midsize 43. Compass point pickup

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Solution to this puzzle in the 1/17/2022 issue. Call 1.800.794.0760 for a FREE subscription.

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49. Gun, as an engine

4. Closes in on

3. Subaru SUV

20. Discharged a debt

48. Jaguar F-____

31. Addl. document in an envelope, abbr.

12. Operate

18. “___ out!” (ump’s call)

30. Lexus 430 __

46. Cobbler

2. Popular compact SUV from Toyota, 2 words

45. ___ nutshell, 2 words

24. Very very long time Down 1. Key ___ 26. Q5 maker

laptop I sourced a car in Virginia while sitting by a blazing fire. CarMax’s systems are as tight as a tick and all was as right as rain.

I would never have predicted me buying a car, sight unseen just a couple of years ago. So who knows what next year will bring?

8. Move into reverse

21. Midsize SUV from Kia

28. Continental, e.g.

17. Desktop folder, e.g.

23. Medical pro, abbr.

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

Play Online at Us e d Ca r N e ws. co m

Across

41. Jeep model

• 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

is that today, one day can change the world!

Most dealers have done far better than expected as revenue sources have shifted or savings were made in areas such as inventory expenses in the case of new cars. The challenge of late has been the acquisition of new and used cars. I know if I were a lessee with a term expiring in this last year I’d have bought it out rather than hand it back; a cheap acquisition or a quick profit to be made on the street.

These opportunities are not often afforded to the ordinary consumer.

I even bought a car myself this year – the first in a long time. Used to be I’d scrounge around milking the last brass farthing out of a deal but if nothing else I’m a man of the times, willing to pay for convenience.

Armed with a phone and a

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Solution to the 11/29/2021 puzzle