Don Griffin is the incoming president of the National Independent Automobile Dealers Association (NIADA). He is also chief compliance officer for CarHop Auto Sales and Finance in Crystal, Minn.
Used Car News: Tell our readers how you got started in the car business?
Don Griffin: I actually started out in government. I was director of operations for the South Dakota Attorney General.
I was looking for something different. A friend of mine and I just got into the business, not really knowing what we were doing when we started.
But it’s been about 30 years since, so we’ve come a long way, I guess.
We started up with one buy-here, pay-here store in Lincoln, Neb. We actually started that as a J.D. Byrider store. CarHop came a couple of years later.
It’s a pretty traditional buy-here, pay-here model.
We have 33 dealerships now, in multiple states, and we’re coming up on our 30th anniversary. We started in 1996.
We really didn’t have any intention beyond one store when we started.
Being buy-here, pay-here, you need a lot of capital and we had started it with credit cards and the little savings that we had. We went beyond that, added a few new locations and it just grew from there. We just ended up fielding our base of operations in Minnesota.
UCN: What is your business model and what are the challenges you face as a multi-store owner at CarHop?
Griffin: Certainly there are both
advantages and disadvantages to having more operations. The regulatory environment across 10 states is a lot harder to deal with than one dealership in one state.
Also, our model performs differently in different states and other markets.
Typically, we’re going to have 50 to 75 cars on a lot and we’ll typically sell 30 to 50 cars a month. We were in the service business a long time ago, but we figured out we’re
better at our core business, so we outsource all of that now.
The one thing we’ve always tried to do is buy locally, because a lot of people spend a lot of money transporting cars back and forth.
We just found it is cheaper and easier to source that inventory locally.
Our average price is in that $8,000 to $12,000 range. Our average term is just over two years. We want to make sure we have the
right structure for our customers to be able to pay off the vehicle and not burden them too much.
We’ve always had a longer warranty, so we have an 18 month/18,000 mile warranty. We want a car that’s going to take care of our customer and we’re going to end up paying for it either way.
UCN: What have you experienced in your time managing a BHPH and what’s the current state of BHPH?
Griffin: BHPH is not something that’s easily done. There’s a lot of moving parts, I’d say.
We’ve certainly had our ups and downs at CarHop. But the business is typically a contra-cyclical business.
Inflation has had its toll on our customers over the past few years. That’s always a challenge. So we’ve always been diligent about our underwriting. That’s a core part of the business, period.
Continued on page 6
Wholesale News
6/9/2025
Auction Offers Open House for Media on Sale Day
By Jeffrey Bellant
CARLETON, Mich. – A 2018
Lamborghini Huracan drove through the lanes at Manheim Detroit on a gray sale day and bidders online drove the price up to $215,000. But the seller’s floor was over $220,000, so the hammer didn’t drop.
A whole lot of other vehicles did sell as General Manager Noel Kitsch watched while guiding a contingent of automotive journalists through the nearly 100,000 square foot facility for a media day visit.
He was joined by a group of Cox Automotive executives, one of whom took a moment to sit in the elusive Lambo.
Kitsch led the group across a lane featuring vehicles from its Canadian Super Sellers and was asked how tariffs have affected those dealers.
“Our Canadian sellers are very seasoned,” he said. “Those guys in particular have been running here for 12 years. They know the ups and downs and the changes.”
In October, prior to the election, when it looked like Trump might win, they made quick decisions to address the potential tariff issue.
“Most of the Canadian vehicles are made in the U.S. and imported up there,” Kitsch said. “VIN numbers 1,4 and 5 are made in the U.S. for Canada, so they are not tariffed if they come back (for resale).
“As far as the decline of vehicles that are available for us to import, all my guys are telling me it’s less than 10%. So, we’re still seeing a good mix of vehicle come over.”
In other cases, dealers started moving vehicles prior to the tariffs.
For those left behind, they make the adjustment in price up in Canada, Kitsch said.
Journalists also got a tour of the entire Manheim Detroit site.
Assistant General Manager Keith Winningham led the group to different areas of the auction, including the paint and body shop where workers were busy prepping cars.
“We can paint about 50 cars per day,” he said. “We have two four-car tunnel paint booths. We can paint eight cars at the same time. You can put a blue car, red car and gray car all in the booths at the same time and there is no overspray because it’s a downdraft system.
“We have about three body techs and four painters. We’re blessed here because our tenure in this shop
is about 25 years. It’s a different type of work, because you’re not going to work the same car coming through for the next week or two. You’re going to work on 20 cars today.”
Work is reviewed the day before a sale, if they don’t like it, it comes back.
“We have to do OEM quality here,” Winningham said. “We don’t have to order a supply of paint every day.”
He said through BASF the staff has the ability to mix paint, including every color on the market today.
“That’s the skill set that they have to have,” Winningham said. “Because they do mix and do their own spray outs. We don’t do collision work, but that doesn’t mean someone isn’t going to bring a car in here with 70,000 or 80,000 miles with a fender that needs to be fixed. We have the capability to do that.”
He added that Cox Automotive has switched over to water-based paints to get away from the solvents and make it better for the environment.
The detail shop sees vehicles in various states of mess, including fast food trash and other items. Manheim Detroit has the ability to detail about 400 cars per day in assembly line fashion, from clearing trash to cleaning cup holders. The vacuums are an in-line extraction system.
With all the technology in cars today, workers have to be careful with things like seat sensors, airbags and other tech as they detail the vehicles.
Winningham said the detail is good value, since some people seem to make one last trip to McDonalds before they return their lease or trade in their car.
Journalists also toured the vehicle inspection center where workers as-
sess the vehicle and do a full condition report.
An inspector named Rachelle said inspectors assess all issues including a search for previous repairs and structural damage.
“These are things that through NAAA (National Auto Auction Association) guidelines, the auction is required to disclose.
“In our area, we also have hail damage, so we identify hail damage and anything that might be a biohazard or have a safety issue,” she said.
Today, it’s all done through a mobile device.
Rachelle said she remembers 30 years ago when CRs required checking numerous boxes over several sheets of paper.
“I love the technology now, which Continued on page 14
Used Car News
Car Buyers Want a History Lesson
By Jeffrey Bellant
Consumers want to know a vehi-
cle’s history, now more than ever.
That’s one of the major findings of a survey Experian conducted this spring which focused on vehicle history reports and consumer sentiment.
The key finding is that vehicle history reports are not only of interest to consumers, but there’s an expectation to have that information when shopping for a used vehicle.
Kirsten Von Busch, Experian’s director of product marketing for automotive, said vehicle history reports have become a regular part of doing business. Consumers aren’t waiting for a dealer to offer them a history report.
“I think this consumer sentiment survey supports that,” she said.
Experian commissioned Atomik Research to conduct an online survey of 2,005 adults throughout the
United States. The sample consisted of adults who estimate they will purchase or lease their next vehicle within the next 24 months or sooner.
A decade ago, consumers were less informed on this tool and may not have gone into a dealership thinking about a vehicle history report.
Experian did another survey two years ago, looking at the lead activity of a dealership that provided the vehicle history report, as opposed to one that required a consumer to purchase a retail copy of the report.
“Lead conversion as well as sales conversion were significantly higher for the dealership,” Von Busch said.
“That just leads me to believe that the consumer wants to be as informed as they could be.”
She added that these tools are just as important for dealers as consumers.
“A dealership, whether franchise or independent, needs to protect their brand, they need to protect
their reputation,” Von Busch said. “They can do that by having as much information available to them about the vehicle they are looking to take in as a trade or sell to a consumer.”
She said Experian’s dealers appreciate AutoCheck’s feature of exclusive auction announcement information in the report, such as “hidden” problems such as frame damage, something that is hard to detect otherwise in a live auction setting.
The survey also looked at how the vehicle history report is “table stakes” to get customers to consider a purchase.
According to the Experian survey “nearly all respondents (98%) said a vehicle history report is important to them when considering the purchase of a used vehicle.” Furthermore, almost 70% said accident history information in a report would likely influence their purchasing decision.
Many consumers using Experian AutoCheck Vehicle History Reports will use a “No Accident” filter to avoid any questions about accidents entirely, she stated.
“Consumers are looking at the details, such as ‘Was this a little fender bender? What was the accident?’”
Von Busch said, “So, having information about the severity of the accident is important.”
The survey showed 61% were looking for frequent repairs on the report. In addition, the reports also help in seeing if ongoing maintenance is being done on a vehicle, to know that the prior owner(s) took care of the vehicle.
“That’s been a big area of focus for AutoCheck over the last several years: adding that depth of details to the reports through millions of records to make sure that information is really robust on the reports,” Von Busch said.
The survey showed 55% of consumers are worried about title problems such as salvage or flood damage.
“What’s important is that vehicle history is an aggregate of all of the vehicle’s history at the VIN level,” Von Busch added. “It doesn’t matter if that vehicle is titled in one state and moved to another.
“If (an incident) is reported, it’s going to show in the report regardless of where its current physical location is when it’s being sold today,” Von Busch said.
Legal News
6/9/2025
Court Cases Show Dealers Face Peril for Document Problems
By Frank H. Bishop, Jr.
Two recent cases underscore the tragedy of human error in documenting the sale of vehicles. They also underscore the importance of both making sure that the forms a dealership uses to document a transaction accurately describe the nature of the transaction and confirming that the language in the forms is internally consistent, particularly the language in any arbitration provision included in various forms that are executed in connection with the transaction.
“Documenting a cash sale as an installment sale.” In the first case, the buyers and the dealership intended to enter into an agreement for the sale of an off-road vehicle, but when the parties documented the transaction, they used a form that included terms implying that the purchase would be financed rather than paid for in cash. This appears to have been a mistake that neither party noticed when they executed the contract on the date of the sale. When the buyers later sued the seller and the manufacturer of the vehicle for alleged design defects and the defendants moved to compel arbitration, the buyers argued that the contract was void and the arbitration provision was therefore inoperative, leading to appellate litigation that would have been unnecessary if the transaction had been properly documented as a cash sale. Here are the facts.
On March 23, 2021, Dean and Cynthia Lagoe purchased an off-road vehicle from Granite Bay Motorcycle Partners Inc., doing business as Rouseville Motorsports, and signed a contract titled “Retail Installment Sales Contract - Simple Finance Charge (With Arbitration Provision).” The RISC identified Dean Lagoe as the buyer, Cynthia Lagoe as the co-buyer, and Rouseville Motorsports as the seller. The introductory paragraph of the RISC stated that “You, the Buyer (and Co-Buyer, if any), may buy the vehicle below for cash or on credit. By signing this contract, you choose to buy the vehicle on credit under the agreements on the front and back of this contract.” However, the RISC later noted that the Lagoes paid for the purchase in full by check and credit card and correctly documented a total sale price of $34,995, which covered the price of the vehicle, a processing charge, sales tax, vehicle
fees, and an optional service provision. In addition, one or both of the Lagoes signed eight separate parts of the RISC, including a section titled “Agreement to Arbitrate” that was followed by an arbitration provision.
Two years later, the Lagoes sued Granite Bay and the vehicle’s manufacturer, Polaris Industries Inc., alleging that the vehicle had design defects that caused it to roll unexpectedly, resulting in Dean’s left hand being crushed and later amputated. The defendants moved to compel arbitration, and the trial court denied the motion, concluding that there was no contract, and therefore no arbitration provision, between the Lagoes and Granite Bay because of the false introductory sentence in the RISC. The defendants appealed, and the Court of Appeal of California reversed.
The appellate court’s decision followed from principles of contract interpretation under California law. Most importantly, the trial court’s reading would render the RISC entirely without effect, which is something courts ordinarily try to avoid.
Under California law, in interpreting a contract, the court must give the writing “such an interpretation as will make it lawful, operative, definite, reasonable, and capable of being carried into effect, if it can be done without violating the intention of the parties.” The key facts in this case supported a finding that the parties intended to enter into a contract for the purchase of an off-road vehicle from Rouseville Motorsports. While the introductory paragraph suggested that the transaction would be at least partially financed by way of dealer-arranged credit, the rest of the contract correctly identified the purchase price, related fees, and the actual method by which the Lagoes acquired the vehicle—paying with cash and a credit card. Accordingly, the appellate court concluded that all of these considerations favored a finding that the parties intended the RISC to cover the Lagoes’ purchase. While the appellate court acknowledged that the introductory paragraph’s language was imperfect as to this specific purchase, it declined to toss the whole agreement based on this language. Accordingly, the RISC and its arbitration provision were binding on the parties. The appellate court went on to remand the Lagoes’ claims that the arbitration provision was unconscionable, that the defendants waived arbitration, and that Polaris, as a nonsignatory to the
RISC, could not invoke the arbitration provision, finding that the trial court never addressed these issues.
“Including inconsistent arbitration agreements in separate documents executed at the time of the sale.” In the other case, a buyer and a dealership entered into a transaction to finance the purchase of a used vehicle. The dealership documented the transaction with a RISC that included an arbitration provision, but it also obtained the buyer’s signature on an independent arbitration agreement that provided terms that were substantially inconsistent with the arbitration provision in the RISC. Accordingly, when the buyer sued the dealership under a state consumer fraud statute, the dealership sought to compel arbitration, but the court denied the motion. Let’s see what happened.
On September 23, 2023, Alexander Walker bought a used Jeep Grand Cherokee from Route 18 Auto Group, LLC. In connection with the sale, Walker signed a RISC that contained an arbitration provision to finance the transaction as well as a separate arbitration agreement. Two months later, Walker filed a class action against Route 18 and two individuals for violating the New Jersey Consumer Fraud Act, alleging that the dealership overcharged him for official title, registration, and documentary service fees, failed to honor advertised vehicle pricing, and failed to transfer title in a timely manner. The defendants moved to compel arbitration pursuant to the separate arbitration agreement. Walker opposed the motion, arguing that the arbitration provisions in the separate arbitration agreement and the RISC conflicted and, therefore, were invalid for lack of mutual assent. The trial court denied the defendants’ motion to compel arbitration, and the Superior Court of New Jersey, Appellate Division, affirmed.
The appellate court noted that there were several substantive differences between the arbitration provisions in the RISC and in the separate arbitration agreement. The documents differed as to the arbitration forum, the amount of the filing and case management fees as well as the arbitrator or hearing fee, who was required to pay such fees, and the right to appeal the arbitrator’s reward. The appellate court found that “the differences between the [separate arbitration agreement] and RISC do not convey the conditions or process of arbitration clear-
Frank Bishop Jr.
ly to the buyer.” This determination was consistent with the conclusion of the trial court, which found that the two arbitration provisions were “too plagued with confusing terms and inconsistencies to put a reasonable consumer on fair notice of their intended meaning.”
As these cases demonstrate, the failure to implement good hygiene in the recording of a transaction can lead to extensive litigation costs that could be easily avoided by being diligent and attentive to document production processes and by engaging in a thorough review of the content of all forms used in connection with the sale and financing of a vehicle.
Lagoe v. Granite Bay Motorcycle Partners, Inc., 2025 Cal. App. Unpub. LEXIS 643 (Cal. App. January 31, 2025), and Walker v. Route 18 Auto Group, LLC, 2025 N.J. Super. Unpub. LEXIS 223 (N.J. Super. App. Div. February 12, 2025).
Frank H. Bishop, Jr., is a partner in the Maine office of Hudson Cook, LLP.
It’s easy to sell cars, anyone can do that without underwriting. But the challenge is underwriting customers for vehicles where the vehicles will last for the customers and the customers will want to pay off. When we started out, balancing it on credit cards, we could sell about 15 or 20 vehicles. Any more and we could go bankrupt and any less we could go bankrupt. We had to figure that out.
UCN: What is your collections strategy?
Griffin: Years ago, when we were growing rapidly, we had a big collections call center. But we moved away from that because we just got too far away from our customer by doing it that way. Now we have collectors back in the store. We know that they pay better when they have someone in the store that they can really go in and talk to, someone they feel they have a relationship with.
UCN: Has the whole issue and
back-and-forth with tariffs affected you folks at all?
Griffin: We haven’t really seen any effects yet, but our concern is obviously on the parts side of the business, because we buy a lot of parts and it will increase the cost there.
Also, with the inflation over the last few years, the cost of parts and service has grown exponentially.
UCN: Over the past decade, how much do BHPH dealers make up NIADA?
Griffin: I’m told around 60% of NIADA members offer some sort of financing. They may not identify that way but they still might offer some sort of in-house financing.
UCN: NIADA has continued to build involvement in the National Policy Conference in Washington D.C. How do you see that effort?
Griffin: That’s really one of the big areas we’re focusing on over the next year. We want to increase our
advocacy through grassroots lobbying and through our political action committee (PAC). Politics runs on money, like it or not. Our PAC has also been successful. Last year, we raised over $120,000, using some of that money to work with legislators to get our concerns out there.
UCN: What prompted you to join NIADA and get involved in leadership?
Griffin: I wanted to give back to the industry and I think NIADA is the best way to contribute and help expand the voice of the industry in the states and in D.C. Given my background in government, I’ve always been involved in the regulatory side of the business and there’s a lot of rules and regulations that we have to follow in BHPH. We want to carry the message of how independent and BHPH dealers impact the economy through our consumers.
UCN: Is this the type of thing you want to focus on in your up-
coming term?
Griffin: Yes, I really think that focusing on advocacy is one of the biggest ones. We just hired a new Director of Government Relations and Compliance (Patrick O’Brien). That’s really important. This is the area where NIADA can help members the most.
Uniting the industry to have a stronger voice through our events, like the NIADA Annual Convention & Expo is important. (A big part of that) is assisting our state affiliates wherever possible, so we can listen to dealers and industry partners to better represent everyone’s needs. Right now, we have a great team led by CEO Jeff Martin, that’s really supportive of our entire industry, with the primary focus of helping dealers.
The upcoming convention has a great lineup of speakers and education and everyone should try to attend.
Connect Hosted Frazer DMS with DCS Website Platform to Increase Online Presence & Improve Marketing Efforts for Your Dealership
Hosted Frazer
Improve Customer Experience with DMS to Website Integration, providing consistent, accurate and timely inventory to your shoppers online.
Dealer Car Search: Website Platform
Allow for real-time inventory updates with Website to DMS Integration, increasing your speed to market but also saving you time to desk and close a deal.
IADA News
6/9/2025
State IADA Celebrates Victory Over New Regulation
ALBANY, N.Y. — The New York Independent Automobile Dealers Association announced to its members a significant victory for independent automobile dealers across the state.
After months of sustained advocacy, the New York State Department of Motor Vehicles said there will be a pause in the enforcement of Regulation 78.25(b), a policy that would have severely disrupted core business practices for independent dealers.
Originally announced back in January, Regulation 78.25(b) requires dealers to maintain physical proof of ownership for all vehicles in their inventory at their registered place of business.
Enforcement was scheduled to begin on June 1, 2025, effectively ending a long-standing industry standard that allowed floor plan lenders to retain original vehicle
titles.
This shift in enforcement threatened to destabilize floor planning—a foundational credit structure for independent dealers.
Floor plan lenders typically hold vehicle titles to mitigate risk, which in turn enables them to provide essential financing to dealers.
Without this flexibility, many dealers would face reduced access to credit, limiting their ability to stock inventory and ultimately impacting consumer choice and affordability.
NYIADA acted swiftly, initiating dialogue with DMV officials, state legislators, the Governor’s Office, and key industry stakeholders.
Through persistent advocacy and collaboration, NYIADA successfully made the case for the
regulation’s reconsideration.
“We are grateful that the NY DMV listened to our concerns and recognized the vital role that floor planning plays in the existence of independent dealers,” said Paula Frendel, Executive Director of NYIADA. “We look forward to continuing this dialogue to ensure that any future regulatory updates strike a balance, preserving transparency and consumer protection without compromising a dealer’s ability to access critical credit.”
Dana Bress, NYIADA president and Galaxy Auto Place’s owner, also celebrated the victory.
“This pause in enforcement is a powerful example of what can happen when we speak with one voice,” she said. “NYIADA stands strong in its mission to protect the independence and vitality of New York’s independent auto dealers— and this victory is proof that advo -
cacy matters.
“When we act together, we can protect our industry. This pause is proof.”
NYIADA extends sincere thanks to Governor Kathy Hochul’s Office, Senator Jeremy Cooney, Assemblyman William Magnarelli, the National Independent Automobile Dealers Association (NIADA), and valued industry partners, including Statewide Public Affairs, AFC, NextGear Capital, and Cox Automotive, for their support throughout this effort.
This outcome demonstrates the impact of unified industry advocacy in shaping fair and sustainable public policy, protecting small businesses and maintaining consumer access to reliable, affordable transportation options across New York.
NYIADA will keep its members updated on the next steps.
Legal News
Lenders Face Decisions in Wake of Disparate Impact
By Jeffrey Bellant
In April, President Donald Trump issued an executive order to eliminate the use of disparate impact liability and to “deprioritize enforcement of all statutes and regulations” as they involve disparate impact, including the Equal Credit Opportunity Act (ECOA).
“It is the policy of the United States to eliminate the use of disparate-impact liability in all contexts to the maximum degree possible to avoid violating the Constitution, Federal civil rights laws, and basic American ideals,” the order stated in part.
Disparate impact refers to the idea that a policy that seems neutral on its face seems to have a disproportionately negative impact on members of a protected class.
disparate impact attached to the Fair Housing Act (FHA),” said Erica A.N. Kramer, a partner at Hudson Cook.
“That decision, though, didn’t squarely address whether it also applied to the Equal Credit Opportunity Act (ECOA). However, from the Consumer Financial Protection Bureau (CFOB), and the Department of Justice, as well as the other bank regulators, the actions that they’ve taken and their exams over time have made it pretty clear that those agencies view disparate impact as cognizable.”
Kramer said policies that clearly discriminate against protected classes are fairly clear to spot and easy to correct.
But with disparate impact, Kramer said, there’s a “broader way that discrimination in the credit context might happen,” even if it isn’t in-
The idea of ECOA is to give good access to credit for all groups, she added.
Kramer said she understands the frustration on the creditor’s side when they are not intending to discriminate but become liable under disparate impact.
But there are situations where it can happen, even when the creditor is using neutral criteria, such as asking a credit applicant whether they own their own home.
“For example, home ownership is an example that sometimes comes up where statistically there’s a concern where the number of black consumers who own a home might be fewer than the number of white consumers,” Kramer said.
Disparate impact can suggest that if that home ownership requirement leads to an imbalance in approvals for a protected class, that
Continued on page 13
Vehicles
Erica Kramer
Let Auto Assign do the heavy lifting, automatically routing vehicles to the best-fit auctions based on your custom rules. Faster decisions. Better results.
Used Car News
6/9/2025
Report: ‘Ongoing Strength for Many Auto Dealerships’
Haig Partners LLC released its Q1 2025 Haig Report, the longestpublished quarterly report in auto retail tracking industry trends and their impact on dealership values.
Q1 2025 brought ongoing strength for many auto dealerships, with profits falling only 1% year-over-year.
At current levels, the average auto dealership is making about twice the amount of profit than before the pandemic.
The first quarter of 2025 was the slowest Q1 for auto dealership buy-sell activity since 2015, if not earlier.
Private dealers remained the most acquisitive, acquiring 64 dealerships, while public companies acquired only four dealerships.
Acquisitions by public companies are picking up in Q2, however, as
we learn about the pending closing of a couple of landmark acquisitions such as Asbury’s purchase of the Herb Chambers Companies (33 dealerships) and Group 1’s acquisitions of Mercedes-Benz of Austin and Scanlon Lexus.
The average publicly owned auto dealership generated $1 million in pre-tax income in Q1 2025, only a 4% decline from Q1 2024
Over the last 12 months, the average publicly owned dealership made $3.9 million in pre-tax income, only a 1% decline from 2024. This solidification of profits is a promising sign, although tariffs could reduce profits later in 2025.
The Q1 2025 release marks the 11th anniversary of The Haig Report. For the past 44 quarters, the team at Haig Partners has provided updates on trends within auto retail and their resulting impact on
dealership values.
Blue sky values nearly unchanged from 2024
Haig Partners reports that the estimated average blue sky value of a publicly owned dealership was $20.7 million in Q1 2025, a decline of 1% from year-end 2024 and a decline of 15% from 2023.
At this level, blue sky values for dealerships remain about twice as high as they were before the pandemic, thanks to higher earnings and strong demand from dealership buyers.
Buy-sell activity expected to increase later in 2025 but will likely be less than in 2024
Despite a slow start, the Q1 Haig Report predicts an increase in buysell activity throughout the remainder of the year.
There are several acquisitions led by public companies that are expected to close in Q2.
Private buyers are also active.
The transaction pipeline for Haig Partners is similar to the level of activity seen in 2024 when we advised our clients on the sale of 58 dealerships. Through May of 2025, Haig Partners had been the exclusive advisor on the sale of 18 dealerships, with 36 more pending closing and 16 rooftops still inmarket.
Haig sees tariffs having a dampening effect on the market, with transactions moving more slowly, and some sellers waiting to enter the market until there is more clarity.
“At the moment, auto dealers are feeling pretty confident,” stated Alex Hair, president of Haig Partners.
“They have seen the auto retail business model endure all kinds of shocks and emerge highly profitable. “
Used Car News
6/9/2025
Disparate Impact – Continued from page 10
could be a problem.
“Anytime you’re talking about credit-worthiness characteristics – the types of things we generally use to approve an applicant for credit, most of those types of traditional factors have sort of a disproportionate adverse impact on some group or another,” Kramer said.
“That’s, unfortunately, the nature of the beast.”
For example, on average blacks and Hispanics have lower credit scores than non-Hispanic whites and Asians, or younger individuals have lower credit scores than people who are older.
The question is if there’s some type of legitimate business justification if we found disparate impact, Kramer said.
“If there is a legitimate business justification that can be supported, then your disparate impact li -
ability is mitigated,” Kramer said.
We should be able to massage or remove some factors which allow the lender to still have approval rates with good default rates, while also preventing discrimination or disproportionate impact on a protected class, she said.
This is typically a job for data scientists, determining which factors that cause the disparate impact, and looking to see if they can change the outcome. If not, then they should make sure they have good justification for those policies.
“By and large, the vast majority of creditors just want to figure out who’s a good risk,” Kramer said. “You want to do business with as many people as possible. If you’re selling cars, you want to sell as many cars as you can to people that will pay for them.
“I think creditors work very
hard at this.”
In terms of current actions against companies accused of disparate impact, the executive order states: “The Attorney General shall initiate appropriate action to repeal or amend the implementing regulations for Title VI of the Civil Rights Act of 1964 for all agencies to the extent they contemplate disparate-impact liability.” Even with the executive order in place, Kramer doesn’t see creditors ignoring the issue of disparate impact in lending.
If creditors throw out all their analytics used to prevent disparate impact, the policy could be wiped away by the next president and businesses would have to reverse course anyway.
“So in my practice, I haven’t seen anyone that’s saying we don’t care about disparate impact from a ECOA perspective,” Kramer
said. “But this might keep you up less frequently at night (worrying about it).
“I think there’s still a good business case for this regardless.”
The emergence of A.I. and machine learning can be another help in getting credit worthy customers while avoiding discrimination.
Some states also have their own requirements apart from federal laws regarding discrimination, but Kramer’s not aware of which states might have their own version of disparate impact liability.
“(States) would have to see whether or not this would influence what their own policy was,” Kramer said.
California has the Rosenthal Fair Debt Collection Practices Act, but that is directed at abuse or deceptive debt collection practices, not toward the initial creditors.
Used Car News
Auction – Continued from page 3
makes it so much easier for us,” she said. “Before we’d have to identify all the options (visually). We’d have to check what drivetrain the vehicle had. We’d have to climb under the vehicle and assess that. We’d have to decode the VIN ourselves.
That included getting under the vehicle to determine a drivetrain, for example.
“Now, it’s so much easier,” she said. “(The information) auto-populates into the system and the inspector just has to verify it. It makes it a lot more thorough and a lot more efficient.
“We want to do a CR on an average of no more than 12 minutes, for a basic car,” she said. “We do have an in-op lot, or the tow lot. Some cars come in pretty damaged and pretty mangled.
“Those cars probably take anywhere between 15, 20 to 30 minutes.”
Media members also received demonstrations at the 360-degree photo booth used for inspections. Cars drive through the tunnel slowly and as they run over a pad on the ground, the system starts shooting photos. Once it hits the end pad, the system stops and 10-15 seconds later, a green light will signal the next car to come in. Within five minutes, the photos are uploaded.
Prior to the auction tour, Cox executives presented an update to journalists about what they’re seeing in the marketplace.
“As I’m sure you’re all aware, there’s a ton of uncertainty out there,” said Charlie Chesbrough, senior economist.
But the key message he wanted to send to Cox clients and media is that the economy looks strong “today.”
“The economy in the auto market looks good, but it’s really tomorrow that we’re worried about,” Ches-
brough said. “That’s because these tariffs are really going to start to have an impact on the market over the next couple of months.
“We think there’s going to be a situation where the selling pace in both and the new and used market is going to shift into a slower pace in the summer months as higher vehicle prices start to hit the market.”
The boost in activity that started as buyers looked to get ahead of any tariff increases is starting to slowdown, Chesbrough said.
“On the used side, we still see some upward potential,” he said. “We’ve had a good first part of the year, so far, in the used market. It’s going to take a little longer for any slowdown to spill into the used market.
“We had been expecting stronger growth before (the tariffs), so now we’re just expecting a little growth.”
Chesbrough said Cox Automotive
is expressing caution but not trying to spread concern that there’s a collapse coming.
“It’s just going to be a challenging couple of months here over the summer,” Chesbrough said.
The economy is looking good in terms of the consumer price index and inflation is “heading in the right direction.”
The unemployment rate at the time of the presentation was also looking good at 4.2%, steady for about a year.
“So, the unemployment situation remains very, very strong,” Chesbrough said. “There’s no big spike to say that unemployment is rising or a recession is on the horizon.”
The one thing that still worries Chesbrough besides tariffs is that the consumer sentiment index from the University of Michigan shows it’s just above the all-time low of June 2022.
INDIANA
Tina Sink, finance manager, Cars to Go, Lafayette, Ind.
“We’ve been in business since 1997. In 2007, during the recession and the start of the Cash for Clunkers era, we made the strategic decision to transition from a traditional retail lot to a Lease Here, Pay Here.
“In 2025, we’re seeing new-car dealers take significant hits due to recalls and broader manufacturer issues, and while that creates some opportunity for independent dealers, it’s also a sign of shifting consumer confidence. Independent operations that own their property and avoid heavy floorplan debt will be in a stronger position to weather the current slowdown. We’re fortunate to have neither rent nor a large floorplan burden. That said,
we are absolutely feeling the trickle-down effect—2025 has been noticeably slower than usual, and we expect that trend to continue into early 2026 unless broader economic conditions improve.
“We install a tracking unit on every vehicle. In today’s environment, I believe it’s become a necessary part of doing business.
“The majority of our sales—about 80%—are SUVs and CUVs. Sedans make up around 15%, and trucks or vans account for the remaining 5%. Right now, most of our customers are focused less on body style and more on affordability and approval. As long as the vehicle fits their budget and down payment, they’re generally open to whatever we can get them into.
“Our leases go up to 42 months and we set all pay-
ments up depending on how the customer is paid, so weekly, bi-weekly, semimonthly, or monthly. Our DMS (Deal Pack) allows us to manage that easily.
“We have tried to get a little more competitive in the last year and did several 2.5-3.0 year leases to raise the payments a touch. We typically base the term on the miles of the car and the longevity we foresee the car having. For instance, we will not put a higher mile vehicle on the program for 3.5 years.
“Our customers don’t have a preference between imports and domestics. Honestly, half the time we get requests for vehicles that don’t even exist, like a ‘Nissan Acura.’ Since we don’t typically stock many imports, it’s often a case of out of sight, out of mind.
“We buy directly from inperson auctions. In-person
buying gives us the chance to inspect vehicles. We also take in a good number of trade-ins.
“Our average down payment is around $1,200. That said, just about everyone comes in asking for the $500 down minimum option.
“With rising parts and labor costs, we’re now closer to $1,000 per car (for reconditioning).
“Our long-standing goal has always been to ‘sell a car a day,’ which fits the scale of our operation well. We’re averaging 55 to 60 vehicles in inventory, and less than half are retail-ready. Rising parts costs, longer turn times, and increased reconditioning needs have definitely impacted how quickly we can get vehicles ready for sale.
“COVID actually gave me a much-needed break at a time when I was burning out and looking for a way to re-
charge. Our accounts were strong going into the shutdown, and we came out of it just as stable. We paid our staff their full salaries while we were closed, and we deferred over 100 car payments for customers who were laid off and could provide documentation.
“My biggest piece of advice is: get a mentor. I can’t stress that enough. For me, that guidance came from my old 20 Group—those dealers taught me invaluable lessons that helped shape how I operate. Now, as a board member for the IIADA, I’m still learning every day. The insight you gain from someone who’s already made the mistakes and figured out the fixes? It’s truly priceless.
“The most recent vehicle we leased was a 2016 Ford C-Max Energi with 113,000 miles. It went out for $12,995 with $1,500 down.”
Wholesale Markets
6/9/2025
IOWA
Sean McNeal, owner, Plaza Auto Auction, Mt. Vernon, Iowa.
“My first sale as owner was in January of 2024. The auction in August will celebrate its 62nd anniversary, all at the same location.
“Volumes for our last sale of the month are in the 250 to 275 range. We’re a night sale and that last sale of the month is our end-of-themonth party sale so we serve food to the dealers.
“At our recent sale (May 30) we sold in the low 60s not counting any ifs or second chances. So it’s been pretty good. We try to hit that 50% closure rate and anything after that is like riding downhill if that makes sense. It’s been pretty consistent. But January and February we had seven out of eight weeks where we had freezing rain and snow. The
weather was just terrible. We actually had guys sitting outside the doors to scrape the windows of our drivers so they could see before they came in across the block. But March and April were better than last year, so that made it up.
“Generally we’ll run 30 to 40 fleet/lease/repo. We’d like to have one lane that’s just the fleet/lease/repo lane.
“We usually draw 100 in the lanes and 50 to 60 online.
Dealers have felt the first half of May was slow, but they’re still here competing with the new-car guys.
“The bulk of cars selling are in the $3,000 to $6,000, while the repos are in the $10,000 to $15,000 range.
“When we have five sales a month, the middle Wednesday is our powersports sale from April through October. If there’s four weeks, it
will be on the third week of the month. We’ll average 30 to 50 pieces, anything from riding lawn mowers to boats to campers to side-by-sides, motorcycles, four-wheelers, etc.
“In terms of the vibe in the lanes, I think it’s still good. I’ve learned from the time I was a general manager until now as an owner, I can only control what I can control. I just focus on getting as many cars for my dealers as I can.”
WISCONSIN
Kristie Letizia, president, Greater Milwaukee Auto Auction, Milwaukee, Wis.
“We’re celebrating 21 years in business this year. We’re going to have a big anniversary sale July 10, with 1,000 cars running. We’re going to give away all kinds of presents, every dealer is going to get a gift.
“We’re also expanding our fleet presence. We’ve signed J.D. Byrider, Remarketing by Holman and we have our headliner, Ally Financial, who’s been running with us for 15 years.
“We used to be 90% dealer consignment and 10% fleet, now we’re 60% dealer and 40% fleet. Because we have a 26,000-square-foot reconditioning facility, the fleet consignors are interested in us and have found success.
“We’re running five lanes, 500-600 cars per week. We are up from last year, about 23%. We attribute that to the new fleet interest at our site.
“Our conversion rate is steady at about 65%. The reason is fleet consignors bring them in to sell, not to appraise them.
“Our cars average $5,000 across the block.
“We used to have just 7%10% online, now we have
Compiled by Jeffrey Bellant
40% online. We get about 100 dealers online every week and then maybe 150 to 200 in the lanes. That’s a third online, but I think the sellers like to see the action of both online and in-lane (bidders). Online bidders are comfortable with our condition reports. Sometimes they come to look at the cars the night before. Then if they can’t leave their dealership, they can buy online.
“Still the in-lane is strong. We’re in a good location. We’re right inside the city of Milwaukee.
“We also have an onsite test track that dealers like to use, so they’re able to drive the car before they bid on it.
“Our new account, Remarketing by Holman, is committing to an equipment sale with us. We’ll be launching that this summer.
“We’re really optimistic for the rest of 2025.”
ADESA Boston
July 18
508-626-7000
ADESA Charlotte
July 10, 24
704-587-7653
ADESA Chicago
July 18
847-551-2151
ADESA Cincinnati/Dayton
July 22
937-746-4000
ADESA Golden Gate
July 8, 22
209-839-8000
ADESA Indianapolis
July 8, 22
317-838-8000
ADESA Kansas City July 8, 22
816-525-1100
ADESA Lexington
July 3, 31
859-263-5163
ADESA New Jersey
July 10, 24
908-725-2200
ADESA Salt Lake
July 15
801-322-1234
ADESA Tulsa
July 11
918-437-9044
Columbus Fair
July 2, 23 30
614-497-2000
Manheim Atlanta July 10, 24
404-762-9211
Manheim Dallas July 15
877-860-1651
Manheim Milwaukee July 16
262-835-4436
Manheim Atlanta July 10, 16, 24
404-762-9211
Manheim Baltimore Washington July 15
410-796-8899
Manheim Dallas July 2, 15, 16, 30
877-860-1651
Manheim Denver July 16
800-822-1177
Manheim Detroit July 10, 24
734-654-7100
Manheim Fredericksburg July 3, 17, 31
540-368-3400
Manheim Milwaukee July 2, 16, 30
262-835-4436
Manheim Minneapolis July 9
763-425-7653
Manheim Nashville July 1, 2, 29, 30
615-773-3800
Manheim Nevada July 25
702-730-1400
Manheim New England July 22
508-823-6600
Manheim New Jersey July 2, 16, 30
609-298-3400
Manheim Nashville July 2, 30
615-773-3800
Manheim Nevada July 25
702-730-1400
Manheim Palm Beach July 2, 30
561-790-1200
Manheim New Orleans
July 2, 16, 30
985-643-2061
Manheim Orlando
July 1, 8, 15, 22, 29, 30
800-822-2886
Manheim Palm Beach
July 2, 3, 30, 31
561-790-1200
Manheim Pennsylvania
July 3, 10, 11, 18, 24, 25
800-822-2886
Manheim Phoenix
July 3, 17, 31
623-907-7000
Manheim Pittsburgh
July 16
724-452-5555
Manheim Riverside
July 1, 3, 15, 17, 29, 31
951-689-6000
Manheim Seattle July 23
206-762-1600
Manheim Southern California July 10, 24
909-822-2261
Manheim Tampa
July 10, 24
800-622-7292
Manheim Texas Hobby July 10, 24
713-649-8233
Manheim Atlanta July 10, 24
404-762-9211
Columbus Fair
July 2, 30
614-497-2000
Manheim Dallas
July 15
877-860-1651
Manheim Milwaukee July 16
262-835-4436
Manheim Nashville July 2, 30
615-773-3800
Manheim Nevada July 25
702-730-1400
Manheim Orlando July 15
800-822-2886
Manheim Palm Beach July 2, 30
561-790-1200
Manheim Pennsylvania July 10, 24
800-822-2886
Manheim Phoenix July 17
623-907-7000
Manheim Riverside July 3, 17, 31
951-689-6000
Manheim Seattle July 23
206-762-1600
ADESA Boston
July 18
508-626-7000
ADESA Charlotte July 10, 24
704-587-7653
ADESA Golden Gate July 22
209-839-8000
ADESA Salt Lake July 15
801-322-1234
Columbus Fair
July 23
614-497-2000
Manheim Dallas
July 2, 16, 30
877-860-1651
Manheim Pennsylvania July 10, 24
800-822-2886
Manheim Riverside July 3, 17, 31
951-689-6000
Manheim Seattle July 23 206-762-1600
Financial Services*
Manheim Fredericksburg
July 3, 17, 31 540-368-3400
Manheim Milwaukee July 2, 30 262-835-4436
Manheim New England July 22
508-823-6600
Manheim New Jersey
July 2, 16, 30
609-298-3400
Manheim Orlando July 8, 22
800-822-2886
Manheim Pennsylvania
July 11, 25
800-822-2886
Manheim Pittsburgh
July 16
724-452-5555
Manheim Seattle July 23
206-762-1600
Manheim Southern California July 10, 24
909-822-2261
Manheim Atlanta July 16
404-762-9211
Manheim Dallas July 15
877-860-1651
Manheim Milwaukee July 16, 30
262-835-4436
Manheim Palm Beach July 2, 30
561-790-1200
Manheim Pennsylvania July 10, 24
800-822-2886
Manheim Riverside July 3, 17, 31
951-689-6000
Aston Martin logo are owned by Aston Martin Lagonda of NorthAmerica Inc. (Aston Martin) or its affiliates andare licensed to JPMorganChaseBank, N.A. (Chase). Auto finance accounts are owned by Chase.
Twenty-five years ago, I gave the keynote speech at the NIADA convention in Hawaii, celebrating their 50th anniversary – 50th year in the 50th state.
I rationalized then that being a member was well worth promoting to the public, expounding the value of dealing with an accredited association’s member who takes seriously the business to align with NIADA’s ethics and legislative undertakings.
Today that membership means even more – a look at their convention agenda should underscore the breadth and depth of what it takes to be a business allrounder.
I’ve long maintained that a car dealer who takes his business seriously has to be adept at so many disciplines, having at least a proficient understanding in
such things as accountancy, advertising & promotion, inventory management, human resources, training and development, capital management and cash flows, business reporting, national and local market awareness and the list goes on; these days, to include things like knowledge of computer systems and even Artificial Intelligence.
Let’s not forget charity donors – the industry’s largesse is bountiful.
I realize that it’s not always possible to excel so universally, so hiring practices should be added to the list. The public should know!
Back in the early 80s, Carfax started in Missouri selling data to dealers, regarding car histories and title branding. It was a timely undertaking during an era when odometer rollbacks
By Myles Mellor
were not uncommon. It was a tough sell at the time and as I was involved with the auction industry, it behooved us to see a demand for this type of information should be available on a wider scale.
I, along with Gary Dickinson, a colleague who was our group security chief and expert on title issues in most of the states, met with Carfax executives and persuaded them to market to the public direct, creating a ‘pull marketing’ strategy –one that eventually worked to what we see today.
My point is that perhaps the NIADA could have a more public presence, even though they are a trade organization, they could carry a convincing campaign for the public to buy from one of their members.
Success would entice more members and so on.
I believe pride in membership should be promoted at each point of contact – at retail, wholesale, legislative at the state level (perhaps through attendance at the states’ Motor Vehicle Commissions).
I know these things cost a great deal of money but a national fund, matched by the states’ membership associations, could effectively reach the public with a meaningful voice.
Extolling the virtues of a used car dealer may sound like an oxymoron but I’ve always said there are more ladies and gentlemen in the business. We know it – the public should too.
Take another look at their convention agenda to acquaint yourself with what it takes and what is worth national promotion.
Their Quality Dealer Award recipients reflect
the caliber of the folks I’m talking about. They’re outstanding members of society in any sense with reputations to be envied, however judged. I’m sure ad agencies would have a field day with the challenge of positioning this great association in today’s marketplaces.
Tony Moorby
THE SOURCE
WE ARE ROLLI NG INTO Visit Us At BOO TH #811
LEARN HOW COPART IS THE SOURCE FOR BUYING AND SELLING VEHICLES IN ALL CONDITIONS IN ONLINE AUTO AUCTIONS WORLDWIDE.
SALE LIGHTS HELP BUYERS QUICKLY ASSESS VEHICLE CONDITION AND ARBITRATION ELIGIBILITY, MAKING THE PROCESS MORE TRANSPARENT AND SECURE.
