The Independent Auction Group had some humble beginnings as a group within the National Auto Auction Association.
Dave Blake said his participation goes back many years, when the IAG was essentially a sub-committee of the NAAA. Charlotte Pyle, a past NAAA president, served as chairwoman back then, while Blake eventually became a co-chair along with Lynn Weaver.
Blake said his original desire to be part of IAG was the opportunity to serve the independents. He started out his auction career in New Hampshire at the independent Auto Auction of New England.
In 2014, he decided to go West – Northwest to be precise – and joined the McConkey Auction Group as general manager at DAA Seattle.
During this time he continued his work with Pyle and Weaver on the IAG board. In 2018, Weaver was named the group’s first executive director – a new position.
After Weaver served in that post for five years, he announced his retirement in 2023 and Blake became his successor.
“Lynn and Charlotte have been amazing supporters,” Blake said, “and have deeply influenced the industry.
“So when Lynn was ready to retire, I just had this deep passion for the independents and I saw what this group was and what it could be.
“I had a vision and listened to the auctions that were involved and they shared with me where they wanted it to go and that’s what we’ve been doing. It’s exciting.” Blake took over the post at the
start of 2024, and is now early in his second year at the helm.
While Weaver was based in Florida, Blake remains in the Pacific Northwest, based in Gig Harbor, Wash., an hour southwest of Seattle.
“With IAG we’re able to run it remotely from anywhere,” Blake said. “I do a fair amount of traveling in respect to IAG. Visiting different locations and going to different conferences.”
One big change in the transition from Weaver to Blake was the structure of the group.
“IAG is now its own non-profit or-
ganization,” Blake said. “That was something that took place when I took over the director role.”
One of the first orders of business was to make IAG its own entity.
“It works in a key partnership in conjunction– and in a symbiotic relationship – with the NAAA, still,” Blake said. “But now we’re an actually legal non-profit.
The other thing IAG needed was a technical infrastructure, including a revamping of the IAG website, a CRM – which the group didn’t have – as a better way to communicate with its membership.
“We’ve got these core components of things we’re working on and keep consideration on,” Blake said. “Part of it is improving access for our membership. They all can’t travel physically, so there’s training and education that associations provide now (online).”
It’s about finding resources that the independents need which are not currently being provided, he said.
“IAG is the perfect association to fill those gaps,” Blake said. “It’s the same with advocacy.”
Revamping the organization in this way is what Blake calls IAG 2.0.
“Instead of just having a threemember board like before,” he said. “We expanded it to eight, with a president, treasurer and secretary. We also started five committees.”
The first committee IAG formed is the technology committee, Continued on page 3
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Independent Auctions
3/17/2025
Independent Auction Group
because there are a lot of technology companies that service the independents.
“The reason is the independent auction world, over the last several years, has seen a lot of acquisitions, mergers and a lot of movement, an introduction of different types of digital platforms and marketplaces,” Blake said.
This committee allows independents to come together, understand what the tech vendors are providing, what’s their road map forward from a development standpoint and show where the independents needs are in alignment with the tech providers’ solutions.
Even if no two independents are the same, they have the same fundamentals in strong relationships with their consignors and dealer-buyers along with high standards in operational excellence.
“It’s about IAG being a conduit to healthy conversation and collaboration,” Blake said.
In the midst of this, he sees the need for independents to advocate and unite on their shared interests and responsibilities – having their voices heard and their influence felt.
“In the IAG community, there were several independents who were curious about how the IAG served them,” Blake said. “So, I was excited about building the strength of that community and creating some unity within the industry and I think the IAG is a great conduit to a lot of our industry partners like the NAAA, IRA, etc.
“There are a lot of things that NAAA does for the industry, but there are some things that are specific to independent interests.”
In the past, there have always been leaders in the independent auction community who have spoken out and been involved in big issues.
Blake wants to hear from others, too.
“There have been a lot of folks that we didn’t hear from,” he said. “So, we’ve been really pushing to find out more from those auctions that haven’t been involved in conversations and we’ve been inviting them to those conversations. It’s the same with those service providers who haven’t been officially invited but have always been open to it.
“We just want the industry to know that this group is inclusive. I’ve been making a lot of calls to independents to let them know, ‘Hey, this is your association and this as-
sociation will do what you want it to do,’” Blake said.
Creating these committees and other opportunities to get involved, as well as getting industry service providers to get involved is what Blake is focusing on now. He said there are major service providers who serve the big players and go wide. But there are other service providers whose focus is the independent auction.
“So, how do we give them that opportunity?” Blake said. “We’re working on a couple of different membership categories right now. The first is the IAG auction member. We’re also looking at associate memberships and affiliate memberships. We’re looking at how our association is unique, without stepping on anyone’s toes.”
Blake said there is a lot of great training that is already being provided by NAAA along with programs and certification by the Automotive Remarketing Alliance or programs supported by sites like conditionreports.com.
“Then there are subjects that are not addressed which are uniquely important to the independents,” Blake said. “Not just from a high level leadership standpoint. You know, each auction has a tree of hundreds of employees. Where do those folks go for resources more specific to their operational component of the auction?”
At press time, Blake said there are 150 independents, but that’s been a “shrinking model,” with acquisitions that occur on a regular basis.
He said non-independent groups are invited into the conversation even if his focus is on IAG.
Blake said the pace has definitely increased as the group identifies its big vision.
“Every time we make some progress toward our vision, I seem to add 10 more items to the list,” he said. “I’m just so excited about this group. Historically, the independents have been the backbone of this industry. These auctions all started as independents at one point.
“It starts with somebody that’s hardworking, who has a facility and builds relationships, increases their volume and builds a successful business.”
Getting all this “massive” initial data, notes, ideas and feedback together was important as a starting point.
A core group of leaders are leading the new committees, identifying the
– Continued from page 1
direction each wants to go.
IAG has developed committees on technology, education, finance/ budget, marketing/branding and an ambassador committee.
“The ambassador committee works on membership,” Blake said. “It’s a team of people who are there to tell the IAG story, listen and (get feedback) from the industry to expanding and strengthening the membership.”
The committee will also have an “ambassador program,” which will act as a mentorship program.
Marketing and branding is a busy committee, which has come up with a new logo and engages on social media. IAG will have a membershiponly portal along with a library of resources for members. Information like best practices, forums and numerous other helps.
Most of 2024 has been building a new foundation for IAG, while still reaching out and doing things for members and providing value.
“So the train has started and it’s moving,” Blake said. “One of the things I’m so proud of is watching these independents come together to realize this is their association.”
IAG will have a presence at the Conference of Automotive Remarketing this month and Blake praised the support the group has received.
“We have a meeting room for four hours on Thursday (March 20),” Blake said. “During that time, we’re going to have an IAG Connect session for casual business conversation with coffee and donuts.
“We’re also going to meet with GROW (Global Remarketing Opportunities for Women, a program created by ARA), and do some brainstorming ideas on how to support them within IAG.”
IAG will also record interviews with ARA board member Paul Seger and Tom Stewart of Auction Management Services.
Blake is looking forward to 2025. “I’m so optimistic and passionate about the industry and what we can accomplish by being unified,” Blake said. “And being independent is a lifestyle and IAG is all about advocating for that independence and providing the resources unique to them and not available anywhere else.
“There is so much further to go.”
David Blake
News Briefs
ATTORNEY GENERAL
SETTLES WITH DEALER
Maryland Attorney General Anthony G. Brown announced that his Consumer Protection Division has reached a settlement of the civil charges against DARCARS of Bowie Inc. d/b/a DARCARS Honda, its parent company Mariam Inc., and both companies’ owners John Rahmangholi Darvish and Jamshyd Darvish. As part of the settlement, DARCARS is required to refund so-called “sales commission” fees charged to consumers, as well as to refund undisclosed markups and add-on-products that consumers unknowingly purchased. The full amount of refunds due to consumers is not known at this time, but the total could be several million dollars.
“Buying a car is one of the most expensive purchases that someone makes in their life. Marylanders shouldn’t pay even more because of a dealer’s unauthorized sales practice,” said Brown. “This settlement reflects our Office’s commitment to protecting consumers from unfair business practices that violate
the law.” Under the Final Order by Consent entered today, DARCARS is required to refund the “sales commission” fees they charged consumers. Additionally, they must provide refunds to consumers who submit valid claims for the difference between the advertised price viewed by consumers and the sale price of the vehicle for those who purchased or leased a vehicle from DARCARS Honda between January 2019, and May 10, 2022. They must also refund amounts consumers paid on or after Jan. 1, 2019, for any add-on products the consumer did not knowingly purchase. The Final Order by Consent further requires that DARCARS refrain from charging any so-called sales commission fees or any similar fees. They may not advertise vehicle prices for less than the full delivered price, excluding fees for taxes, tags, and title, and must include markups and charges for equipment in the advertised price.
DARCARS is also required to disclose any dealer processing charge close enough to an advertised price so that the viewer can see it at the
same time. Price statements must be placed on all vehicles offered for sale, and no sale may be completed without first providing the purchasing consumer with a contract that reflects a description of all charges making up the difference between the base price of the vehicle and the sale price. Additionally, DARCARS may not offer or sell any addon products to consumers unless they first clearly and conspicuously disclose the total selling price of the vehicle without any added cost or charges for the add-on products. The consumer’s decision to purchase the product must also be separately documented in writing. Consumers eligible for refunds will be contacted by a third-party claims administrator.
CARFAX REPORTS CALIF. FIRE LOSSES
As wildfires ravaged Southern California, many evacuees were forced to abandon their cars, sometimes in the middle of streets. CARFAX data estimates up to 6,300 vehicles were destroyed in the fast-moving flames that raged across Los Angeles, Malibu, and Altadena, which sits just north of Pasadena.
The deadly Palisades, Hurst, and Eaton wildfires damaged thousands of homes and buildings and left many acres of land scorched. In some cases, metal parts from deserted cars melted into the ground, while news reports showed first responders bulldozing vehicles off the streets to create a clear path for emergency vehicles.
“It’s heart-wrenching to witness the scale of destruction in California, and it’s difficult to even begin thinking about replacing what’s been lost,” said Patrick Olsen, Editor-in-Chief at CARFAX.
In the wake of the recent blazes, the urgent need to replace thousands of cars lost, combined with several other shifting economic factors, could lead to an unexpected increase in car prices on the West Coast, especially as residents begin returning to Los Angeles, the second-largest car market in the U.S., behind New York City.
In support of those affected by the California wildfires, team members at CARFAX have donated to aid in relief efforts.
“It’s heartwarming to see our teams come together to support the relief efforts in California,” said Laura Hutchinson, a team member who contributed. “Our thoughts are with everyone affected, and we hope for a rapid and resilient recovery.”
Auto Finance
Used Payments Decrease as Delinquencies Rise
By Jeffrey Bellant
Used-vehicle financing saw positive trends while used loan-to-value amounts were down across all credit risk segments, according to Experian’s Q4 State of Automotive Finance Report released this month.
The average loan amount for a used vehicle decreased $344 yearover-year to $26,468 and the average monthly payment dropped $10 to $525 over the same period. Similarly, the average interest rate declined from 11.97% to 11.62%.
The average used vehicle loan term was just under 67 months, nearly the same as last year. The longest term average was 68 months for both Near Prime and Prime.
Despite the lower average loan amounts and monthly payments, all risk segments experienced declines in used vehicle financing.
Melinda Zabritski, Experian’s head of automotive financial insights, reported that over 55% of used transactions came through franchise dealers, compared to 45% from independents, which fell slightly from 2023.
On the independent side, more than 34% of used-car loans were funded by buy-here, pay-here/other, while 28% were funded by traditional finance companies and 15.5% of used-car loans were funded by banks. Credit unions made up nearly 22% of independent used-car loans.
For overall used loans, banks made up nearly 29% of the financing, slightly above credit unions at 27%. This compares to 2022, when credit unions topped all used lenders at 31%, while banks were less than 27%.
By state, Kentucky had the largest share of their vehicle purchases on the used side at more than 85%, while Vermont was the lowest.
Used vehicle purchases showed an uptick in both the subprime and super prime categories. Still 37% of all used loans were in the prime category, with super prime making up almost 23%. Both near prime buyers and sub-prime buyers made up less than 19% each of the lending marketshare.
The average used loan amount financed dipped by 1.28% in 2024. However, 2024 Q4 saw an increase of 0.47% compared to Q3.
In terms of dollars, averaged used loan amounts dipped in 2024. Across all used loan amounts
Auction News
Wholesale Prices Dip But Conversion Rates Rise
Wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) dropped from January in the first 15 days of February. The mid-month Manheim Used Vehicle Value Index fell to 203.3, now showing a decline of 0.2% from the full month of February 2024.
The seasonal adjustment countered the February non-adjusted price increase.
The non-adjusted price change in the first half of February rose 1.0% compared to January, and the unadjusted price is up 0.4% year over year.
The average move for the month of February is an increase of nearly a full percentage point on non-adjusted values, indicating the appreciation observed thus far is lower than normal and the reason for the negative seasonal adjustment.
Over the last two weeks, the Manheim Market Report (MMR) prices
in the Three-Year-Old Index increased by an aggregate of 0.1%, which is weaker than increases we have seen over the same weeks in recent years.
Over the first 15 days of February, MMR Retention, the average difference in price relative to current MMR, averaged 100.1%, indicating that valuation models have moved closer to market prices early in February.
MMR retention is three-tenths of a point higher compared to the first half of February 2024.
The average daily sales conversion rate of 59.8% in the first half of the month was almost 2 points higher than last year’s level of 57.9%, and it is above the first half of February 2019 by more than 6 points.
While early February conversion is above the comparison of early 2019, it’s below 2021 and 2023 levels.
Major market segments saw mixed
results for seasonally adjusted prices year over year in the first half of February. Compared to the industry’s year-over-year decrease of 0.2%, luxury performed best, rising by 0.4%. The 0.2% decline in SUVs was in line with the industry.
All other segments were lower year over year, as pickup trucks declined 1.0%, mid-size cars were down 3.1%, and compact cars were down 4.7% over the period.
All segments were down compared with the results at the end of January.
The overall industry decreased 1.1% against the prior month, while pickup trucks and midsize cars performed better than the overall industry, decreasing by 0.3% and 0.7%, respectively. SUVs performed the same as the overall industry, declining 1.1%.
Showing more depreciation than the industry overall, luxury declined
1.3%, and compact cars fell 1.5% against the prior month.
Electric vehicles (EVs) continue to exhibit the highest depreciation levels. EVs were down 6.4% against February 2024, while the non-EV segment was down by 0.9%. Against January values, EVs decreased by 0.4% in the first half of February, while non-EVs were down by 0.9% in the month
Leveraging Manheim sales and inventory data, wholesale supply ended January at an estimated 27 days, down four days from the end of December and flat compared to January 2024, also at 27 days.
Wholesale supply continues to hold tighter at this time of year, running six days lower than the longerterm levels for this week.
As of Feb. 15, wholesale supply was unchanged from the end of January, at 27 days, and was flat versus last year.
Vehicles Priced to Sell
Industry Trends
Auto Finance – Continued from page 5
– both independents and franchises – more than 33% of the monthly loan payments are less than $400.
More than 37% of independent used loans had monthly payments less than $400, while 20% were between $400-$499, nearly 18% were between $500 and $599 and nearly 12% were $600-$699 on the independent side.
Used loan amounts increased for Super Prime and Deep Subprime while payments are down for all risk segments except Deep Subprime, which were $538.
Used values increased for all segments, except Near Prime and Prime.
Experian reported average clean retail used values were $25,800.
Loan-to-value figures were down across all used vehicle segments, with Deep Subprime dropping over 6%.
For used vehicle financed, the
Deep Subprime segment saw an average loan rate of nearly 22%, while sub-prime was just over 19%. Prime and Super Prime had rates under 10% while Near Prime was at 14%.
Nearly 70% of used loan terms were 72+ months, with scores increasing across most terms.
However, used vehicle loan rates decreased across all terms. Average used rate by term was about 11.92% for terms 1-48 months; 10.44% for 49-60 months; 12.36% for 6172 months and 11.17% for 73 to 84 months. Loans 85 months and longer had an average term of 9.22%.
Experian showed growth in the total amount of all loans in the Subprime and Super Prime segments.
Experian showed 30-day delinquency balances up 12 basis points and 60-day delinquency balances were up 4bps.
Used vehicle loans saw 1.76% rates of 60-day delinquencies, with inde-
pendent dealers showing a 2.14% of 60-day delinquency rates.
Gasoline powered vehicles had the highest 60-day delinquency rates at 1.47%, compared to 0.55% for gas/ electric hybrid, 0.54% for plug-in hybrids and only 0.28 for EVs.
On the new vehicle side, the report showed more financing is comprised of late-model vehicles (model years up to three years old).
More than 66% of loans were for vehicles up to three model years old in Q4 2024, up from 63.92% the previous year.
Part of the shift could be attributed to lower interest rates and average monthly payments for new vehicles. While the average loan amount for a new vehicle experienced a modest increase during the quarter reaching $41,572, up $1,088 from the previous year, the average monthly payment decreased $1 to $742. The stability in average monthly payment is likely
driven by the decrease in interest rates during the quarter. In Q4 2024, the average interest rate for a new vehicle was 6.35%, down from 7.16% a year ago.
Experian’s report showed EVs are becoming a large part of the lease market.
More than 50% of new EV purchases were leases, and EVs accounted for nearly 20% of all new vehicle leases during the quarter. By comparison, EVs only made up 2.11% of new vehicle leases in Q4 2020.
“Leasing has always been a costeffective alternative for consumers hoping to drive away with a more palatable monthly payment — EVs are no different,” Zabritski said.
“But it’s not just affordability. Leasing offers consumers the opportunity to buy an EV without worrying about the potential resale value down the line.
NIADA sent comments to the Montana Senate Energy, Technology and Federal Relations Committee in opposition to the proposed Senate Bill 364, which would limit the use of starter interrupt devices.
The bill filed by Kenneth Bogner (Republican) would require a warrant to activate the starter interrupt device on a vehicle, NIADA reported
NIADA argued the bill would harm consumers and dealers in the state if approved in its current form.
“A number of used car dealers serve customers with limited access to credit. These dealers originate the loan for used vehicles and also are the lienholder after the sale. With the consumers’ written consent, the lienholder legally places a starter interrupt device (referred to as a “kill switch” in
SB 364) on the collateral.
“This allows lenders to protect their interest and give access to credit that many subprime customers would otherwise not have,” NIADA said in its letter to the committee.
“In the event a consumer defaults and a starter interrupt device is activated, it allows the lienholder and the consumer an opportunity to work out a quick and financially feasible solution.
Requiring a court order to activate a device will prolong the process and cost lienholders and consumers more money. In the event a lienholder has to repossess a vehicle due to nonpayment, the starter interrupt device creates a safer environment and reduces risk to the public.”
NIADA has had conversations with Bogner about amendments to the bill to protect dealers that
could be introduced as the bill moved to the House of Representatives.
The committee voted 13-0 in favor of the bill.
Treasury Suspends Enforcement
The U.S. Treasury Department announced it has suspended enforcement of the Corporate Transparency Act, which would have required companies to file beneficial ownership documents with the Financial Crimes Enforcement Network, the NIADA reported this week. The announcement from U.S. Secretary of Treasury Scott Bessent followed a recent court ruling that would have required businesses to comply with the CTA and file the documents by March 21 or face penalties.
The treasury department an -
nounced it would not enforce any penalties or fines against U.S. citizens or domestic companies.
The department will also be working to narrow the scope of the rule to “foreign reporting companies.”
The announcement did not define foreign reporting companies.
“This is a victory for common sense,” Bessent said in a press release. “Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.”
NIADA will continue to update members on changes with laws and regulations and urges members to stay abreast of happenings in the industry through its weekly Dashboard emails and UCD magazine.
Used Car News
3/17/2025
BHPH, Compliance Conferences ‘Unite’ in Las Vegas
By Jeffrey Bellant
Two automotive conferences will unite for a jam-packed event in Sin City April 22-24.
BHPH United Summit – now in its fourth year – was formed for the sole purpose of providing education and resources to Buy Here Pay Here dealers. Its founding partners are Buckeye Dealership Consulting, Ignite Consulting Partners, Ituran USA, Primalend Capital, Tax Max, Big Time Advertising & Marketing, and Auto Master Systems.
However, this year Ignite Consulting Partners, which had held its own Compliance Unleashed spring conference in previous years, will now be part of the BHPH United Summit event at Caesar’s Palace in Las Vegas, providing a one-two punch for dealers looking to get dealer education and firm up their compliance muscles in the fight against regula-
tors and plaintiff attorneys.
Steve Levine, owner and chief legal and compliance officer for Ignite Consulting Partners, will bring a slate of sessions on advertising, regulatory challenges, the CARS Rule and panel discussions.
Another legal eagle, Shaun Petersen. executive vice president and chief legal officer for Buckeye, will join Levine for critical discussion on what’s hot and what’s not when it comes to regulatory action and the activities regulators are most likely to examine.
BHPH United also offers peer-topeer learning with a dealer open forum, allowing dealers to pose their toughest questions and challenges to industry experts.
The 2025 Summit also introduces “The Garage,” a first-of-its-kind interactive workshop series designed to give dealers practical, real-world training.
Topics include winning strategies for credit reporting and disputes; a live vehicle walkaround with ACV’s Matt Arias; live sales, service and collection call evaluations to make sure your staff is doing everything it can to succeed on the phone; Big Time Advertising will hold a session on AI-driven marketing; a Spanish lan guage training track and sessions on internal controls, GPS installation and compliance accountability.
Other featured speakers include: Dave Andrews, CEO of City Enterprises, discussing how to build a strong culture by attracting and keeping top talent, while boosting accountability.
Jack Carter, owner of Turn and Burn Motors in Georgia, will give techniques on how to find the right vehicle, at the right time, for the
customer.
Leo Albarran, general manager of Byrider Springdale in Arkansas, focuses on empowering your managers to excel, sharing practical ways to set clear goals, and enhance communication, motivation and decision-making. He will also discuss how to hold managers accountable and give them tools to succeed.
right
Used Car News
3/17/2025
NY Dealer Receives Fine, Probation for Tax Scheme
NEW YORK – New York Attorney General Letitia James and Acting Commissioner of the Department of Taxation and Finance Amanda Hiller earlier this year announced the sentencing of Guy Kennedy Nicolas of Colonie, N.Y., and his business, G&A Auto Care Inc., for stealing over $160,000 in sales tax by underreporting more than $2 million in taxable sales.
An investigation led by the Office of the Attorney General found that Nicolas failed to file annual sales tax returns for his car dealership business for all but two years from 2013 to 2023.
Nicolas and his company pleaded guilty to felony charges in November 2024 and judgments were entered against them requiring them to pay back the full amount of the stolen sales tax. Nicolas was also sentenced yesterday to five years of probation.
“When New York businesses fail
to pay taxes, they cheat New Yorkers out of critical resources that support education, health care, transportation, and other essential services,” said Attorney General James.
“Guy Nicolas and his business violated the law and failed to pay over $160,000 in sales tax, and he was ordered to pay back what he owes. My office will continue to hold anyone accountable who attempts to defraud the tax system and cheat hardworking New Yorkers.”
“We appreciate the efforts of the Attorney General’s office in prosecuting those who seek to evade tax laws,” said Hiller. “This case and others like it will help level the playing field for honest business owners across the state.”
“The sentencing of Mr. Nicolas sends a strong message that dishonest business practices will not be tolerated in New York State,” said New York State Police Superintendent
Steven G. James.
“This sentencing demonstrates that collaborative work among law enforcement partners is vital in reaching the same goal: holding those who break our laws accountable. I thank the Attorney General’s Office and the Department of Taxation and Finance for their shared commitment to investigating those who deceive others for their own gain.”
As the owner of G&A Auto Care Inc., Nicolas was the sole person responsible for sales tax at his business. Nicolas was required to report all taxable sales, including sales of cars, from his dealership and file sales tax returns on at least a yearly basis.
A joint investigation by OAG, DTF, and the New York State Police (NYSP), with assistance from the New York State Department of Motor Vehicles (DMV) found that from
at least 2013 through 2023, G&A Auto Care Inc. and Nicolas failed to file all but two annual sales tax returns. According to an audit conducted by OAG, between June 2013 and March 2023, Nicolas failed to report more than $2 million in total sales and stole over $160,000 in sales tax due.
In November 2024, Nicolas and his business pleaded guilty to Grand Larceny in the Second Degree, a class C felony. Yesterday, G&A Auto Care Inc. and Nicolas were sentenced in Albany County Court before Judge William T. Little. Nicolas was sentenced to five years of probation, and G&A Auto Care Inc. was sentenced to a three-year conditional discharge. As part of their sentences, both defendants admitted to the full amount of sales tax owed and had judgments entered against them requiring them to pay back the $160,000 owed to the state.
Retail Markets
3/17/2025
LOUISIANA
Scott Rabeaux, owner, Rabeaux’s Auto Sales, Lafayette, La.
“We’re family-owned and we’ve been in business since 1973.
“Even before COVID we were doing more online. Around 2010-2015 everything started going online.
“We keep about 80 vehicles in inventory. We sell about 30 a month.
“We do a little more on truck (sales) than cars, it’s about half and half.
“I don’t think my customers have a preference, import or domestic.
“We spend about $1,000 on reconditioning. We sub out the work.
“We do not do any buyhere, pay-here.
“Our average downpayment is three grand.
“We still go to auctions in person, very seldom do we
buy online. I want to touch them, I’m old school.
“We’re not really looking for an average age of a car.
“My tip for anyone starting out in this business: good luck!”
“We have a wide range of pre-owned vehicles from brands like Ford, GMC, and Ram.
“We serve the communities in Lafayette, Lake Charles, and Baton Rouge.
“At our dealership, we prioritize three fundamental qualities: quality, honesty, and customer service.
“We stand unwaveringly behind the quality of our vehicles, ensuring that each car on our lot meets stringent standards for performance, safety, and reliability.
“The last car I sold was a 2004 Chevy SSR. It had 35,000 miles and we sold it for $23,000.
VIRGINIA
M’lissa Dunn, owner, Dunn-Rite Auto Group, Kilmarnock, Va.
“We have been in business since July 2004.
“I worked for a criminal attorney for about 10 years and I became a paralegal. My boss made the remark, ‘you should go back to school and become an attorney.’ So, I was putting in applications for law school when my husband’s employer went under. It was a life-changing matter of days, literally. My husband said, we have to do this now (start a dealership) or I have to go work for someone else. So, we did it.
“First, we had a repair shop. When my husband would finish a job, he would line the cars up to let people know their car was finished. Well, he would line them up so nicely, people would stop and ask if they were for sale.
So, my husband said there’s a need for pre-owned vehicles down here.
“My husband Randy is the brains of the organization. We’re a Christian family and when people ask me what I’m doing, I say, ‘I’m with him.’ We’re getting ready to celebrate 41 years of marriage.
“I was recently named Virginia’s 2024 Quality Dealer of the Year.
“We keep between 25 and 30 vehicles in inventory. We sell between 12 and 15 a month.
“Before COVID we had never done online buying. But we found now that some auctions are better than others. They have a responsibility to their customers. Some vehicles will run week after week and it got to a point where I turned around when I saw the same vehicle and I yelled up to the auctioneer:
Compiled by Ed Fitzgerald
‘Have you fixed the problem that it failed for last week.’
“As far as reconditioning, this is how we approach a vehicle. If any part of the vehicle has 50% or more of wear: tires, brakes, hoses, it gets replaced. We have a company that comes in and does the detailing. I’m not going to take one of our $110 an hour shop workers to detail a car.
“When we started, I had the sales lot and my husband had the shop. I steamcleaned engines. I’m going to open anything that can open and clean it. Men don’t seem to find all those areas that women can find.
“Our town is Mayberry. The police come around and leave us a note saying we checked your doors and everything was locked.
“The last car we sold was a 2022 Kia Telluride, with 68,000 miles.”
Wholesale Markets
3/17/2025
PENNSYLVANIA
Clint Weaver, general manager, America’s Auto Auction – Harrisburg, Mechanicsburg, Pa.
“We’ve been in business 43 years.
“We re-use our lanes for different things, whether it’s for dealer vehicles, trucks or in-ops.
“Last year was a great year for us.
“The end of January and into February were a little tough because we had some weather here. A couple of sales we just did digital sales because of the snow and ice. We had a couple of sales where we didn’t get hit with weather, but all around us did which slowed down the dealers getting cars to us and so on.
“The last couple of weeks we saw an uptick in the market and I’m hoping we get a couple of more good weeks
like that before we get into the summer market.
“We’ve run about 1,100 units the last couple of weeks. (Our mix) is probably 60/40, dealer to fleet/lease.
“Repos are through the roof. They continue to flow in. Nothing’s slowing down. We’re actually looking for more property at the moment to handle more repos. We’re adding transporters and outside mechanical shops to keep up with the clients’ needs. There’s no end in sight.
“Conversion rates were tough in February, as I was saying. They were in the high 50s. But (Feb. 27) we were at 76% and then on March 6 we were at 69%.
“We had 654 bidder badges on March 6 and 350 were online. We still have an oldschool feel and try to pack our lanes with people, but it’s not shoulder-to-shoul-
der the way it used to be.
“Our average price across the block has fluctuated anywhere from $7,000 to $8,000.
“We also do a heavy-duty truck and equipment sale on the last Thursday of the month. In the spring and summertime, we get into the motorcycles, boats and RVs.
“We’ve got our anniversary sale coming up April 3, where we’ll have our big spring sale and we’ll have classic cars, motorcycles, campers and everything.
TEXAS
Lisa Franz, general manager, Big Valley Auto Auction, Donna, Texas
“We’ll have our 17th (anniversary) in September.
“We ran 600 (units) today, and during our busier times we’ll run 650 or 675. But we’re typically 450 or 500.
“Today we sold 66%, but
we still have some ifs (at press time). I expect that to go up.
“We ran the average prices the other day and it was about $13,000. The average vehicle we run are the nicer dealer cars. We have a lot of fancy, expensive trucks in Texas. They’re beautiful, especially down here. We don’t have the salt. We’re far enough off the water that we don’t have the issues with salt like Corpus has. They tend to be pretty rough with a lot of salt. You’d be amazed at the difference with the cars when it comes to salt.
“Today we had 158 bidders online and 341 in the lane.
“Dealers are still saying it’s slow. That surprises me because they’re buying like crazy, but they’re saying it’s slow on their lots.
“About two weeks ago, dealers had seen the first round of checks going out.
Compiled by Jeffrey Bellant
They felt like those tax checks were hitting, so that was good.
“Today, we ran about 1/3 (commercial/fleet/lease/ repo) and 66% dealer cars.
“We still run for Exeter and won Auction of the Year last year. We run Credit Acceptance Corp. and won an award from them this year. We also run for Kinetic, One Main Remarketing and Lobel.
“Repos are picking up. They’re definitely picking up.
“We’re dealing with a lot more commercial vehicles. We’re trying to scale and do it well. We’ve been doing a lot of internal reflection on this. It’s incredible how much this has grown. We handle 600+ cars fine. But we’re looking at our overall structure and hiring new people to do a few new jobs. I’m definitely hiring.”
3/17/2025
2020
ADESA Boston April 11, 25
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561-790-1200
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800-822-2886
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951-689-6000
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404-762-9211
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614-497-2000
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877-860-1651
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262-835-4436
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615-773-3800
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702-730-1400
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800-822-2886
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Manheim Pennsylvania April 3, 17
800-822-2886
Manheim Phoenix April 24
623-907-7000
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951-689-6000
Manheim Seattle April 2, 30 206-762-1600
ADESA Boston April 11, 25
508-626-7000
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704-587-7653
ADESA Golden Gate April 1, 29
209-839-8000
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Financial Services
Manheim Fredericksburg April 10, 24
540-368-3400
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262-835-4436
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508-823-6600
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609-298-3400
Manheim Orlando April 1, 15, 29 800-822-2886
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404-762-9211
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877-860-1651
Manheim Milwaukee April 23
262-835-4436
Manheim Pennsylvania April 4, 18
800-822-2886
Manheim Pittsburgh April 23
724-452-5555
Manheim Seattle April 2, 30 206-762-1600
Manheim Southern California April 3, 17 909-822-2261
Manheim Palm Beach April 9
561-790-1200
Manheim Pennsylvania April 3, 17
800-822-2886
Manheim Riverside April 10, 24
951-689-6000
Tony Moorby
As one who treats exploring new technology in the same way as walking on thin ice in a lake, I trepidatiously took a few steps to find out about Artificial Intelligence and its effects on everyday life.
This sudden curiosity was spurred by a meeting on the subject within our community. A few of us get together every now and then and listen to guests on subjects that range from A to Z. Most of the entertainment comes from the question-and-answer sessions! They do wonders to keep mental acuity honed.
So, we had a local business development guru talk about AI and I have to say that having approached the meeting with much skepticism, I was surprised that I could be easily fascinated by it.
Thus far, ordinary folk like me have been exposed to the potential downsides of AI; altering stories or pictures to
taint the reputations of otherwise upstanding members of society. Concerns over bending the truth, privately or publicly or even politically have already created an enormous amount of caution and confusion over any benefits it offers.
Our presenter pointed out that if the future of AI were to be expressed as a twenty-fourhour clock, then we would be sitting within the first few seconds of its capable future. It’s going to be HUGE, gamechanging, life altering, even to the extent of changing the structure of how society lives. While most people want to protect their lifestyles and hug them like Teddy Bears, we don’t want to contemplate a future that we can’t yet fathom. It’s gonna be scary!
In our discussions, we took that protective stance and postured that AI would take away jobs. It will – big time and eventually millions of
By Myles Mellor
jobs will go away, or change and morph into something more efficient, productive and expand the current capacities of human endeavor to neverbefore-contemplated scales.
Think of how the Industrial Revolution took manual labor jobs away from farmyards and parlors, the high street and the smithy. Things that were made or done locally, one at a time, now being produced all day, every day and everywhere at less cost to the access of everyone.
When I was in sales at a dealership in North London, part of my management training program was to develop a customer follow-up system –no computers in 1968 – Rolodex Files and 2” by 3” cards were the ‘brain’. The newest customer predictive systems will be able to tell you when Mr. Farnsbarns is next going to use the toilet, never mind buy a car.
Amazon knows when you get up in the morning and will tell you it’s time to order more meds. They can tell more about you than you know yourself from billions of data points. Google’s at it. God knows what Elon Musk is capable of!
Our presenter offered a proposition – let’s design a marketing plan to open a new company; so, he asked us, the audience of know-nothings, to suggest the goofiest, most unlikely company to start. My neighbor, tongue in cheek, suggested a new gymnasium for shrimps (not the wimpy men kind, the sea-dwelling kind). So, we developed a plan, expenditures, staffing roster, advertising themes and placements, a character as advertising figurehead and a logo. A profit and loss summary was next. But get this; AI did all of this in three and a half minutes!!!
Budgeting for a dealership was a month-long drag, especially when all the help you got was from a slide rule (most of our readers won’t know what that is) to figure out percentages for performance comparisons and so on. AI would probably achieve the same in ten minutes. Just sayin’!
We are proud to announce the winners of the 2024 Auction Excellence Awards, recognizing auto auctions for outstanding success in the areas of operational excellence, strategic planning, customer service, value achievement and residual enhancement. There’s no doubt these top performers are the real deal.
The winners of the 2024 Auction Excellence Awards are:
RETAIL CATEGORY
NATIONAL AUCTION OF THE YEAR ADESA Charlotte
REGIONAL AUCTION OF THE YEAR
CENTRAL REGION Manheim Dallas
MIDWEST REGION Manheim Minneapolis
NORTHEAST REGION ADESA Concord
SOUTHEAST REGION ADESA Charlotte
WEST REGION ADESA Boise
LEASE CATEGORY
NATIONAL AUCTION OF THE YEAR Manheim Dallas
Congratulations to the winners for using our high-quality inventory to achieve exceptional results.
