Used Car News 10/19/15 by General Media LLC

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Cox Automotive Closes Dealertrack Purchase

Cox Automotive Inc. has completed its acquisition of Dealertrack Technologies Inc. in an all-cash deal.

The deal closed on Oct. 1, several months after it was originally scheduled to close.

Creditor Enters New Warehouse Facility

Credit Acceptance Corp. announced the completion of a $75 million revolving secured warehouse facility with an institutional investor.

The company’s contractual relationships with its dealers remain unaffected, with the dealers’ rights to future payments of dealer holdback preserved.

Wholesale Prices Rise In September

Wholesale used vehicle prices increased for the fourth consecutive month in September.

This brought the Manheim Used Vehicle Value Index to a reading of 124.8, representing an increase of 2.8 percent from a year ago.

Dealer Aids Rainsoaked Community

By Ted Craig

Dealers in the Carolinas are rallying to the aid of South Carolina’s residents following the devastating ﬂoods in the state.

The Carolinas Independent Automobile Dealers

Association is asking for donations from its members and local auctions to help those in need.

Luke Godwin, the president of the association, is leading by example.

Godwin owns Godwin Motors in Columbia, the

state’s capital and center of the hardest hit region.

The area received almost eight inches of rain in 24 hours the ﬁrst weekend in October.

The 1,000-year storm ﬂooded towns, destroyed dams and caused bridges to collapse.

“Monday was bad for everybody,” Godwin said.

He went down to his store, which was spared any damage because of its location, to see if he could help out those in need.

Continued on page 6

CFPB Mulls New Arbitration Rules to Make Class Action Easier

The Consumer Financial Protection Bureau is considering proposing rules that would ban consumer ﬁnancial companies from using arbitration clauses to block classaction lawsuits.

The bureau is publishing an outline of the proposals in preparation for convening a Small Business Review Panel to get feedback.

This is the ﬁrst step in the process of a potential rulemaking on this issue.

The proposals being considered would ban companies from including arbitration clauses that block class-action lawsuits in their consumer contracts.

This would apply to most consumer ﬁnancial products

and services that the CFPB oversees, including certain auto loans.

The proposals being considered would allow arbitration clauses as long as they explicitly state that they do not apply to cases ﬁled as class actions unless a court denies classaction certiﬁcation or dismisses the claims.

The proposals under consideration would also require that companies that choose to use arbitration clauses for individual disputes submit to the CFPB the arbitration claims ﬁled and awards issued.

The Bureau is considering publishing the claims and awards on its website so the public can monitor them.

(See more about the CFPB inside.)

Photo by The Associated Press

EXTENDED ARBITRATION

Now available through December 31, 2015

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è Select CarsArrive for transportation at time of sale.

Extended arbitration applies to eligible vehicles purchased on DealerBlock and transported by CarsArrive Network: Buyer has 48 hours from the delivery date on bill of lading to arbitrate. Type 1 transport only; buyer must select CarsArrive at time of sale. Transaction must be paid within three (3) days of sale; sale date equals day one (1). If day three (3) falls on a weekend or holiday, payment must be received by the next business day. Offer applies to offsite vehicles only; ADESA “at auction” units are not included. Valid through December 31, 2015.

New Federal Regulations Place Cars Out of Reach

By Jenny King

DETROIT – Government actions afecting vehicle

ﬁnancing and the fuel efﬁciency of future cars and trucks will have unintended consequences. They will make it more difcult for thousands of consumers to purchase the vehicles they both need and desire.

New York multi-franchise dealer Bill Fox, who currently serves as chairman of the National Automobile Dealers Association, told members of the Automotive Press Association here recently that federal regulations as well as proposed ones will impact the ability of consumers to buy new and used cars at prices they can aford.

The 2013 Consumer Financial Protection Bureau guidance threatens to eliminate a dealer’s ﬂexibility to discount auto loans in the showroom, Fox said.

By limiting auto loan competition, this guidance “will likely raise the cost of credit for car buyers,” he said.

“Consumers always have

the right to seek a better deal,” Fox said. Dealer-assisted ﬁnancing is threatened by the CFPB stand.

As many as 80 percent of new-car buyers take advantage of the one-stop shopping dealer-assisted ﬁnancing ofers.

“It would lead to higher interest rates for customers,” said Fox.

NADA is lobbying Congress to pass a bill (H.R. 1737) that would rescind the 2013 ﬁnance guidance.

The fuel economy standards issued by EPA and NHTSA that raise the average fuel economy requirements for light vehicles to 54.5 miles per gallon by model year 2025 will greatly increase the cost of each new vehicle, Fox said.

“It would add $3,200 to the average price of a new car and could push seven million consumers out of the new-car market,” Fox said.

NADA expects sales of 17 million new cars and 12 million used vehicles by its members this year.

“We need to keep auto retailing afordable for car buyers,” Fox said.

Westlake’s Collection Practices Draw CFPB’s Scrutiny

The Consumer Financial Protection Bureau announced an enforcement action against Westlake Services LLC and its auto title lending subsidiary, Wilshire Consumer Credit LLC, for pressuring borrowers using illegal debt collection tactics.

The CFPB found that the companies deceived consumers by calling under false pretenses and using phony caller ID information, falsely threatening to refer borrowers for investigation or criminal prosecution, and illegally disclosing information about debts to borrowers’ employers, friends and family.

The bureau ordered the companies to overhaul their debt collection practices and to provide consumers $44.1 million in cash relief and balance reductions. The companies will also pay a civil penalty of $4.25 million.

This is a practice known as “spooﬁng.”

“There’s no excuse for lying to your customers, and today’s action will provide millions of dollars in relief for borrowers caught up in Westlake and Wilshire’s deception,” said CFPB Director Richard Cordray.

“Consumers struggling to pay their bills deserve to be treated with respect, not subjected to illegal threats and deceptive phone calls” Richard Cordray

In a release, Westlake said it consented to the order to avoid lengthy and costly litigation.

The CFPB found that Westlake and Wilshire deceived borrowers into thinking they were being called by repossession companies, other third parties, or even the borrowers’ own family and friends.

“Consumers struggling to pay their bills deserve to be treated with respect, not subjected to illegal threats and deceptive phone calls. We will continue to clean up the debt collection market and root out these illegal and inexcusable practices.”

The CFPB’s investigation found that the companies’ debt collectors used a web-

based service, Skip Tracy, to place outgoing calls and choose the phone number and caller ID text that the call recipient would see.

Since January 2010, Westlake and Wilshire debt collectors have used Skip Tracy to place or receive calls associated with over 137,000 loan accounts.

Some fake accounts presented themselves on caller IDs with terms such as “Pizza Delivery” and “Flower Shop.” Employees would then asks questions to get information about where a car was located so it could be repossessed.

The CFPB said that when consumers returned some of these calls they were told they were coming from a repossession company, rather than an attempt to collect on a ﬁnance contract.

The bureau also found that the companies unlawfully disclosed information about borrowers’ debts to employers, family and friends.

The companies also failed to disclose the annual percentage rate on certain loans as required by law.

In some cases, the companies changed the due dates or extended the terms of loans without borrowers’ permission, causing more interest to accrue, while telling consumers that the extensions would have a positive efect.

These practices violated the Fair Debt Collection Practices Act, the Truth in Lending Act, and the DoddFrank Wall Street Reform and Consumer Financial Protection Act.

Westlake stated these practices were ceased long ago.

Westlake also states it has voluntarily taken a number of steps since 2010 to enhance its operational compliance program and improve its compliance management system. This includes hiring a chief compliance ofcer with experience using compliant debt collection practices.

Photo by Jenny King

DEFENDING DEALERS: NADA Chairman Bill Fox tells reporters in Detroit that new government regulations covering everything from credit practices to recalls will increase costs to consumers.

NEWS BRIEFS

Carfax Partners with vAuto

Carfax and vAuto have completed an integration that matches Carfax data and insights to auction vehicles.

The integration gives Carfax Advantage dealers on vAuto Provision and AuctionGenius an instant view of a used vehicle’s reported accident, ownership, service and usage history to make betterinformed auction decisions.

Through the integration, vAuto’s Provision and AuctionGenius tools show icons for each unit at auction that indicate reported accidents, available service records, number of previous owners and ownership type (i.e. lease, rental, etc.). If dealers want more information, they can view the full Carfax Report inside vAuto’s platforms.

Provision and AuctionGenius users also can ﬁlter auction vehicles based on speciﬁc Carfax information.

PassTime Rolls out Latest Version

PassTime announced that Trax 4 has been released.

This is the fourth version of its GPS tracking system. Trax was ﬁrst introduced in late 2010.

Trax 4 boasts an all-new design and a smaller form factor.

IAA Adds Total Loss Tools

Insurance Auto Auction Inc. announced the launch of IAA Total Loss Solutions, a suite of products for the total loss claims process.

The ﬁrst two product lines the company has launched are IAA Inspection Services and IAA Title Services.

IAA Inspection Services was developed to reduce the cycle time from date-of-loss to total loss determination.

Three oferings are included: Enhanced Images, Condition Report and Appraisal.

These oferings are designed to allow direct towing to the salvage auction, where high-resolution imagery can support virtual inspection of vehicles, resulting in faster cycle time and reduced claims cost.

Efciencies within the inspection process can be further leveraged by IAA providing a pre-loss vehicle condition and option report, and a vehicle valuation to provide a comprehensive solution to the total loss claims process.

IAA Title Services includes three oferings, all designed to suit the speciﬁc needs of the customer, including: Title Procurement, Title Solutions and Title Direct.

Title Procurement can be used by

carriers to manage the document procurement process on all total loss claims.

Title Solutions can be utilized on those complex claims with unresolved title and document issues. Title Direct is a service that allows documents from multiple sources, typically the insured and lienholder, to be sent directly to an IAA Branch, reducing cycle time and cost for the carrier.

Westlake Expands in Dallas

Westlake Financial Services announced plans to expand its servicing team to the WFS Production Center in Dallas.

Since its inception in January, the Production Center has increased support for Westlake’s dealer partners.

Westlake Financial Services plans to hire 85 employees by mid-2016. Recruitment and training of new hires has started.

Once training is complete, employees were to begin servicing accounts by mid-October.

Copart Sees Strong Results

Copart Inc reported revenues of $282.29 million and net earnings of

$57.41 million for its latest quarter. Gross margins widened to 41 percent from 39 percent the same quarter last year.

Operating margins rose to 34.74 percent from 31.26 percent.

Kelley Offers VIN Tool

Kelley Blue Book now ofers customers a new self-service interface for access to new- and used-car Kelley values and conﬁguration data by vehicle identiﬁcation number (VIN) within its suite of businessto-business solutions.

Customers can obtain current vehicle valuations in real time by inputting the desired batch VIN information using a Web-based interface. All VIN-related information is obtained from factory data.

Kelley Blue Book also provides all associated VIN trims, if more than one is identiﬁed from the decoding process.

Published By General Media LLC USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com

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Editorial: Ted Craig, Managing Editor Jeffrey Bellant, Staff Writer

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Another Bank Agrees to Cap Dealer Participation

By Ted Craig

Another ﬁnance source has agreed to cap its dealer participation as part of a settlement with the Consumer Financial Protection Bureau.

Fifth Third Bank agreed to change its pricing and compensation system to minimize the risks of discrimination.

The bank will reduce dealer discretion to mark up the interest rate to only 1.25 percent above the buy rate for auto loans with terms of 5 years or less, and 1 percent for auto loans with longer terms.

Fifth Third also has the option under the order to move to nondiscretionary dealer compensation.

This action spared the bank from having to pay penalties to the CFPB.

“Fifth Third’s move to a new pricing and compensation system represents a signiﬁcant step toward protecting consumers from discrimination,” said CFPB Director Richard Cordray.

Fifth Third is one of the nation’s largest automotive creditors, according to Experian Automotive.

The CFPB called Fifth Third’s pricing and compensation structure illegal and discriminatory.

Fifth Third allowed its dealers to charge a higher rate to black and Hispanic consumers regardless of

the creditworthiness of the borrowers, the CFPB claimed. The regulator said the practices meant thousands of minority borrowers were charged, on average, more than $200 extra for their auto loans between January 2010 and September 2015.

Fifth Third will pay $12 million into a settlement fund that will go to harmed black and Hispanic borrowers.

The bank gets credit for $5 million already paid out to consumers, but must bring its total payment to $18 million.

A settlement administrator will contact consumers, distribute the funds, and ensure that borrowers who were harmed receive compensation.

The bureau will provide contact information for the settlement administrator once that person is chosen to address questions that consumers may have about potential payments.

This settlement is the latest action by the CFPB that directly afects dealer participation.

“If the CFPB had its way, it would do away with dealer mark-up all together,” said Zane Gilmer, an attorney with Stinson Leonard Street. “This is a middle ground.”

Congress exempted auto deal-

ers from the CFPB’s oversight, but Gilmer and others see these actions as a way for the agency to get around that limit. He said banks want to reduce their risk of an enforcement action and they do that by limiting dealers’ discretion.

Banks are already used to accommodating all kinds of regulators, Gilmer said. For them, dealing with

the CFPB just means learning how to play by another set of rules. It’s a diferent story for ﬁnance companies. They have experienced less regulation over the years.

The CFPB changed that with its largest participant rule.

The rule covers about 90 percent of all non-bank auto ﬁnancing, Gilmer said.

Rights Groups Support CFPB

(The following is a letter sent out by a coalition of civil rights groups defending the CFPB.)

On behalf of The Leadership Conference on Civil and Human Rights and the undersigned organizations, we write to urge you to oppose H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act.” The sole purpose of this bill is meant to undermine the ability of the Consumer Financial Protection Bureau (CFPB) to enforce laws against discrimination in auto lending. In our view, a vote for H.R. 1737 is a vote to condone discrimination in the auto lending market.

For at least the past two decades, ﬁnancial services regulators have known about discrimination in the auto ﬁnance marketplace. The

CFPB is the first and only regulator to directly address this discrimination and its underlying cause, dealer interest rate markups. Car dealers receive a substantial bonus from lenders for increasing the interest rate above that for which the borrower otherwise qualifies. Car dealers sell their loans to lenders, and contact lenders during the course of the transaction to see who will be willing to buy these contracts. Lenders send the dealer the interest rates they will accept based on the borrower’s risk profile, also called the “buy rate.” However, the dealer can then add as much as 2-2.5 percent to the buy rate, and keep some or all of the diference as compensation.

Continued on page 6

Rights Groups

To give a sense of scale, the Center for Responsible Lending (CRL) estimates that consumers who took out car loans in 2009 will pay $25.8 billion in additional interest over the lives of their loans due to these markups.

In the mid-1990s, a series of lawsuits were ﬁled against the largest auto ﬁnance companies in the country alleging discrimination.

The data from those lawsuits showed that borrowers of color were twice as likely to have their loans marked up, and paid markups twice as large as similarly situated white borrowers with similar credit ratings.

Because of that history, and with current data showing continued discrimination, the CFPB has issued guidance telling lenders that they could eliminate the risk of fair lending violations by paying compensation to dealers in ways that do not involve manipulations of the interest rate. If, however, lenders chose to continue allowing dealers to increase the interest rate for compensation, then the lender would need to take steps to ensure that discrimination does not occur.

In short, the CFPB’s guidance acknowledges...pricing discretion leads to discrimination. Naturally, lenders and their car dealer clients

would prefer that the CFPB did not take these steps. They also know that many members of Congress would not sign on to a bill calling on the CFPB to stop enforcing antidiscrimination laws, so they have championed a bill that masks its true intentions behind process and theories of regulatory jurisdiction.

Members of Congress should not be mistaken, however: the real effect of H.R. 1737 is to undermine the ability of the CFPB to root out discrimination, something that has no place in our lending markets. Congress should be applauding the CFPB’s eforts, not trying to stop them.

The CFPB has repeatedly shown it is fully capable of listening to industry concerns and calibrating its policies in response. It does so on the basis of hard evidence, however, and not on the basis of a politicized process in which the interests of vulnerable consumers are routinely overrun. If there are any problems with the details of the CFPB’s guidance on auto lending, the Bureau should be given an opportunity to reﬁne them through the careful and fact-based process it has utilized in other areas of consumer ﬁnance.

For the above reasons, we urge you to oppose H.R. 1737.

The Leadership Conference on Civil and Human Rights

The eight-inch downpour was the worst of it, but Godwin said he didn’t see the sun from Sept. 22 until Oct. 6.

He sent his father to a town 45 minutes north of Columbia and had him buy all the bottled water he could ﬁnd. Godwin spent the rest of the day handing it out at the store.

Godwin was one of the lucky ones. Not only was his store safe, but his house is located on a ridge above the ﬂood zones.

Many of his neighbors were less fortunate. He sees plenty of devastation.

“It’s kind of scary and surreal,” Godwin said.

With the worst of the crisis passing, Godwin now must look at the efect on his business.

As a buy-here, pay-here dealer, he had 500 accounts out in the rain.

He knew of two vehicles totaled in the storm right away. The driver of one of those vehicles had cancelled his insurance just days before the ﬂooding.

DEALER MANAGEMENT SYSTEMS

DEALERSOCKET CEO: MORE ACQUISITIONS

Jonathan Ord, co-founder and CEO of DealerSocket, discussed the growth of the company and its several acquisitions during an interview at the Innovate Independent Dealer Industry Conference in Fort Worth, Texas, last month.

UCN: Your company started in 2000. What was your vision then?

Ord: The vision was to create a platform for helping the dealers create a better customer experience. We had a pretty complex background in customer relationship management, not from the seller’s perspective but from the buyer’s perspective. We came out of the world of implementing big CRM solutions.

Seeing business from the buyer’s perspective helps us ﬁnd the ideal experience that they hope to have.

I’m half accountant and half techie. I have a master’s degree in accounting with an emphasis in information technology. I’m also part sales guy, so I’m screwed up.

UCN: You’ve been busy on the acquisition side.

Ord: We’ve completed four in the last 12 months and we’ve got a couple of more on the docket.

We have DealerFire, which includes websites, a little bit of inventory management and digital marketing. Then we have all of our original CRM applications and modules, which includes everything from Internet lead management to showroom track-and-control, to service and ﬁxed ops management. That goes down to our desking application, CSI and social media (tools).

Going back to the DMS, we’ve added all the DMS functions of Finance Express and AutoStar.

Now, we’re just closing on the new acquisition which is American Auto Exchange and Inventory Plus, which is inventory management, merchandising and pricing of used inventory as it goes through the cycle.

UCN: When you started, were you more targeted toward the franchise dealers?

Ord: Yes, we originally started in the franchise world and drove that hard. We were opportunistic in the used-car and buy-here, pay-here space, so we did have quite a few used-car stores or buy-here, pay-here stores that were attached to franchise dealers or heard about us through a friend who was a franchise dealer. It wasn’t until about two years ago that we strategically went after the independent buy-here, pay-here space. We knew it was a little diferent product, so we didn’t want to do it (half-heartedly). We wanted it to (help) usedcar dealers to do what they needed to do and how they wanted it done.

UCN: What was the adjustment like to move into the independent market?

Ord: Some of the adjustment was around DMS, which is one of the reasons we bought Finance Express and AutoStar.

Other areas were the access to lender relationships, compliance data and access to inventory in a diferent way than franchises use it. Then the training and the usability of the application was much more mobile-enabled because the used-car dealer normally has three to ﬁve sales reps, if that, and they’re working 24/7 on their mobile devices. So we had to have a better solution to that, which we launched about four years ago. Now anyone can run their whole business inside DealerSocket on their mobile device.

UCN: What percentage of your dealers are independents?

Ord: Right now, about 20 percent of our dealers – a little over 2,000 – use DealerSocket on the independent side. About 70 percent of those are buy-here, pay-here stores.

UCN: Does the cost of your product limit the growth you have on the in-

dependent side?

We thought that our a potential issue in the independent space. But what dependent dealers are much more sophisticated than and they’re willing to pay

Ord: We thought that our price point was going to be a potential issue in the independent space. But what we’ve found is that the independent dealers are much more sophisticated than people give them credit for and they’re willing to pay where value is delivered.

INDEPENDENTS FUEL DMS EVOLUTION

There are diferent levels of pricing based on the size of the dealership. We will not be the (least expensive) tool in the industry. We already have two really good players in that space, with Frazer Computing Inc. and Reaves, which do a really good job.

UCN: What was the response of AutoStar dealers and Finance Express dealers when the acquisition was announced?

Ord: Everything from concern to disdain to excitement. The diference was education. We explained that we’re a small, nimble entrepreneurial company. We’re just doing a lot of revenue now and we have lot of customers.

But at heart, we’re an entrepreneurial company. There were two of us that started in a garage.

Also, now we feel we have the best of both worlds with Finance Express and AutoStar but we’re not going to sunset (either product).

What we’re really doing with our new iDMS product, is loading the best (of those systems) into one Internetbased application that allows a dealer to do everything they need to do.

That will be released in Q2 2016.

By Jeffrey Bellant

Dealer management systems grew from simple systems that improved efﬁciency to elaborate ones that encompass numerous tools and applications.

Frazer Computing Inc. was founded in 1985, when President Mike Frazer wrote software for its ﬁrst car dealer.

“Nobody had software back then and a buy-here, pay-here dealer said to me, ‘I need something that will print receipts,’” Frazer said.

From that modest start, Frazer has now grown to a DMS provider with

15,000 dealers, half of whom are buy-here, payhere dealers.

DealerCenter started as an interface with Westlake Financial. It evolved into a DMS platform in 2006.

Jesse Martin, DealerCenter’s senior vice president of sales and marketing, said the company has been steadily adding to the features and functionality since then, becoming a nationwide full-service DMS.

Mark Stansbury, marketing manager for AutoManager, said the 30-year-old company’s ﬁrst product was an internal management system that kept

Continued on page 12

Survey Spotlights Independents

By Jeffrey Bellant

FORT WORTH, Texas – Independent dealers turn used cars 27 days faster than franchise dealers and 40 percent ofer buyhere, pay-here ﬁnancing.

These ﬁgures come from the Independent Dealership Action Report, a survey of DealerSocket’s 2,150 independent and buy-here pay-here dealers released during the company’s Innovate Industry Conference here in September.

But the report illustrates the challenges independent dealers face from franchise dealers, said DealerSocket’s Marylou Hastert, during a media roundtable luncheon.

“The warning is the competition is going to increase,” Hastert said, “not just among (independents), but you’re now going to be competing more with franchise dealers.”

The report states that franchise dealers have a higher gross profit margin on used cars than independents, but didn’t quantify that figure. It adds that by leveraging technology such as CRM (customer relationship management), independents can increase profits and narrow the gap.

According to the report, more than 60 percent of independents are not using a CRM.

Using tools to reach out to customers is important, Hastert said. DealerSocket customers saw a 20 percent increase in business in the ﬁrst year of using a CRM.

Franchise dealers have a huge incentive to sell used cars, as the return-on-investment for them is 617 percent higher than on new

cars. Franchise dealers also sell used cars 16.5 days faster than new cars, on average.

More than half of all dealers surveyed cited inventory acquisition and capital as the top problems facing their businesses.

Inventory acquisition may get easier as J.D. Power reports that 800,000 lease maturities will be coming to market in 2016. DealerSocket reported that there are more than 1,000 potential lenders available through lender portals. Only 13.5 percent of independents polled are utilizing a loan portal.

Overall, Experian reports that more than 35 percent of used-car ﬁnancing comes through banks, followed by 23.5 percent through credit unions, nearly 21 percent through ﬁnance companies, 12.5 percent through buy-here, pay-here lots and 7.7 percent through captives.

Independents face a bigger challenge as their average customer has a 570 credit score.

Dealers surveyed by DealerSocket reported that ROI/Revenue growth is their top initiative. The survey also showed that the inventory page on a dealer’s website ranks as the No. 1 most viewed page.

Only 37 percent of independent dealers surveyed by DealerSocket have websites. However, DealerSocket’s customers are only a segment of independents. The National Independent Automobile Dealers Association has reported that 83 percent of its members have a website. The NIADA reports more than 20,000 members.

Q: What are your dealership’s top two initiatives/goals for 2015?

Q: What is the most important problem facing your dealership today?

SOURCE: DEALERSOCKET

DMS

records of contracts, contacts and other information.

The company today ofers DeskManager, a software program, and WebManager, a web-platform marketing database.

Dealers use a DMS for diferent purposes.

“The biggest reason people buy a DMS, in my opinion, is forms printing,” Frazer said. “That’s huge. That’s why we have the ﬁnance companies recommending us.

“It’s crucial that all that paperwork is legal and compliant.”

Frazer uses the Hudson Cook law ﬁrm to ensure that its forms are compliant in the states Frazer ofers them.

Dealers like other features, too.

customers, send payment reminders and accept responses.

Although technology has grown over the years, dealers don’t always take advantage of the tools.

“I think things change a lot slower than you think,” Frazer said. “The dealers don’t want it to change and they’re not grasping the changes as fast as they might.”

For example, Frazer provides everything from tax forms like the Form 8300 to the OFAC (Ofce of Foreign Assets Control) list. Those compliance issues are not in the forefront of the dealer’s mind, but Frazer hopes they help protect a dealer.

“One of our biggest goals is that when an auditor goes into a dealership and sees the dealer is using Frazer, the auditor can relax a little bit and know that this guy is covered,” Frazer said.

“We’re actually probably one of the only credit-bureau resellers within a DMS platform for the independent dealer,” Martin said. “We have direct billing relationships with Experian, TransUnion and Equifax.”

But Stansbury said it’s just about making a dealer’s job easier.

“Dealers really love as much automation as possible,” Stansbury said. “It’s why dealers are using not just our DMS but our WebManager, too.

“They want an all-in-one-solution.”

Firms seek out dealer input to improve their products.

A year ago, Martin said the company wanted to “really step it up.”

“We held dealer councils,” Martin said, “inviting dealers from all across the country to visit our headquarters in Los Angeles to get their input. So it’s really a dealer-driven DMS platform. Everything that’s designed in here is derived from speciﬁc dealer feedback and input.”

The ﬁrm redesigned products from the ground up, with a new infrastructure and new data center to support the web-based system, scheduled for release this month.

The web-based system will allow a dealer to use it on an iPad or iPhone. Accounting integration and an interactive CRM will allow dealers to track all of the activity with

He said it’s amazing to him how there are still many dealers that don’t use a DMS.

“Their forms can’t be right,” he said. “Their numbers can’t be right. We did a survey along a stretch of highway where there were about 30 car dealers and only two of them had a DMS.”

There’s still a huge market out there, as Frazer’s recent activity has shown.

“We signed up 400 dealers in September, which is a record for us,” Frazer said. “So we’ll sign up 4,300 dealers this year alone.”

Dealers who don’t have a DMS learn that vendors who ofer other products, such as GPS, will tell dealers that to use these products, a DMS is critical.

“No ﬁnance company is going to touch a dealer if they don’t have a DMS,” Frazer said.

Servicing customers with a DMS is not easy, Frazer said. He said Manheim gave up on its Tracker DMS, eventually selling it to Finance Express in 2007.

“Manheim couldn’t manage it,” Frazer said. “They had 10,000 customers and 110 people on the phones and they couldn’t keep up.”

Fugitive Faces Bank Fraud Claims

LOS ANGELES (AP) – A Southern California man who spent nearly three decades on the run has pleaded guilty to defrauding banks out of nearly $50 million while running the nation’s third-largest car dealership.

Seventy-one-year-old Eminiano Reodica Jr. entered the plea Oct. 5 in Los Angeles to federal charges of bank fraud and lying to banks.

He could face up to 79 years in prison and a $6.5 million ﬁne.

In the 1980s, Reodica ran a com-

pany that owned Grand Chevrolet of Glendora.

Authorities say he promised the same car contract to separate banks, repossessed and resold cars without telling the banks, and had employees seek loans for cars they weren’t buying.

The dealership went bankrupt in 1988.

Reodica ﬂed to his native Philippines.

He was arrested in Los Angeles in 2012.

Now opening more lanes on the

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Cox Automotive has named Brian Geitner as president of ﬁnancial services and NextGear Capital. This move creates a ﬁnancial services company that services more than 22,000 dealers throughout North America, the United Kingdom and Ireland.

Geitner will report to Sandy Schwartz, president of Cox Automotive.

Previously Geitner served as president of NextGear Capital, directing the company’s strategic planning, operations and growing customer base. His expanded duties were added when Patrick Brennan, formerly group vice president of ﬁnancial services, was promoted to senior vice president of operations at Cox Automotive and chief integration ofcer for the recent Dealertrack acquisition.

Geitner will collaborate with Go Financial to inﬂuence both organizations’ teams and technology to provide simpler ways for dealers to ﬁnance their subprime customers. He will also continue to lead NextGear Capital’s U.S. operations and international growth to create more efcient ways for dealers to access cash.

Go Financial is a joint venture owned in part by Cox Automotive.

Geitner joined Cox in 2012 as chief executive ofcer of Dealer Services Corp., a used-vehicle ﬂoor plan company for independent dealers, before becoming president of NextGear Capital. Prior to that, he co-founded DSC as chief operating ofcer and later became president of the company.

director of business development, joins new hire, Julie Heichel, director of sales operations. Both McAllister and Heichel will report to senior vice president of sales, Pat Dudash.

McAllister transfers to the XLerate corporate team from XLerate’s Texas Lone Star auction. McAllister has managed, directed and grown new and existing private-label auctions for the company.

His experience also includes 10 years as the AutoNation accounts manager for Manheim and two years at Dealertrack. Heichel comes to XLerate from Automotive Finance Corp., where she served as sales director. Prior to that, Heichel spent 10 years at ADESA, where she worked closely with auctions and institutional/commercial customers.

Jay Cadigan, vice president of industry relations for Manheim, was inducted into the National Auto Auction Association Hall of Fame during its recent convention in Orlando, Fla.

Greg Levi has joined Columbus Fair Auto Auction as chief operating ofcer.

Levi will be directing CFAA’s growth in the 11-lane Wednesday sale. This growth includes managing the auction, body shop, recon department and mechanic shop.

Membership in the Hall of Fame, established in 1968, recognizes individuals whose long-term service to the auto auction industry and NAAA has contributed improvements to remarketing as a whole, has worked with the trade organization to beneﬁt its members and has consistently followed the high standards of the association’s Code of Ethics.

Levi left Columbus Fair in November 2013 to become executive vice president at Finance Express before that company’s acquisition by DealerSocket.

Beginning his automotive career working at a car dealership during high school and college, Cadigan has spent four decades serving his industry not only as an executive in both the corporate auction and the leasing and rental car remarketing businesses, but also in volunteer leadership roles as a NAAA member. Cadigan served as NAAA president in 2010-2011.

He is also a past president of the Eastern Auto Auction Association.

XLerate Group announced the addition of two automotive remarketing veterans to its corporate sales team.

Kelly McAllister, promoted to

During his term as president, Cadigan focused on establishing standards, promoting teamwork and fostering the next generation of association members through education, training, networking and mentoring.

Geitner will report to Sandy Schwartz, president of Cox Automotive.

Go Financial is a joint venture owned in part by Cox Automotive.

Greg Levi has joined Columbus Fair Auto Auction as chief operating ofcer.

Levi will be directing CFAA’s growth in the 11-lane Wednesday sale. This growth includes managing the auction, body shop, recon department and mechanic shop.

Levi left Columbus Fair in November 2013 to become executive vice president at Finance Express before that company’s acquisition by DealerSocket.

XLerate Group announced the addition of two automotive remarketing veterans to its corporate sales team.

Kelly McAllister, promoted to

director of business development, joins new hire, Julie Heichel, director of sales operations. Both McAllister and Heichel will report to senior vice president of sales, Pat Dudash.

McAllister transfers to the XLerate corporate team from XLerate’s Texas Lone Star auction. McAllister has managed, directed and grown new and existing private-label auctions for the company.

His experience also includes 10 years as the AutoNation accounts manager for Manheim and two years at DealerTrack. Heichel comes to XLerate from Automotive Finance Corp., where she served as sales director. Prior to that, Heichel spent 10 years at ADESA, where she worked closely with auctions and institutional/commercial customers.

Jay Cadigan, vice president of industry relations for Manheim, was inducted into the National Auto Auction Association Hall of Fame during its recent convention in Orlando, Fla.

Cadigan served as NAAA president in 2010-2011.

He is also a past president of the Eastern Auto Auction Association.

ADESA Boston

November 6, 20

508-626-7000

ADESA Charlotte November 12

704-587-7653

ADESA Cincinnati/Dayton November 24

937-746-4000

ADESA Golden Gate November 10, 24 209-839-8000

ADESA Houston November 11, 25 281-580-1800

ADESA Indianapolis November 10, 24 800-925-1210

ADESA Kansas City November 10, 24 816-525-1100

ADESA Lexington November 12 859-263-5163

ADESA New Jersey November 12 908-725-2200

ADESA Tulsa November 13 918-437-9044

ADESA Washington DC November 18 703-996-1100

America’s AA-Chicago November 25

708-389-4488

Brasher’s Salt Lake AA November 3 801-322-1234

Columbus Fair AA November 4 614-497-2000

Manheim Atlanta November 11, 12 404-762-9211

Manheim Dallas November 4, 18 877-860-1651

Manheim Denver November 18 800-822-1177

Manheim Detroit November 12 734-654-7100

Manheim Fredericksburg November 5, 19 540-368-3400

Manheim Milwaukee November 4, 18 262-835-4436

Manheim Minneapolis November 11 763-425-7653

Manheim Nashville November 3, 4, 18 877-386-5004

Manheim Nevada November 24 702-361-1000

Manheim New Jersey November 4, 18 609-298-3400

Manheim New Orleans November 4 985-643-2061

Manheim Orlando November 3, 10, 17, 24

800-337-8491

Manheim Pennsylvania November 12, 13, 24 800-777-2053

Manheim Phoenix November 5, 12, 19, 24 623-907-7000

Manheim Pittsburgh November 18 724-452-5555

Manheim Riverside November 17, 19 909-689-6000

Manheim Seattle November 11 206-762-1600

Manheim Southern California November 12, 25 909-822-2261

Southern AA November 18 860-292-7500

ADESA Boston November 20 508-626-7000

ADESA Golden Gate November 10 209-839-8000

Manheim Atlanta November 11 404-762-9211

Manheim Dallas November 4 877-860-1651

Manheim Milwaukee November 18 262-835-4436

Manheim Nashville November 18 877-386-5004

Manheim Orlando November 17 800-337-8491

Manheim Pennsylvania November 12 800-777-2053

Mazda Capital Services

ADESA Boston November 6, 20

508-626-7000

Manheim Riverside November 19 909-689-6000

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.

ADESA Golden Gate November 24 209-839-8000

ADESA Houston November 11 281-580-1800

Columbus Fair AA November 4 614-497-2000

Manheim Detroit November 12 734-654-7100

Manheim Fredericksburg November 5 540-368-3400

Manheim Milwaukee November 4 262-835-4436

Manheim Nashville November 4 877-386-5004

Manheim Atlanta November 12 404-762-9211

ADESA Boston November 6 508-626-7000

Brasher’s Salt Lake November 3 801-322-1234

Columbus Fair AA November 4 614-497-2000

Manheim Dallas November 4 877-860-1651

Manheim Orlando November 24 800-337-8491

Manheim New Jersey November 4, 18 609-298-3400

Manheim Pittsburgh November 18 724-452-5555

Manheim Riverside November 17 909-689-6000

Manheim Seattle November 11 206-762-1600

Manheim Detroit November 12 734-654-7100

Manheim Fredericksburg November 19 540-368-3400

Manheim Milwaukee November 18 262-835-4436

Manheim New Jersey November 4 609-298-3400

Manheim Pennsylvania November 13 800-777-2053

Manheim Denver November 18 800-822-1177

Manheim Orlando November 17 800-337-8491

Manheim Pittsburgh November 18 724-452-5555

Manheim Seattle November 11 206-762-1600

Manheim Southern CA November 12 909-822-2261 Southern AA November 18 860-292-7500

Manheim Pennsylvania November 13 800-777-2053

(“Chase”). Retail / Loan and lease accounts are owned by Chase.

*The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and

High Lines, featuring Jaguar Land Rover Financial Group

RETAIL MARKETS

Larry Lewallen, president, Rainwater Motor Co., Douglasville, Ga.:

“I’m chairman of the board of Georgia IADA and I just received the state Quality Dealer of the Year.

“We’ve been in business since 1980. We have one location.

“We keep around 100 to 110 on the lot. We’re carrying a few more cars than we were this time last year. The biggest factor is that we’re just doing more business.

“We buy a lot of our cars through auctions. Probably 75 percent of them are coming from auctions. We buy dealership trade-ins, which are getting harder and harder to ﬁnd. We’re also buying them from individuals, or wherever we can ﬁnd them.

“We’re selling, on average, over 50 a month – probably closer to 60. We’re probably up 20 percent over last year.

“It’s been a good year. It’s the economy and the availability of money. There’s a lot of good ﬁnanc-

ing out there.

“We do subprime, a little buy-here, pay-here and quite a few cash deals. It’s not easy to compete (with franchises) on subprime business. My son, Nick, works on the ﬁnancing just about every day.

“Our average model year is a 2007 or 2008. We used to keep it ﬁve years and older. (Lenders) have requirements you have to go by, so you buy the car according to the requirements they set.

“Average mileage is up. It’s probably running close to 100,000.

“It’s probably (split) between domestics and imports.

“Right now, on my lot, it’s probably 40 percent trucks. About 80 percent is twowheel drive and the rest are four-wheel-drive.

“Reconditioning costs are probably as high – if not higher – than they’ve ever been. You’re probably looking at $300 a car by the time you have it serviced.

“Anytime you have longev-

ity, you want to sell a good car. So, we have a check system that we go through. Once it’s gone through that check system – and everything’s been serviced and changed – if you can come out of it for $300, you’ve done well. Most people probably average $500.

“We have our own service center and our own detail center. We have eight stalls.

“We advertise through television, newspaper and we do all the computer stuf online. We do a little bit of everything. But we’ve been real successful with television commercials. The best kind of advertising is word of mouth.

“Mid-sized SUVs and trucks are doing well. With the gas prices coming down, the full-size SUVs have really taken of

“We recently sold a 2008 Dodge four-door pickup – Hemi 5.7 SLT – with 122,000 miles. We sold it for $10,500.

“We feel good about the rest of the year.”

Travis Baldwin, area sales manager, Best Deal Auto Sales, Ft. Wayne, Ind.:

“We have ﬁve locations. My dad started the business 16 years ago.

“We keep a little over 400 cars (across) all of our stores. We get our cars from auctions, independents – we get them from everywhere.

We do a lot of shopping.

“We’re selling over 150 every month.

“Most of our cars are (traditional) ﬁnance. We do some subprime, as well. It’s probably 20 percent of our business.

“We do very little buyhere, pay-here.

“The average model year is 2010. The average mileage is probably 70,000. Since Cash for Clunkers, the price for (lower-mileage) cars was deﬁnitely driven up.

“We probably carry 40 percent trucks and SUVs. We’d like to have more trucks, obviously. Trucks are very high.

“We probably consistently keep 30 percent import compared to 70 percent domestic.

“I would say $400 per vehicle is probably a good average for our recon costs. We do that all in-house.

“Actually, we’ve got a body shop we’re opening up next month. That’s just for cosmetic damages: bumper scraps, things like that.

“We have some state-ofthe-art detail facilities. We also have three fully stafed service garages, in addition to our lots.

“For marketing/advertising, we obviously use all the big names on the Internet. We use cars.com, AutoTrader and we just picked up Cargurus. We also use Carsforsale.com and do a lot of television advertising.

“We also sponsor a local professional hockey league team, the Ft. Wayne Komets.

“We recently sold a 2011 Acura MDX. It had 65,00 miles. We sold it for $25,500.”

WHOLESALE MARKETS

GEORGIA

Donnie Bazemore, general manager, Southeastern Auto Auction of Savannah, Ga.:

“We’ve been in business 19 years. We have four lanes.

“We’ve been running about 650 cars per week. That’s up probably 15 percent from this time last year. We’re just doing more advertising and we added a couple of sales people.

“We’re selling in the low 60s (percent), but it seems like the more you run, the percentages come down.

“This third quarter, as a matter of fact, we were up 25 percent. For the year, we’re up 15 percent (at press time).

“About 90 percent of our volume is dealer consignment.

“We also run repos, some county cars, stuf like that.

“Right now, we’re averaging about 350 dealers in the lanes. That’s similar to last year. They’ll come from the East Coast mostly.

“We also have a lot more

Internet business than we used to have. That’s both bidding and buying. We use Auction Pipeline, OVE, OpenLane, etc.

“One of our big things is a post-sale inspection that does really well. We do a tremendous amount of post-sale business. We push it pretty hard, but we also have a lot of people who recommend it. I think it keeps people coming back.

“We weren’t afected by (Hurricane Joaquin). Charleston, S.C., is not that far from us and I think guys in that area and Columbia, S.C., had a tough time.

“We have an in-op sale every Wednesday morning. We’re running around 60. It was low, about a 25 percent sale. It used to sell 65 to 70 percent. But the price of steel is low.

“We have a public sale every Thursday. The turnout has been high. We run about 150 cars.

“The average price in the regular sale is $7,500. It’s up about $1,000.

“We do really well with trucks and SUVs. With trucks, we’ll sell both fourwheelers and two-wheelers. We also sell a lot of imports because we have several new-car dealers. We’ve got three BMW dealers who send all of their trades out here.

“I feel really good about the rest of the year. It’s very positive.”

MONTANA

Terry Scheetz, general sales manager, Auto Auction of Montana, Billings, Mont.:

“We’re going on 12 years.

“We’re running four lanes. We had been running three, but we opened it up about a month or so ago and stated running all four lanes.

“We’re consistently running 600-plus units. We’re getting a lot of Canadian (vehicles) down here so we’re running more of those. The exchange rate is such a big diference right now. (At press time, it was $1 U.S. to $1.30 Canadian.)

I’d rather be on this side than the other right now. Those cars have to be converted and have an American title.

“We run our anniversary weekend (in October) and we’ll run 1,000-plus in a two-day event.

“(Conversion rates) are about 50 percent, give or take a little bit. It’s anywhere from 47 to 53, but it’s consistently in that range.

“We still draw 200 to 250 dealer in the lanes.

“The Internet is getting better all the time. We’re doing about 15 to 18 percent. We’re going to pursue that actively; it’s doing so good. We’ve been with Online Ringman and we also joined up with Pipeline and OVE.

“Those cars sell all over. All the lanes are on the Internet. We’re also changing how they do the condition reports (to help).

“It has slowed down in the oil ﬁelds, as you know. But, we still get all of those vehicles. So we’re still doing a big volume out of the Dako -

Compiled by Jeffrey Bellant

tas. They are still a big part. But it’s not crazy like it was.

“About 30 percent of our volume is ﬂeet-lease, companies like Enterprise and Midwest Car Corp. and others.

“We’ve got 60 acres here and we’ve got full mechanical, full body shop and detail. It never slows down. We’ve got to work through the weekend most of the time. We’ve also got a stateof-the-art body shop.

“We also run a GSA sale. Our next one is Oct. 21 and we’ll run 100-plus. They run all year round. But the volume (varies). Another time it might be 30 or 40. Usually, though, we’ve been running 80 to 100 once a month.

“We’re known for having a lot of trucks. They sell all year round for us.

“The average sale price for the year (at press time) is $12,700. That’s up from last year.

“We’ll ﬁnish of strong this year.”

WHOLESALE MARKETS

GEORGIA

Donnie Bazemore, general manager, Southeastern Auto Auction of Savannah, Ga.:

“We’ve been in business 19 years. We have four lanes.

“We’ve been running about 650 cars per week. That’s up probably 15 percent from this time last year. We’re just doing more advertising and we added a couple of sales people.

“We’re selling in the low 60s (percent), but it seems like the more you run, the percentages come down.

“This third quarter, as a matter of fact, we were up 25 percent. For the year, we’re up 15 percent (at press time).

“About 90 percent of our volume is dealer consignment.

“We also run repos, some county cars, stuf like that.

“Right now, we’re averaging about 350 dealers in the lanes. That’s similar to last year. They’ll come from the East Coast mostly.

“We also have a lot more

Internet business than we used to have. That’s both bidding and buying. We use Auction Pipeline, OVE, OpenLane, etc.

“We weren’t afected by (Hurricane Joaquin). Charleston, S.C., is not that far from us and I think guys in that area and Columbia, S.C., had a tough time.

“We have an in-op sale every Wednesday morning. We’re running around 60. It was low, about a 25 percent sale. It used to sell 65 to 70 percent. But the price of steel is low.

“We have a public sale every Thursday. The turnout has been high. We run about 150 cars.

“The average price in the regular sale is $7,500. It’s up about $1,000.

“I feel really good about the rest of the year. It’s very positive.”

MONTANA

Terry Scheetz, general sales manager, Auto Auction of Montana, Billings, Mont.:

“We’re going on 12 years.

“We’re running four lanes. We had been running three, but we opened it up about a month or so ago and started running all four lanes.

I’d rather be on this side than the other right now. Those cars have to be converted and have an American title.

“We run our anniversary weekend (in October) and we’ll run 1,000-plus in a two-day event.

“(Conversion rates) are about 50 percent, give or take a little bit. It’s anywhere from 47 to 53, but it’s consistently in that range.

“We still draw 200 to 250 dealer in the lanes.

“Those cars sell all over. All the lanes are on the Internet. We’re also changing how they do the condition reports (to help).

“It has slowed down in the oil ﬁelds, as you know. But, we still get all of those vehicles. So we’re still doing a big volume out of the Dako -

Compiled by Jeffrey Bellant

tas. They are still a big part. But it’s not crazy like it was.

“About 30 percent of our volume is ﬂeet-lease, companies like Enterprise and Midwest Car Corp. and others.

“We’re known for having a lot of trucks. They sell all year round for us.

“The average sale price for the year (at press time) is $12,700. That’s up from last year.

“We’ll ﬁnish of strong this year.”

COMPACT CAR

Jan 2015

$5,631 100,110

Feb 2015 $5,759 100,463

Mar 2015 $5,838 100,814

Apr 2015 $5,847 100,439

May 2015 $5,680 101,408

Jun 2015 $5,417 102,020

Jul 2015 $5,370 101,088

Aug 2015 $5,145 102,749

Sep 2015 $4,929 104,263

YTD AVG: $5,517 101,475

FULLSIZE CAR

Jan 2015 $4,266 108,579

Feb 2015 $4,007 113,914

Mar 2015 $4,240 114,926

Apr 2015 $3,984 115,364

May 2015 $4,101 112,518

Jun 2015 $3,879 113,940

Jul 2015 $3,749 115,275

Aug 2015 $3,859 114,560

Sep 2015 $3,809 113,866

YTD AVG: $3,992 113,729

LUXURY CAR

Jan 2015 $12,359 95,856

Feb 2015 $11,597 99,198

Mar 2015 $12,384 98,340

Apr 2015 $13,143 96,601

May 2015 $12,656 96,794

Jun 2015 $12,181 98,550

Jul 2015 $12,134 98,035

Aug 2015 $11,540 99,077

Sep 2015 $11,175 100,395

YTD AVG: $12,159 98,042

MIDSIZE CAR

Jan 2015 $6,156 108,790

Feb 2015 $6,211 109,109

Mar 2015 $6,387 109,546

Apr 2015 $6,475 108,702

May 2015 $6,298 108,902

Jun 2015 $6,114 109,733

Jul 2015 $6,085 108,396

Aug 2015 $5,909 109,747

Sep 2015 $5,668 111,452

AVG: $6,153 109,367

PICKUP

Jan 2015 $13,878 111,267

Feb 2015 $14,163 110,360 Mar 2015 $14,722 108,827

ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES

OCTOBER 2015

2013 MODELS

SOURCE: BLACK BOOK

2012 MODELS

2011 MODELS

2010 MODELS

DISCONNECTED JOTTINGS FROM TONY MOORBY

“It was the doing of a couple of wayward software engineers.”

So say the top executives at VW, referring to the scandalous, miscreant deeds of the company’s cheating over diesel emissions tests. I’m sure the engineers’ Germanic retort would go something like, “I was only following orders!”

They even tried to sway a congressional investigation committee with that one. Seriously? The implication that a multi-billion dollar, international organization would allow a couple of goofy bofns to design, engineer, develop, test, conﬁrm, manufacture (by an outside contractor or not) and install in production, a piece of equipment to steal a march on the competition and authorities, is insulting

in the extreme.

At a time when VW had just snared the leadership position in worldwide sales from Toyota, this gafe will surely put them back decades.

Think of the immediate consequences, apart from the prying of every process they now use, the ﬁnes from government authorities in every country in which they do business will be ﬁnancially debilitating, if not catastrophic, leeching development funding for future products.

New vehicle sales, not just of diesel products, are already at a standstill. Residual values of their used cars will plummet and sufer the consequences of the market at resale time, whether that’s a trade-in or lease end-of-term.

Subsidies and handouts will have to support an otherwise ugly spiral of diminished values and ﬂagging sales.

This, of course, does nothing to enhance the

CR R O O S S W D

By Miles Mellor

31. ____-size SUV

32. You might do this as part of buying another car, 2 words

33. Inner tube fller

34. Saturn 4 doors

36. Shock ____ (part of suspension systems)

Across

1. Air (safety features)

3. Toyota subcompact

7. ____ Charger sedan

10. Industry slang

12. Subaru sedan

14. Hyundai sedan

15. Nissan Xterra ___

16. Type of entry

19. Type of car like a Camaro or Mustang

21. Mountain, for short

22. Guzzled by SUV’s

23. Chevy sedan

25. Part of A.P.R.

27. Scion ___

37. Places where cars are displayed

41. Not easily available

43. Philadelphia’s state

44. Overnight stay place

46. Road-crew supply

47. E-____ Jaguar

48. Company that made the Bulldog

Down

1. Brand that produced the GNX

2. It’s an ATV built by Maruti/Suzuki in India, it also means wanderer

long-term perceived value of a product; quite the contrary. The major manufacturers here have struggled with that before – it takes years to rebuild the name and value that follows a car or truck throughout its lifespan, not when it just rolls over the curb for the ﬁrst time.

Dealers will have to bear the ﬂoor plan charges of unmovable inventories –the very plague of many a dealer’s demise, when new vehicles aren’t moving.

VW has been busy on the ﬂeet scene too, with sales to rental and leasing companies, giving them another potential glut and price decline of its residuals.

What about employment? I was present at the grand opening of VW’s new plant in Chattanooga.

The much-vaunted production and sales plans playing a major part of the employment message. The sales folks touted a million VW unit sales in the U.S., which seemed doable at

INSURANCE AUTO AUCTION S

30. MC 12, for example

35. ___ down an engine

38. Engine strength measurement, abbr.

39. Metallica’s frst hit

40. Go downhill fast

42. Dodge model

45. British sports car

$100k plus!

*Title Clerks *Detailers

*Lot Management

November 16

Factory Focus

December 7

Deadline Thursday, November 5

Tax Season Preview

Deadline Thursday, November 24

December 21

Year In Review

Deadline Thursday, December 10

*Inventory Management Staff

*Billers *Mechanics

* Lot Attendants *Auction Buyers

*Customer Service Reps

January 4

If you are the industry’s best and want the opportunity of a lifetime, please call 844-807-2925 for more information about an interview.

BUYERS

WHOLESALE BUYER-REP 30 yrs exp. Fl based. Will travel, references avail. Call Michael P. 954-445-6589

March 7 (Insert)

Forecast Deadline: December 17

January 18

Floorplanning Deadline: January 7

February 1

Dealer Life [Technology Spotlight Advertorial]

Deadline: January 14

February 15

Marketing

Deadline: February 4

March 7

CAR Convention Issue

Deadline: February 25

Auctions Across America

Deadline: February 16

March 21

“My Worst Decisions” – Dealer Stories

Deadline: March 10

April 4

NADA Convention Issue

Deadline: March 24

April 18

Sports Cars

Deadline: April 7

May 1

Data Source Book

Deadline: April 1

AROUND THE BLOCK

The National Independent Automobile Dealers Association named ADESA Tampa as its 2015 Auto Auction of the Year for the auction’s contributions to its community and the used vehicle industry.

The award was presented to auction general manager Curtis

Farris, representing the ADESA Tampa staff, during this year’s National Auto Auction Association convention in Orlando, Fla.

“Under the leadership of its general manager, this auction has gone above and beyond in its support of local charities, its associations and, most of all, its cus-

tomers,” said NIADA CEO Steve Jordan.

NIADA has presented the Auto Auction of the Year award annually to an outstanding NAAA auction since 2008. The winning auction provides the highest level of customer service and resources for NIADA’s independent dealers, displays support for its state association and its dealer members, participates in dealer events and promotes the industry by showing exceptional service to its local community.

A member of the Florida IADA for 10 years, the auction has hosted, sponsored and tirelessly promoted FIADA membership drives, town hall sessions and other events and programs. It recently added an FIADA Independent Dealer Lane, giving independent dealers a boost with premium lane placement and discounted sell fees on a bi-monthly basis.

Enterprise Honors Top Performers

Enterprise Holdings, which operates the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, is honoring 9 auto auctions with its 2015 Auction Achievement Awards.

This annual program recognizes auction partners for exceptional performance in the areas of communication, customer service, marketing and reconditioning, operational success and strategic planning.

The 2015 Auction Achievement Award winners are:

• ADESA Atlanta

• ADESA Los Angeles

• Manheim Georgia

• Manheim Nevada

• Manheim Omaha

• Manheim Pennsylvania

• Manheim Riverside

• Manheim Southern California

• Manheim Texas Hobby

An additional ﬁve auctions were recognized for their salvage sales.

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