President Donald Trump officially launched reciprocal tariffs with a baseline of 10% on numerous countries, following his earlier 25% tariffs on cars, light-duty truck imports and some auto parts imported to the U.S. The new tariffs went into April 3, which he termed “Liberation Day.”
In making the announcement, Trump brought out a chart citing countries that levy tariffs or use currency manipulation or other restrictions on U.S. products. It shows how the U.S. is responding, in many cases with smaller penalties compared to the other countries.
Trump also discussed companies that have announced huge investment in the U.S. in anticipation of the tariff announcement. These included General Motors, Stellantis, Hyundai, NVIDIA, Johnson & Johnson, Meta, Apple and several others.
Despite the fanfare, many in the auto industry have been critical of tariffs.
A few days prior to Trump’s “Liberation Day” announcement, Cox Automotive Chief Economist Jonathan Smoke called the 25% tariff plan “unthinkable” and Cox revised its sales forecast downward in the wake of Trump’s initial announcement in March.
Industry groups and leaders all offered their comments and concerns following the tariff launch.
The National Automobile Dealers Association released an April 4th statement on the tariffs and their potential impact to the independent automobile dealers industry.
“As an industry, we do expect even more customers to seek safe
and reliable vehicles from our independent dealers as the prices of new vehicles rise and they look for affordable options to meet their transportation needs.
“We expect the tariffs to impact the cost of vehicles for independent dealers and, ultimately, the consumer. Our dealers today are still faced with increased costs of inventory after shortages during the COVID-19 pandemic, and this will drive prices higher. Inventory remains below pre-2020 levels and continues to be a challenge. Dealers
will also be faced with paying more for parts to prepare vehicles for sale. Dealers’ spending is already at record levels to recondition vehicles.
“Additionally, we have seen the average age of a vehicle on the street rise significantly over the last decade. In a compressed market, we will see that trend continue.
“We urge our dealers to stay informed about the potential impact. NIADA will continue monitoring the situation and educating lawmakers on the impact in an effort to help independent dealers through
this unchartered territory.”
The National Auto Auction Association is also trying to project what might happen.
NAAA’s Larry Dixon, vice president of auto data solutions, expects a couple of things to happen in response to the tariffs.
“We should see wholesale prices and used vehicle prices, in general, go up,” he said, “But it’s going to take a little bit of time for that to happen.”
Wholesale prices were already going up in March, though this happens typically in the spring and during tax season because of increased demand.
Dixon said one way of looking at this is through the lens of 2021, when the industry faced supply chain issues and the semiconductor shortages leading to decreases in production.
“New-vehicles prices went up
Continued on page 3
Used Car News
4/14/2025
Tariffs – Continued from page 1
dramatically and used vehicle prices followed suit as demand shifted from the new-vehicle market to the used-vehicle market,” Dixon said. “This is somewhat similar to that.”
With estimates that new-car prices could rise as much as $3,000 to $4,000 or higher for certain higherend makes and models, more consumers might move to the used-vehicle market, he said.
The other 2021 trend was manufacturers pivoting away from producing smaller, more affordable vehicles where the profit margins are tighter to producing more vehicles where the profit margins are higher, Dixon said.
For now, the prices on the 2025 models are likely already baked in and maybe a lot of the 2026 models.
At press time, Dixon said one example was INFINITI, which already paused production of Mexicanmade vehicles, a tangible example of manufacturers already adjusting their production plans because of the tariffs.
Dixon added that rental and fleet businesses will also face difficult decisions as they had to do during the 2021 vehicle shortage, too.
Dixon expects an immediate pop in new-vehicle sales as dealers and consumers try to race to deals before tariffs impact pricing.
Out in the Northwest, used cars imported to the U.S. involve the independents, wholesalers and auto auctions, and dealers in this market are trying to anticipate the changing market.
Collin McConkey, general manager of DAA Northwest, emailed Used Car News with what he is hearing
and seeing in this area.
“Our Canadian wholesale partners who import vehicles into the U.S. and sell at our auctions remain optimistic about navigating the current landscape, though they acknowledge that we have some interesting times ahead,” stated McConkey.
“With a reduction in new cars entering the U.S. market, consumers will shift more to used vehicles, leading to an increase in used car prices.
“Locally, dealers have experienced a surge in business over the past week (first week of April), as consumers rush to make purchases ahead of anticipated tariff-related price increases.
“Today in the lanes (April 3), many of our customers are saying ‘I need to buy a lot of cars’ and ‘we had almost record foot traffic in our stores this week.’
“Additionally, there is a sense of confusion among dealers and consumers alike. Everyone is asking, exactly what is OK to import? What is subject to the increased tariff? How will this affect parts and repair costs?
McConkey said many of his customers are readying for a “rapidly inflating market,” similar to the pandemic era, as Dixon had suggested.
“However, this time there is a widespread awareness that ‘what goes up must come down,’ as they reflect on the market adjustments experienced in 2023,” McConkey stated. “Overall, while the situation is fluid and evolving, our focus remains on supporting our partners and customers. Our dealers are resilient and will adapt quickly.”
NIADA president Michael Darrow had recently returned from a trip to
Washington D.C. with NIADA Chief Executive Officer Jeff Martin and members from the association’s lobbying firm Hance Scarborough.
“We were meeting with several congressmen and senators, just trying to play some offense instead of defense,” Darrow said. “With the new administration and what-not, we were just making some new friends and pressing some of our issues that we think are important.”
After Darrow and Martin sat down for their first meeting, the legislator asked them what that thought of the tariffs. The pair laughed because they had been thinking to ask the lawmakers what they thought.
“I think if they take hold, they are going to hurt the European cars the most, because we have so many made in America these days – like Kia, Toyota and Honda,” Darrow said.
Independents could be facing rising reconditioning costs because so many auto parts are outsourced overseas, which will compress profit margins.
Darrow, like others, can only spec-
ulate on the endgame.
“I do personally believe this is about bringing other countries to the table to talk about something that’s a little bit more fair,” he said.
“When you look at what the EU is charging to import a domestic car to the EU it’s just absolutely shameful.
“That’s why there’s no domestic cars over there from the United States.”
Immediately after Trump’s announcement, the stock market saw its biggest two-day drop in history.
Nevertheless, Federal Reserve Chair Jerome Powell, in remarks he made at the Society for Advancing Business Editing and Writing Annual Conference in Virginia the day after the tariff announcement, was not panicking.
“While uncertainty is high and downside risks have risen, the economy is still in a good place,” he stated.
“The incoming data show solid growth, a labor market in balance, and inflation running much closer to, but still above, our 2% objective.”
Larry Dixon
NIADA in DC
News Briefs
AUCTION GROUP
ACQUIRES SALE
America’s Auto Auction has acquired South Georgia Auto Auction, further expanding its presence in the southeastern U.S. This latest addition marks another milestone in America’s Auto Auction’s growth strategy as it continues to strengthen its position as a leading provider in the auction industry.
Located in Albany, Ga., South Georgia Auto Auction operates from a 7-acre facility hosting dealer-consigned, fleet, lease, and repo sale every Thursday at 11:00 AM EST across 2 lanes. Known for its exceptional service, the auction offers themed promotional sales, giving buyers access to an even broader selection of vehicles.
“I am proud to share the news of the sale of my auction,” says Danny Acord, owner of South Georgia Auto Auction. “It has been a pleasure building this business, and I want to thank everyone who has supported me over the years, including my customers and employees who have made this place what
it is. I am confident that America’s Auto Auction is the right buyer to take this business to new levels, and I look forward to watching it flourish.”
South Georgia Auto Auction has a proven track record of high conversion rates and a loyal customer base that includes both dealers and institutional buyers. The auction hosts a mix of in-lane and simulcast sales, with an increasing focus on digital platforms to meet the evolving needs of today’s automotive market.
Chuck Tapp, CEO of America’s Group, expressed his excitement about the acquisition, stating, “This acquisition is another step forward for America’s Auto Auction. South Georgia Auto Auction’s strong operational foundation and dedicated customer base make it an ideal fit for our growing network of auctions.”
CPPA FINES HONDA
The California Privacy Protection Agency Board has issued a decision that requires American Honda
TRUCK CAMPERS
Motor Co. to change its business practices and pay a $632,500 fine to resolve claims that the company violated the California Consumer Privacy Act. The investigation arose from the Enforcement Division’s ongoing review of data privacy practices by connected vehicle manufacturers and related technologies.
The CPPA’s Enforcement Division alleged that Honda violated Californians’ privacy rights by:
• requiring Californians to verify themselves and provide excessive personal information to exercise certain privacy rights, such as the right to opt-out of sale or sharing and the right to limit;
• using an online privacy management tool that failed to offer Californians their privacy choices in a symmetrical or equal way;
• making it difficult for Californians to authorize other individuals or organizations (known as “authorized agents”) to exercise their privacy rights;
• sharing consumers’ personal information with ad tech companies without producing contracts that contain the necessary terms to protect privacy.
To resolve the allegations, Honda agreed to implement a new and simpler process for Californians to assert their privacy rights.
The company is required to certify its compliance, train its employees, and consult a user experience (UX) designer to evaluate its methods for submitting privacy requests. Honda must also change its contracting process to ensure appropriate mechanisms are in place to protect personal information.
In addition, Honda will pay a $632,500 fine. The CPPA authorizes the Agency to impose an administrative fine of up to $2,500 for each violation ($7,500 for each intentional violation), plus an increase for inflation, in addition to ordering businesses to cease engaging in violative business practices.
The order spells out the number of consumers whose rights were implicated by some of Honda’s practices, underscoring that fines apply on a per violation basis.
“The remedy should fit the problem behavior,” said Michael Macko, head of the Agency’s Enforcement Division. “We won’t hesitate to use our cease-and-desist authority to change business practices, and we’ll tally fines based on the number of violations. Today’s resolution reflects Honda’s early cooperation and commitment to make things right.”
Compliance News
4/14/2025
State Lawmakers Target Voluntary Protection Products
By Catharine S. Andricos and Mark D. Metrey
With the change in administration, the general consensus is that consumer regulatory oversight will increasingly shift from federal agencies to the states.
For those offering consumer financial services and products, including auto dealers and finance and insurance providers, understanding where state regulators are directing their attention is crucial for mitigating compliance risks.
Recent state initiatives make it clear that voluntary protection products—including vehicle service contracts, guaranteed asset protection, and theft protection programs—are at the forefront of lawmakers’ scrutiny.
In a continuation of a broader trend to reshape how VPPs are marketed, sold, and administered, several states have introduced legislation targeting the sale, financing, and administration of these products.
As the regulatory climate evolves, staying ahead of legislative changes is essential for maintaining compliance and preserving profitability.
Here is a look at some recent state legislative initiatives, which may provide insight into what VPP-related practices may be the subject of future enforcement by state attorneys general.
California’s CARS Act: A Model for State-Level Regulation?
While the Federal Trade Commission’s Combating Auto Retail Scams (CARS) Rule was recently struck down by the Fifth Circuit, California is forging ahead with its own aggressive legislative approach.
The California CARS Act, Senate Bill 766, mirrors key prohibitions in the FTC’s CARS Rule, signaling a determination at the state level to thwart allegedly deceptive and misleading dealer practices in vehicle and VPP sales.
The proposed law would prohibit misrepresentations about vehicle pricing, financing terms, and the nature of VPPs.
It would also ban the sale of VPPs that do not provide value to consumers. Furthermore, dealers would be required to retain all records necessary to prove compliance with the law for seven years.
By mandating extremely burdensome requirements, California is setting a new precedent that other states may soon follow.
Even if similar legislation does not gain traction elsewhere, state AGs and regulatory agencies still have broad enforcement authority under existing unfair and deceptive acts and practices statutes.
Dealers and F&I providers should anticipate increased scrutiny of their sales practices, regardless of whether a specific CARS Act-style law is enacted or regulation is adopted in their state.
Increased Focus on VPP Cancellations and Refunds
Legislative efforts to regulate the administration of VPPs continue to focus on the handling of cancellations and refunds.
Michigan House Bill 5354, for example, proposes requiring creditors to issue a detailed statement of account when a retail installment sale contract is marked as paid and returned to the customer after payoff.
This statement must include clear disclosures of any amounts credited to the buyer from the cancellation of ancillary products.
This legislative push reflects a growing regulatory emphasis on timely refunds when a vehiclesecured debt is paid off early or refinanced.
As state legislators continue scrutinizing refund practices, creditors, servicers, and product administrators must assess their own procedures to ensure compliance with emerging transparency requirements.
Failure to adhere to evolving refund policies could result in increased enforcement actions and private litigation.
The Impact of “Junk Fee” Legislation on VPP Pricing and Dis -
Several states are moving forward with legislative efforts targeting what they classify as “junk fees.”
This movement poses potential risks for the sale of VPPs, particularly when bundled pricing or unclear disclosures could cause regulators to lump optional, beneficial products into the category of unnecessary fees.
At least three states, Colorado (House Bill 1090), Hawaii (Senate Bill 50), and Virginia (Senate Bill 1212), have introduced legislation that would require advertised prices to include all mandatory fees, aiming to prevent consumer confusion and deceptive pricing.
Dealers and anyone else selling VPPs should be proactive in ensuring that products are properly disclosed as optional and are positioned as value-driven solutions rather than add-on costs.
Strengthening compliance efforts now can prevent regulatory scrutiny and potential enforcement actions in the future.
States Expanding Regulation of VPPs
Beyond disclosure and refunding concerns, some states are taking legislative action to expand the regulatory framework governing VPPs. Massachusetts (House Docket 809) and New York (Assembly Bill 1063) have proposed redefining vehicle service contracts to include additional coverages, a move that could bring more products under regulatory oversight.
Showing similar intent to impose more specific guardrails, Ohio has introduced Senate Bill 65 addressing GAP waivers, excessive wearand-use waivers, and vehicle value protection programs.
Likewise, Connecticut has pro -
posed Senate Bill 1425 regulating vehicle theft protection products and theft protection warranties, further illustrating how states are becoming increasingly knowledgeable about the intricacies of VPPs.
This growing familiarity suggests that state regulators may not only continue their enforcement efforts but may also refine their approach to overseeing VPPs, making compliance a moving target for industry participants. Anyone engaged in selling, financing, and administering VPPs must keep pace with these changes to ensure their offerings align with emerging legal standards.
Preparing for the Future: A Proactive Approach to Compliance
State legislators are making it clear that VPPs are a priority for scrutiny, and these state initiatives indicate that oversight of VPP sales, financing, and administration is likely to intensify.
The growing focus on transparency, consumer protections, and pricing integrity underscores the need for creditors, servicers, and product administrators to refine their compliance programs now rather than waiting for enforcement actions or litigation to force their hand.
Staying informed about legislative developments and proactively adjusting sales and administrative practices will be key to maintaining a competitive edge while mitigating regulatory risk.
The best course of action for the industry is to double down on compliance efforts, ensuring that VPPs remain valuable, transparent, and compliant with the evolving state landscape.
*Catharine S. Andricos is a partner in the Washington, D.C., office of Hudson Cook, LLP. She can be reached at 202.327.9706 or by email at candricos@hudco.com.
*Mark D. Metrey is an associate in the Washington, D.C., office of Hudson Cook, LLP. He can be reached at 202.715.2009 or by email at mmetrey@hudco. com.
Auction Academy Graduates Class 8, Launches Class 9 Education News
Auction Academy launched 2025 with a high-energy first quarter that included two key sessions for Class 8—culminating in graduation—as well as the kickoff of Class 9. The quarter reflected the Academy’s ongoing commitment to industry education, leadership development, and peer collaboration.
Class 8 gathered for its seventh
Auction Academy.
Auction Academy extends its gratitude to AutoTec, and to General Manager Alfie White and the team at ADESA Birmingham for graciously opening their doors and providing a top-tier experience.
Following Birmingham, Class 8 completed its two-year Academy program with a final session and
session in Birmingham, Ala., in early February. Hosted by AutoTec & Companies and ADESA Birmingham, the session presented a robust agenda of industry speakers. Day 1 included discussions led by Keith Whetter and Kelly McAllister of Liquid Motors; John Poteet of Auction Academy. Day 2 included Chuck Redden of AutoTec; John McElrath & Joel Beck of AutoCheck Auctions; Ben Puckett and Brandon Walton of Auction Insurance Agency; Charlie Adams of AuctionACCESS; and Mike Roy of Arthur J. Gallagher Commercial Insurance. Speaking to the Group on Day 3 of the session were Charlie Vogelheim of Auction Academy; Dusti Daniels, Bo Boshell and Ken Goodwin of AutoIMS; Bryce Beckstrom of ConditionReports.com; and Penny Wanna of
emy, “We are extremely proud of the dedication and accomplishment of the Class 8 group as they completed their two-year Academy curriculum and are equally appreciative of the out-pouring of support from the remarketing industry – as witnessed by a fantastic Graduation Gala.”
Auction Academy’s newest group, Class 9, kicked off its journey with a
graduation in San Diego, Calif., in conjunction with the CAR/ARA Spring Conference. This session began with a tour of ADESA San Diego, led by auction General Manager Jeff Hyde and key member of his team Denice Sanchez. Class time included presentations by Pierre Pons of Auction Academy, Larry Dixon of NAAA, Cody Boswell of Missouri AA (and Auction Academy Class 1 Alumni), Rich Levene of EBlock Houston and author of the leadership book “You are Doing it Wrong!” and Dale Ainsworth, PhD, MSOD, Associate Professor at California State University, Sacramento. The graduation session featured a memorable ceremony and gala attended by a network of alumni, sponsors, industry associates and supporters.
Said Pons, CEO of Auction Acad-
Academy program into our 14th year and continues the development of industry leaders. This first session laid a solid foundation for the twoyear journey ahead.”
Each session within Auction Academy is crafted to deliver highimpact learning experiences, combining classroom-style education with real-world exposure, strategic
successful first session in Nashville, Tennessee in February, hosted by Auction Edge and Manheim Nashville where General Manager Steve Robinson and his team led the group on a tour of the auction operation.
The session welcomed a new group of industry professionals and included engaging discussions and leadership segments. Speakers included Pons, Wanna and Vogelheim; Julie Warpool, COO of Auction Edge; Wanna on behalf of Mark Coleman, ARA Executive Director; and David Andrews, CEO of Dealers Auction Group; Eric Stevens from Littler Labor & Employment Law Solutions; Becky Anderson, President of CARS Recon; and Jeremy Robb, Lead Economist for Manheim.
Added Wanna: “Class 9 moves the
insights, and invaluable networking opportunities. The curriculum includes site visits, field trips, technical certifications and work with industry experts.
Detailed session schedules, agenda items, and speaker names can be found on the Auction Academy’s website.
“This first quarter of 2025, with three back-to-back sessions, has been one of the most energizing in our program’s history,” Wanna said. “We are so proud of Class 8 and everything they’ve accomplished, and we’re equally excited about the momentum that Class 9 is already building.
“Our host auctions have been, and continue to be, exceptional partners on this journey, and we thank them for their unwavering support.”
Pierre Pons
Penny Wanna
Used Car News
4/14/2025
Compliance Expert Receives Hall of Fame Honor
Terrence J. O’Loughlin, director of compliance for Reynolds Document Services, has been inducted into the F&I Hall of Fame for a career of service to law and compliance.
“It gives me great pleasure to congratulate Terry on this incredible achievement. We thank him for his dedication to ensuring dealerships have the tools they need to transact with their customers in a compliant and ethical manner,” said Chris Walsh, president of Reynolds, in a news release recognizing O’Loughlin’s honor.
The Bobit Dealer Group created its F&I Hall of Fame and inducted its first three honorees in 2024.
O’Loughlin’s contributions to innovation and impact have led to significant improvements. He participated in redrafting the LAW 553 Retail Installment Sale Contract, arbitration and non-arbitration versions,
redrafted a generic suite of all the consumer-facing documents needed to underwrite a vehicle transaction for dealers. This suite numbers over 30 documents and has been the basis for Reynolds’ state-specific suites, which are now offered in all states. He drafted the LAW Universal Lease Contract as well.
His leadership and vision helped him garner acceptance of both universal and custom forms from major captive finance companies, financial institutions, and credit unions, positioning the industry at large for future success.
O’Loughlin’s ethics are beyond reproach. As an investigator for the Florida Attorney General’s Office, he got his introduction to the car business in 1990 and soon became the state’s point of contact for almost all dealer complaints.
In 1994, he drafted Florida Statute,
Disclosure Act, the first lease disclosure statute of its kind, providing basic disclosures. It became law in 1995 and other states emulated it.
O’Loughlin’s track record of contributions to the education and professional development of others spans over 30 years.
Nicole Munro, a law partner at Hudson Cook, recently honored O’Loughlin in her firm’s newsletter, adding this praise of O’Loughlin in an email to Used Car News:
“Working with Terry is like working with a professor of law, a history teacher, an automobile dealer (the compliant kind), and your best friend all at the same time,” she said.
Since 1994, he has authored numerous articles for publications ranging from Consumers Digest to the Encyclopedia of Finance and Insurance Management, and others.
From a regulatory and policy influ-
ence standpoint, his contributions to the development, reform, and interpretation of laws and regulations affecting the finance and insurance industry have been significant.
O’Loughlin has served on: the Board of Governors of the Conference on Consumer Finance Law; the Consumer Financial Services Committee, ABA; the State Government Affairs and Operations Committees, AFSA and the Federal Reserve Board Lease Education Committee.
He was also an FTC Roundtable participant in 2011.
“Without a doubt, O’Loughlin’s lengthy career has had a positive impact on dealers and the automotive retail industry as a whole,” Walsh said.
“His three-plus decades of service to both consumers and dealers has shown him to be a man worthy of honor in the F&I Hall of Fame.”
Vehicles Priced to Sell
Advertising News
4/14/2025
Dealers Must Use Caution in Online Advertising, Social Media
By Jeffrey Bellant
When compliance and advertising collide, it could be devastating for an auto dealer.
That was the message of a recent webinar from Terry MacCauley, CEO of Big Time Advertising and Steve Levine, co-founder and chief legal and compliance officer of Ignite Consulting Partners.
As his company’s CEO, MacCauley works to avoid crossing that line which draws the ire of regulators.
MacCauley, whose degree is in English, was always creative with ads.
“One thing I’ve learned is that the English language is creative enough that we can have a lot of fun, but that’s also why lawyers are needed –because it’s hard to interpret the law all the time,” he said.
MacCauley said “taking your time and slowing down” when creating
an ad can help you get the message across without falling out of compliance.
Levine said the FTC has been paying a lot of attention to our industry.
Although a federal court set aside the proposed CARS Rule in February, the FTC has taken the position that a lot of requirements in that proposed rule are already part of FTC requirements, Levine said.
MacCauley agreed that dealers cannot let their guard down in the wake of the CARS Rule decision.
“People think we won the race, but it just comes in a different form,” he said. “Whenever there is a gap, someone else comes in and fills the void. States will feel they can become more aggressive.”
One big concern for Levine is trigger terms.
“If you quote a down payment, you better be quoting the payment amount, the term, the APR,” Levine
said. “There are a lot of Truth in Lending violations that I see to this day.”
Levine and MacCauley pointed out state laws can be challenging for dealers, such as rules over promo-
tions using “games of chance,” such as lotteries or giveaways.
“That can look very different depending on what state you’re in,” Levine said.
Continued on page 14
Photo Courtesy of Ignite Consulting
PAY ATTENTION: Steve Levine, pictured above at a past presentation, urged dealers in a recent webinar to keep their advertising in compliance or face the wrath of regulators.
Manheim Southern California May 1, 15, 29 909-822-2261
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404-762-9211
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877-860-1651
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262-835-4436
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Manheim Pennsylvania May 1, 15, 29
800-822-2886
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951-689-6000
accounts are owned by Chase. Neither JPMorgan Chase Bank, N.A. nor any of its affiliates are
Auction News
4/14/2025
Top Auctioneers, Ringmen Head to Manheim
By Jeffrey Bellant
Manheim Phoenix will host the top auto auctioneers and ringmen at the World Automobile Auctioneers Championship (WAAC) on April 24-25 in Tolleson, Ariz.
Since 1989, auctioneers and ringmen from around the world have competed in the event which celebrates the very best of auto auctioneering.
Gus Jones, Manheim Phoenix general manager, is looking forward to an event his team had sought to host since last year.
“We are super excited about it,” he said. “It’s a ton of work but it’s well worth it. It’s a big showcase.
“Obviously, everybody comes. We get all the different buyers and sellers. Everybody in the industry comes. It doesn’t matter if they’re Manheim or not. A lot of the higher-ups come from the different
fleet/lease side and dealer groups.
“It’s a cool competition and a big deal. Again, it’s an opportunity to showcase our auction here.”
A big challenge for Jones and Manheim Phoenix is the WAAC event that follows the day after the 16-lane auction’s regular weekly sale.
“We run 2,700 to 3,000 cars a week here on our regular sale on Thursday,” Jones said. “So, we’ll have to flip it to run a 1,000 sale on Friday for the event.”
He said “that week is going to be crazy,” but the fact that everyone wants to be a part of the event makes the turnaround easier.
“I won’t have an issue getting consignment,” Jones said, “and the staff is pretty excited to be a part of it. Everyone is really stoked about it. ”
At press time, about 30 auctioneers had signed up for the event,
Phoenix
along with 10 ringmen, though applications were still open.
Richard “TJ” Freije was last year’s champion, which saw his son, Tyce Freije, place third in the auctioneer’s contest.
The event will also feature at least 10 teams, where duos of auctioneers and ringmen work together to win the top team prize.
“It’s a prestigious event,” Jones said.
Photo Courtesy of Manheim Phoenix SOLD!: Sale day at Manheim Phoenix (above) will have even greater significance on April 24-25 when it hosts the World Automobile Auctioneers Championship.
Used Car News
4/14/2025
Advertising – Continued from page 10
Levine will look at a dealer’s website and wonder if they have considered their state laws when putting it together.
“Very often, the answer is no,” he said.
MacCauley said state laws can be blind spots for dealers.
Social media especially can be a danger zone, he said, because salespeople who promote the dealership on social media may not know what crosses into advertising.
Even if avoiding a legal problem, a dealer could lose a Facebook (Meta) or Google Ad account.
MacCauley warns that Meta has its own set of rules that are strict on advertising and they will change via a quarterly or even monthly update.
Circumventing ad policies is one no-no. Another problem involves ads that deal with finance. If you have an ad like that, there’s a box you have to check to disclose what
you are advertising.
“If your ad is not compliant, they will pull your ad down,” MacCauley said.
Levine also warns a lot about the dangers of social media. A dealer could have employees in the sales department or other departments who are on Facebook or Instagram posting photos of the cars, using the dealer’s name and doing what the government might say are ads.
“In a lot of states, there are very strict laws about this,” he said. “Everybody needs to have a social media policy about what your employees are allowed to do and what they’re not allowed to do.”
Providing employees templates showing what’s allowed and what’s not allowed can help.
“State regulators I’ve dealt with took the position that if your dealership name is on it, there’s a picture of your dealership on the post, it’s
your car, then...we think that’s your ad,” Levine said.
In one case, a dealer that had a social media policy signed by the employee was able to avoid penalties, Levine said.
Setting up controls and guardrails can keep an aggressive sales person and the dealer safe from regulators, he said.
MacCauley said some of the biggest mistakes he sees involve finance terms. A dealer might put down the downpayment and monthly payment, along with fees, but not list the interest rate.
Making a mistake could mean more than a legal problem, it could become a class action lawsuit.
MacCauley also discussed how AIA ads (Automotive Inventory Ads), which is an inventory feed that goes from your website into Facebook/Meta, can also get dealers in trouble if there is lag on your feed.
“Let’s say you changed the price and you’re running an ad on Facebook that’s lower than what your price is on the vehicle feed and their bots catch it, they will shut your ad account down,” MacCauley said.
It’s why it’s important to get a reputable ad company or third-party provider that’s done their homework and is not flying by the seat of their pants.
There is little room for error, MacCauley said.
“Three strikes and your ad account is gone,” he said. “What that is worth to your brand is very expensive. I can’t tell you how bad it can get.”
Levine added that some dealers think that if their vendor made the mistake, it’s their problem, but that’s wrong.
“It doesn’t work that way,” he said. “Ultimately, it’s your advertising, it’s your website. At the end of the day it’s your liability.”
Retail Markets
4/14/2025
SOUTH DAKOTA
Nick Johnson, vice president, Northland Auto, Webster, S.D.
“We are family owned and operated since 1999. We expanded two years ago to the Black Hills, our third location, which is still in the works. I’ve been here in the front-end, in sales, for about 10 years.
“My grandfather and father started the company along with a couple of their buddies.
“COVID did change the way we do business, at least initially. We were all watching the change in the markets. It made it hard for dealers to keep track of their inventory. And with the banks, everything was changing very fast. It affected us, but was it bad? Not necessarily. It produced a lot of business.
“We stock about 250 cars
between the two dealerships. We usually sell 100120 cars a month.
“We sell about 60% trucks, 25% SUVs and 15% cars.
“We have our own service bay, and we have four mechanics.
“We go in-person to the auctions at least twice a month. But I do a lot online, just for time saving.
“The down payments vary with the time of year. Around tax time it might be $4,000 and the rest of the year, $2,500.
“Our average reconditioning cost is $1,300 per vehicle.
“I’d say that 85 percent of our business is with vehicles less than five years old.
“I was elected president of the state association last October. My dad was president about 10 years ago.
“I would tell someone just starting out to be prepared to work hard. Put the cus-
tomers first every time. Always follow through with a quality vehicle and customer satisfaction and the rest will come to you. Referrals and repeats are everything.
“Auto Value is able to provide our customers with excellent warranty options.
“The last car I sold? I just sold one about nine minutes ago. I sold a ’69 Mach One Mustang with 78,000 miles. It still needed some restoration work and it sold for $64,000. It’s a six-figure car when it’s done.”
TENNESSEE
Ben Kittrell, owner, Kittrell Kars, Columbia, Tenn.
“We have been in business 42 years, I’m second generation. We have four stores in all.
“COVID made us pay attention to our business a lot more, but we aren’t doing more online. We have zero
online presence. I advertise very little. I’m at about $12 per car sold in advertising.
“We are about 50-50 as far as buying at the auction and buying online.
“We keep about 150 vehicles on hand. We sell about 70-75 a month.
“We sell 30 percent trucks, 30 percents SUVs and the rest would be cars.
“We have our own shop but sub out some work. We spend about $1,200 on reconditioning per vehicle.
Over the last five years that has gone up from about $500.
“Buy-here, pay-here is our primary business. We do use GPS.
“There’s not an average age car, or mileage, that we’re looking for. We’re strictly about price.
“My tip to anyone starting out would be to join the state association, 100 percent.
Compiled by Ed Fitzgerald
I’m an active member of a 20 Group, and I continually try to refine best practices, share insights, and champion the success of independent dealers across the area.
“A graduate of NADC, I’ve worked in every role—from washing cars to managing payments—to truly understand every aspect of the business and build strong connections with both employees and customers.
“We support local charities and contribute to my local Rotary Club. My wife, Tracy, helps manage the business. It is a family atmosphere, and everyone pitches in to make it successful.”
“Since our family dealership was founded in 1983, I’ve dedicated myself to upholding the values of integrity, customer care, and quality service that have been at our core from the beginning.”
Wholesale Markets
4/14/2025
GEORGIA
Corey Sanford, general manager, America’s Auto Auction – Atlanta, Cartersville, Ga:
“We’ve been running 1,050 to 1,100 cars per week through four lanes.
“March was like Christmas. We sold 104 units more in March this year than last year. Now, January and February were a little down, so we made up for that in March.
“Our average sale price is around $9,800.
“We thrive on new-car trades. I think our (mix) is 85/15 dealer to fleet/lease.
For example, Navy Federal Union has been an incredible consignor. They’ve given us 75 to 100 per week.
“Our sales percentages have been around 60% all month (March).
“We draw about 200 dealers in the lanes where we
used to get 500. Now we get those 500 online and 250 in the lanes. We use EDGE Pipeline.
“Dealers say business is on fire. One dealer group that’s been in business 50 years said they are going ‘gangbusters.’
“We get a minimum of buy-here, pay-here dealers.
“Our sales reps have been gaining new business but also maintaining relationships. If a used-car manager loses his job, he’s always going to wind up somewhere else. Our sales reps keep those relationships strong so that we get that business when (the used-car manager ends up somewhere else).
“We’ve always been out of the top independent auto auctions on OVE. Our sales rep sold 250 in March through OVE.
“We also have an in-op sale and for last month we ran
335.
“I feel great. I’m not worried about the tariffs. I know the markets are down (at press time). All I can say about that is it’s time to buy. Sit back and relax, it’s all going to shake out.”
OKLAHOMA
Kyle Clopton, general manager, Oklahoma Auto Exchange, Oklahoma City, Okla.
“Our first sale was in 2005, so I consider this our 20th year.
“We are running between 700 and 800 cars per week.
“Our sales percentage for the first quarter was pretty good, I think our average was about 68% and we sold 74% at our April 2 sale.
“It seems with the earlier threat of tariffs – and now that they’re here, who knows how long they will be around – the used car mar-
ket has gotten really hot.
“Our average sales price was between $8,300 and $8,500 to start the year. So, vehicles in that price range, below $15,000 are hard to find right now. They’re really prime merchandise right now. The demand for these have been really incredible.
“I would say our volume (mix) is 65/35 dealer cars to commercial cars. Our commercial consignors include Exeter, Wheels and Stellantis Financial Services, all have been big players for us.
“We got Exeter in late 2023 and we got an award from them in our first year. I’m happy with that partnership. They are a great company.
“We also have a lot of major buy-here, pay-here consigners in this market.
“We had 368 bidders in lane (at a recent sale) and we had 400 bidders who logged into our sale, with 74 active
Compiled by Jeffrey Bellant
online bidders.
“Before (tariffs were announced), from a franchise standpoint, the brands that had been hot are staying hot, like Kia – Subarus is doing fantastic.
“In my market, the Ford trucks are always going to do well.
“The economy in Oklahoma has not been great (prior to tariffs), so it’s really opened some doors for independent dealers. I’ve got some strong independents around the state who have been doing well. I would assume some of that is tax money. But I think a lot of people here have moved to the used market out of necessity.
“The independents dealers do a fantastic job keeping quality inventory and service and we’ve got some strong independents in Oklahoma City.”
Let Auto Assign do the heavy lifting, automatically routing vehicles to the best-fit auctions based on your custom rules. Faster decisions. Better results.
4/14/2025
Tony Moorby Disconnected Jottings From
In my last essay I referenced an introduction to Artificial Intelligence and the powerful ways it’ll affect our society.
The presenter asked about my interests, and I mentioned that I write some articles for a car industry magazine, not specifically about the car business but with a totally roving commission; a suggestion from the owner back in 2010 and more than three hundred and thirty articles have since made it into the pages of Used Car News.
“How do you come up with ideas to write about?” he begged.
So I told him that I write about anything that comes into my head, avoiding subjects that are too strident these days.
“You could download a simple AI app and it could
write them for you!” he postured but I didn’t take him too seriously.
Then curiosity got the better of me! I downloaded ChatGPT and I suggested it write a 550-word essay in the style of Tony Moorby’s Used Car News articles (which, I gather, it can reach as part of its data capabilities) on the subject of EV growth in the used car market.
Thirty-three seconds later I had a 550-word article on the subject of EVs as used cars.
The language was a bit stilted and driven by structured descriptions of facts and figures garnered from various sources but, nonetheless accurate and relatively interesting.
It was, however, missing a little something in the ‘style’ department; recognizing that my use
By Myles Mellor
of English can be somewhat whimsical – one of Used Car News’ editors described it as ‘winsome’- but I do like to use descriptive language that may not quite extend to Dickensian, but English has such a luxurious way of exquisite circularity.
A colleague once accused me of being ‘sesquipedalian’ which is a long word to describe the use of long words or one who uses long words. AI is not sesquipedalian – it tends to be to the point but I’m sure one could ask it to become elaborate.
I remember, some years ago, I wrote an essay in time for Valentine’s Day, comparing opening a box of chocolates to the gentle art of seduction (there may be less tolerance for that sort of thing these days, so apologies implied).
I asked the AI app to do the same thing. The language was stiff (sorry!) not languorous; it was factual without being fancy or frivolous; things which the subject matter invited.
It made no connection to the subtleties of the differing centers and flavors of the delectations offered so it all ended up as a bit mechanical.
It made comparisons, as asked, but they were devoid of implications made by a rambling mind.
I suppose rambling must invite whimsy. Whimsy also takes a while – AI took 30 seconds.
If I were to have my computer write my articles, what happens to copyright?
UCN owns the copyright on my jottings but what if I didn’t actually write them?
I’m sure some clever lawyers have already sorted
that out – just curious. Maybe I should turn some of my attention to life stories that I can leave the kids. A memoir seems such a daunting task. A series of stories seems more doable. It’s certainly something that AI could never do on my behalf. So that’s where the value lies.
