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April 4, 2016
Industry Faces Challenge in Recall Response
GOING ROGUE: Nissan North America Inc. is recalling 46,671 model year 2014 Nissan Rogue vehicles because improper nickel-plating of components within the fuel pump may result in it failing. By Ted Craig
newer cars is 80 percent. It falls to 50 percent for cars that are more than three years old. â€œIt might take some new solutions to get these older cars to where the newer ones are,â€? he said. The manufacturers have moved beyond just sending out letters in recent years. They have turned to everything from call centers to social media in some of the biggest recalls. SSR studied the wording of recall letters to see which proved most effective. They found more dramatic words
have less of an impact. â€œAccident/crashâ€? ranked the highest as a call to action, while â€œfire/ explosionâ€? ranked the lowest. Steinkamp said some used-car drivers even view these words as scare tactics designed to get them into dealerships. The biggest issue for drivers is inconvenience. They donâ€™t want to lose use of their vehicle. Steinkamp said manufacturers might need to consider some sort of incentive for these drivers to bring in their vehicles, such as a gift card.
Rush - Dated Material
The National Highway Traffic Safety Administration wants higher completion rates for recalls even as the number of units covered grows and despite the fact that used-car owners often ignore notices. There were 51 million vehicles recalled in 2015, surpassing the record for recalls set in 2014. The Takata airbag issue created a sizeable portion of these recalls, but there were plenty of other large events, such as Toyotaâ€™s recalls of 1.8 million units for problems
with windows. NHTSA also assessed $500 million in fines. These trends will continue this year, said Neil Steinkamp, managing director at Stout Risius Ross Inc. The FAST Act, passed last year, expands the period for which a manufacturer is required to make recall repairs to 15 years from 10. That means even older used cars will be covered in recalls. But the older a car is, the harder it is to reach the drivers, Steinkamp said. The average recall repair rate for
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USED CAR NEWS
April 4, 2016 • 3
Quest for Corvette Leads to Career in Auctions By Jeffrey Bellant
LAS VEGAS – Bob Rauschenberg won the 2016 Circle of Excellence Award from the International Automotive Remarketers Alliance here last month. In accepting the award, Rauschenberg said that he got into the business as a young man because he wanted a Corvette. “So I kept buying and selling cars until I got one,” he said. “I just learned from the time I was 13, 14 years old that I was a wholesaler. “I still love cars. How blessed can a guy be to be interested in something that he ends up making a living doing it?” Kia’s Dave Alfonso presented the award and offered some remarks about Rauschenberg’s career. “Bob Rauschenberg is a classic example of success,” he said. “He began early, ran fast, continued to climb the mountain to the next level and never looked back.”
Alfonso said Rauschenberg worked as a model in television commercials, magazine ads and billboards before he entered the remarketing business. Rauschenberg graduated from college with a marketing degree and was hired as a fleet manager for Alllstate. He later moved to Florida as manager of operations for Econo Car International, a car rental company. From there he entered into the remarketing business under Roger Penske. He later worked for ADT Automotive and Auction Broadcasting Co. He now works at ADESA as executive vice president of sales, marketing and special services. “Bob’s many contributions to the remarketing and auto auction industries over the years, have greatly contributed to the enhancement in those industries that benefit all of us today,” Alfonso said. Rauschenberg supports
Photo by Jeffrey Bellant CLASSIC: Kia’s Dave Alfonso (left), presented the International Automotive Remarketers Alliance’s Circle of Excellence Award to ADESA executive Bob Rauschenberg.
Focus on the Family, a ranch for troubled youth, Special Olympics and other charities. Rauschenberg said the
other benefit of his job is being able to work with friends, such as his mentor, Jim Hallett. He thanked his wife,
Jana, as well. “My life has been surrounded with my friends,” he said. “Another great blessing.”
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©2016 Chrysler Capital. Chrysler Capital is a registered trademark of FCA US LLC and licensed to Santander Consumer USA Inc. Lease agreements are owned by CCAP Auto Lease Ltd. and serviced by Chrysler Capital. ©2016 FCA US LLC. All Rights Reserved. Chrysler, Jeep and Ram are registered trademarks of FCA US LLC. © 2016 Santander Consumer USA Inc. All Rights Reserved
3/28/16 3:54 PM
4 • April 4, 2016
USED CAR NEWS
NEWS BRIEFS Navy Removes Dealer from Off-Limits List
The U.S. Navy has removed a Virginia used-car dealership from its off-limits list. The commander of the Navy’s Mid-Atlantic Region placed Carafello’s Auto Sales of Norfolk on its list for allegedly bird-dogging sailors. This means the dealership paid a fee to have it recommended to others. The decision to remove Carafello’s from the list was made after a hearing before the Armed Forces Disciplinary Control Board. The removal is effective immediately. Carafello’s has been off-limits for Navy personnel since November.
Auction Edge Rebrands Management System
Auction Edge has announced the rebranding of its recently acquired auction management system from Auto Auction Solutions. Automated Auto Auction System will now be rebranded as Edge AuctionOS. The Edge AuctionOS brand sits nicely alongside Auction Edge’s other products including Edge ASI, Edge Pipeline, Edge Lookout and Edge Simulcast.
Edge AuctionOS was acquired in the fourth quarter of 2015. Since then, Auction Edge has added six new auctions – bringing the total to 86 – which are now also Edge Pipeline, Edge Simulcast and Edge Lookout customers.
Chain Enters New Market
including a body shop and mechanic shop. The auction will be renamed ADESA Orlando, and Mike Tumminello, president of SADE, will remain as general manager. This transaction includes the Ocala Auto Dealers Exchange (OADE) in Ocala, Fla. This auction will merge with and move to the ADESA Ocala location. The closing of this transaction is subject to customary conditions and is expected to close in the second quarter of 2016.
Consignment chain CarLotz opened its first store in Charlotte, N.C. The store is located at 6501 E. Independence Boulevard. It is the company’s fifth retail location and first in North Carolina. The Charlotte store will have room Black Book Partners with Drivin for 100 consigned vehicles and will Black Book announced a partnerhire five to six full-time associates. ship with Drivin to be the inventory management system’s exclusive vehicle valuation service provider. ADESA Adds Florida Auctions Additionally, Black Book will ADESA has signed a definitive power the vehicle valuation seragreement to acquire Sanford Auto vice of Drivin Insights, a dealer Dealers Exchange (SADE) in San- tool that combines consumer shopping trends, local market supply/ ford, Fla. This location joins four other AD- demand, optimal inventory levels, ESA auctions in the region: ADESA and dealer behavior. Drivin Insights Sarasota, ADESA Tampa, ADESA is currently in pilot and available to Drivin dealer partners without a Jacksonville and ADESA Ocala. The 70-acre facility is located just subscription fee. As part of the collective agreenorth of Orlando. It has six fully automated auction lanes, along with ment, Black Book will integrate full-service reconditioning facilities, Drivin’s Buy Confidence and negoti-
ated inventory widgets into its Black Book Digital mobile application. Finally, Black Book and Drivin will partner to produce used-car trend reports available to dealer partners.
CalAmp Completes LoJack Deal
CalAmp announced completion of its acquisition of LoJack Corp. and provided a business update on its operations and financial outlook. On March 18, CalAmp completed its previously announced acquisition of LoJack by effecting a short-form merger between its wholly owned subsidiary, Lexus Acquisition Sub Inc., and LoJack, with LoJack surviving the merger. As a result of the merger, LoJack became a direct, wholly owned subsidiary of CalAmp. The company expects to report consolidated revenues in its fiscal fourth quarter ended Feb. 29 of approximately $71 million. C R O S S WO R D by Myles Mellor
Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager Columnist: Tony Moorby
Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager
Circulation: Helen Thomas Production: Josie Godlewski, Media Manager Cee Lippens, Web Master & Graphic Designer
Vol. 22 • No. 1 Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved.
Reproduction in any form is prohibited without the written consent of the publisher. OUR ADVERTISING APPROVAL POLICY Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by the USPS. The advertising reservation deadline is 12:00 noon Thursday, 11 days prior to the issue cover date. Ad materials are due by 5 pm Friday, 10 days prior to issue cover date. For advertising specifications please email firstname.lastname@example.org.
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3/28/16 2:18 PM
USED CAR NEWS
April 4, 2016 • 5
Teens Still Want to Drive, Own Their Vehicles
By Jenny King
DETROIT – Vehicle ownership is here to stay – at least for the foreseeable future – and dealerships are not going away. These sweeping statements summarize a recent Autotrader/Kelley Blue Book survey that studied the attitudes of the youngest generation, Gen Z, when it comes to cars. Of some 1,200 respondents, those between the ages 12 and 17 showed a lively interest in cars: 93 percent said they plan to own a car and 97 percent will seek a driver’s license. But while the young people, who number about 80 million or close to one quarter of the population, may represent $3.2 trillion in purchasing power, they “would rather save than spend,” said Isabelle Helms, vice president of research and marketing intelligence for Cox Automotive, parent company of Autotrader and Kelley Blue Book. “Generation Z sees the car as a gateway to experience,” Helms told members of the Automotive Press Association here in March. They cited freedom, responsibility and excitement as reasons to own and drive a car. They value vehicle safety above infotainment, they see alternative fuel cars as less expensive to op-
erate rather than as environmentfriendly and they are less likely to see cars as extensions of their personalities, he said. They will be price-conscious and, at least according to their answers as teenagers, favor brands including Chevrolet, Ford and Honda. Generation Z, Helms said, is not off-put by technology failures. As a whole, they do not trust autonomous vehicle technology to work. Two thirds see this lack of trust as a barrier to adopting self-driving vehicles. At the same time the young respondents said autonomous vehicles would ease concerns about distracted drivers and many thought they would lead to fewer accidents. Respondents said they would look for convenience in a car shopping experience. Most would like a face-to-face conversation at a dealership about cars of interest and test drives. Alternatively, 26 percent said they would buy a car online, sightunseen. “We see this as a very positive outlook for the industry,” Helms said. Sales won’t take the “hit” some have predicted based on stories about lack of interest in driving
Z NATION: Teens like this Texas high school student still want top drive and own their own vehicles, despite reports to the contrary. But dealers must adapt to their specific needs.
and owning cars among younger consumers. “Dealerships must appeal to the budget-consciousness of young buyers,” she said. Embracing a new consumer experience and offering superior test drives will be keys to
sales success. Dealers who can offer test drives in competing brands will have an advantage, she added. “Vehicle ownership is a practical decision for Generation Z,” Helms said.
3/28/16 3:21 PM
6 • February 15, 2016
USED CAR NEWS
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Some 20 automakers, representing more than 99 percent of the U.S. auto market, have committed to making automatic emergency braking a standard feature on new cars no later than Sept. 1, 2022, the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety announced jointly. Automakers making the commitment are Audi, BMW, FCA US LLC, Ford, General Motors, Honda, Hyundai, Jaguar Land Rover, KIA, Maserati, Mazda, MercedesBenz, Mitsubishi Motors, Nissan, Porsche, Subaru, Tesla Motors Inc., Toyota, Volkswagen and Volvo Car USA. The unprecedented commitment means that this important safety technology will be available to more consumers more quickly than would be possible through the regulatory process. AEB systems help prevent crashes or reduce their severity by applying the brakes for the driver. The systems use on-vehicle sensors such as radar, cameras or lasers to detect an imminent crash, warn the driver and apply the brakes if the driver does not take sufficient action quickly enough. NHTSA estimates that the agreement will make AEB standard on
new cars three years faster than could be achieved through the formal regulatory process. During those three years, according to IIHS estimates, the commitment will prevent 28,000 crashes and 12,000 injuries. “It’s an exciting time for vehicle safety,” said Anthony Foxx, transportation secretary. “By proactively making emergency braking systems standard equipment on their vehicles, these 20 automakers will help prevent thousands of crashes and save lives. It’s a win for safety and a win for consumers.” Based on mounting evidence that AEB effectively reduced crashes and injuries in the U.S. and around the world, NHTSA and IIHS issued a challenge to industry in September 2015 to encourage automakers to voluntarily make AEB a standard feature. A series of meetings followed to establish details of the commitment. “IIHS member companies strongly support the adoption of effective safety technologies,” said Jack Salzwedel, IIHS board chairman and CEO of American Family Insurance. “Deploying AEB on a wide scale will allow us to further evaluate the technology’s effectiveness and its Continued on page 15
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8 • April 4, 2016
USED CAR NEWS
NADA CONVENTION COLORADO OPERATOR LEADS FRANCHISE DEALER GROUP Jeff Carlson is president of Glenwood Springs Ford and Glenwood Springs Subaru in Glenwood Springs, Colo., and co-owner of Summit Ford in Silverthorne, Colo. His term as chairman of the National Automobile Dealers Association officially began in January. The ceremonial event of the “passing the gavel” will occur at the 2016 NADA Convention and Expo in Las Vegas. “This is a great honor, and I’m eager to lead NADA as we continue the important job of protecting the interests of America’s 16,500 franchised new-car dealerships, and the more than 1 million people they employ nationwide,” Carlson said. An estimated 10,000 dealers and managers will attend the National Automobile Dealership Association’s annual convention. This year’s event will feature round-table discussions and short presentations on industry topics such as em-
ployee generational gaps, pre-paid maintenance, grassroots engagement and online sales strategies, among others. Speakers at this year’s NADA convention include Republican strategist Karl Rove and former Vermont governor and Democratic presidential candidate Howard Dean; 2016 Super Bowl-winning quarterback Peyton Manning; and comedian Jeff Foxworthy. One of Carlson’s first acts as NADA chairman was to represent the group before the Federal Trade Commission on auto sales. This was his reaction: “It has been no secret that while some government regulations are necessary, many have adversely affected local dealerships. In the course of a year, NADA leaders and industry allies met with elected officials and federal regulators to discuss mutual concerns. And a recent Federal Trade Commission (FTC) panel showcased that dealers have a tough job ahead of them.
“On Jan. 19, the FTC held a one-day workshop in Washington, D.C., on the topic of auto distribution and the state laws that regulate it. Unfortunately, the proceeding was not a balanced one. Many of the FTC speakers, as well as the supposedly neutral academics and economists invited by the commission to participate, brought preconceived attitudes that were hostile toward the franchise system – and counterproductive to the dialogue. The panel quickly revealed an imbalanced agenda that resulted in an exceedingly one-sided discussion. “Still, that did not deter NADA and those speaking on
behalf of our franchise system. The dealer representatives who were permitted to speak, including NADA President Peter Welch, were very well prepared and ready to openly engage with the FTC. They all presented informed, credible and effective counterarguments to every point raised by the FTC and its manufacturer invitees. “Respected auto analyst Maryann Keller, the managing partner at Maryann Keller & Associates, cited empirical evidence showing that intrabrand competition significantly lowers new-car prices. The valuable input rebutted claims that a direct-sales mod-
el would benefit consumers. Keller also explained the importance of franchise laws to the preservation of intrabrand competition. Moreover, NADA’s media relations team did a stellar job of balancing out the coverage by generating a series of positive articles about the franchised dealer system. “The process now moves to the written comment stage. To combat this FTC action, NADA will be preparing and submitting a comprehensive set of comments. We will continue to work closely with (association executives), dealer lawyers, dealer accountants, and other third parties to ensure that the record is both balanced and reflective of the reality of the retail-auto industry. NADA is also developing an appropriate Congressional oversight strategy and will continue to engage with the media so that the truth about the benefits of the franchised system is what the public hears. “It falls on our shoulders to educate government officials about the dealer business. While regulators may have good intentions, they cannot enact ‘good’ rules that benefit our customers unless they are informed and willing to listen. NADA will continue to work on a multi-platform, multifaceted effort to engage the FTC in the future, and challenge false information that comes out of any agency in the federal government. “When it comes to harmful regulations, know that NADA is poised to defend its dealers.”
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10 • April 4, 2016
USED CAR NEWS
Scam Involves Luxury Cars A former used-car dealer and employees face charges of a loan scheme involving luxury cars. Patsy Galasso, along with three employees and a bookkeeper, have been charged by the New Jersey attorney general with conspiracy, money laundering and other offenses in conPatsy nection with a Galasso bank financing scam that allegedly netted $1.4 million in fraudulent loans for luxury cars. The owner and staff of D.I.B Leasing in Teterboro, N.J., were indicted on first-degree charges of conspiracy, financial facilitation of a criminal activity, and trafficking in personal identifying information pertaining to another person for allegedly submitting numerous fraudulent car loan applications between August 2012 and February 2015. The dealership’s finance officer was charged previously with financial facilitation and misconduct by a corporate official in connection with the alleged scam. Prosecutors allege the defendants created fake employment records,
inflated incomes, and supplied false pay stubs and fictitious employee verifications to dupe banks into approving auto financing for customers whose income levels did not qualify them for loans on the pricey vehicles. Four of the loans were taken out in the names of customers who had submitted personal information to apply for financing but ultimately did not buy cars from the dealership, prosecutors allege. In one case, the victim had never been to D.I.B. Leasing or applied for a car loan there, prosecutors claim. Charged in the scheme, along with Galasso, were: Hector Marquez, the general manager of the dealership; Paul Russo, the finance manager of the dealership; Lisa Ghobrial, title manager; Jennifer Perez, who assisted with loan applications; and Michael Ricciardi, who did bookkeeping for the dealership. In addition to the charges above, Galasso, Marquez, Ghobrial, and Ricciardi were all charged with second-degree identity theft and 62 counts of theft by deception – two in the second degree and 60 in the third degree. Marquez, Galasso, and Ghobrial were also charged with seconddegree misconduct by a corporate official.
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3/28/16 3:55 PM
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3/24/16 11:12 AM
12 • April 4, 2016
USED CAR NEWS
Trades Drive Used RV Market By Jenny King
In spring, many minds turn to thoughts of vacation travel. And in the spirit of you-can-takeit-with-you, sales of trailers and of motor homes – those apartments on wheels – begin to trend upward along with the thermometer. At least that’s the case at Camping World of Atlanta, where staff member Chase Chapman says it’s “full speed ahead from March through September.” That includes models dating from the 1990s through 2016. Camping World’s website inventory of used RVs ran the gamut from a 1991 Holiday Rambler Monitor 31 Class A marked down from $9,999 to $7,950 to units like a 2011 Damon Daybreak with a sticker of $49,995. Chapman said the dealership cleans up trades but doesn’t do a thorough detailing until the unit is sold. The dealership also does consignment contracts with sellers. While outlets specializing in trailer and motor home sales are the obvious place to shop, some car dealers are adding RVs to their inventories. Compared with RV specialists, their numbers are small, said Phil Ingrassia of the National RV Dealers Association: “fewer than 10 percent” are also in the car business.
Ingrassia said in 2014, 70 percent of RV revenue was from the sale of new units; 30 percent was from used vehicles and trailers. According to 2012 Census Bureau numbers, there were 2,132 used RV dealers in the U.S. in the $3.8-billion used RV and parts and accessories industry. “Most are strictly RV dealers with some also doing boats and power sports,” Ingrassia said. Goshen Motors, an established Buick GMC Hyundai dealer in Goshen, Ind., added RVs to its inventory in late 2014. Dealer Dzung Nguyen said it has been a challenge to stock the right mix. “We were short of Class C motor homes last year,” he said. Thor, Forest River and Jayco products have accounted for 80 percent of new RV sales, he said. The veteran car dealer said he expects the highest growth this year to be in trailers. The large Class A motor homes are likely to continue selling at the same pace as last year. Goshen Motors at its Goshen RV Supercenter sells used RVs on the lot or through RVTrader, he said. In early March the dealer had a 29-foot 2015 Thor Motor Coach with 19,000 miles on its Ford gasoline engine for which he was asking $67,500.
3/28/16 9:46 AM
USED CAR NEWS
April 4, 2016 • 13
Fitch Sees Higher Depreciation Black Book and Fitch Ratings Inc. released their latest joint vehicle depreciation report, showing that overall vehicle depreciation for two- to six-year old vehicles is expected to reach 15 percent in 2016, an increase from the 13.2 percent level experienced in 2015. The projected level of depreciation will mark the first time in the previous five years that annual depreciation rises above 14 percent. Fitch and Black Book believe several factors will drive this increase. Black Book forecasts new-car sales to grow slightly to 17.6 million units in 2016. This level of sales activity, which brings a high volume of trade activity, coupled with a large amount of lease returns, will contribute to the continued increase in depreciation rates. Fitch expects U.S. prime and subprime auto loan and lease assetbacked securities performance to be stable and within historical loss levels, although annualized net losses (ANL) will creep up in conjunction with marginally higher vehicle depreciation in 2016, as predicted by Black Book. Pressure on residual performance will trend higher in 2016 due to expectations of elevated new vehicle sales, and higher fleet and rental volumes entering the secondary
market during the year. Despite this, Fitch believes auto loan and lease ABS ratings performance will not be impacted by the negative asset performance trends in 2016. The agency has a positive rating outlook for loan ABS in 2016, with the pace of upgrades expected to continue and be consistent with 2015 albeit at a slightly slower pace. The outlook for auto lease ABS asset performance is stable in 2016 given pressure on residual values, but no impacted is expected on ratings, which also have a stable outlook. Fitch went on to say growing credit enhancement and robust loss protection should help U.S. auto lease ABS ratings to remain stable in 2016 despite continued declines in used vehicle residual values due to increased leasing penetration and a higher supply of off-lease vehicles, Fitch Ratings says. The monthly cost to the consumer of leasing automobiles is often less than financing. Fitch’s auto RV lease index, which tracks the amount of lease maturities and return volumes along with RV performance, had nearly $6.9 billion returns (securitized RV amount) in 2015, up from $5.8 billion in 2014. Fitch expects this figure to jump to $8.5 billion coming due in 2016. Continued on next page
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3/28/16 9:00 AM
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14 • April 4, 2016
USED CAR NEWS
Fitch - Continued from prior
As a result, residual gains in Fitch’s auto RV lease index declined steadily over the past 18 months. The index recorded a gain of 0.51 percent as of the fourth quarter of 2015, the lowest level since 2009 and down from 3.16 percent in the third quarter of 2015 and 3.91 percent at year-end 2014. The average yearly gain in 2013 was 8.52 percent. It decreased to 5.75 percent in 2014 and dropped further to 3.97 percent in 2015. The index reports a gain of 1.12 percent as of February 2016 data. However, auto lease transactions have quickly delevering structures and ample credit enhancement levels, and therefore Fitch expects ratings to be stable and anticipates upgrades to subordinate classes where appropriate in 2016. Fitch’s base case or ‘BBsf’ RV
loss expectation is determined by isolating only the RV losses an issuer observed during the worst 12-18 month period, typically during the weakest 2008-2009 period. Further haircuts are employed as rating categories increase. This usually amounts to roughly 2832 percent in loss protection as a percent of returned residuals for ‘AAAsf’ ratings, providing ample support even as RVs continue to decline in 2016. Transaction loss levels would have to be magnified above those levels before having a ratings impact. Fitch’s auto lease RV index tracks the performance of 96 U.S. auto lease transactions totaling $27.4 billion of collateral as of February 2016 data issued from 12 auto lease ABS platforms, with data beginning in January 2007.
Moody’s Upgrades CarFinance Moody’s Investors Service has upgraded one and affirmed six tranches issued from CarFinance 2013-1 and 2013-2 securitizations, originated and serviced by CarFinance Capital LLC. The actions were prompted by the build-up of credit enhancement due
to the sequential pay structures and non-declining reserve accounts. The lifetime cumulative net loss expectations were increased to 12 percent from 11 percent for both transactions, reflective of worse than previously anticipated performance.
3/28/16 4:38 PM
USED CAR NEWS
April 4, 2016 • 15
Dealers Miss on Service YOUR FIRST LANE
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Dealers are allowing billions of dollars of service revenue to drive past their locations with only 30 percent of total service visits occurring at dealerships, according to the 2016 Maintenance and Repair Study from Cox Automotive. “Dealers that focus on the service experience have the potential to add millions of dollars of revenue,” said Cox Automotive president Sandy Schwartz. “This study highlights key drivers of customer satisfaction that dealers need to address – value, trust and convenience.” Pricing is one of the top reasons study respondents give for not returning to the dealership for service. Fifty-eight percent cite cost as the reason for not returning to the dealership, and 34 percent feel the dealer will overcharge them. As a result, car owners are choosing to go to the service provider where they feel that they are getting better value for money and have established a positive relationship. With purchase information and an existing relationship, dealers are uniquely positioned to provide con-
sumer notification of vehicle service intervals and manufacturer recalls. Nearly one-third of respondents relied on maintenance, service or recall notifications from the dealership or the manufacturer. However, more than one-third of consumers are unaware of their vehicle service schedule or recalls, according to the study. Luxury and import owners rely more on dealer notifications than non-luxury and domestic vehicle owners. Dealers have an opportunity to create a more seamless service experience. Eighty-five percent of respondents indicate that the service department experience impacts their likelihood to purchase. However, 72 percent who purchased did not return to the de alership for service in the following 12 months. Customers who are introduced to the service department at the time of purchase are not only 1.5 times more likely to return to the dealer they purchased from for service, but also more likely to purchase another vehicle from the dealership.
AEB – Continued from 6 impact on insurance losses, so that more insurers can explore offering discounts or lower premiums to consumers who choose AEBequipped vehicles.” “We’re getting these safety systems into vehicles much faster than what would have been otherwise possible,” said Mark Rosekind, NHTSA administrator. “A commitment of this magnitude is unprecedented, and it will bring more safety to more Americans sooner.” “With roadway fatalities on the
rise, this commitment has the potential to save more lives than almost anything else we can accomplish in the next six years,” said Deborah A.P. Hersman, president and CEO of the National Safety Council. “Including all models in the agreement ensures that safety isn’t for just those who can afford it.” NHTSA and IIHS also announced that Consumer Reports will assist in monitoring automaker progress toward meeting the AEB commitment.
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16 • April 4, 2016
USED CAR NEWS
Hybrid Sales Take New Tack Chase is your source for quality, selection and value. When you’re searching for a wide variety of the right vehicles for your customers, look to a nationwide industry leader. Look to Chase. Chase is your source for: s A broad range of vehicle makes and models — from economy to luxury — upstream and through preferred auctions nationwide. s Convenient online and in-lane vehicle availability with on-site Chase remarketers. Put Chase to work for you. Visit ADESA.com and Manheim.com. Your Source. Chase. 2
Subaru, the Subaru logo, and Subaru Motors Finance are trademarks of Subaru of America, Inc. (“Subaru”) and any use by Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”) is under license. Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. 2 Jaguar and Land Rover, their respective logos, and the financial group names (Jaguar Financial Group and Land Rover Financial Group) are trademarks of Jaguar and/or Land Rover and any use by Chase is under license. Retail/Loan and lease accounts are owned by Chase. 3 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. © 2014 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (14-221) 06/14 1
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NEW YORK (AP) – When Toyota aired a Super Bowl television ad featuring a surprisingly quick Prius gas-electric hybrid eluding police, it marked a turning point for the auto industry. For years, automakers pushed fuel efficiency to sell hybrid and electric vehicles. Now, in an era of cheap gasoline, the message is: These cars are faster and quieter than their gas-powered counterparts. And, yes, you still save on fuel. “They’ve graduated out of the class of something that’s a bit of an
oddity to drive,” says Mike O’Brien, vice president of product planning for Hyundai. “It’s all about making these cars better.” Until now, hybrids and electrics have largely appealed to the environmentally conscious crowd. The vehicles cost thousands of dollars extra, and although drivers eventually recoup their money in fuel savings, the vehicles lacked the power and handling of gas-powered rivals. Electrics also suffered from driver concern that the battery could run Continued on next page
6/3/14 3:44 PM
3/28/16 1:53 PM
USED CAR NEWS
April 4, 2016 • 17
Hybrids - from prior out of juice on a trip. Now, the tide is slowly turning. General Motors and Tesla will bring electric vehicles to market next year priced around $30,000, including a $7,500 federal tax credit. Battery range has improved significantly, experts expect gasoline prices to eventually climb higher, and the advent of autonomous vehicles favors motors powered by electricity over gas. At the recent New York International Auto Show, Hyundai and Toyota showed off new electric and hybrid vehicles, with presenters from both companies touting them as “fun to drive.” Hyundai unveiled battery, gas-electric hybrid and plug-in versions of a new car called the Ioniq, while Toyota showed the plug-in Prius Prime, which can go 22 miles on electricity before the gas-electric power system kicks in. The electric range is double the old version. The Prius hybrid, powered by gas and electric motors, started the alternative fuel movement in the U.S. in 2000. Toyota deliberately made it look different than other cars, knowing that buyers wanted to make a statement about being environmentally friendly. Other companies set their green cars apart
as well. Even though sales grew as manufacturers added models, they never really caught on, partly because of the improved fuel economy of gaspowered vehicles. At their peak in 2013, with gas averaging $3.50 per gallon, Americans bought only 341,000 hybrids and electrics, about 2.2 percent of total U.S. car sales, according to Kelley Blue Book. Companies spent millions developing the cars, taking losses to meet government fuel economy standards that gradually increase and require the new-car fleet to average 54.5 miles per gallon by 2025. As gas prices fell below $2 per gallon, sales of hybrids and electrics dropped further. Last year, automakers had 16 hybrid and electric models on sale, but sales sank to just over 274,000. All of this makes for a bad environment to roll out more hybrids and electrics. But automakers will press on, now selling them on style, acceleration, handling and reliability. Electric vehicles have few moving parts. “They require far less service,” said Carlos Ghosn, Renault-Nissan CEO. “No oil changes, and they are extremely reliable.”
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18 • April 4, 2016
USED CAR NEWS
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The discussion then turned to the duties of various council members, whether they were adequately doing their jobs, and whether everyone on the commission actually understood the zoning question. After the council voted against the car lot, council chair Theresa Gabriel voiced frustration with the way the vote was handled. “Right now I believe ‘yes’ meant ‘no’ and ‘no’ meant ‘yes’ – I don’t know if everyone else is as confused as I am,” she said. She urged a reconsideration of
the vote to clarify the council’s intentions, but a second vote wasn’t taken. Kareem appealed the council’s decision to the Lucas County Court of Common Pleas, but a ruling upheld the vote. On March 17, Kareem filed an appeal of Bates’ decision to the Sixth District Court of Appeals, alleging the trial court had erred in upholding the council’s vote. His attorney, Howard Hershman, said he hoped his client would have a better chance at the District Court level.
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USED CAR NEWS
April 4, 2016 • 19
Shoppers Use Third Parties
Consumers spend more than five hours researching and shopping for cars online using third-party sites or apps. That is 60 percent of their total car-buying process, according to the inaugural Car Buyer Journey study commissioned by Autotrader Jared and conducted by IHS AutomoRowe tive. The study found that of the 88 percent of shoppers using the Internet for vehicle shopping, 78 percent use third-party sites or apps during the car buying process. Consumers that research or shop on the Internet use Autotrader or Kelley Blue Book 73 percent of the time. “The study findings reinforce why it is so important for dealers to communicate on experience in addition to product and price,” said Jared Rowe, president, Cox Automotive Media. “Dealers have less than a 30 percent chance of changing a purchase decision once a customer is on the lot. Today, car shopping is all about matchmaking – uniting sellers and buyers online.” In fact, 71 percent of consumers say that they purchased the vehicle they initially intended to purchase once they visited a dealership. However, when starting the shopping process, 6 in 10 consum-
ers say they are open to considering vehicles across makes and models. When asking consumers that research or shop on the Internet about their dealership experience, 46 percent say they visited a single dealership, and 52 percent drove only one vehicle. On average, consumers visit 2.7 dealerships. The main frustrations for consumers at the dealership are filling out paperwork and contracts followed by negotiating the purchase or lease. Combined, these two steps accounted for 55 percent of the time spent at the dealership. Additionally, dealership satisfaction suffers as more people get involved, with satisfaction dropping nearly 20 points if the consumer has to interact with four or more people at the dealership. Prior to purchasing a vehicle, 46 percent of respondents that are Internet users access automotive information using their smartphones. Of all buyers, 23 percent used a smartphone to do research or shop while at a dealership. The top five uses of a mobile device at a dealership are: comparing prices for vehicles at other dealerships (59 percent); finding prices for vehicles at the dealership where the consumer was (41 percent); comparing inventory at other dealerships (38 percent); check inventory at the dealership where the consumer was (36 percent); and research trade-in pricing (33 percent).
A former used-car dealer pleaded guilty to charges of conspiracy to commit financial institution fraud and filing a false tax return in a conspiracy to defraud one of the nation’s largest auto creditors. In July 2007, Andysheh Ayatollahi purchased a 50 percent interest in the Car Store, a used-car dealership located in Virginia Beach, Va. 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 co-conspirators engaged in fraudulent practices that included using individuals as straw buyers/borrowers to apply to NFCU for car loans 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 im-
personating 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 with the IRS that underreported his income for tax years 2005-2007, resulting in a tax loss of $113,093. Ayatollahi will be sentenced on July 13 and faces a maximum penalty of 30 years in prison on the financial institution fraud charge and three years in prison on the charge of filing a false tax return.
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20 • April 4, 2016
USED CAR NEWS
PEOPLE IN THE NEWS
KAR Expands Exec Roles
KAR Auction Services Inc. and TradeRev, a Toronto-based provider of mobile vehicle appraisals and an auctioning system for dealers, announced that Keith Crerar has been hired by TradeRev as executive vice president for the U.S. He will report directly to Mark Endras, president of TradeRev. Crerar will conMichael Briggs tinue in his role as ADESA vice president of dealer services until a successor has been appointed. Previously, he managed ADESA’s online field sales team and was promoted to regional dealer sales director and then executive director of dealer sales. Before joining ADESA, Crerar spent the first nine years of his career with dealership groups in Ontario, where he was recognized through Nissan’s Club Excellence as one of the top three sales managers in the country for five straight years. KAR acquired 50 percent of TradeRev in August 2014. In other news, ADESA announced that its subsidiary Recovery Database Network (RDN) has named a new CEO. Michael Briggs, president and CEO of ADESA subsidiary CarsArrive Network (CAN), will expand his role within the company to also oversee RDN. Briggs will continue to report to Peter Kelly, president of KAR Digital Services Group and chief technology officer of KAR Auction Services. RDN will now be headquartered out of the CarsArrive Network’s Mesa, Ariz., office.
Manheim Names GMs
Manheim has named four to general manager roles in Florida, Georgia, North Carolina and Utah. The general manager placements include: Butch Herdegen III (Manheim Jacksonville and Manheim Daytona Beach), Ellie Johnson (Manheim Statesville), Doug Kramer (Manheim Atlanta) and Cade Rindfleisch (Manheim Utah),
each bringing at least 20 years of experience in the automotive remarketing industry. Herdegen joined Manheim in 2006 but grew up in the auto auction business, starting as a ringman, then moving on to a condition report w r i t e r, fleet-lease Ellie Johnson coordinator, vehicle registration clerk and other roles before he started taking on management responsibilities. He held roles as dealer services manager of Manheim Lakeland, Manheim Central Florida and Manheim Palm Beach. Most recently, Herdegen was general manager of the Orlando Dealer Auto Exchange. Johnson is a 30-year veteran of Manheim. She has a family legacy of auto auction experience, serving early in her career at her family’s auction, processing vehicle registrations, then as business manager and controller. Johnson most recently served as general manager of Manheim North Carolina. She is currently board chair of the National Auto Auction Association and also previously served as president of the organization Kramer has been with Manheim for 21 years and has more than 30 years of experience in the automotive remarketing industry. Under his leadership as general manager of Manheim Central Florida, that location won the 2015 Dealer Services Excellence Award, the GE Remarketing award in both 2014 and 2015, the VW/Audi Auction of the Year award in both 2014 and 2015, CPS Top Online Sales award in 2015 and the President’s Award for the Florida Market in 2015. Rindfleisch is a new addition to Manheim, with his role as general manager of Manheim Utah as his first position within the company. He has more than 20 years of experience in the wholesale auto and remarketing industry, and most recently worked with Cox Automotive on the Go Auto Exchange auction operation. Rindfleisch has owned and operated three auction start-ups.
3/28/16 3:24 PM
USED CAR NEWS
April 4, 2015 • 21
RETAIL MARKETS NEW HAMPSHIRE
Jake Aleksa, president, Aleksa Auto Inc., Salem, N.H.: “We’ve been here since 1995, so it’s our 21st year in business. “We usually have between 100 and 125 vehicles. We have multiple sources. We’ve been here a long time, so we buy a lot of vehicles off the street. “We also buy a fair amount of off-lease vehicles. Sometimes we buy those at auction or we’ll buy them online before they get to auction. “We get some decent trades, since we sell a lot of late-model cars. We’ll occasionally buy some new-car dealer trades. “The inventory levels go up and down depending on the market. Sometimes when the wholesale market is pretty tight, it’s tough to maintain what you want to maintain. “We average about 55 units a month. “It’s pretty much straight
retail. We don’t really do any buy-here, pay-here or (subprime). “Our average retail price is somewhere in the mid- to high- teens (thousands). We try to stay with late model vehicles. “The average model year is probably 2013. “Average mileage is between 50,000 and 60,000. “We have a decent mix among cars, trucks and SUVs. It might be a little higher in SUVs and trucks. “Our mix is probably 60 percent imports and 40 percent domestics. “We go above and beyond what most people do (in reconditioning). We have a full 12-bay service department and a four-bay auto body shop. We don’t cut corners at all. “Our average cost is somewhere between $1,000 and $1,200. Our service shop does 60 percent retail service and 40 percent is for our wholesale cars. “We do a lot of online advertising through
Autotrader and Cars.com. We also do Carfax listings and use other online sources. We’ve gone away from print lately. We do occasional TV spots. “Right now is a popular time for Jeep Wranglers. We recently sold a 2014 Jeep Wrangler Sahara. It had about 40,000 miles. I don’t have the sale price in front of me, but I believe that probably sold for somewhere in the low $20,000s. “I’m hoping this year will be as good as last year, which was probably one of our best.”
Robert Beck, president, Stop N’ Drive Motors, San Antonio, Texas: “We started in April 2005. We’re 100 percent buy-here, pay-here. “(Inventory amount) depends on the time of the year. Now we’re at the end of tax season, so we’re low on inventory. Right now we’ve got about 40. “We average about 15
Compiled by Jeffrey Bellant (sales) a month. “In the last two or three years, the tax season has been down. Actually, the whole business has been down because of subprime. “In Texas, we have initial down payments and deferred down payments. The average (total) is probably $3,000. “(Average term length) has been creeping up. That’s somewhere around 40 to 45 months. “The average retail price is around $13,900. “Average model is probably 2007. Average mileage is right around 100,000. “When we first opened, the average sale price was probably about $9,995. But over time, these vehicles have gotten more expensive and, for us, we’ve also moved up the food chain a little bit. “SUVs and trucks are our bread-and-butter. Cars are (a smaller percentage). “We sell very few imports. We carry a few. But our customers like their Fords,
Chevys and Dodges. “We average around $500 for reconditioning. It goes up every year a little bit. We do some of that work inhouse. We change the oil, put new plugs and filters on cars. I’ve got a full-time mechanic. If there’s a paint touch-up that needs to be done, I’ve got a guy who can come by and do it at our place. We detail them all right here. We don’t do any outside service. “We don’t do any print ads or radio. We do very little advertising. We do a little on Google and Facebook, but that’s it. “Our location draws a lot of people. We have a nice place. It’s neat and clean, paved with concrete. It looks like we’re serious about our business. “We do a pretty good chunk of repeat-and-referral business. “We recently sold a 2009 GMC Acadia. I think it had around 120,000 miles. I think that one sold for $6,900.”
3/28/16 9:37 AM
22 • April 4, 2015
WHOLESALE MARKETS CONNECTICUT
Peter Saldamarco, president, Central Auto Auction, Hamden, Conn.: “We just had our 10-year anniversary a couple of months ago. “We have three lanes and we’ll soon be running four. Our volume is up. Our consignment is up and we’re doing a little more in the commercial area. The building always accommodated four, but we hadn’t grown into it yet. “We’re running roughly 400 cars a week. Our sales percentage has been at a solid 60 percent. We’re happy with that. Last year, it was 55 percent. “We’re about 70 percent dealer consignment and 30 percent commercial, but trending toward more commercial. We do a lot with donation vehicles. We tend to specialize in that area. We also have smaller repo companies, credit unions, (sources) like that. “We’re getting about 200 dealers in the lanes. That’s
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a little bit better than last year. “At the moment things are pretty good. Dealers seemed enthusiastic with tax time. “The average price (across the block) is $3,500. It’s relatively the same as this time last year. We do a lot of donation vehicles, which brings that average down a bit. “We did see a spike during tax time, but not like in the old days. It’s a smaller window and not as big. “All vehicle and all lanes are on simulcast. AWG is our provider, but we do promote our simulcast sales through Auction Pipeline. That’s a good combination that’s worked out great. “We also do a lot on OVE. com. We were No. 8 in the United States on the dealer side for OVE in the last calendar year. “We’re a GSA contractor. That sale is usually once a month, the third Tuesday of the month. “We usually get 100 (units) and they sell out. Those are
a combination of passenger vehicles and light trucks, for the most part. That’s a good sale. “We also have 33 municipalities that do business with us. We run those as a part of our regular sale. “I’m generally positive about the rest of 2016. But it’s not the like the old days. Today you have to work harder and plan – you have to fight for every dollar. I’m not complaining, but it’s a little more difficult than it used to be.”
Doug Rodriguez, general manager, Tallahassee Auto Auction, Tallahassee, Fla.: “We’ve been around 32 years this year. We run three lanes. “Volumes have moved up consistently for the past six years. The market is still good. It’s strong, especially in the Tallahassee area. We just increased our exposure and I think that makes a difference.
“We run between 500 and 600 vehicles every week. “We have seen an increase (due to tax season), but I tell you it was short-lived. I think ours lasted maybe three weeks. “Conversion rates have been 50 to 55 percent on average, except during those tax times when we hit about 60 to 65. “We’re about 80 percent dealer consignment. But the fleet-lease side has increased. I expect that to continue to grow. “We draw between 200 and 250 dealers in the lanes and another 60 to 80 online. “We use Manheim Simulcast, the only independent in the country that does. We use OVE. (The online) area is a place where we’ve seen an increase in exposure and attendance over the years. It always can be better. It can be a good benchmark. You can look at how you’re growing based on that. If your online presence is growing, then you’re probably doing something right.
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Compiled by Jeffrey Bellant “We do a salvage sale. We have 40 to 60 pieces every week. Those are hard to sell. “We do a powersports sale once a month on the second Friday. We’re doing 50 to 60 units in that particular sale. Not great, but not too bad. It’s the same as this time last year. We sell a lot of motorcycles in that sale. We also sell boats, quads and some jet skis. We do a little bit on the RV side, but not a lot. “We also hold a frontlineready sale on the third Friday of every month. That’s (vehicles) that are five years and newer and 75,000 miles and under. We’ve done that every year. It’s a very successful sale. It’s a unique buyer. We’ve done a lot to develop that. The average price in those sales is $12,000 to $15,000. “For our regular sale, the average price is $6,000 to $8,000. “We welcomed some new clients last year. One is Avis Budget and we’ve also gotten a huge impact from DriveTime.”
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ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES APRIL 2016
SOURCE: BLACK BOOK
2014 MODELS Recorded Figures DOMESTIC CARS 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 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 TRUCKS 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 Utility Ford Escape SEL 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D Utility AWD Ram 1500 SLT Crew Cab
$36,600 $11,650 $16,800 $19,850 $12,600 $12,250 $18,300 $17,600 $24,600
$35,300 $11,150 $16,150 $18,250 $11,700 $10,650 $14,800 $16,000 $22,700
$34,000 $9,400 $14,750 $15,500 $9,950 $9,550 $13,900 $14,700 $20,050
$27,125 $8,350 $12,475 $13,175 $8,650 $8,425 $11,825 $12,550 $17,650
$22,750 $7,125 $10,650 $11,275 $7,750 $7,150 $10,350 $10,750 $15,775
$30,200 $64,000 $16,700 $14,400 $30,200 $39,400 $10,950 $13,500 $17,300 $12,650 $15,500 $13,850 $16,100
$25,000 $57,900 $15,700 $12,550 $28,550 $37,400 $9,800 $12,100 $15,100 $10,950 $13,550 $12,500 $14,950
$21,100 $51,200 $14,600 $11,300 $25,200 $29,300 $8,600 $11,250 $13,650 $9,750 $13,250 $11,350 $13,200
$19,625 $44,600 $12,475 $10,200 $21,725 $25,675 $7,675 $9,650 $12,200 $8,375 $11,325 $9,525 $10,925
$15,925 $37,000 $10,325 $8,775 $18,100 $22,600 $6,725 $8,450 $10,400 $7,050 $9,825 $8,000 $9,425
Apr-15 $47,150 $32,250 $16,650 $29,200 $29,900 $15,000 $21,400 $19,200 $29,500 $22,500 $24,000 $19,100 $20,900 $28,600 $25,100 $31,350 $14,900 $24,350 $25,000 $29,750 $23,800
Oct-15 $47,750 $31,850 $14,900 $29,500 $31,500 $14,400 $19,150 $17,650 $27,800 $24,000 $23,800 $18,750 $19,800 $30,500 $24,250 $30,650 $14,600 $23,250 $25,500 $29,500 $25,050
Apr-16 $42,450 $27,200 $13,100 $26,800 $29,400 $13,100 $18,800 $15,450 $25,600 $22,200 $20,400 $17,150 $18,900 $29,200 $22,850 $28,600 $13,700 $22,175 $23,200 $27,850 $24,150
Apr-17 $36,700 $24,750 $10,750 $23,950 $25,000 $10,550 $14,850 $12,900 $21,050 $18,225 $18,200 $14,550 $15,600 $24,675 $18,600 $24,225 $11,525 $18,400 $20,925 $23,475 $20,100
Apr-18 $30,400 $20,425 $9,000 $20,600 $20,750 $8,650 $12,450 $10,675 $17,525 $15,750 $15,725 $12,200 $13,075 $20,400 $15,125 $20,225 $9,725 $15,325 $17,575 $19,400 $16,950
Apr-15 $17,050 $22,000 $10,350 $10,900 $18,100 $11,400 $10,950 $16,100 $15,450 $21,600
Oct-15 $16,550 $20,700 $10,100 $9,400 $17,050 $10,300 $9,800 $13,500 $14,000 $19,900
Apr-16 $14,250 $19,200 $8,150 $8,850 $14,600 $8,700 $8,250 $12,500 $13,150 $17,850
$20,600 $25,100 $53,300 $15,200 $12,750 $27,200 $31,500 $9,850 $12,100 $15,400 $11,400 $14,100 $12,350 $15,200
$19,050 $22,000 $47,800 $14,150 $10,950 $25,600 $28,000 $8,700 $10,700 $13,800 $9,950 $12,350 $10,950 $14,050
$17,650 $19,300 $40,600 $12,900 $9,800 $22,550 $23,200 $7,500 $10,000 $12,450 $8,650 $12,000 $9,650 $11,250
$15,050 $16,875 $36,475 $11,050 $8,550 $19,300 $20,750 $6,700 $8,525 $10,775 $7,500 $10,200 $8,325 $9,600
$12,700 $13,550 $30,550 $9,300 $7,150 $16,100 $17,950 $5,675 $7,325 $9,100 $6,375 $8,750 $7,025 $8,700
Apr-15 $28,950 $40,250 $25,950 $14,850 $22,600 $27,200 $13,000 $20,100 $18,600 $27,500 $21,000 $22,500 $17,950 $19,150 $27,500 $22,800 $28,250 $14,050 $22,150 $22,900 $26,700 $22,550
Oct-15 $27,700 $40,450 $25,750 $12,750 $23,500 $29,000 $12,900 $18,300 $17,350 $25,950 $21,700 $22,300 $17,550 $17,850 $28,450 $22,350 $27,600 $13,050 $20,900 $23,500 $26,650 $23,400
Apr-16 $23,450 $36,950 $23,500 $11,550 $20,500 $27,000 $11,100 $17,500 $15,400 $23,400 $20,200 $19,200 $15,150 $15,550 $25,850 $21,350 $26,250 $12,500 $19,950 $21,000 $25,600 $22,050
Apr-17 $21,025 $30,975 $20,350 $9,375 $16,900 $23,200 $9,200 $13,800 $12,750 $19,075 $17,425 $17,025 $13,075 $13,675 $22,625 $17,525 $21,650 $10,400 $16,775 $17,925 $21,375 $18,775
Apr-18 $17,400 $25,725 $16,950 $7,775 $14,800 $19,125 $7,550 $11,475 $10,500 $15,725 $13,375 $14,600 $10,975 $11,525 $18,600 $14,200 $18,050 $8,675 $13,925 $15,800 $17,475 $15,750
$12,825 $16,100 $7,300 $7,375 $12,225 $7,500 $7,200 $10,900 $11,100 $15,575
Apr-18 $11,050 $14,250 $6,175 $6,300 $10,475 $6,525 $5,975 $9,525 $9,400 $13,900
2011 MODELS Recorded Figures
DOMESTIC CARS 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 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 SAC Cadillac Escalade base 4D UtilityAWD Cadillac SRX Luxury 4D UtilityAWD Chevrolet Colorado LT Crew Cab 4WD Z85 Chevrolet Equinox LS 4D Utility FWD Chevrolet Silverado 1500 LT Ext Cab 4D Chevrolet Tahoe LS 4D Utility 4WD Dodge Grand Caravan Express Wagon Ford Edge SEL 4D Utility Ford Escape XLT 4D Utility 4WD Ford Explorer XLT 4D Utility 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility 4WD Honda Odyssey LX Wagon Honda Pilot EX-L 4D Utility 4WD w/RES Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Unlimited Sahara 4D Utility 4WD Kia Sportage LX 4D Utility Nissan Murano SL 4D Utility AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D Utility 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6
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 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 SUVAWD Cadillac SRX Luxury 4D SUVAWD 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 Utility Ford Escape XLT 4D SUV 4WD Ford Explorer XLT 4D SUV 4WD Ford F150 XLT Supercab Ford Flex SEL 4D Utility Honda CR-V LX 4D Utility AWD Honda Odyssey LX Wagon Honda Pilot EX-L 4D SUV 4WD w/RES Jeep Grand Cherokee Laredo 4D Utility 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD Nissan Murano SL 4D Utility AWD Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6
Apr-15 $15,300 $18,550 $9,050 $9,200 $15,550 $9,900 $9,350 $14,100 $13,900 $18,800
Apr-15 $18,400 $22,100 $41,100 $12,050 $11,150 $21,600 $27,100 $8,800 $9,500 $10,800 $9,150 $12,800 $10,350 $12,400
Oct-15 $14,300 $18,400 $9,150 $8,350 $14,400 $8,900 $8,300 $12,300 $12,300 $17,300 Oct-15 $16,900 $19,400 $36,500 $11,100 $9,400 $20,100 $24,000 $7,650 $9,400 $10,700 $8,250 $11,400 $9,550 $11,650
Apr-16 $12,700 $16,700 $7,300 $7,700 $12,500 $7,600 $6,800 $10,700 $11,400 $15,100 Apr-16 $15,550 $16,700 $31,900 $10,100 $8,250 $17,450 $20,600 $6,350 $8,400 $9,200 $7,100 $10,800 $8,100 $9,750
Apr-17 $11,225 $13,950 $6,575 $6,400 $10,450 $6,825 $6,225 $9,850 $9,700 $13,050 Apr-17 $13,075 $14,300 $28,750 $8,950 $7,250 $15,600 $17,725 $5,850 $7,150 $8,050 $6,125 $9,225 $7,275 $8,825
Apr-18 $9,500 $11,625 $5,475 $5,450 $9,025 $5,475 $5,175 $8,025 $8,175 $11,200 Apr-18 $10,925 $11,525 $23,525 $7,725 $5,950 $13,325 $14,700 $4,875 $6,025 $6,725 $5,125 $7,875 $6,075 $7,325
Apr-15 $25,850 $35,000 $23,050 $19,300 $11,450 $20,800 $25,200 $11,000 $18,500 $14,200 $24,500 $19,500 $19,500 $16,150 $16,300 $25,400 $21,600 $26,500 $12,600 $20,750 $20,500 $25,450 $21,900
Oct-15 $25,000 $33,550 $22,800 $18,750 $10,700 $21,000 $26,000 $10,450 $17,300 $13,900 $23,800 $20,500 $19,000 $15,500 $15,200 $25,100 $21,150 $26,600 $11,700 $20,450 $21,500 $25,300 $22,500
Apr-16 $20,200 $30,000 $20,150 $16,800 $9,950 $19,200 $23,700 $9,100 $14,400 $12,300 $19,900 $17,400 $15,700 $13,600 $13,800 $23,100 $19,150 $24,850 $10,700 $18,700 $19,000 $24,000 $20,675
Apr-17 $18,300 $25,375 $17,200 $14,825 $7,800 $16,150 $20,375 $7,450 $12,675 $10,275 $17,175 $16,000 $13,825 $11,625 $11,900 $19,975 $16,150 $20,100 $9,175 $15,650 $17,175 $19,775 $17,525
$15,125 $21,050 $14,200 $12,250 $6,450 $12,900 $16,700 $6,100 $10,300 $8,425 $14,075 $12,700 $11,725 $9,775 $9,975 $16,225 $13,125 $16,400 $7,600 $12,700 $14,150 $15,975
Recorded Figures DOMESTIC CARS Buick LaCrosse CX 4D Sedan Cadillac DTS 4D Sedan Chevrolet Cobalt LS 4D Sedan Chevrolet Impala LS 4D Sedan Chrysler 300 Touring 4D Sedan Chrysler Sebring 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 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 XDrive30i 4D SAV Cadillac Escalade base 4D SUVAWD Cadillac SRX Luxury 4D SUVAWD 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 Utility 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 Utility 4WD Jeep Wrangler Unlimited Sahara 4D SUV 4WD Kia Sportage LX 4D SUV FWD 4cyl Nissan Murano SL 4D Utility AWD Dodge Ram 1500 SLT Crew Cab Toyota 4Runner SR5 4D SUV 4X4 V6 Toyota Tacoma Prerunner SR5 Double Cab V6
Apr-15 $11,200 $11,150 $11,150 $11,150 $11,150 $11,150 $11,150 $11,150 $11,150 $11,150 Apr-15
Oct-15 $10,400 $13,450 $7,500 $7,250 $12,750 $7,550 $6,100 $11,300 $10,700 $16,450
$16,400 $17,400 $32,900 $10,700 $9,650 $18,200 $23,300 $7,750 $8,300 $9,600 $7,600 $10,400 $9,450 $10,850 Apr-15 $22,950 $31,700 $19,900 $17,100 $10,050 $18,800 $23,200 $10,000 $15,900 $11,550 $22,200 $17,800 $16,500 $13,550 $13,650 $21,450 $20,400 $24,800 $11,200 $18,300 $18,000 $24,150 $21,350
$15,000 $15,000 $29,300 $9,800 $8,000 $16,900 $20,800 $6,450 $7,950 $9,250 $6,400 $9,300 $8,250 $9,950 Oct-15 $22,150 $29,050 $19,150 $16,500 $9,000 $19,000 $22,500 $9,100 $14,500 $10,600 $20,800 $16,500 $15,000 $13,550 $12,600 $20,600 $19,450 $24,550 $10,200 $17,900 $17,500 $23,650 $21,250
Apr-16 $8,400 $10,900 $6,400 $6,350 $10,700 $6,600 $5,300 $9,750 $9,500 $12,250 Apr-16 $13,700 $11,900 $24,000 $8,950 $6,950 $14,550 $18,000 $5,450 $6,950 $7,550 $5,050 $8,750 $6,950 $7,950 Apr-16 $17,250 $26,550 $15,900 $15,050 $8,300 $17,200 $21,300 $7,700 $11,950 $9,375 $16,900 $14,200 $12,700 $11,550 $11,550 $18,500 $16,400 $22,200 $9,000 $15,050 $16,500 $22,150 $19,650
Projected Figures A pr-17 $7,475 $9,725 $5,650 $5,250 $9,325 $5,525 $4,675 $8,975 $8,125 $12,350
Apr-17 $6,600 $8,125 $4,675 $4,475 $8,100 $4,725 $4,050 $7,375 $6,850 $10,125
Apr-17 $11,350 $10,650 $23,150 $7,900 $6,225 $13,175 $15,475 $4,800 $5,950 $6,800 $4,775 $7,475 $6,300 $6,500 Apr-17 $16,025 $22,450 $14,375 $13,100 $6,625 $13,925 $17,975 $6,550 $10,750 $7,950 $14,500 $12,825 $11,075 $9,950 $9,925 $16,500 $14,050 $18,500 $7,625 $13,600 $14,600 $18,400 $16,150
$9,425 $9,100 $19,600 $6,850 $5,025 $11,350 $12,800 $4,200 $5,200 $5,900 $4,250 $6,375 $5,200 $5,700 Apr-18 $13,225 $18,375 $11,850 $10,750 $5,450 $11,650 $14,625 $5,350 $8,925 $6,500 $12,225 $10,700 $9,275 $8,350 $8,225 $13,400 $11,500 $15,100 $6,350 $11,125 $11,875 $14,850 $12,750
3/28/16 10:52 AM
24 • April 4, 2016
DISCONNECTED JOTTINGS FROM I saw a trailer for a TV show the other day – it was called “Naked and Afraid.” Now, I know nothing about it nor do I intend to watch
LSD did it for the sixties! Where do these programmers come up with this idea for mass entertainment? I wonder which
• 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
it. Apparently it’s been going for a while which just shows how limited my TV surfing really is. But according to the trailer, they cover the ‘naughty’ bits up, so the point is…? I suppose one can be an ersatz voyeur, peeping at people doing silly things in even sillier places. If this qualifies as reality TV then someone’s on LSD. Maybe that’s it – this is the trip into the unreality of the 21st century where
advertisers take spots in these programs – obviously not Hanes or Fruit of the Loom, as it seems no one needs Y-fronts in their world. I realize, of course, that TV, with the exception of the news, is a form of escapism – even the educational programs take you away from the everyday to enlighten or expand horizons like cooking programs expand my waistline. I fail to see what is to
be gained by keeping up with a family whose name seems to indicate a connection to Armenia and literally means “stone carver.” The Kardashians keep receiving low critical reviews as a reality show but has been awarded a number of “viewer” awards, according to Wikipedia. It must do something for someone – it’s the longest running “reality” TV show out there. I love this country. “The Real Housewives of…” you name it, they’re everywhere these days, still make my jaw drop. Nothing’s real about these women, up to and including their teeth and their relationships are as flimsy as their clothes. But they always seem to be on one of the TVs in our house. Remember when everyone used to watch one program on one TV in the den or rec room? Now it’s like going to the multi-screen movie the-
C R O S S WO R D
atre. Yes, we have popcorn too! Maybe the newly created Caitlin Jenner should become a real housewife of somewhere. There really seems to be nothing to these programs; take “Dating Naked” for instance, stripped of any sense, let alone clothes. Yet VH1, I’m assured, has signed up for season three. Ironically it seems that any sense of decency has expired in these so-called politically correct times. As for “The Bachelor” and “The Bachelorette,” words are hard to find. After what seem to be an eternity of episodes and so many broken relationships, can anyone take this seriously? It’s about time the limo turned into a pumpkin and the roses wither to thorny
To see past columns from Tony Moorby, visit www.usedcarnews.com/columnists/tony-moorby
5. Ford subcompact since 1976 6. Part of a coffee service 7. Takes in
1. 993 GT2 maker
31. ‘’For ___ in My Life’’ (Stevie Wonder)
8. Q50 or Q70
15. Letters of debtors
12. Compact SUV from Honda 13. It reduces a driver’s visibility 14. Very quick, word often used in car reviews 18. Company working to revitalize the Jaguar brand 20. Jealous emotion often aroused by people with new Lamborghinis 22. Expression of surprise 23. ___ song (inexpensively) 25. Operate well 26. Mercury or Saturn, e.g. 27. Specially built to a client’s request 29. An Uber doesn’t really have one
the Cadillac ATS
16. Class of car launched by Ford Mustang. 2 words
37. Less often found
17. Acidity factor
39. Scion sport compact coupe
19. Mena’s state
41. Boxy Ford SUV
21. Thanksgiving dishes
43. Dodge pickup
23. Musical scale note
46. Former “Top Gear” host
24. Center of a wheel
49. Loud auto honker of old
25. Storage accessories, up above, 2 words
54. Details 55. Corolla and Prius Down 1. ____ Esperante 2. BMW i3 ____ 3. Cavalier or Impala 4. Accessory for James Bond on the Aston Martin DB 2/4, 2 words
26. Musical disk 27. Phone-bill list 28. The Senators, on score tickers 29. Radiator top 33. Half- __ (java order) 34. Slows down 36. Lone Star state, abbr. 38. Get it wrong
35. Earnest request
53. Abbreviation for utility vehicles
30. “___ a steal!”
32. Buick that’s a competitor for
11. Acura sports car model
10. A company may contribute to this type of account for an employee
reminders of real reality. The likelihood of marital bliss surviving the sharpened fingernails of the harem in the case of the bachelor or the barrage of blockheads for her is as slim as their figures! Of course I like the car programs on the cable end of the guide, but this is low rent territory for TV shows so the re-runs are incessant and on certain days and times of the week they rerun the same shows over and over, instead of mixing up a potpourri of different ones. Some of the auction shows are two years old, so prices mean nothing. Now that “Downton Abbey” is finished I guess I’ll have to make do with “Antiques Roadshow,” after all I nearly am one.
Digital version available at usedcarnews.com
By Miles Mellor
5. Filling the tank
USED CAR NEWS
44. Deep South state, abbr. 45. Tire problem 47. It affects Blue Book value 48. Select, with “for” 50. Over 8 hours work in a day,
Z C B 42
I A T
M Y 50
T D 29
C K 37
M I 52
52. “__ gal” in song
Solution to the 3/21/16 puzzle 1
abbr. 51. Profit amount
40. Oil Holder 42. ____ LS
Solution to this puzzle in the 4/18/16 issue. Call 1.800.794.0760 for a FREE subscription.
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USED CAR NEWS
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26 • April 4, 2016
USED CAR NEWS
AROUND THE BLOCK
Compiled by Jeffrey Bellant
CONSIGNOR AWARDS AUCTIONS
TOP OF THE BLOCK: Tom Schaefer, president of 166 Auto Auction (from left) is pictured with General Manager Mike Bradley, Mike Kreider of Credit Acceptance Corp. and Ace Tetlow as the Missouri sale receives a top award from Credit Acceptance.
LAS VEGAS – Credit Acceptance Corp. recently honored Wolfe’s Evansville (Ind.) Auto Auction and 166 Auto Auction in Springfield, Mo., with its top remarketing awards here. The company gives two awards. One award is for the small volume
auction that may not get great numbers of cars, but one that the company wants to spotlight. That award went to 166 Auto Auction. The top award for overall auction went to Wolfe’s Evansville Auto Auction.
“Credit Acceptance/VRS measures our auctions really on just one thing – money – the net sale amount as a percentage of the market value,” said Mike Kreider, remarketing manager for Credit Acceptance Corp. Kreider presented the awards during the Conference of Automotive Remarketing at Caesar’s Palace. “First off, (we had) regional winners that didn’t quite make it but did very good in their region,” he said. Manheim auctions were recognized in the West Coast and Northeast regions. Manheim Nevada and Manheim Harrisonburg (Virginia) were tops in those regions, respectively. Honors for the Southeast region went to ADESA Knoxville. In the Southwest region Dealers Auto Auction of the Rockies took the prize.
Group Honors Industry Leader The National Auto Auction Association named Karyn Wrye, senior director of government affairs at Cox Automotive, a Warren Young Fellow during the 2016 NAAA/CAR convention in Las Vegas in March, for her efforts serving as co-chair of the National Auto Auction Association Legislative Committee. NAAA represents 341 auto auctions in North America, and will donate $2,500 in Wrye’s name to the foundation. The award recognizes those who have made significant contributions to the NAAA. A Warren Young Fellow is an individual who consistently demonstrates dedication and commitment to the auto auction industry. Wyre has served in various roles in her career. “(Wrye) has been a bridge connecting people to accomplish difficult tasks,” said NAAA President Mike Browning.
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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