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August 15, 2016
Used Car Market Sends Mixed Signals
Photo by Jeffrey Bellant GOOD QUARTER: Manheim economist Tom Webb shares his views on the market and the economy in general at the recent National Independent Automobile Dealers Association convention.
As with much of the rest of the economy, the used-car industry sent mixed signals in the second quarter, which now raises questions for the rest of the year. Penske Automotive Group Inc. best reflected the market in its second-quarter results. Used unit retail sales rose 6.8 percent, but same-store used unit retail sales declined 2.6 percent. Same-store used retail revenue rose 0.2 percent. Average transaction price per unit was $27,936, up 0.2 percent, but average gross profit per used unit was $1,697, down $85 per unit. Overall, the seven public dealer
groups ended their streak of 27 consecutive quarters of same-store retail used unit sales gains, reports Manheim chief economist Tom Webb. Webb attributed that slide, in part, to their inability to sell many recalled units. Repairs on those units should speed up in the third quarter, Webb said, putting them back in the market. The Manheim Used Vehicle Value Index rose throughout the second quarter and rose yet again in July. It now stands at 127, up from 122.5 in March. The Index adjusts for mix, mile-
age and seasonality. Other measures of the wholesale market have shown more downward movement in the last few months, but have been stronger than many predicted. â€œAlthough there was a near-universal expectation that wholesale prices would suffer in 2016 due to growing wholesale supplies, current auction values are not abnormal relative to several long-term historic relationships,â€? Webb said. Ford Motor Credit Co. was one consignor that warned about residual performance during its recent second-quarter conference call. And the potential for lower wholesale prices going forward is creat-
ing some concerns for the finance market. BB&T Corp. reported that it increased credit loss allocations due to higher net charge-offs at its Regional Acceptance subsidiary. This move was driven by portfolio mix and an increase in loss severity. Fitch Ratings expects losses to increase for more subprime creditors due to weaker collateral credit quality and pressure on wholesale vehicle values, which will pressure recovery rates. The good news, Fitch reports, is that delinquencies and losses on prime auto loan ABS remained historically low through June.
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USED CAR NEWS
August 15, 2016 • 3
Consumers Want Vehicles with Safety Technology Driver-assist technologies help make vehicles considerably more appealing to their owners, according to the J.D. Power 2016 U.S. Automotive Performance, Execution and Layout Study. The study finds that new vehicles equipped with safety features such as blind spot monitoring and low speed collision avoidance have overall APEAL scores substantially higher than similar vehicles without the technologies. Overall APEAL scores are higher among the 41 percent of owners whose vehicles have blind spot monitoring than among those whose vehicles do not have this technology (821 vs. 787, respectively). Similarly, APEAL scores are higher among the 30 percent of owners whose vehicles have collision avoidance technology than among those whose vehicles do not have this technology (828 vs. 790, respectively). “Technology-enabled safety features help drivers feel more comfortable and con-
fident while driving their vehicles,” said Renee Stephens, vice president of U.S. automotive quality at J.D. Power. “These features are also ‘gateway technologies’ to autonomous driving capabilities, so the continued level of consumer interest in them will be a critical metric to watch as the industry evolves toward including more automation in new vehicles.” The overall industry APEAL score improved by 3 points to 801, helped by the launch of many new vehicles. In 2016, 22 of the 30 allnew or major redesigned models included in the study scored higher than their respective segment average. Over the past 10 years, newly launched vehicles have scored an average of 29 index points higher than their segment average. “The key to successful models is to launch with very high appeal and limit the decline that often comes in subsequent years,” Stephens said. “As automakers con-
TOP PERFORMER: Porsche continued its 12-year streak as the highest ranked vehicle in the J.D. Power APEAL study. The brand scored nearly 20 points higher than the second-place finishers.
tinue to add more content, including advanced technologies, to their vehicles, one key way to maintain appeal is to design technology that is easily upgradeable and intuitive. “Intuitive designs never go out of style. For example, for infotainment systems, intuitive design may mean simplification: bigger buttons,
bigger screens and menus that are laid out in a manner that is easy for the driver to understand.” Among owners whose vehicles have average or aboveaverage APEAL scores (801 or higher) and who report no problems with their vehicle in the first 90 days of ownership, 90 percent say they “definitely will” recom-
mend their vehicle to others. In contrast, among owners whose vehicle has low APEAL scores (800 or lower), even when their vehicle is problem-free, advocacy drops to 64 percent. Among those who report one or more problems with their vehicle, advocacy plummets to 49 percent. Continued on page 6
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4 â€˘ August 15, 2016
USED CAR NEWS
NEWS BRIEFS Cars.com Acquires DealerRater
Cars.com has entered into an agreement to acquire DealerRater. The transaction is subject to regulatory approval and customary closing conditions, and is expected to close by the end of August. Terms of the transaction were not disclosed.
CarMax Auctions Add NextGear Capital
NextGear Capital has announced a new agreement with CarMax that will allow dealers to use their NextGear Capital lines of credit at all 68 CarMax auction locations. NextGear Capital floor plans are currently accepted at over 1,000 live and online auctions, and may be used with inventory sources such as trade-ins, off street purchases and loan payoffs. NextGear Capital floor plans started to be accepted at all CarMax auction locations as of Aug. 8.
Spireon Reports Growth
Report from Edmunds.com. Lease volume has doubled in the last five years. The Millennial generation is driving this change, with a higher rate of lease penetration than any other generation (34.2 percent), but the strongest growth has come from shoppers over the age of 75. During the first six months of this year, more than 32 percent of cars sold to this age group were leased Company Sees Boost in Digital Use â€“ a growth rate of 74 percent comManheim recently released its sec- pared to five years ago when lease ond quarter Digital Trends, show- penetration of this group was only ing a 22 percent increase in vehicles 19 percent. sold through its digital channels in the second quarter compared to Bank Launches Floor Plan Program prior year. With the launch of new features Republic Bancorp Inc. recently such as Daily Sales and Text No- rolled out its new dealer floor plan tifications, OVE has experienced lending platform. double-digit growth over prior year. The bank made the move to furNew programs such as Outside-the- ther diversify its loan product mix Gate Inspections have also contrib- and complement its indirect autouted to an increase in OVE vehicles lending platform. listed with a condition report, helpRepublic reported $18 million in ing to drive greater confidence in indirect auto finance in the second online buying. quarter. past year across all major vehicle telematics segments, including new- and used-car dealers and lenders, small and medium sized fleets, transportation and trailer, rental car companies and consumer markets. Spireon grew revenue 20 percent year over year for the first half of 2016, and more than doubled its profitability.
revenue of $658.3 million for the second quarter of 2015. Net income for the second quarter increased to $61.8 million, as compared with net income of $59.5 million in the second quarter of 2015. The company also announced a cash dividend of $0.29 per share on the companyâ€™s common stock.
Black Book Partners with GoGoCar
Black Book announced an agreement to be one of the trade appraisal resources for GoGoCar, an online car-buying platform that facilitiates the entire car-buying experience online. GoGoCar will leverage Black Book appraisal and valuation data for its customers. Powered by Black Book, GoGoCar enables car dealers to obtain trade appraisal data on any vehicle offered during the customer car buying experience. C R O S S WO R D by Myles Mellor
Spireon Inc. announced it has achieved its 20th consecutive quar- Leasing Sets Record More new vehicles were leased in KAR Reports Higher Revenue, Profit ter of year over year revenue growth. KAR Auction Services Inc. reportThe record revenue growth arises the first half of 2016 than during the as the company added over 1 mil- first half of any other year in history, ed revenue of $771.8 million in the lion new connected devices in the according to the latest Lease Market second quarter, as compared with
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
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Vol. 22 â€˘ No. 10 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 email@example.com.
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USED CAR NEWS
August 15, 2016 • 5
Late Recall Notifications Create Public Outcry
LOS ANGELES (AP) – High profile recalls and the issues around notifying drivers about them continue to make news. The parents of “Star Trek” actor Anton Yelchin have sued the makers of the Jeep Grand Cherokee, an SUV that was under recall when it crushed and killed the 27-year-old. Victor and Irina Yelchin filed the wrongful-death and product-liability lawsuit against Fiat Chrysler in Los Angeles Superior Court roughly six weeks after their son was killed. The suit contends that the gear selector in the actor’s Jeep was defective and poorly designed and manufactured. “Anton Yelchin was crushed and lingered alive for some time, trapped and suffocating until his death,” the lawsuit says. The actor’s Jeep rolled backward down the driveway of his Los Angeles home June 19, pinning him between a mailbox and a security fence. The SUV was among 1.1 million vehicles recalled in April because its gear shifters have confused drivers, causing the vehicles to roll away unexpectedly and leading to dozens of injuries. The suit does not say how much Yelchin’s parents are seeking in damages. Yelchin received a safety recall
notice in May, and another notice was sent to the actor seven days after he died notifying him that the company had a fix for the gear shifter, said Gary A. Dordick , the family’s attorney. The lawsuit says Yelchin’s SUV did not engage or maintain its “park” gear and that led to the vehicle crushing the actor. Drivers of the Jeep under recall have complained that they had trouble telling if they put the transmission in “park” after stopping. Many reported the vehicles rolled off after the driver exited. A government investigation into the gear shifters found 266 crashes that had injured 68 people as of late June. Fiat Chrysler has said it is speeding up its recall of the vehicle. Both the company and the National Highway Traffic Safety Administration have urged drivers of vehicles subject to the gear shift recall to set their parking brakes before getting out of their vehicles. Meanwhile, a new public service announcement featuring a man named Corey Burdick, who was injured by a recalled Takata airbag, launched on several social media platforms including Facebook and Twitter. The PSA was created by ConsumerWatch.com and is mod-
Photo by The Associated Press SHARING THEIR PAIN: Irina, center, and Victor Yelchin, right, announce their plans to sue Fiat Chrysler over the way it handled a Jeep recall that led to the death of their son.
erated by Richard Newsome, a consumer advocate and product safety attorney. In the PSA, a disfigured Burdick speaks into the camera stating, “I lost my eye because of a defective airbag...take your car in today so that this doesn’t happen to you.” On May 29, 2014, Burdick was involved in a traffic incident while
driving to work in Lake County, Fla. During the incident, the Takata airbag in his 2001 Honda Civic ejected sharp metal shrapnel into his right eye, leaving him disfigured and permanently blind in that eye.He later found out that his Civic had been previously recalled multiple times for the dangerous airbag defect, but he never received a recall notice.
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6 • August 15, 2016
USED CAR NEWS
APEAL - from page 3
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Factory-installed navigation systems remain a challenge for vehicle owners. Two of the lowest-rated vehicle attributes are related to the navigation system: usefulness of the navigation features and ease of using the vehicle’s navigation system. Nine of the 10 categories improved in 2016, with fuel economy posting the largest gain (14 points) year over year. Audio/communication/entertainment/navigation and visibility and safety also made notable gains of 6 points and 4 points, respectively. Engine/transmission is the only category to decline (-1 point) this year, with the largest attribute decline in transmission smoothness when shifting, as penetration of 8- and 9-speed automatic transmis-
sions increases. Porsche ranks highest overall in APEAL for the 12th consecutive year, with a score of 877 index points. BMW ranks second with 859, Jaguar and Mercedes-Benz rank third in a tie at 852, and Land Rover, Lexus and Lincoln rank fifth in a tie at 843. Volkswagen (809) ranks highest among non-premium brands, followed by Mini (808), Kia (807), Ford (803), Ram (803) and GMC (802). General Motors received six segment-level awards, followed by Hyundai Motor Co. with five and BMW AG and Volkswagen AG with four each. Nissan Motor Co. Ltd., and Toyota Motor Corp. each have two models that rank highest in their respective segments.
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8 • August 15, 2016
USED CAR NEWS
BACK TO SCHOOL BACK TO SCHOOL SEASON OFFERS OPPORTUNITY By Jeffrey Bellant
For many independent dealerships, August doesn’t just mean the start of school; it means a new opportunity for sales for dealerships in a college town. Eddy Del Real, manager of Del Real Auto Sales in Lafayette, Ind., knows that nearby Purdue University is one market for the dealership. “Usually, a lot of students I get in are looking for something under the $10,000 price and mostly imports,” Del Real said. Del Real Auto Sales has been in business for 29 years and carries 40 to 50 units on its lot near the home of the Boilermakers. August, as expected, is the busy time for Del Real when it comes to student customers as they are starting the new school year. “We’ll do some school ads and advertise for first-time drivers,” he said. “We’ve (advertised) in The Exponent, which is the local college newspaper.”
Photo Courtesy of Indiana IADA SALES SCHOOL: The Del Real family (above), is shown celebrating the Del Real Auto Sales’ Indiana Quality Dealer of the Year award in 2009. The dealership is near the campus of Purdue University where it markets to students. Dealerships near schools (below) have a unique sales opportunity.
Del Real Auto Sales uses traditional online advertising like Cars.com and Autotrader.com. “But there have been cases where we’ve targeted international students in our advertising,” Del Real said. “We try to get our name into
their resources within the international community. We try to get our name out there.” As a result, the store has had a lot of people in the Asian community contact the dealership for business, Del Real said.
The biggest differences with being in a college town, he said, are targeting advertising as school starts and the buy-backs when school ends. He said students – international students especially – often sell back cars at the end of the year making them a source of inventory. He’s often checked Carfaxes of vehicles purchased from non-international students and many times they are cars originally purchased in Chicago or other places. “The out-of-state students typically buy cars from where they are from and then sell them to us,” he said. “So I think they go to college with a car and then leave it here when they (go back home).” Although Del Real Auto is a buy-here, pay-here dealership, that doesn’t come into play much with college students. Most of the time these are cash deals where students have already acquired their financing or saved enough cash.
“The biggest challenge for students is price points. Plus, as a buy-here, pay-here dealer, it’s difficult to do that advertising cash prices.” The challenges of a college town don’t change, whether it’s a Big Ten town like Lafayette, or near an Atlantic Coast Conference school like Wayne Andrews, general manager/co-owner of Used Car Supermarket in Tallahassee, Fla. The dealership, in its 42nd year, is near Florida State University and carries about 40 vehicles. “We sell about 25 to 30 a month,” Andrews said. Most of the sales come through credit union financing, with some secondary financing and the rare buyhere, pay-here deal. “We actually have three colleges nearby,” Andrews said. “We have Florida State, Florida A&M University and Tallahassee Community College, which is huge.” The community college alone has about 12,000 students, he said. Continued on page 11
NEXT ISSUE: Auction Focus 08_UCN.indd 1
8/8/16 4:10 PM
Your source for quality, value, selection: Chase. A broad selection of pre-owned vehicles from an industry leader. September 2016 Chase High Lines, featuring Jaguar Land Rover Financial Group
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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. *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 (16-035) 09/16
8/5/16 2:59 PM
10 • August 15, 2016
USED CAR NEWS
City Honors Auction for Community Contributions Manheim Seattle won the City of Kent “Best of Kent” award for the fifth consecutive year, qualifying the auto auction for the Kent Business Hall of Fame. The award is presented to local businesses that continue to display innovative growth, a sharp focus on community relations and customer feedback. “Manheim Seattle Auto Auction is a direct reflection of our customers and our employees,” said Ray Priest, general manager. “The value we share doesn’t just drive revenue but it also makes a difference in those around us through our community efforts.” Manheim Seattle places its primary focus on the needs of employees, strategic customers and the surrounding community. The auction is particularly recognized for its community involvement, which includes support of the following organizations: • Auburn Youth Resources. This organization provides shelter for thousands of homeless and abandoned children in South King and North Pierce County. They also provide other valuable services to children in the area, including school backpacks and supplies, as well as substance abuse prevention and outpatient chemical abuse treatment and counseling. In 2015, Manheim Seattle donated over $15,000 from a silent charity auction in conjunction with area auto dealers and franchises to
PART OF THE COMMUNITY: Manheim Seattle employees deliver 1,030 teddy bears to Kent Fire and Rescue during the fire department’s teddy bear drive. Below, general manager Ray Priest, left, and assistant general manager David Hennessey accept Best of Kent Awards.
help support Auburn Youth Resources. • White Center Food Bank. Each year, Manheim Seattle collaborates with dealers throughout the Seattle metro area, including Bellevue and Tacoma, to help fight hunger in the local community. This year alone, the auction has raised over $1,500 as well as hundreds of pounds of nonperishable food items. • Kent Fire and Rescue. In May, Manheim Seattle participated in a
teddy bear drive to support Kent Fire and Rescue, which uses the bears to comfort young victims. With over 100 unique donors including employees, clients and auctioneers, the auction’s employees delivered 1,030 teddy bears to the fire department. Manheim Seattle’s efforts often bring together communities by involving employees, families, dealers, automobile franchises and other local influencers to support these organizations.
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USED CAR NEWS
August 15, 2016 • 11
Chains Add New Locations Used-car chains continue to add stores. Sonic Automotive Group Inc. continues to move ahead with its EchoPark used-car superstore strategy despite a large loss in the second quarter. Sonic opened two additional Denver area EchoPark used-car stores in late June. The firm also reported a pre-tax loss of $4.1 million related to its EchoPark operations in the second quarter. Sonic remains active with its property acquisitions in the Carolinas and Texas for more EchoPark stores. The company said it is beginning to see store-level profitability at the existing locations. “The guest feedback at EchoPark is remarkable, further supporting our strategic entry into this part of the pre-owned market,” said Jeff Dyke, Sonic’s executive vice president of operations. “We have listened to our guests’ needs and are delivering on those expectations.”
Asbury Automotive Group Inc. opened a new Q used-car store in the greater Tampa, Fla., area in the second quarter. Carvana launched its latest store in Washington, D.C. With the addition of Washington, D.C., Carvana can now provide delivery to nearly 103.5 million customers nationwide, including more than 13.2 million residents in the Washington, D.C. area alone. “Washington, D.C. is the largest market we’ve launched in to date, so we’re tremendously excited to be here,” said Ernie Garcia, founder and CEO of Carvana. To date, Carvana has delivered cars to customers in 46 states, and additional markets enable Carvana to offer faster and more affordable delivery options. Currently, Carvana offers as-soon-as next-day delivery to local residents in 15 markets. Carvana is offering a full refund of any delivery fee paid by consumers who purchased a vehicle prior to Carvana’s expansion into the market.
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School – Continued from page 8 “The community college is made up of local kids, so a lot of their parents have bought from us – actually some of their grandparents, too – over the years,” Andrews said. “So we’ve kept an open line of communication with them.” The dealership’s proximity to colleges influences its inventory mix. “We try to keep a good selection of small gas-sippers and stuff that’s not overly expensive,” Andrews said. “You know, the parents of most college kids want them to be in something that’s inexpensive and safe, but also gets good gas mileage.” The company targets students in different ways. “We change up our marketing a little bit when the kids come back to school,” Andrews said. “We try to appeal to things they might like and that their parents might like. “We keep a selection of cash cars, for those parents who might want to spend $5,000 on a car to get their kid through school.” While the dealership may carry a few of those cars seasonally, such as during tax time, they will boost that amount during the back to school period in August. Andrews said the key is product placement. “We look to (place an advertisement) in a publication that you know is going to reach the kids and is going to get their attention,” he said. That could include a school publi-
cation “if there’s a deal out there to be had,” he said. Andrews said there is a local shopper guide that he uses to advertise and may enhance that by getting a full front page or back page to draw attention. Dealers in college towns have to keep in mind one of the challenges that comes from being near a college or university. “You know, the students bring your median income down,” Andrews said. “So if you have a lender that comes in and wants to see every person with a $2,400 a month income or better, we know we’ve got 70,000 to 80,000 students here, which is almost a third of our county’s population. So that gets figured in. “We have to beg our lenders to flex a little. Most of our kids are working part-time, so if they don’t have a parent to co-sign or buy for them, (it’s difficult).” Andrews said his dealership has one feature that brings parents some peace of mind. “One big thing that I’ve found over the years is that parents really appreciate the fact we have a fullscale service department,” he said. “I could take a parent’s credit card over the phone to help pay for their kid’s repair if they’re out of state.” Andrews, as a father, can relate to that situation. “My kids went to FSU, so I understand the trials and tribulations of having kids in college,” he said.
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12 • August 15, 2016
USED CAR NEWS
Spanish Language Issues Land Store in Trouble A Washington State usedcar dealer will pay $250,000 for discriminating against Spanish-language speakers at its dealerships.
Auto Sales and Independence Auto Center, and also known as ZAG Auto Group, ran ads in Spanish-language media, promising financ-
Most of the salespeople at Zein’s dealerships spoke Spanish, and half the dealerships’ sales were conducted in Spanish. The dealerships
“I won’t tolerate this attempt to exploit the Latino community.” Bob Ferguson Zein Automobiles Inc., which operates Best Bet
ing even for those without a T:5.3375” credit history.
orally offered Spanishspeaking customers one set
Timothy Lattimore » Wholesale Manager / Medlin Buick, GMC, Mazda » Wilson, NC
of terms, but presented a different set of terms in documents written in English. As a result, the state’s attorney general said Zein Automobiles and its employees misrepresented loan terms, interest rates, title branding issues and warranties in violation of the Washington Law Against Discrimination and the state Consumer Protection Act. The Attorney General’s Office estimates that as many as 3,000 customers may be eligible to receive money from the settlement. For example, all of the documents one customer signed for the car he purchased were in English, and he relied on the salesperson to orally communicate what he was signing. He believed his interest rate was 3 percent, when it was actually nearly 30 percent, a fact he did not find out until later. Another customer, also brought in by Spanishlanguage advertising, purchased a previously totaled vehicle, despite being told in Spanish that the dealership didn’t sell cars that had been in accidents. “I won’t tolerate this attempt to exploit the Latino community,” said Attorney General Bob Ferguson. “This dealer lured these customers in by targeting the Spanishspeaking community, and then exploited the language barrier.” Investigators found that Zein Automobiles targeted
Spanish speakers by spending the vast majority of its advertising budget on Spanish-language airtime. Some of its Spanish-language advertisements suggest Zein Automobiles is a “miembro activo de la comunidad hispana local” — an “active member of the local Hispanic community” — to attract Spanish-speaking customers. The AGO’s Wing Luke Civil Rights Unit began investigating Zein Automobiles in the spring of 2015, after advocates from the Northwest Justice Project referred complaints to the AGO. In a consent decree filed in Snohomish County Superior Court, Zein Automobiles Inc. agreed to: • Pay $250,000 in restitution, costs and fees; • Make Spanish-language contracts available whenever it advertises in Spanish and provide them to customers when the sales transaction is conducted in Spanish; • Honor all warranties promised in its advertisements, including six-month and one-year warranties; and • Cease any deceptive or misleading practices in its advertising or sales, including making any statement that creates a false impression regarding the premise of a sale, the warranty available, the monthly payment, the interest rate or any other term of payment.
Camaro Killer Gets Parole Hearing I’M SAVING TRUCKLOADS OF TIME BY SIMPLIFYING HOW I MOVE MY CARS.
Moving cars is complicated. It takes legwork. That’s why Tim uses Manheim transportation services — to ensure every car is delivered as planned. Check out all the ways Tim partners with Manheim to grow his business at MyManheim.com/Story
© 2016 Manheim, Inc. All rights reserved. Manheim M logo is a trademark of Manheim, Inc.
HUNTSVILLE, Ala. (AP) – A man serving life in prison after killing a Huntsville auto dealer when he couldn’t get a car loan nearly 20 years ago has a chance at freeBurman Lee dom next Akers Jr. month. Al.com reports a Sept. 20 parole hearing has been set for 40-year-old Burman Lee Akers Jr. who was convicted of murder in the 1996
death of 49-year-old Robert Carl Hartman. The then-20-year-old Akers, of Boaz, was on leave after finishing boot camp with the U.S. Air Force when he killed Hartman in his office at Hartman Motors. Authorities said Akers slashed the auto salesman’s throat repeatedly after a bank loan didn’t come through for him to buy a Camaro on Hartman’s car lot. Hartman then tried to hide Hartman’s body before stealing the victim’s wallet and the car.
5/6/16 3:24 PM
8/8/16 5:02 PM
USED CAR NEWS
August 15, 2016 • 13
BBB Warns About Problems at Public Auction The Better Business Bureau serving Chicago and Northern Illinois is alerting consumers about First Marshall Auto Auc-
total complaints, in the past 12 months. The company has not responded to six of these complaints. Three complaints have not been
raised my paddle and bid for me. He then pressured me through the rest of the process. I eventually got my $700 back through
“The company has not responded to six of these complaints” Steven J. Bernas tion LLC, which holds an “F” rating from the BBB (on a scale of A+ to F) in its BBB Business Review. This rating is due to the company’s number of complaints, failure to respond to all complaints, failure to resolve all complaints, and an underlying pattern of actions causing consumer complaints. “In the past three years, 31 complaints from consumers have been filed with the BBB against First Marshall Auto Auction,” said Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. “Our data shows that there have been 23 complaints, or 74 percent of the
resolved.” Among the specific comments about First Marshall Auto Auction from complainants to the BBB, one involved a defective engine. “I paid over $3,000 for a car and it caught fire less than a week later,” said Cadesiah Anderson of Maywood, Ill. “I was driving and it felt like some part dropped out of the car and then smoke came out of the hood. I pulled into a gas station and jumped out of the car as it caught fire.” Another claims aggressive tactics by auction staff. “I came to look at cars and ended up with one I did not want,” said Zannie Bowen of Country Club Hills. “An auction employee
small claims court.” Bernas said a recent re-
view of BBB complaints shows a pattern of consumer allegations against First Marshall Auto Auction. In the most recent three-year period there have been 21 complaints about problems with product or service, seven complaints about advertising/sales issues, and three complaints about delivery issues. In their complaints to the BBB, consumers allege that consumers were charged additional fees, which were T:5.3375” not mentioned prior to giv-
ing a down payment, which increased the total amount due. The BBB also claims that First Marshall Auto Auction failed to disclose their no money back policies and that consumers were not allowed to test drive or inspect a car prior to purchase. As of the end of June, the BBB has not received a response from First Marshall Auto Auction concerning the pattern of consumer allegations.
Dori Martinez » Concierge » Manheim Pennsylvania
Dealer Defrauds NFCU
because the actual buyers were not sufficiently creditworthy to qualify for a car loan. Ayatollahi also submitted fraudulent car loan applications to NFCU with false supporting documents; made telephone calls to NFCU impersonating buyers applying for car loans; provided false employer telephone numbers to NFCU and then impersonated the employer while verifying the applicant’s employment and wages; and fraudulently inflated the true purchase price of vehicles and split the excess with the buyers. In total, Ayatollahi fraudulently caused NFCU to issue 61 car loans with a total loan amount of $1,168,904.97. Most of these loans went into default, resulting in a loss to NFCU of approximately $867,448.43. Additionally, Ayatollahi filed false tax returns.
The co-owner of a Virginia used-car dealership was sentenced to 74 months in prison, followed by 4 years of supervised release, and ordered to pay $980,541.43 in restitution for conspiracy to commit financial institution fraud and filing a false tax return. Andysheh Ayatollahi pleaded guilty on March 14. According to court documents, in July 2007 Ayatollahi purchased a 50 percent interest in the Car Store, a used-car dealership located in Virginia Beach. From then until May 2008, when the Car Store closed, Ayatollahi conspired with others, including Car Store personnel, to defraud Navy Federal Credit Union (NFCU). Ayatollahi and his coconspirators engaged in fraudulent practices that included using individuals as straw buyers/borrowers to apply to NFCU for car loans
I WAS BORN TO BOOST YOUR BOTTOM LINE.
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Manheim doesn’t succeed unless dealers of every size do. That’s what motivates team members like Dori — colleague, partner, friend. Check out what Manheim team members are doing to help dealers succeed at the auction and beyond at MyManheim.com/Story
5/6/16 3:24 PM
8/8/16 5:05 PM
14 • August 15, 2016
USED CAR NEWS T:4.437”
IN THE BUSINESS OF
Hackers Target Jeeps
HOUSTON (AP) – Two men jailed in Houston and accused of using pirated computer software to steal more than 100 vehicles may have exploited an electronic vulnerability to advance auto theft into hightech crime. Michael Arce, 24, and Jesse Zelaya, 22, focused on new Jeep and AGame.Autotrader.com Dodge vehicles, which attract big money on the black market in Mexico, authorities said. The men allegedly used a laptop computer to reprogram the targeted vehicles’ electronic security so their own key worked. CAT160024_Autotradee_GrowingYourBiz_UCN_4.437x6.125.indd 1 8/4/16 11:53 AM “As you get more and more computers installed in vehicles – if APPROVALS DATE File Saved 8-4-2016 11:53 AM InDesign CC 2015 AT160024_Autotradee_GrowingYourBiz_UCN_4.437x6.125.indd somebody hasINITIALS that knowledge and AT160024 Date 8-4-2016 11:53 AM Page Artist Katy Coombe John Bability, they can turn around that Creative Director utotrader - In the business Fractional - Used Fonts: DIN Cond (Bold), DIN (Bold) Images: ATAG_Logo_Blue.eps, Autotrader_h_rev_cmyk_sm.ai, CA-PMSand figure out a way to manipulate Inline_1C-white-Brand.eps ar News None AD/Designer the system,” Houston police officer utotrader NoneWoods said. Copywriter Jim agazine The stolen vehicles had common ” x 0” Layout Designer None software that’s used by auto techni.437” x 6.125” None and dealers, he said. Account Manager ” x 0” cians one “If someone has turned around Project Manager Sam B and pirated that software and uses None Print Producerthat Printed At None Cyan, Magenta, Yellow, Black software for other, illegal purARE FOR OUTPUT ONLY BY THE END PRINTER/VENDOR. CHANGES TO COPY MAY REQUIRE FONT LICENSING AND PRINTERS/VENDORS ARE SOLELY RESPONSIBLE FOR ANY LICENSING COSTS REQUIRED. we can’t poses, that’s something RELIABILITY YOU NEED control,” Woods said. Industry-leading service levels Berj Alexanian, a spokesman for Auburn Hills, Mich.-based Fiat Up to an extra $500,000 in contingent cargo insurance Chrysler, which makes Jeeps and Dodges, said the company and TECHNOLOGY THAT’S EASY police are investigating how the thieves got access to a computerVehicle Tracking Reports ized database of codes used by Fiat Transportation Management System Chrysler dealers, locksmiths and independent auto repair shops to Text Alerts replace lost key fobs. He said the code database is national and inSERVICE YOU DESERVE cludes vehicles in areas outside of Houston, although he wasn’t aware of similar thefts elsewhere. Industry-leading service “We’re looking at every and all solutions to make sure our customAvailable 7 days a week ers can safely and without thinking park their vehicles,” Alexanian said. The company was looking at how to better secure the key fob database and other potential solutions, but any steps would have to be testEXPERIENCE THE DIFFERENCE TODAY! ed and validated, he said, meaning 877-571-6235 | firstname.lastname@example.org | metrogistics.com | mcnutttransport.com Fiat Chrysler vehicles could remain
vulnerable. The company is recommending they always be locked and parked in a secure place. That may not be enough, though, according to Woods. “No matter what you do, if somebody has the ability and the knowledge to steal your car, they’re going to be able to take it,” he said. Arce and Zelaya, who each have criminal records, were arrested driving a stolen Jeep Grand Cherokee after police had been concentrating on an area of Houston that had been hit previously by auto thieves. Police also recovered electronic devices, keys and other tools believed used in the thefts, along with drugs, firearms and body armor. Arce’s lawyer, Joe Ray Rodriguez, said it was too early in his review of the case to discuss it and that he was awaiting evidence to show how Arce, who he said was accused of stealing only one vehicle, could be tied to as many as 100. Arce remained in jail without bond on charges of unauthorized use of a vehicle, felony possession of a weapon, and possession with intent to deliver a controlled substance. He was set for a court appearance Aug. 26. Zelaya did not yet have an attorney, according to court records. He’s being held on $500,000 bond on a charge of unauthorized use of a vehicle. The Houston police investigation began in late May with the theft of a Jeep Wrangler near downtown. Leads in that case had been exhausted when investigators received information from federal Homeland Security and Immigration and Customs Enforcement officers about vehicles being stolen using a laptop. Arce and Zelaya then were identified as suspects. In the Jeep Wrangler case caught on a surveillance video, the suspect got under the hood, cut wires to the horn to disable an alarm and then got inside the SUV.
8/8/16 3:53 PM
USED CAR NEWS
PEOPLE IN THE NEWS CarMax Elects Board Member
CarMax Inc. announced that its board of directors has elected John T. Standley to membership on the board, bringing total board membership to 12.
Standley was president of Rite Aid from 2008 until 2013 and its chief operating officer from 2008 until 2010. He previously served as CEO and as a director of Pathmark Stores from 2005 to 2007.
Cox Salutes Minority Dealer
John T. Standley Standley will serve on the Audit Committee. Standley is the chairman and chief executive officer of Rite Aid Corp. He has served as CEO since 2010 and chairman of the board since 2012.
Cox Automotive, in partnership with the National Association of Minority Automobile Dealers, awarded its inaugural Rising Star Award to Emanuel D. Jones II, dealer director of Legacy Automotive Group, in recognition of his strong leadership and commitment to the automotive industry and his surrounding community. Legacy Automotive has been serving Georgia since 1993 and now has three dealerships representing four
franchises throughout the state – Legacy Chevrolet and Cadillac of Columbus, Legacy Ford of McDonough and Legacy Hyundai of McDonough. Jones got his start in the automotive industry as a summer employee with Legacy Automotive, which was founded by his father, Emanuel Jones. He began changing oil, sweeping the shop and performing odd jobs with his father in 2005, at just 14 years old. After graduating high school in 2008, Jones went on to earn a bachelor’s degree in public health and entrepreneurial studies from The Johns Hopkins University. Soon after graduating, Jones decided to join the family business and returned to Legacy Automotive to hone his management skills. Cox Automotive is
Dent Wizard Promotes Sales Director
Dent Wizard International recently promoted Matt Trudeau to the position of direc-
tor of national sales for Dent Wizard’s finance & insurance programs. In his new role, Trudeau will work closely with Dent Wizard’s major national accounts and develop new opportunities with national F&I companies, dealer groups, OEMs and other strategic product partners. Since starting at Dent Wizard 19 years ago, Trudeau has held numerous management positions in the company, including sales manager, regional sales manager and district manager for New York State. Since 2011 he has served as regional F&I director for the Northeast region. Trudeau will continue to work from his office in Wilbraham, Mass., and report to Lindsey Bird. Trudeau has a degree in business management from Post University.
NADA Taps Operations Executive
Peter L. Fong has joined the National Automobile Dealers Association as senior vice president of dealership operations. Fong brings more than 20 years of industry experience to NADA, having held numerous executive-level sales, marketing and brand management positions at Ford Motor Company and Chrysler Group LLC. Fong also guided Carmoza, an auto transport start-up company, through its merger and acquisition. Immediately prior to joining NADA, Fong was executive vice president and chief marketing officer at The Judge Group, a global firm specializing in technology consulting, staffing solutions and corporate training. Fong replaces John Lyboldt.
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donating $5,000 to a national diversity partner in the winner’s honor. Jones chose 100 Black Men of America, a non-profit organization that endeavors to improve the quality of life of African Americans, particularly youth; in the communities it serves and enhance their educational and economic opportunities. Cox Automotive supports the organization’s Collegiate 100 program that engages college students and prepares them for educational and economic success. Jones supports the C100 and attends events that boost connections and business growth.
August 15, 2016 • 15
8/8/16 3:54 PM
16 • August 15, 2016
RETAIL MARKETS been, but that’s just like KENTUCKY Don Sears, sales man- everyone else. “Plus, vehicles are much ager, Sears Superb Auto, better now than they were. Corbin, Ky.: People aren’t as concerned “I’ll be open 14 years in about the mileage as they October. “We normally keep used to be. “Costs of (acquiring) cars around 30 cars on the lot. are about the same as last We normally sell about 18 per month. So we do have a year. “Primarily, we carry good turn. It’s a good avertrucks, minivans and SUVs. age. “We try to stay around It’s trucks if we can find $10,000 – in that price them, which is no doubt the range. That’s typical of this hardest part. We’re probably 80 percent trucks, SUVs time last year. “We get our vehicles and minivans. Cars just from auctions, such as AD- don’t sell as much for us. ESA Lexington and AD- That mix is about the same ESA Knoxville. Then I’ll as it’s been. “The majority of our inget some from the public, though not many. We’ll buy ventory is domestic. “Reconditioning costs are maybe one or two a month right around $500 on aver(from the public). “We do not do any buy- age per unit. It’s about the here, pay-here or subprime. same as last year. “We have one detail perIt’s straight retail. “Average model year is son who does work inusually around 2008. Av- house. Besides that, we send erage mileage is around (everything) out. “With advertising, we’ve 110,000 miles, somewhere around the 100,000 mark. gone away from print ads Carolina_Summer-UCNaug15.pdf 1 8/4/16 PM We use12:08 Carsforsale. We’re carrying higher mile- totally. age cars than we’ve ever com. We’ve recently added
USED CAR NEWS
Compiled by Jeffrey Bellant
Carfax.com and we’ve seen NEW YORK good results with that. Louis Katz, president, “We’ll use Facebook. We Ideal Auto Exchange, Jafind we’re getting good re- maica, N.Y.: sults with that. “The place has been here “Trucks and SUVs are do- for 80 years. It was started ing really well, as they are by my grandfather. with everybody. In our area, “We keep between 60 it’s four-wheel drive. Two- and 80 vehicles (in stock). wheel does not sell here. That’s typical of this time “I just sold a 2005 GMC last year. crew cab k1500. It had “We sell about 40 a month. 98,000 miles. It sold for It’s similar to last year. $14,000. “We get our inventory “It’s been a much better from new-car-dealer tradeyear than last year. I think ins. We do still have those it’s social media. About two relationships (with new-car months ago, we (hired) a dealers) or I have relationyoung lady that’s sort of ships with wholesalers who taken that on and is keeping have those relationships our web site more up-to- with new-car dealers. date and adding more pic“We actually have a subtures. prime finance company “Also, we’ve been tracking that’s under a different our repeat and referral busi- name. We’re licensed in ness each month and 50 to New York State and Michi60 percent are repeat and gan. So we actually finance referral. vehicles both at the dealer“I hear all the time that ship and other dealerships. there is no loyalty out “The average price is there. But there is loyalty about $8,000, which is out there. You just have to about the same as 2015. cater to your customers UCN-QuarterPage-Feb.pdf and “Our average 1model year,11:36 I 2/3/16 would guess, is about 2008. maintain it.”
The mileage is around 80,000. “About 60 percent (of our inventory) is cars, 40 percent is SUVs, minivans and utility vehicles. “Domestics are constantly gaining strength. Having said that, I would say we’re about 50-50 foreign and domestic. I have very few German cars. That’s the only thing we discriminate against because selling eight-year-old German cars is not my favorite thing to do. “We have our own twobay service shop right on the premises. So we do our own reconditioning right here. It’s probably $300 to $400 a car and that’s a wholesale price. “We do online marketing and advertising, like Cars. com and Carfax.com. I also use a product called Autorevo, which pushes your car around to some free sites. “We recently sold a 2007 Nissan Altima. It had 109,000 miles. We got AM $7,500.”
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8/8/16 3:56 PM
USED CAR NEWS
WHOLESALE MARKETS MISSOURI
Kevin Brown, owner/ general manager, Missouri Auto Auction Inc., Columbia, Mo.: “We’ve been here 16 years. “We have five lanes and we run four every week. “Our volumes are about 500 a week. We’re about right where we were last year. “We run about 65 percent to 66 percent (conversion). Again, we’re pretty consistent. That’s about the same as last year. “We get probably, on average, 325 dealers in the lanes every week. That’s up right now. We’re probably up 15 percent from this time last year. “I think it’s because people are starting to notice our volume and fleet. Some are coming for those fleet vehicles. We’re also getting the right new-car trades in and certainly having a high percentage sale (helps). It’s making sure it’s not a waste of their time. “The best sales that we
have are (a result) of referrals. We get more business off referrals than anything else. “Retail business has been really up and down. It seems like it’s in a two-week cycle. They’ll have two good weeks and two terrible weeks of the month. That’s what we’re hearing. But they’re still selling cars. “I would say we’re 70-percent dealer to 30-percent fleet. Last year it was more like 80 to 20. The difference is, we’ve had some one-off sales this year with Chrysler through Santander. That’s three of those, so that’s an additional 300 cars that we didn’t have last year. “We also hosted the World Automobile Auctioneer Championship this year, so that was a huge draw. We sold for Honda at that sale and others. We’ve also had a few sales for Avis this year. “So I would say our fleet business has helped us. “Because of that our average price in the lanes is probably up $500, maybe a
little more, from last year. It’s about $6,500. “We also have a GSA sale. We’ve held a few of those this year. We have one coming up in September. “GSA has a little bit of everything, things like Fusions and other domestic products. They’ll have Hyundais, too. We run about 75 to 100 cars in that sale. They do very well here. We have a good following. “We run 15 to 20 in an inoperable sale that runs at 9:30 a.m. before our 10 a.m. regular sale. “The last Friday of the month, we do what we call our public equipment sale. That has a lot of municipal items, so we’ll sell for the City of Columbia, Missouri Department of Transportation – those types of agencies that require you to be open to the public. “It’s not just equipment, though. We’ll have cars and trucks as well. “We average about 75 pieces in an equipment sale.”
August 15, 2016 • 17
Compiled by Jeffrey Bellant
Kristi Goben, president/ founder, Greater Milwaukee Auto Auction, Milwaukee, Wis.: “We’ve been in business 12 years. We run five lanes. “Volumes have been up. We’re averaging between 800 and 900 cars per week. Our marketing campaign has been strong. “Sales percentages have been 61 percent to 63 percent consistently. We’ve never had a year like this. “We celebrated 12 years in July and in that one sale we sold 647 cars. It was a record-breaking sale. “We’re drawing about 400 to 425 dealers in the lanes every week. (Many are) coming from Milwaukee, Chicago – the entire tristate area of Illinois, Wisconsin and Minnesota. “I think the market remains steady for our retail dealers around here. “We have online simulcast in every lane. So we’re seeing bidders from out of state regularly. We use AWG.
They are fantastic and userfriendly. “We’ve had online bidding in our open sale for more than five years. We’re seeing heavy action. “We are 80 percent dealer consignment. We have 10 percent off-lease with Ally Financial and 10 percent donations. “We had a GM sale last year. We lost it in July 2015. But as devastating as it was to lose it, our bottom line has skyrocketed. GM taught us processes and efficiencies that have just been invaluable to the growth of our open sale. So now we focus all of that attention on our open sale. “Our average price is $4,000 a car. It was $8,000 when we had the GM sale. “Our open sale has just been growing exponentially. “We’ve also noticed that trucks are hot right now and we think that’s derivative of the gas prices. Those are our four-wheel drives. Everything seems to be firing on all eight cylinders.”
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8/8/16 2:42 PM
18 • August 15, 2016
USED CAR NEWS
TRUE COST OF INCENTIVES (TCI) June-16
TCI 1 2 3 4 5
$2,151 $13,259 $12,238 $10,993 $9,695 $7,957
TCI 1 2 3 4 5
$1,535 $12,021 $10,877 $10,294 $8,809 $6,959
TCI 1 2 3 4 5
$2,664 $16,116 $14,371 $12,666 $10,673 $9,271
TCI 1 2 3 4 5
$3,432 $21,722 $17,221 $14,763 $12,701 $10,174
TCI 1 2 3 4 5
$2,656 $18,557 $17,207 $15,103 $12,672 $11,050
TCI 1 2 3 4 5
$2,656 $21,234 $20,346 $18,255 $14,867 $12,353
TCI 1 2 3 4 5
$2,003 $27,205 $24,131 $21,666 $19,970 $16,474
$1,998 $12,569 $11,328 $10,412 $8,289 $7,197
TCI 1 2 3 4 5
$4,306 $27,931 $23,945 $20,611 $17,339 $13,714
7.56% -9.33% -11.71% -13.58% -16.37% -9.04%
TCI 1 2 3 4 5
$2,256 $34,382 $31,509 $27,657 $24,215 $21,066
9.72% -6.57% -3.87% -3.86% -8.02% -10.28%
TCI 1 2 3 4 5
$691 $21,983 $20,531 $18,491 $15,324 $14,108
35.11% -1.12% 7.25% 7.69% -5.00% 2.03%
TCI 1 2 3 4 5
$3,538 $29,677 $25,888 $24,380 $20,683 $17,973
-7.00% -4.20% -4.28% -2.50% -4.32% -10.52%
TCI 1 2 3 4 5
$2,526 $20,230 $19,233 $17,876 $15,160 $10,692
-7.00% 0.89% -7.69% -1.54% -3.61% -3.34%
TCI 1 2 3 4 5
$1,684 $23,240 $19,968 $18,242 $16,857 $15,905
TCI 1 2 3 4 5
$1,743 $47,208 $37,772 $31,743 $30,361 $24,964
$2,665 $76,131 $65,043 $53,630 $61,639 $40,308
75.98% 22.46% -1.68% 7.01% 4.93% 4.15%
TCI 1 2 3 4 5
$3,454 $27,894 $23,233 $19,806 $17,538 $14,455
$1,171 $23,145 $20,182 $18,413 $16,591 $13,276
69.46% 5.29% -1.70% -0.42% 8.27% -5.90%
TCI 1 2 3 4 5
$2,277 $32,036 $28,057 $24,517 $21,093 $18,128
$4,330 $31,994 $26,213 $23,395 $21,779 $18,519
22.39% 7.81% 1.26% -4.04% 5.30% 3.04%
TCI 1 2 3 4 5
$3,511 $38,911 $32,431 $28,789 $24,129 $18,419
$2,866 $21,795 $19,736 $17,876 $13,805 $11,950
13.46% 7.74% 2.62% 0.00% -8.94% 11.77%
TCI 1 2 3 4 5
$1,442 $45,339 $37,103 $32,208 $26,612 $22,539
9.24% 5.25% 2.56% 1.51% -4.31% 2.96%
$1,755 $25,165 $19,742 $16,693 $15,125 $13,601
4.22% 8.28% -1.13% -8.49% -10.27% -14.49%
TCI 1 2 3 4 5
$4,196 $62,184 $51,148 $41,208 $37,253 $30,885
16.24% 9.92% 3.81% -3.94% -2.92% 12.42%
TCI 1 2 3 4 5
$2,422 $59,887 $49,355 $40,614 $35,400 $26,697
34.18% 21.25% 1.18% 0.31% -19.18% 24.75%
$3,732 $27,595 $22,927 $19,644 $15,627 $13,875
8.05% -1.07% -1.32% -0.82% -10.90% -4.01%
Entry Luxury SUV $2,030 $31,723 $26,641 $25,817 $19,689 $17,123
-10.85% -0.98% -5.05% 5.30% -6.66% -5.54%
Midrange Luxury Car $4,499 $38,554 $31,413 $26,474 $21,775 $18,757
28.14% -0.92% -3.14% -8.04% -9.76% 1.84%
Midrange Luxury SUV $1,926 $44,052 $38,305 $32,393 $26,445 $21,135
33.56% -2.84% 3.24% 0.57% -0.63% -6.23%
Premium Luxury Car
Midrange Sport Car $2,026 $51,893 $39,213 $30,492 $29,475 $28,064
$3,576 $92,307 $65,810 $53,798 $49,814 $50,285
Entry Luxury Car
Entry Sport Car
Midsize Traditional SUV $2,188 $28,633 $24,748 $21,994 $19,109 $16,961
TCI 1 2 3 4 5
Midsize Crossover SUV $2,470 $21,423 $18,782 $17,973 $14,331 $11,941
-19.53% -5.16% -1.36% 3.34% -1.02% 1.59%
Compact Crossover SUV $2,470 $17,778 $16,470 $14,725 $12,125 $9,888
$3,970 $42,105 $30,979 $29,597 $25,408 $21,940
Premium Sport Car
Large Car $4,637 $21,478 $18,470 $15,899 $12,066 $10,381
$3,465 $26,490 $23,620 $21,299 $17,162 $13,932
Large Traditional Suv
Midsize Car $2,923 $15,057 $13,815 $12,177 $9,817 $8,318
Large Crossover Suv
-7.11% -5.20% -7.44% -5.29% -14.50% -9.55%
Subcompact Car $1,651 $10,900 $9,603 $8,896 $7,367 $6,330
$6,738 $72,208 $52,177 $41,517 $33,825 $29,296
60.58% 16.12% 2.01% 0.75% -9.20% -5.14%
Premium Luxury SUV $4,377 $64,439 $54,625 $42,729 $35,344 $28,129
80.72% 7.60% 10.68% 5.21% -0.16% 5.36%
Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as the proportion of vehicles for which each type of incentive was used.
New Site | New Look | New Features
usedcarnews.com 18_UCN.indd 1
8/8/16 2:39 PM
ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES AUGUST 2016
SOURCE: BLACK BOOK
2014 MODELS Recorded Figures
Projected Figures $22,950 $ 6,575 $ 10,950 $ 11,275 $ 7,225 $ 6,550 $ 10,575 $ 11,025 $ 14,825
$17,000 $ 21,300 $ 10,250 $ 9,800 $ 17,500 $ 10,750 $ 10,450 $ 14,700 $ 15,000 $ 21,200
$37,200 $11,400 $16,600 $19,100 $12,100 $11,400 $16,200 $16,900 $24,000
$33,100 $9,550 $14,800 $15,800 $9,750 $9,750 $13,600 $14,550 $20,350
$31,400 $9,250 $14,850 $15,000 $9,900 $9,150 $14,300 $14,750 $19,250
$27,750 $ 7,925 $ 12,875 $ 13,200 $ 8,575 $ 7,925 $ 12,350 $ 12,925 $ 17,350
IMPORT CARS BMW 3-Series 328i 4D Sedan n BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan 3.5 Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan
$26,700 $60,700 $16,500 $13,200 $29,700 $37,800 $10,350 $12,550 $15,950 $11,350 $14,050 $12,700 $15,350
$21,600 $53,200 $14,600 $11,550 $25,950 $29,300 $8,650 $11,050 $13,650 $9,650 $12,800 $11,200 $13,700
Cadillac Escalade base 4D SUV AWD Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Crew Cab 4WD Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Escape SE 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6
$48,150 $32,250 $15,700 $29,300 $31,000 $14,500 $20,150 $18,400 $28,700 $23,700 $24,500 $19,200 $20,100 $30,100 $24,900 $31,150 $15,100 $24,000 $25,900 $30,400 $24,950
$43,850 $29,200 $12,700 $27,300 $29,200 $12,650 $17,500 $15,650 $25,300 $22,500 $21,500 $17,300 $18,400 $29,500 $22,900 $28,700 $13,450 $21,325 $24,300 $28,300 $23,550
DOMESTIC CARS Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan IMPORT CARS Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan TRUCKS BMW X3 XDrive28i 4D SAV Cadillac Escalade base 4D SUV AWD Cadillac SRX Luxury 4D SUV AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Escape XLT 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6
$14,800 $18,700 $8,450 $8,550 $14,600 $8,550 $8,550 $12,000 $12,800 $17,750
$15,500 $18,200 $8,400 $8,900 $14,450 $8,650 $8,000 $12,500 $13,000 $17,000
$12,950 $15,750 $6,950 $7,600 $12,575 $7,425 $6,775 $10,850 $11,525 $15,625
$10,975 $ 13,075 $ 5,750 $ 6,450 $ 10,800 $ 6,175 $ 5,525 $ 9,275 $ 9,750 $ 13,300
$19,950 $46,000 $14,150 $10,750 $23,700 $27,600 $8,200 $10,550 $12,250 $9,200 $11,950 $10,850 $13,550
$17,575 $40,025 $12,875 $9,650 $20,000 $24,500 $7,300 $9,850 $11,475 $8,100 $10,825 $9,500 $10,950
$14,600 $32,775 $10,900 $8,250 $16,500 $20,550 $6,100 $8,325 $9,750 $6,700 $9,375 $8,075 $9,100
Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan 2.4 Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan 3.5 Nissan Sentra S 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan
$19,700 $23,300 $50,300 $14,950 $11,600 $26,700 $28,100 $9,200 $11,150 $14,250 $10,200 $12,700 $11,200 $14,450
$17,800 $19,900 $42,800 $12,900 $9,950 $23,100 $23,900 $7,600 $9,800 $12,600 $8,600 $11,650 $ 9,750 $12,400
$17,500 $18,300 $36,100 $12,450 $9,250 $21,050 $21,400 $7,250 $9,500 $11,250 $8,150 $10,700 $9,100 $11,800
$14,800 $ 15,400 $ 32,050 $ 11,400 $ 8,350 $ 17,750 $ 19,075 $ 6,200 $ 8,825 $ 10,450 $ 7,125 $ 9,725 $ 8,050 $ 9,300
$12,150 $ 12,550 $ 26,550 $ 9,650 $ 7,150 $ 14,600 $ 16,000 $ 5,150 $ 7,425 $ 8,850 $ 5,875 $ 8,400 $ 6,825 $ 7,875
$40,650 $25,900 $13,300 $27,700 $28,900 $13,600 $19,550 $15,250 $24,800 $21,600 $20,200 $16,550 $18,900 $28,600 $21,250 $29,000 $13,100 $22,225 $22,700 $26,750 $23,650
$35,100 $23,225 $10,600 $23,025 $24,325 $10,950 $15,575 $12,775 $21,675 $18,650 $18,200 $14,575 $16,225 $25,100 $18,450 $24,175 $11,700 $18,725 $20,125 $23,500 $20,750
$29,775 $20,100 $8,625 $19,725 $20,300 $9,025 $13,050 $10,700 $18,050 $15,800 $15,800 $12,450 $13,625 $21,250 $15,275 $20,350 $10,025 $15,600 $17,700 $19,925 $17,900
V BMW X3 XDrive28i 4D SAV Cadillac Escalade base 4D SUV AWD Cadillac SRX Luxury 4D SUV AWD Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan SE Wagon Ford Edge SEL 4D SUV FWD Ford Escape SEL 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6
$27,950 $ 41,350 $ 25,500 $ 13,700 $ 23,000 $ 28,500 $ 13,000 $ 19,000 $ 18,200 $ 27,000 $ 21,700 $ 22,500 $ 18,000 $ 18,650 $ 28,050 $ 22,600 $ 28,150 $ 13,550 $ 21,650 $ 23,500 $ 27,050 $ 23,650
$22,250 $ 36,600 $ 23,750 $ 11,950 $ 21,700 $ 26,700 $ 11,600 $ 18,250 $ 15,450 $ 22,500 $ 20,300 $ 19,400 $ 14,500 $ 15,050 $ 24,900 $ 20,450 $ 26,850 $ 11,750 $ 19,800 $ 20,500 $ 25,400 $ 22,500
$19,625 $30,950 $20,400 $9,375 $17,775 $22,250 $9,500 $14,700 $12,650 $19,775 $16,925 $16,825 $12,825 $13,375 $22,275 $17,575 $21,825 $10,500 $16,750 $18,200 $21,550 $19,325
$16,550 $ 26,050 $ 17,450 $ 7,525 $ 15,125 $ 18,475 $ 7,800 $ 12,200 $ 10,550 $ 16,450 $ 13,900 $ 14,500 $ 10,900 $ 11,525 $ 19,050 $ 14,525 $ 18,275 $ 8,900 $ 13,875 $ 16,075 $ 18,075 $ 16,650
Recorded Figures DOMESTIC CARS Buick LaCrosse 4D Sedan Cadillac CTS 3.6 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan
DOMESTIC CARS Cadillac CTS 3.6 Premiumn 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln MKS 4D Sedan
$25,400 $ 36,900 $ 23,800 $ 11,150 $ 21,700 $ 27,300 $ 11,000 $ 16,300 $ 15,550 $ 23,300 $ 21,000 $ 20,400 $ 15,500 $ 16,050 $ 27,200 $ 21,400 $ 26,150 $ 12,300 $ 19,600 $ 22,300 $ 26,300 $ 22,100
2011 MODELS Recorded Figures Aug-15
$15,050 $ 18,400 $ 9,150 $ 8,800 $ 15,000 $ 9,400 $ 8,900 $ 13,400 $ 13,300 $ 18,600
$17,600 $ 20,100 $ 38,700 $ 11,450 $ 10,050 $ 20,200 $ 24,300 $ 8,050 $ 9,700 $ 11,000 $ 8,450 $ 11,550 $ 9,750 $ 12,000 Aug-15
$25,250 $ 34,700 $ 23,150 $ 19,250 $ 11,000 $ 21,000 $ 25,300 $ 10,500 $ 17,750 $ 14,100 $ 24,500 $ 20,000 $ 19,500 $ 15,750 $ 15,900 $ 24,950 $ 21,300 $ 27,150 $ 12,300 $ 21,100 $ 21,300 $ 25,800 $ 22,750
$13,150 $ 16,200 $ 7,750 $ 7,500 $ 12,450 $ 7,450 $ 7,200 $ 10,800 $ 11,300 $ 15,300 Feb-16
$12,200 $ 15,600 $ 6,500 $ 7,550 $ 11,750 $ 7,550 $ 6,200 $ 10,900 $ 10,750 $ 14,100
Projected Figures Aug-17
$10,700 $ 13,500 $ 6,025 $ 6,600 $ 10,575 $ 6,475 $ 5,675 $ 9,450 $ 9,525 $ 12,825
$9,050 $ 11,100 $ 4,975 $ 5,600 $ 9,150 $ 5,300 $ 4,700 $ 7,975 $ 8,025 $ 10,900
$15,600 $ 17,600 $ 33,900 $ 10,150 $ 8,400 $ 18,150 $ 21,300 $ 6,600 $ 8,300 $ 9,400 $ 7,000 $ 10,600 $ 8,600 $ 10,450
$15,400 $ 16,500 $ 28,400 $ 9,850 $ 7,750 $ 17,000 $ 19,000 $ 6,000 $ 7,700 $ 8,200 $ 5,750 $ 9,800 $ 7,500 $ 9,075
$12,950 $ 13,325 $ 25,075 $ 8,625 $ 7,050 $ 14,500 $ 16,525 $ 5,300 $ 7,150 $ 7,650 $ 5,525 $ 8,825 $ 6,725 $ 7,975
$10,550 $ 10,825 $ 20,525 $ 7,275 $ 6,025 $ 12,000 $ 13,500 $ 4,375 $ 6,025 $ 6,475 $ 4,550 $ 7,625 $ 5,675 $ 6,600
$22,150 $ 30,250 $ 20,250 $ 17,850 $ 9,300 $ 20,000 $ 24,800 $ 8,950 $ 15,200 $ 12,600 $ 20,500 $ 18,500 $ 16,800 $ 13,750 $ 14,050 $ 24,350 $ 19,650 $ 24,850 $ 10,850 $ 18,800 $ 20,300 $ 24,650 $ 21,075
$17,500 $ 30,350 $ 19,250 $ 16,000 $ 9,900 $ 18,500 $ 21,900 $ 9,200 $ 13,550 $ 11,100 $ 17,700 $ 16,400 $ 14,800 $ 12,550 $ 12,550 $ 21,550 $ 17,700 $ 24,900 $ 9,900 $ 17,350 $ 17,500 $ 23,100 $ 20,825
$16,600 $ 25,400 $ 17,400 $ 14,325 $ 7,850 $ 16,125 $ 19,125 $ 7,800 $ 11,750 $ 9,550 $ 16,350 $ 14,400 $ 13,200 $ 11,200 $ 11,600 $ 19,575 $ 15,475 $ 20,300 $ 9,075 $ 15,425 $ 16,475 $ 20,000 $ 18,000
$13,975 $ 21,275 $ 14,750 $ 12,125 $ 6,300 $ 13,450 $ 15,800 $ 6,400 $ 9,750 $ 7,950 $ 13,700 $ 12,125 $ 11,300 $ 9,475 $ 9,900 $ 16,550 $ 12,875 $ 16,750 $ 7,675 $ 12,725 $ 14,425 $ 16,600 $ 15,325
Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cruze LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 base 4D Sedan Chrysler 200 Touring 4D Sedan Ford Focus SE 4D Sedan Ford Mustang base 2D Coupe Ford Taurus SEL 4D Sedan Lincoln Town Car Signature Limited 4D Sedan
$10,750 $14,050 $7,700 $7,700 $13,400 $8,200 $6,800 $12,100 $11,600 $17,400
$8,450 $11,000 $6,700 $6,250 $11,050 $6,550 $5,450 $9,800 $9,750 $14,675
$8,050 $10,950 $5,650 $6,300 $9,900 $6,400 $4,650 $9,700 $9,250 $9,575
$6,150 $7,525 $4,275 $4,625 $7,950 $4,475 $3,650 $7,150 $6,675 $7,600
IMPORT CARS Acura TL base 4D Sedan BMW 3-Series 328i 4D Sedan BMW 7-Series 750Li 4D Sedan Honda Accord LX 4D Sedan Hyundai Sonata GLS 4D Sedan Lexus ES 350 4D Luxury Sedan Mercedes-Benz E Class E350 4D Luxury Sedan Mitsubishi Lancer ES 4D Sedan Nissan Altima base 4D Sedan Nissan Altima S 4D Sedan Nissan Sentra base 4D Sedan Toyota Camry LE 4D Sedan Toyota Corolla LE 4D Sedan Volkswagen Jetta SEL 4D Sedan TRUCKS BMW X3 XDrive28i 4D SAV V Cadillac Escalade base 4D SUV AWD Cadillac SRX Luxury 4D SUV AWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D SUV FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D SUV 4WD Dodge Grand Caravan Express Wagon Ford Edge SEL 4D SUV FWD Ford Escape XLT 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D SUV FWD Honda CR-V LX 4D SUV 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D SUV 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D SUV AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6
$7,275 $9,175 $ 5,225 $ 5,450 $ 9,125 $ 5,525 $ 4,375 $ 8,475 $ 7,900 $ 8,850 $
$13,550 $ 10,850 $ 22,000 $ 8,700 $ 6,300 $ 14,100 $ 16,200 $ 4,850 $ 6,400 $ 6,700 $ 4,450 $ 7,900 $ 6,600 $ 7,275
$11,350 $ 9,725 $ 19,725 $ 7,625 $ 5,950 $ 12,150 $ 14,325 $ 4,325 $ 5,925 $ 6,250 $ 4,050 $ 7,200 $ 5,725 $ 6,325
$9,225 $8,250 $16,650 $6,425 $5,075 $10,125 $11,700 $3,650 $5,000 $5,300 $3,375 $6,225 $4,825 $5,175
$19,400 $27,200 $16,950 $15,900 $7,950 $18,000 $22,300 $7,950 $12,550 $9,800 $17,100 $15,000 $13,300 $11,800 $11,900 $20,100 $16,900 $22,400 $8,950 $16,150 $17,500 $22,750 $19,750
$14,900 $27,100 $14,850 $14,450 $8,250 $15,800 $18,600 $8,200 $11,300 $8,975 $15,700 $13,800 $11,800 $10,900 $10,650 $17,200 $15,100 $22,100 $8,500 $13,300 $15,100 $21,350 $18,550
$14,375 $ 22,400 $ 13,550 $ 12,750 $ 6,550 $ 14,150 $ 16,675 $ 6,675 $ 9,750 $ 7,475 $ 14,050 $ 11,850 $ 10,525 $ 9,650 $ 9,600 $ 15,600 $ 13,200 $ 18,350 $ 7,575 $ 12,125 $ 14,175 $ 18,425 $ 16,500
$12,150 $ 18,650 $ 11,600 $ 10,675 $ 5,200 $ 11,950 $ 13,675 $ 5,500 $ 8,075 $ 6,225 $ 11,875 $ 9,975 $ 8,875 $ 8,100 $ 8,150 $ 13,375 $ 11,000 $ 15,300 $ 6,400 $ 10,000 $ 12,175 $ 15,325 $ 13,800
$15,650 $ 16,100 $ 31,700 $ 10,100 $ 8,650 $ 17,400 $ 21,100 $ 7,000 $ 8,200 $ 9,500 $ 7,100 $ 9,450 $ 8,500 $ 10,300
$13,650 $12,700 $26,000 $8,950 $7,000 $15,200 $18,700 $5,450 $6,650 $7,750 $5,150 $8,550 $7,300 $8,750
$22,400 $ 30,100 $ 19,500 $ 17,000 $ 9,350 $ 19,000 $ 23,300 $ 9,000 $ 15,150 $ 10,900 $ 21,500 $ 17,500 $ 16,800 $ 13,150 $ 13,100 $ 20,450 $ 19,600 $ 25,100 $ 10,750 $ 18,650 $ 18,500 $ 24,350 $ 21,300
8/8/16 12:07 PM
20 • August 15, 2016
DISCONNECTED JOTTINGS FROM I feel sorry for true Olympic athletes. Years of dedication to be the world’s absolute, unquestioned best in the fields of so many sports now leave
this year’s Olympic games, the country is fraught with problems from the state of its economy to the state of its environment. When it was awarded
• 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
questions hanging. A pall of suspicion now surrounds many of the athletes as to whether they have taken performance-enhancing drugs. Nearly a quarter of the contestants from Russia have been banned. Unfortunately assumptions are made that this corruption has spread far and wide. As usual, no doubt that it’s money that has spurred this much rule bending and breaking. Mind you, you couldn’t pay me to go to Rio. As host for
the games in 2009, Brazil was the world’s sixth largest economy but downturns in the demand and prices for sugar and gas have sent the country into a whirlpool of fiscal and political unrest including a vote to impeach the president for orchestrating the largest corruption scheme in the country’s history. Promises made to create and build all the necessary facilities to host the games have been broken left and right and the quality of construction has
been called into question. A scenic coastline bicycle path recently collapsed, killing two people. A light rail system to serve the complex won’t be finished and people will have to use buses instead. The company who had the contract to build the velodrome where the cycling events will take place, has declared bankruptcy. Many early visitors report a ‘mańana mentality’ in the hope that it’ll be all right by the start. Perhaps the most disturbing things are those that affect the health, safety and well being of competitors and visitors alike. The Zika virus, whether or not it grows to a pandemic, is still a major concern despite the Brazilian authorities’ protestations that “only 2 percent of visitors will contract the virus”. Would you want to be one of those 2 percent? Violent crime is raging all around with shootings and kidnappings keeping the underfunded police departments so busy that they held a protest at the airport displaying signs that read “Welcome to hell!”
C R O S S WO R D 6. NASCAR great, Jeff
4. Subcompact crossover from Jeep
29. Boston’s state
8. Old vinyl record
9. GPS is one
11. They help when parking, 3 words
34. The EPA mandates them _____s
12. Not running, as an engine
36. Compact Dodge models from the 70s
13. Former family car from Austin
30. Rough terrain vehicles
14. Lamborghini model 16. Work measure
24. Oil company 26. Nissan model
17. Spanish for gold
40. Nissan SUV 41. Executive, for short
27. Well-known pick-up truck
21. Flat___ truck 23. Golden state 24. Purchase 25. Buick sports car
2. Chrysler minivan 3. VW passenger van 4. Brought back for fixing 5. Numerical, for short
29. Soccer ___, often drives a family SUV 31. Smooth, like a ride with good suspension
Solution to the 8/1/16 1
36. Collection of stories
38. Morning time
33. The U in UCN
N A 33
I N 47
O G O
32. Testing period 35. Negative conjunction
28. Depletes, 2 words 1. Small car
21. Older VW
39. JD Power compliment
19. ____ fob
15. “Moves like a butterfly, stings like a __”
20. XK or XKE, for short
10. Former Toyota compact car
22. iM and iA
19. Well-known blue book
7. Driver’s panel
18. Car setting race speed on the track
games in Russia. To me it begs a question as to why the Olympics should be hosted by different counties every four years, especially those without the necessary infrastructure. Why not have permanent buildings in an attractive venue, purely for the purpose of serving the contestants, the public, observers and all the supporting necessities including state-of-the-art communications for worldwide distribution. As the games originated in Greece, it strikes me that it would be an ideal country to permanently host the games. The people are wonderful, the food is even better, their economy could use the on-going boost and access is easy to a beautiful setting in the Mediterranean Sea. But then the Olympic selection committee wouldn’t get to go on boondoggles or be subject to other temptations like the folks at FIFA.
To see past columns from Tony Moorby, visit www.usedcarnews.com/columnists/tony-moorby
26. Auto efficiency measure, abbr.
1. Ford F Series ___ Duty
Rio de Janeiro’s acting governor declared a state of financial emergency facing a ‘collapse in public security, health, education, transport and environmental management’. Meanwhile the bodies of water around Rio are nothing more than fecal soup. Scientists have discovered a drugresistant super virus in Guanabara Bay where the maritime events are scheduled to take place. Corpses of cats, dogs and even human remains have washed up on shore where the volleyball arena is (still) being built. Then there are the security concerns regarding international terrorism. This litany is merely the tip of a disastrous iceberg. So many badly needed funds for Brazil’s people are being squandered in billions on facilities destined to become white elephants and a testimony to greed, corruption and hubris. Just like the Sochi
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By Myles Mellor
USED CAR NEWS
A U R
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USED CAR NEWS
August 15, 2016 • 21 Advertisers are solely responsible for content of classified advertisements. To place an ad, or for more information, call the Classified Department: 800-794-0760 ext.107
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UPCOMING ISSUES OF
USED CAR NEWS Sept 5
Dealers Favorite Auctions Deadline Aug 25
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22 • August 15, 2016
USED CAR NEWS
AROUND THE BLOCK
Compiled by Jeffrey Bellant
Workers CHARITY WINS WITH AUCTION EVENT Firm’s Put Safety First
CHECK IT OUT: Jerry Kroshus, president of PAR North America (center), holds a $30,000 check with Todd Trawick (third from right), the Chief Operating Officer of American Credit Acceptance, and others following a charity golf tournament.
ADESA and PAR North America sponsored the 5th Annual American Credit Acceptance charity golf tournament at the Spartan-
burg Country Club in Spartanburg, South Carolina, in June. They hit a hole in one, raising $30,000 for local charity Hope
Center for Children. Hope Center for Children provides safe, around-the-clock care for young children who are victims of neglect or abuse. “The American Credit Acceptance golf outing is a wonderful annual event that we’re proud to sponsor,” said Vince McNeal, executive director of sales for ADESA. “It gives us the opportunity to raise needed funds for a worthy local organization.” Jerry Kroshus, president of PAR North America, praised the work of Hope Center for Children. “Both PAR and ADESA are dedicated to strong corporate citizenship. “We’re thrilled to have raised and contributed $30,000 to an organization that is making a real difference in the lives of children.”
XLerate Group announced that nearly 800 employees and managers completed the National Auto Auction Association’s Auction Safety Certification and Lane Safety Training initiatives. Since April 2016, those employees and management team members have completed NAAA’s online series, representing more than 30 percent of the total industry participation to date. “The NAAA’s ‘Safe T. Sam’ campaign offers our industry a proactive training tool,” said XLerate CEO Cam Hitchcock. “Educating ourselves is the first and most important step in preventing injuries and overall workplace safety.” Robert Sullivan, vice president of operations and best practices for XLerate, said he came away with a new appreciation for safety in the auction.
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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