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July 18, 2016
Recalls Keep Cars Out of Wholesale Market
STILL ROLLING IN: This 2002 Acura TL is among the vehicles being urgently recalled by Honda due to the potential for its Takata airbag to rupture. The latest recall includes: 2001-02 Civics and Accords; 2002 CR-Vs and Odysseys; 2002-2003 TLs; and 2003 Acura CLs and Honda Pilots.
By Ted Craig
The urgent warning adds to the growing backlog of vehicles that are out of the market. Manheim economist Tom Webb said there were a â€œsignificant number of vehicles that canâ€™t be soldâ€? at auction due to recalls. These delays are costing consignors the chance to sell at a fairly high price. Wholesale prices as measured by the Manheim Used Vehicle Value Index are at their highest level in more than four years, and off less than 2 percent from the record high reached in May 2011. â€œI know everybody would rather have these vehicles fixed and avail-
able, but thatâ€™s just not possible,â€? Webb said. Anil Goyal, senior vice president of automotive valuation and analytics for Black Book, said the Takata recalls wonâ€™t affect any one brandâ€™s value. However, rate of repair could affect the overall market. â€œThe airbag recall is widespread across many different brands, which means any material effect on depreciation will be impacted more by the volume of recalled vehicles coming back into market at any one time, as well as the demand for those vehicles, and itâ€™s difficult to predict this cadence and appetite at this time,â€? Goyal said.
Rush - Dated Material
The Takata airbag recall became even worse as Honda recalled more than 300,000 vehicles, all more than a decade old. New test data on a particular subset of defective Takata air bag inflators in certain 2001-2003 Honda and Acura vehicles show a far higher risk of ruptures during air bag deployment. This has prompted an urgent call from the National Highway Traffic Safety Administration to ensure that unrepaired vehicles are found and fixed before they cause further injuries or fatalities.
Ruptures are far more likely in inflators in vehicles that have spent significant periods of time in areas of high absolute humidityâ€”particularly Florida, Texas, other parts of the Gulf Coast, and Southern California. Testing of the inflators from these vehicles shows rupture rates as high as 50 percent in a laboratory setting. The vehicles in question were recalled between 2008 and 2011. Honda has reported that more than 70 percent of this higher-risk population of vehicles has already been repaired, but approximately 313,000 vehicles with this very dangerous defect remain unrepaired.
7/11/16 3:22 PM
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USED CAR NEWS
July 18, 2016 • 3
NIADA Members Seek Advertising Alternatives What is the Nature of Your Business? (Percentage of Respondents)
Note: Numbers may not add up to 100% as dealers can choose more than one category.
60 50 40 30 20
5.4% 10.8% Parts Dept.
6.3% 5.7% Rental
10 BHPH 33.9% 34.7%
one point to 711. The average loan term for Independent dealers saw used buyers was 63 months loan terms and amounts fi- in the fourth quarter of 2015, nanced creep up in 2015, while the average amount while certified vehicles financed in a used-car deal showed an uptick in aware- was $18,850 in that quarter. Monthly payments on ness and perception by used-car deals rose slightly used-car buyers. These were some of the to $359 in the fourth quarresults of the 2016 National ter of 2015, from $354 in the Independent Automobile prior year’s fourth quarter. In terms of high-risk buyDealer Association’s Used ers (less than 600 credit Car Industry report. NIADA compiled informa- score), credit unions and tion from more than 11,000 buy-here, pay-here dealdealer member records ers are doing less business, along with other industry while captive finance comsources, including credit panies have done 7.3 percent reporting companies, value more business with this segguides and product provid- ment. Banks have also seen a jump (1.5 percent) in loans ers. Most NIADA members to high-risk borrowers. NIADA members did more operate one location with a store of less than 25,000 wholesale business last year. square feet and employ The group reported that 38.5 percent of members did fewer than 5 people. The report included in- wholesale business, comformation from Experian, pared to less than 19 percent which showed the average in 2014. Nearly 30 percent of memcredit score for used-car buyers was 649 in 2015, just bers spent between $21,000 one point higher than the and $50,000 in online adverprior year, while new-car tising in 2015, an increase of Carolina_Summer-UCNjuly18.pdf 1 7/11/16 AM from 8:08 2014. buyer credit scores dropped 2.2 percent By Jeffrey Bellant
Source: NADA Member Survey
NIADA reported that 73 percent advertised online in 2015, which is a dip from 2014 when more than 82 percent advertised online. The study shows that advertising dipped across many channels, including newspaper, radio, specialty publications, magazines and mobile.
Slightly more dealers used television but the biggest increase was in the “other” category, which jumped to 20.2 percent of respondents in 2015 from 6.4 percent of respondents in 2014. More NIADA members in the study received bank financing in 2015 at 35.2 percent, an increase from 30
percent in 2014. Only 60 percent bought their inventory with cash in 2015, down from 65 percent in 2014. There was a big drop in the percentage of dealers who offer credit union financing through their dealerships – from 54 percent in 2014 to less than 28 percent in 2015.
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7/11/16 9:16 AM
4 • July 18, 2016
USED CAR NEWS
NEWS BRIEFS IAS Buys AWG, AuctionMaster
Integrated Auction Solutions LLC (IAS) has acquired the assets of AWG Simulcast (AWG) and AuctionMaster Technology (AMT). Greg Levi will serve as a managing member of IAS. Levi brings experience to IAS’ software development efforts through his background with Digital Motorworks, vAuto, and Finance Express. AWG Remarketing is a provider of live simulcast for independent auctions. AuctionMaster is an auction management system consisting of numerous modules that can manage inventory, dealers and accounts, fees, sales, operations, arbitration, accounting and other auction functions. IAS is owned by Alexis Jacobs, the owner of Columbus Fair Auto Auction.
Firm Sells Autotrader Canada
Apax Partners has entered into a definitive agreement to sell Trader Corp. to private equity firm Thoma Bravo for approximately $1.575 billion Canadian. The transaction, which is subject to customary closing conditions, is expected to close by the fourth
quarter of 2016. Trader is Canada’s largest digital automotive marketplace. Its online properties include Autotrader.ca, Autohebdo.net and Autos.ca. In addition, the company provides software solutions to dealer customers to make business, inventory, and marketing decisions. Apax Funds acquired Trader in July 2011.
XLerate Adds El Paso Auction
Huron Capital Partners LLC announced that its auto auction company, the XLerate Group, acquired EPI-El Paso. The deal marks the third add-on acquisition for XLerate in partnership with Huron Capital, and its second add-on in 2016. EPI commenced operations in 2011 as part of the McConkey Auction Group. EPI holds financial institution, fleet/lease and dealer consignment sales every Wednesday at its El Paso, Texas facility. The auction operates a four-lane arena, reconditioning facility and mechanical shop, and is situated on approximately 16 acres. With the addition of EPI, XLerate now has auto auction sites across the state in Dallas, Austin and El
Paso, plus locations in California, Add-on Products Draw Fines Florida, South Carolina, Michigan Recent actions by the Consumer and Wisconsin. Financial Protection Bureau resulted in restitution of about $24.5 million to more than 257,000 consumCarMax Opens Store in ers for auto finance and payments Massachusetts issues. CarMax Inc. officially opened its CFPB examiners determined that store in Westborough, Mass. one or more auto creditors deceived The store is located at 170 Turn- consumers into thinking their addpike Road. The new store will stock on product would fully cover the more than 300 used vehicles. balance of a consumer’s loan in the In celebration of the Westborough event of the loss of their car or truck. store opening, CarMax donated In fact, the product covered less $5,000 to the Worcester County than the vehicle’s value. Food Bank. Bureau examiners also found one Westborough CarMax associ- or more auto creditors deceived ates selected this nonprofit for its consumers about terms of a defermission to distribute approximate- ral, saying the only effect would be ly 5.8 million pounds of food to to extend the life of the contract and more than 130 partner agencies in to accrue interest during the deferWorcester County. ral. They didn’t tell consumers that The CarMax Foundation is also subsequent payments would be approviding a $10,000 grant to Com- plied to cover the interest earned on munity Harvest Project to support the unpaid amount from the date of educational programs that engage the consumer’s last payment. youth at risk for hunger. This grant will serve more than 1,000 youth C R O S S W O R D through the Community Harvest by Myles Mellor Project’s nutrition education programs – Sprouting Minds, Farm Camp and Kindergarten Initiative. This grant also came at the recommendation of Westborough CarMax associates. PAGE 16 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 Colleen Fitzgerald, General Manager Columnist: Tony Moorby
Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager
Circulation: Helen Thomas Production: Josie Godlewski, Media Manager Cee Lippens, Web Master & Graphic Designer
Vol. 22 • No. 8 Used Car News is published the first and third Monday of each month. 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 firstname.lastname@example.org.
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USED CAR NEWS
July 18, 2016 â€˘ 5
Repos Create Complaints Auto finance makes up a majority of the consumer loan complaints submitted to the Consumer Financial Protection Bureau. The consumer loans category includes vehicle loans and leases, installment loans, pawn loans, title loans, and personal lines of credit. Auto finance makes up 52 percent of the 38,500 complaints filed for this category since July 2011, according to the latest CFPB snapshot. The second most common type of consumer loan complaints was installment loans â€“ 31 percent. Many consumers described having to voluntarily surrender their vehicle because they could no longer afford their payments. In many of these complaints, consumers ended up owing more than the value of the car. This leaves them with large deficiency balances that they did not anticipate. Many consumers complained of repossessions that occurred without any notification. In some of these complaints, the repossessions occurred while the consumer was under the impression that they had successfully negotiated a repayment plan. Consumers also indicated that they were subject to high reinstatement fees. Some consumers complained
that warranties they believed were required did not cover basic repairs. In these complaints, consumers purchased older cars and they were under the impression that the warranty would cover the repairs often associated with cars that have high mileage. Since these repairs were not covered, consumers incurred high costs to fix their cars or in some instances were unable to make further use of the vehicle. Consumers complained about misleading advertisements at buyhere, pay-here dealerships. Consumers explained that dealerships checked their credit even though advertisements stated that their credit would not be considered. Consumers also complained that although advertisements stated that making timely payments on their loans would help build their credit up, dealerships would not furnish good standing credit information. Consumers with vehicle leases complained about having to pay what they felt were high wear and tear fees at the end of the lease term. These consumers disagreed with the wear and tear determinations and believed the process was unfair. Because there is a subjective element to this determination, consumers indicated they should be present for the inspection.
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6 • July 18, 2016
USED CAR NEWS
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Driverless Concerns Rise A Michigan man in a Tesla Model S became the first person to die while riding in a semi-autonomous car when his vehicle struck a tractor trailer on July 1. The man was riding in the car on a Pennsylvania highway with Autopilot engaged when a tractor-trailer drove across the highway perpendicular to the Model S. Neither Autopilot nor the driver noticed the white side of the tractor trailer against a brightly lit sky, so the brake was not applied. The accident has again raised concerns about the safety of riders in driverless cars. And a new study shows people are more concerned about their own safety in these vehicles rather than others. Driverless cars are programmed with a set of safety rules, and it is not hard to construct a scenario in which those rules come into conflict with each other. For example, a driverless car could find itself deciding whether to hit a pedestrian or swerve in such a way that it crashes and harms its passengers. A new study shows that the public is conflicted over such scenarios, taking a notably inconsistent approach to the safety of driverless cars, should they become a reality on the roads. In a series of surveys taken last
year, the researchers found that people generally would prefer driverless cars to minimize casualties in situations of extreme danger. That would mean, say, having a car with one rider swerve off the road and crash to avoid a crowd of 10 pedestrians. At the same time, the survey’s respondents said, they would be much less likely to use a vehicle programmed that way. Essentially, people want driverless cars that are as pedestrianfriendly as possible – except for the vehicles they would be riding in. “Most people want to live in in a world where cars will minimize casualties,” said Iyad Rahwan, an associate professor in the MIT Media Lab. “But everybody wants their own car to protect them at all costs.” One question asked respondents to rate the morality of an autonomous vehicle programmed to crash and kill its own passenger to save 10 pedestrians. The rating dropped by a third when respondents considered the possibility of riding in such a car. Similarly, respondents said they were only one-third as likely to purchase a vehicle regulated this way, as opposed to an unregulated vehicle, which could presumably be programmed in any fashion.
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8 • July 18, 2016
USED CAR NEWS
CLASSIC CARS EVENT BRINGS OUT COLORFUL CARS, CHARACTERS My buddy, Doug Walton, and I were recently guests of another dear friend, Ron Hope, at The Holley National Hot Rod Reunion at Beech Bend Raceway in Bowling Green, Ky. It’s an annual gathering of drag racing and a massive car show with all the attendant paraphernalia, with shops selling everything from T-shirts to transmissions and tools to trailers. The whole area becomes a small town for the duration, boasting accommodations ranging from million-dollar Prevosts to pop-up campers. The usual array of gutbusting food attracts with aromas like fried catfish, burgers and dogs, smoked pork, tacos and funnel cakes. The fresh-squeezed lemonade, served in monster cups, provided a cool respite from the sunny weather – it was hotter than the door handle to hell!
impressive, indeed. The ladies are as involved as anyone in this family affair sitting around and chatting as though they were at a quilting bee, but swapping stories about four-barrel carburetors and 400 transmissions instead.
and burning rubber all combine to thrill at the speed these things get to and how quickly they get there. Earplugs are a must if you want to retain your hearing for the rest of your life. There are many of the sport’s celebrities on hand
• 40-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 • Awarded the Ring of Honor by NIADA • NAAA Hall of Famer The atmosphere is amazing. If you have the slightest interest in cars, there’s something that’s sure to attract you. A backdrop of noise from the raceway quickens your pulse as you wander around the car show, gawking at rat rods, antiques, muscle cars and trucks. We roughly calculated about 2,000 cars providing a kaleidoscopic vision of color and movement. It’s astonishing. The owners, stashed away in the shade sitting under pole tents, are as friendly a bunch as you can imagine and could talk your ears off describing their prized cars. It’s not surprising because the dedication and imagination that goes into creating or restoring these cars is
The gathering also provides a great people-watching opportunity. There is every caste of humanity adorned in any form of dress imaginable – or nearly not! And although Kentucky is famous for being ‘horse country’ there were more ponytails on men than there were on horses in the whole state. Then there’s the drag racing. Although I’ve been to several of these meets, I’ve never really made a study of all the different classes and qualifiers – it’s like an alphabet soup! For me, it’s sufficient to be in the middle of the atmosphere whether watching the top fuel dragsters or the funny cars. The noise and the smell of fuel
for autographs and chats and are as approachable as your next-door neighbor. Ron Hope and I have been working colleagues for more years than I care to say and he’s been involved in racing for longer than that. He still pilots the A/A Fuel Altered Rat Trap in events all over the world and he and his granddaughter hold land speed records at the Bonneville Salt Flats. His spot in the pits at Bowling Green was like Piccadilly Circus at rush hour with visitors coming and going, friends and family members (of which there are many) all in full support of his efforts. His son, Brian, leads the crew calmly and quietly in spite of all the Continued on page 10
AUCTIONS RAISE MONEY FOR JDRF A pair of ADESA auctions recently hosted classic car events to raise money for JDRF, a leading advocacy group for people with type 1 diabetes. ADESA Boston hosted its 16th Annual Classic Car and Motorcycle Show in May. This event raised more than $38,000 through a live auction, show entry fees and sponsorships. More than 50 motorcycles and 180 cars were on display. First-, second- and third-place trophies were awarded by a panel of judg-
es in both the car and the motorcycle categories. Everyone was eligible to vote for the People’s Choice trophy, which went to auctioneer Mike Chambers’ 1975 Volkswagen camper van. ADESA Indianapolis hosted its 7th annual car show, which attracted 71 cars and motorcycles. New to this year’s event was a petting zoo, face painting and the addition of Salsa Verde restaurant. The event brought in more than $18,000.
NEXT ISSUE: Dealer Life 08_UCN.indd 1
7/8/16 4:46 PM
7/8/16 3:47 PM
10 • July 18, 2016
USED CAR NEWS
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Two industry veterans have combined their companies to create a new service organization. Tom Stewart of Stewart Enterprises Inc., and Richard Curtis of RW Curtis Consulting LLC have partnered to create Auction Management Solutions Inc. AMS provides consulting services to the automotive industry, including independent auto auctions, service providers and vendors. Stewart has over 20 years of industry experience. He started his automotive career working for Anglo American Auto Auctions and later went on to become the director of remarketing for KeyBank. Stewart spent the last 15 years working on various consulting projects as a partner with TPC Management Company, and held the position of executive vice president of sales for the ServNet
Auction Group. Curtis, who has over 40 years of industry experience, has spent 18 years as general manager of auto auctions located in Washington, Louisiana, and Texas, and six years as general manager of franchise auto dealerships. Curtis has spent the last 16 years consulting as a partner with TPC Management Company. The firm’s first announcement after merging is the formation of a partnership with Dealers Auto Auction Group LLC for business development consulting. Dealers Auto Auction Group has five auctions in the Southeast including Dealers Auto Auction of Memphis, Dealers Auto Auction of Murfreesboro, Dealers Auto Auction of Chattanooga, Dealers Auto Auction of Huntsville and Dealers Auto Auction of Mobile.
Classics - from page 8 attention, providing the brains and the brawn all the way to the start line and the lights. It’s a bit like the way they run their company; orchestrating others to provide success for everyone all across the country with an unremit-
ting passion for the best. Doug and I appreciated the VIP treatment and came away with the warm glow of sun-tanned skin and fine hospitality. If Ron will have us back we look forward to another visit next year.
7/11/16 2:12 PM
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Manheim Detroit August 4 734-654-7100
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Columbus Fair AA August 3, 31 614-497-2000
Manheim New Jersey August 10 609-298-3400
Manheim Southern CA August 4 909-822-2261
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Manheim Orlando August 23 800-337-8491
Southern AA August 24 860-292-7500
Manheim Detroit August 18 734-654-7100
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*The 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/ Retail Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by 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. *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 Chase. Retail / Loan and lease accounts are owned by Chase. ©2016 JPMorgan Chase Bank, N.A. Member FDIC (16-034) 08/16
7/8/16 3:47 PM
12 • July 18, 2016
USED CAR NEWS
RETAIL MARKETS car dealers. But it’s getting MICHIGAN Brian H a v e l k a , harder. “We’re primarily straight owner, A&B Automotive, retail. But I do some deals Menominee, Mich.: with Credit Acceptance “We’re carrying about 42 units. We’re carrying about Corp. and a little buy-here, eight to 10 cars a month pay-here. “Average retail price is more than last year. We $10,000 to $11,000. That’s made a decision to increase inventory. We felt we need- increased about 6 percent ed a wider selection in the from this time last year. It price categories. We try to seems like the cars are just cover a wide spectrum from taking more reconditioning. “Average model year about $5,000 on the lower end, up to $20,000 for SUVs depends on the vehicle. There’s a big spread beand pickups. “We normally sell (at a tween the cars and trucks. It rate of ) half of our inven- ranges from 2007s to 2012s. tory every month, about 18 The trucks would be older and the cars or minivans to 22. “The last two months of would be newer. “Mileage is averaging sales have been equal to last year, but our first quarter about 80,000. Trucks would this year was the best I ever be higher. “Trucks and SUVs would had. It’s been a good year. “We get 60 percent of our be 70 percent of our sales. inventory from auction. We sell mostly domestic. “We’re averaging $800 to Fox Valley Auto Auction in De Pere, Wis., is my main $900 in recon. That’s up a source. The rest come from lot. It used to be, probably, off the street or new-car $500. We do everything dealers that I’ve developed in-house. Tires are so much more 2:56 thanPMthey used to be. relationships with. I used UCN-9x6-July.pdf 1 7/11/16 to get all of it from new- But we do a full inspection
on the cars. “We do outside work .We have four full-time guys in the garage. We have four hoists and six bays. That business is going well. We don’t even advertise for it. It’s 50 percent of my profits. “Our website is our primary advertising. We use a little bit of the Internet advertising and we still run an ad in our local paper. “We recently sold a 2012 Grand Caravan. It had 91,000 miles. We sold that for $9,995.”
. D I B C
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Chad Randash, president, Randash Auto Center Inc., Bozeman, Mont.: “I own this location and my father sold our other location in Billings to my brother. “I’ve got about 90 cars (in total) that are either on the lot or going through recon. We carry about 50 to 60 vehicles (that are ready for sale). “We sell around 40 to 50
. L L SE ! T A E P RE
Compiled by Jeffrey Bellant cars a month. That’s pretty steady. “My dad had a very good network of dealers that he set up on the western part of the state. Most of our vehicles come from that. We also have a separate website called WeBuyYourCarMontana.com. “We’re buy-here, payhere. I’m financing 30 to 35 units. The rest are outside deals. We do outside financing through Credit Acceptance Corp. “Our average down payment this year is about $657. For term length, we’re sitting right under 3½ years, or between 88 and 91 biweekly payments. “We’ve used the Passtime system since I started. We give full disclosure. “For us, the 2G system (had an early sunset) in Montana, so I had a major problem. We worked around the clock for several weeks to replace old units. “But Passtime really helped us out, doing everything they could to get us
units so we could get them replaced. “Our amount financed out the door is $10,995. “Our average recon is $1,600 to $1,700 per car, which is high. But what we’re trying to do is to make sure that car will go the distance. “The last report I looked at showed that out of 800 accounts, we had 15 that were past due. “I’m running an average of 2005 to 2006 model years. We have some later models on the lot as well. I’m still one of those guys that will still carry the 100,000mile car. We’ll even go up to 150,000, but it’s got to be a nice one- or two-owner car with good records. “A lot of people in Bozeman love their Subarus and love their Toyotas. It’s that type of town. It’s just a higher-priced car that doesn’t always fit in our model. “We just sold a 2001 Chevy Cavalier. It had 111,000 miles. The selling price was $6,995.”
of t u o e l hass e h t s take t r a p o C t io n . i s i u q y ac r o t n e inv lable i a v a s hicle e v 0 0 0,0 Over 10 s. n o i t a c .S. lo U 0 6 1 across ay at ide d u o t G d r e t e r l ea Get sta om /D
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14 • July 18, 2016
WHOLESALE MARKETS CALIFORNIA
Tony Callaway, vice president of fleet-lease, South Bay Auto Auction of Gardena, Gardena, Calif.: “We have another auction in Stockton, a remarketing service and a satellite office in Bowie, Md. “In Gardena, we have seven lanes. In Stockton, we have six lanes. “In Stockton, we run anywhere from 300 to 500 a week. Right now, Gardena’s been pretty well stocked and our remarketing service business is just booming. “We’re selling about 72 percent. “Our sales are up in Gardena. We have one heck of a remarketing team that consists of people that have a combined 150 years of experience. We have people that were former district or regional managers. People know them and we know the people. “(The number of bidders) fluctuates, because when dealers run out of money,
they don’t come. But we probably are looking at 300 to 350 in the lanes on average. Being in the Los Angeles area, we have 1,000 dealers within 50 miles. We also have a lot of out-ofstate dealers because we sell some specialty items. “Credit unions have been our biggest niche (as consignors). They sell them at a high percentage. “About 67 percent of our (volume) are fleet-lease and 33 percent are dealer (vehicles). “We work with what we have. When we find out what our clients are selling, then we market that as it comes. We’re good at selling regular cars to box trucks or RVs. “We have a specialty sale on the last Monday of the month. We try to get a good number of those vehicles for a sale to make it worth the while for (out-of-town) buyers looking for those items. “We also have a phone center and we make about
1,500 to 2,000 calls a week to talk with dealers (and consignors) and Internet buyers. We use Auction Pipeline for online (sales). “But we keep in contact with our customers. We’re independent, so we work a little harder to help the small guy. “Average price in the lanes fluctuates from $8,000 to $12,000.”
Ryan Durst, vice president, Lincoln Auto Auction, Waverly, Neb.: “This will be our 24th year. We’ve got four lanes and we’re running four. “Our volumes were on par with last year during the first quarter. Then it seems in April and May it took a little bit of a dip. Not a huge one. “Our volumes are just a tick down from last year. “I think our new-car stores are trading for stuff that they’re trying to keep and retail. Eventually, I think we’ll get some of those.
USED CAR NEWS
Compiled by Jeffrey Bellant
“Our volumes are anywhere from 250 to 300 every week. It’s been right around 275. “But we’ve increased our (sales percentages). Last year at this time we were averaging right at 69 percent and this year we’re north of 73 percent. So what we’re doing is getting more efficient, bringing cars in to sell and selling them. We’ve even had three sales in the low 80s. We’re kind of in uncharted waters. “Last year was a record year across the board. So we’ve just been trying to stay on pace with that and we’re right there. I don’t anticipate going backwards any year. “We draw between 200 and 225 (bidders) to every sale. We have such a strong buyer base that it doesn’t really tail off at any time of the year. It’s strong all year round. During our GSA sales, we’ll have up to 300. “Every dealer I’ve talked to has been in a good mood. A Chevy store in Lincoln
that we’ve done business with the last 25 years is going to have a record month. It’s the best month they ever had and they’ve been in business for 82 years. “We’re about 90 percent dealer consignment. “This year, we’ve had a GSA sale every three or four weeks. Volumes have been around 120 every time we run. We’ve been hammered with GSA vehicles. Those are everything from SUVs to utility bodies to sedans. There’s a lot of Malibus, Focuses, Tahoes and Avalanches. They’ll have cargo vans, and passenger vans. “Average price is $4,285 this year. Last year was $4,069. “If there’s anything struggling, I don’t know what it is. Now, the mid- to latemodel trucks are hard to get rid of. They have a big book. They are a tougher piece to retail around here. It’s because of what they are asking for them. “We‘re really optimistic about the rest of the year.”
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16 • July 18, 2016
USED CAR NEWS
PEOPLE IN THE NEWS Manheim Promotes General Managers
Manheim has named Emily Decker as general manager of Manheim Indianapolis and David Aguilar as gen-
Most recently she served as assistant general manager at Manheim Statesville. Decker is engaged in company leadership programs including Manheim’s Guiding Coalition, the Cox mentor program, Women with Drive and the prestigious Cox Lead-
Emily Decker eral manager of Manheim El Paso. A 20-year veteran of Manheim, Decker started as a dealer registration administrator and took on various roles with increasing responsibility at Manheim’s Tampa, St. Petersburg and Lakeland locations.
David Aguilar er’s Edge program. Aguilar joined Manheim in 2013 as a human resources manager and swiftly transitioned to reconditioning manager for the Manheim
San Antonio and Dallas locations. Aguilar served in the U.S. Marine Corps for eight years and working in operations for the City of Austin, Texas for 12 years before joining Manheim.
TrueCar Taps Market Researcher
TrueCar Inc. has appointed automotive market research veteran Art Oleszczuk as vice president of market research. Oleszczuk comes to TrueCar with 15 years of automotive research, marketing, product development and sales experience, having held senior roles with Cox Automotive, focused on their portfolio of brands, including AutoTrader. com, Kelley Blue Book, Haystak and others. Most r e c e n t l y, Oleszczuk served as the senior director of
marketing at Equifax, where he was instrumental in growing the company’s automotive revenue and expanded a portfolio of solutions for auto dealers, lenders and business development partners. He will report to chief marketing officer Neeraj Gunsagar. “I’m excited about the opportunity to boost TrueCar’s research efforts and develop actionable insights that will help steer the company’s new direction,” Oleszczuk said.
MetroGistics Hires Development Director
MetroGistics has hired Terrance Evans as director of business development. Evans has five-plus years of experience in a variety of industries, including manufacturing and automotive logistics.
C R O S S WO R D
His employment history includes working as a sales representative for Pleasant Prairie Logistics in the finished-vehicle-logistics spectrum. Evans was also the sales manager for Jack Cooper Logistics, LLC. Evans received his bachelor of arts degree in marketing from Radford University.
Cox Automotive Salutes Honda Store Employee Cox Automotive awarded its inaugural Breakthrough Leader of the Year Award to Susan Cafiero, a sales representative for Avalon Honda, in recognition of her outstanding contributions to the automotive industry. Avalon Honda, part of the Burns-Kull Automotive Group, has been serving south New Jersey since 1970. Cafiero was selected from nominees that
Digital version available at usedcarnews.com
By Miles Mellor
1. Sports car from Porsche
35. Toyota minivan
6. Strap-on stuff
36. Honda model
10. Oversnight stay place
40. Koenigsegg CCXR ____
12. Laughter sound
41. Toyota SUV
13. The Camaro SS had a V8 ____
43. Pick up
16. Transmission and suspension for example
45. News outlet
17. Long limo
46. Old Dodge model
19. ___ 500X Crossover
18. Luxury car make
47. Letters on tires
21. Garage mechanic’s bag items
48. Let out fluid
22. VW supermini
24. Vehicle weight measurement
15. Impala and Malibu, for example
23. Mazda model 25. Like many Lamborghinis and Ferraris 26. ___ Lorean car 27. Kid 29. Weight amount, for short 30. Boxy Toyota 31. Renaissance and Gothic
1. Audi Q7 _____ ____, 2 words
9. Corinne Bailey ___ Grammy nominee
3. Time section, for short 4. Compass point
11. Dodge Viper ____
14. Third in line in the family
28. Traffic jam
Solution to the 7/4/16 1
met criteria including being a woman with less than five years of automotive experience and one who has made significant and measureable contributions to help advance the automotive industry. Nominated by her manager, Cafiero was selected based on her stellar performance as a sales representative. After joining Avalon Honda in January 2014, she became one of the leading sales representatives of Avalon and earned the Honda Council of Sales Excellence Silver Award for customer and sales satisfaction. In 2015, she earned recognition as Avalon’s Sales Person of the Year, winning by more than 100 sales, and received the Honda Council of Sales Excellence Gold Award for customer and sales satisfaction.
32. Car Lamborghini built to celebrate its 50th birthday 33. Tata Tiago is a popular car in this country
5. Nurse, for short
34. Rotational force
7. Green car type
37. Buyer’s concern
8. Bugatti model
38. Model name
39. XFs, XJs and XKs
40. Color for interiors 42. Ending for saturn and serpent
O M A
44. Emotional Intelligence, for short
Solution to this puzzle in the 8/1/16 issue. Call 1.800.794.0760 for a FREE subscription.
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USED CAR NEWS
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18 • July 18, 2016
USED CAR NEWS
AROUND THE BLOCK
Compiled by Jeffrey Bellant
Earns Honor DEALER, AUCTION PARTNER FOR CHARITY KAR For IT Efforts
GOOD CAUSE: Manheim Tucson and Youth on Their Own raise $30,000 in a June charity auction. Tom Hoy (from left), of Youth on Their Own, Manheim’s Michael Cleveland, Nicola Hartmann and David Martin, also of the charity, and Volvo of Tucson owner Mike DiChristofano.
Manheim Tucson and Volvo of Tucson hosted a dealer-only charity car auction benefitting Youth on Their Own, a dropout prevention program that helps homeless youth graduate from high school and pursue opportunities for selfsufficiency. Manheim Tucson received 35
vehicle donations from local dealers who supported the event. More than 250 dealers attended the auction, both in-lane and online. All funds from the sales of the vehicles, including buy fees, were donated to Youth on Their Own, adding up to more than $30,000. The Tucson operation has
donated over $110,000 to the non-profit in the past three years. Since 1986, Youth on their Own has empowered more than 16,000 homeless and compromised students to stay in school.
KAR Auction Services Inc. has received the CIO 100 Award for driving business value through IT innovation. The CIO 100 Award honors 100 organizations that are driving business results through IT innovation. KAR was recognized for its focus on developing and implementing technology initiatives that enable the company to unite its different entities and their systems, to strengthen and improve operati. “Developing and implementing technology to better serve our clients, as well as our organization, plays a critical role in the business decisions and company innovation throughout our entire group of companies,” said Gary Watkins, chief information officer of IT Shared Services for KAR. “KAR has worked tirelessly to build and support a multifaceted team of top tech talent to accomplish this
We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number. Send items and photos to: Jeffrey Bellant. Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080. Fax: (586) 772-9400 e-mail: email@example.com
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