November 18, 2013
ON THE WEB:
More Vehicles Take to The Roads
Experian Automotive announced that the number of cars and light trucks on the road reached 247.9 million in the third quarter. Additionally, findings showed that the average age of vehicles on the road was 10.9 years in the second quarter, almost a full year older than was recorded in the second quarter of 2009.
Certified Sales Remain Strong, But Slowing
AutoData Corp. reports that certified sales were 177,820 for October. up month-over-month and year-over-year.
There were 27 selling days in October 2013 versus 26 in October 2012 and just 23 in September 2013. The selling rates reflect a slowing from the record-setting rates of the past six months.
Senators Question CFPB
A group of 22 U.S. Senators is asking the Consumer Financial Protection Bureau to justify its effort to eliminate dealer participation.
Consumers Pay for Better Fuel Economy
IT’S
By Jenny King
Ford Motor Co. is touting its Eco-Boost turbo-gas engines for cars and light trucks. Volkswagen is promoting its turbo-diesels, present and future. Both companies emphasize the higher residuals their engines are producing.
Projected numbers from ALG show that a 2014 Fusion 2.0 EcoBoost is worth an additional $1,625 over the average price after 24 months - very close to the $1,795 added cost for the engine.
The 2.0-liter EcoBoost in a 2014 Taurus adds $996 to the cost of a new car and
likely will provide a $550 bump in value in 24 months.
Among trucks, the 2.0-liter EcoBoost, a $1,196 option in a 2014 Escape, may even gain in the short range.
The ALG figures say its resale value after one year is $1,325 higher than average and after 24 months might be $1,125 higher than aver-
age. “EcoBoost-equipped cars are seeing good results,” said Eric Ibara, director of residual values at Kelley Blue Book.
Ibara credits the improved horsepower and fuel economy of the relatively new turbo-charged gas engines.
Continued on page 5
Smaller Market Attracts Large Used Car Dealer
By Ted Craig
A middle market city in the Midwest has become a hotbed for used-car operations.
Wisconsin dealership group Russ Darrow Group opened its new Russ Darrow Used Car Superstore in Green Bay, Wis., in September.
The facility ofers approximately 150 pre-owned vehicles, on site, with more than 1,000 additional vehicles available through the Russ Darrow Group system. The operation includes a J.D. Byrider franchise.
The entry of this large auto retailer comes at a point when one dealer says the city is near capacity for used-car stores.
“There can only be so many market dollars to go around,” said Thomas Zdroik, owner of We Finance Inc. “We certainly are at the saturation point.”
Green Bay is Wisconsin’s third largest city, with a population of 104,507 in the city proper and 306,241 in the metro area.
Zdroik said it was only a matter of time before larger players moved into the area. The state’s used-car market has been changing since a 2006 law made self-help repossessions easier.
Photo by Jenny King
NABD Honors Hall of Fame’s Newest Member
By Jeffrey Bellant
NEW ORLEANS – Bruce
Kennett became the fifth inductee into the Buy-Here, Pay-Here Hall of Fame during the National Alliance of Buy-Here, Pay-Here Dealers’ East Coast Conference.
Kennett, of Quick Credit Auto Sales in Sidney, Ohio, accepted his award by first praising Jim DeVoe, the founder of J.D. Byrider.
“I use to go over to (Merrian, Ind.,) to spend time with Jim DeVoe and the man shared everything with me,” he said.
“He is probably the one person that I will always remember.”
DeVoe, the first member of the Hall of Fame, had his life cut short in a plane crash in 2006 at the age of 62.
NABD founder Ken Shilson said Kennett has been “a student of the business, as well as a legend of the business.”
Kennett has been a part of the NABD since its inception, Shilson said.
He said Kennett gave him one lesson years ago about
the business.
“He said, ‘Ken, I’ve learned in this business that there’s only one thing real in buyhere, pay-here business, and that’s cash. Everything else is an illusion.’”
Shilson said Kennett preached that cost control was critical to success.
Kennett said that it’s not about making money, but “it’s what you keep at the end of the say that makes a diference,” Shilson said.
Shilson thanked Kennett for making a diference during his career in buy-here, pay-here.
North Carolina dealer Ingram Walters, who announced the award, praised Kennett for his career.
“This year’s inductee is personal to me because he’s a friend of mine,” Walters said. “He’s a mentor and a special guy. He’s a got an uncommon balance of persistence and patience.
“During his prime working years, his employees saw him more as a teacher than as a boss and I like that.”
Walters said Kennett focused more on controlling
expenses than anyone in the country. In Kennett’s twenty group, his costs were always the best.
“(He) was disciplined, played by the rules and had fun while doing it,”
Walters said. “He’s a true champion.”
In addition to Kennett and DeVoe, previous inductees include Ed Bass of Ilinois, Martin Ingram of Texas and John Linnehan of Maine.
“These guys are giants of the industry,” said Walters. “If the buy-here, pay-here industry had a Mt. Rushmore, these guys’ faces would be on it. They were true pioneers.”
Photo by Jeffrey Bellant
ALL-TIME GREAT : Bruce Kennett, center, receives a trophy to go along with his entry into the NABD Buy-Here, Pay-Here Hall of Fame during a recent conference in New Orleans. Ingram Walters, right, made the announcement and called Kennett one of his mentors. Ken Shilson, NABD founder, also made some remarks.
Salvage Auction Chain Grows
Insurance Auto Auctions Inc.
(IAA) has opened two new facilities, in New Orleans, and Culpeper, Va.
The openings mark the company’s 32nd location in the South Central region, and the 49th location in the Southeast region.
The Culpepper facility gives IAA the additional capacity necessary to serve the greater Washington, D.C., metropolitan market.
The New Orleans East facility provides IAA additional capacity in this catastrophe-prone and quickly growing area.
Enterprise Marks Milestone
Enterprise Holdings – which includes Enterprise Rent-a-Car – set a record for used-car sales in its recently completed fiscal year.
FY13 was the first year Enterprise Holdings sold more than 1 million vehicles worldwide through its dealer, consumer and auction car sales channels.
The company and its afliate Enterprise Fleet Management generated $16.4 billion in revenue overall.
The company also reports that Enterprise Holdings and Enterprise Fleet Management together own more than 1.4 million cars and trucks and that the total fleet has grown by 23 percent in the past three years.
NEWS BRIEFS
Wholesale Prices Decline
Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) declined in October after increasing in each of the previous four months.
The Manheim Used Vehicle Value Index reading was 122.3 in October, which represented a 0.3 percent increase from a year ago.
Since the all-time high in May 2011, the Manheim Index has shown a pattern of each subsequent cyclical high being lower than the previous one, and each low lower than the earlier one.
Prices at auction are dropping because there is a coming increase in wholesale, driven primarily by oflease volumes, but higher supplies will also come from other commercial sources.
Kelley Enters Chinese Market
Kelley Blue Book has announced a joint venture with Bitauto Holdings Limited and China Automobile Dealers Association to provide ve-
hicle valuation and pricing information to the China market.
The new joint venture will operate as a Web-based and mobile product in China, providing used-vehicle values for consumers, auto manufacturers, car dealers, finance and insurance companies, and other automotive-related companies.
KBB.com’s used-car values expertise will be integrated with Bitauto’s local Chinese market understanding and used-car customer base, and CADA’s exclusive access to extensive data on China’s used-car market. The moves sllows Kelley to expand existing relationships onto a global marketplace.
Ally’s Revenues Grow
Ally Financial reported strong results from its auto finance division in the third quarter.
Auto net financing revenue grew by $72 million from third quarter last year.
U.S. consumer financing originations were at $9.6 billion for the quarter.
Ally also reported double digit origination growth in lease, used and diversified channels; up 10 percent, 11 percent and 12 percent, respectively, year-over-year. Combined used, lease and diversified new retail originations accounted for more than 60 percent of total originations.
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Engines
– Continued from page 1
“Consumers are looking for more horsepower and better fuel economy,” Ibara said. “EcoBoost does both.”
Ibara said people now are not as obsessed with the number of cylinders an engine has. Many times they don’t even know the engine size. But they do care about performance.
Newer engines may have modest horsepower but they ofer more torque.
Diesels fill that requirement nicely.
Ibara said in the U.S. diesels are “misunderstood,” but do have a small but loyal following. Although in the past they have tended to come in premium cars, he says, overall diesels “hold their value better, and delivery fantastic fuel economy.”
Volkswagen’s Marc Trahan said diesels perform well in the market.
“Their strong residuals strengthen customer loyalty . . . it’s all about residual values,” said the executive vice president of group quality.
Results of a study done for Robert Bosch LLC and presented at the 2013 Alternative Clean Transportation Expo in Washington, D.C., found that diesels saved owners up to $6,000 in ownership costs compared with gasoline-powered vehi-
cles. The study covered a three- to five-year period and was attributed to the University of Michigan Transportation Research Institute.
The study spotlighted several diesel cars and utility vehicles that made up for their higher MSRPs – particularly in the areas of fuel economy, depreciation and ownership savings.
A diesel VW Golf, for example, was 11 percent more expensive than its gas counterpart. But it saved 29 percent in fuel costs and was 38 percent ahead in depreciation. Ownership savings were pegged at $5,013.
A Jetta SportWagen with a diesel powerplant had a 14 percent retail premium. It made up for that with a 22 percent improvement in fuel economy and a 26 percent diference (in its favor) in depreciation. Ownership savings compared with a gasoline SportWagen: $3,389 after 36 months.
A Mercedes R-Class diesel had no retail price increase, saved 19 percent in fuel costs and 20 percent in depreciation for ownership savings after three years of $5,951.
A diesel engine is more costly to produce, Read said, because of greater combustion pressure.
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Dealer Admits to Laundering Cash
An Oregon used-car dealer known as “Fast Eddie” pleaded guilty to money laundering.
The Internal Revenue Service initiated a “sting” money laundering investigation of Eddie L. Bynum Sr. after learning from the Federal Bureau of Investigation’s Metro Gang Task Force that Bynum might be laundering money for local gang members through his Vancouver, Ore., automobile dealerships.
Bynum admitted that he accepted $34,000 in cash from an IRS undercover agent to purchase a 2005 Maserati, and that the agent told
him the cash came from dealing drugs. Bynum also admitted he conducted the Maserati sale to conceal the source and nature of the dirty money.
Bynum acknowledged he later accepted $50,000 cash from the undercover agent, pursuant to an agreement that Bynum would launder that money by returning the $50,000 to the agent in $5,000 monthly checks from one of his businesses. The government alleged Fountaine Motors and Manor Highway Auto Inc. were among the businesses Bynum used.
Auctions Raise Money
Two auto auctions helped raise money during October’s Breast Cancer Awareness campaign.
Louisiana’s 1st Choice Auto Auction raised $2,672 during Breast Cancer Awareness month for the Mary Bird Perkins Cancer Center in Hammond, La.
Bake sales were held, bracelets and pins were sold, and dealers who donated earned John Dough (auction “money” that dealers use to bid on gifts at the Anniversary and Christ-
mas sale). Employees wore special “I wear pink for the cure” shirts on sale days throughout the month.
On Oct. 29, Pittsburgh Auto Auction auctioned of a choice selection of vehicles donated by a group of their loyal consignors, with 100 percent of the proceeds donated to the Susan G. Komen Foundation with a check in the amount of $13,130. In addition to the car donations, Pittsburgh matched the amount of donation proceeds.
SEEING PINK: Pittsburgh Auto Auction founder Clo Angelicchio lends a hand during the auction’s fundraiser for breast cancer.
Dealer Couple Makes Giving a Major Part of Business
By Jeffrey Bellant
Each year, the used-car industry embraces charitable causes and one dealership does everything from barbecue to Toys for Tots.
Michelle Groover and her husband Dan Stryzinski, of Members Auto Choice in Lawrenceville, Ga., make charitable giving a major part of their business.
“It’s a way that we can give back to the community where we have dealerships located,” Groover said.
The dealership has seven licensed locations throughout Georgia and Groover was named the Georgia Quality Dealer of the Year in 2013.
The dealership has multiple locations through a partnership with area credit unions.
“We do things diferently,” Groover said. “We sell cars to credit union members, so we’re licensed inside six of their locations.
“Then we have one independent car lot in Buford.”
Although Members Auto Choice regularly supports charities, they started doing something diferently in recent years.
“We started the barbecue thing three years ago,” she said.
“We purchased a big smoker with the intention of renting it out and receiving some income from that.”
However, Groover’s husband, Dan Stryzinski did not want to rent out the $9,000 equipment.
But Groover said if they weren’t going to rent it out, they didn’t want it sitting around either.
“So we started these charity events,” she said. “It the past three years, we’ve probably done 40 events.”
The couple sets up a smoker at these locations under a tent labeled, “Help MAC Give Back,” the acronym for the store.
The proceeds are donated to police departments, the (Georgia) Council on Aging and senior citizens’ groups.
David Moody BLACK BOOK SURVEYOR
NEXT ISSUE: COLLECTIONS
HANDS ON: Dealer Dan Stryzinski tends the smoker at a fundraising event. Stryzinski and his wife, Michelle Groover, support many charities and take an active role in their projects, including delivering toys at Christmas and aid to people in Honduras.
ADESA Boston December 13
508-626-7000
ADESA Charlotte December 12 704-587-7653
ADESA Cincinnati/Dayton December 17 937-746-4000
ADESA Golden Gate December 3, 17 209-839-8000
ADESA Houston December 11 281-580-1800
ADESA Indianapolis December 10 800-925-1210
ADESA Kansas City December 10 816-525-1100
ADESA Lexington December 12 859-263-5163
ADESA New Jersey December 5, 19 908-725-2200
ADESA San Diego December 5 619-661-5565
ADESA Tulsa December 13 918-437-9044
America’s AA-Chicago December 18 708-389-4488
Brasher’s Salt Lake AA
December 3
801-322-1234
Columbus Fair AA December 4, 18 614-497-2000
Manheim Atlanta December 4, 5, 19 404-762-9211
Manheim BaltimoreWashington December 17 410-796-8899
Manheim Dallas December 4, 18 877-860-1651
Manheim Denver December 18 800-822-1177
Manheim Detroit December 5, 12, 19 734-654-7100
Manheim Fredericksburg December 5, 19 540-368-3400
Manheim Milwaukee December 4, 18 262-835-4436
Manheim Minneapolis December 11 763-425-7653
Manheim Nashville December 11 877-386-5004
Manheim Nevada December 20 702-361-1000
Manheim New Jersey
December 4, 18
609-298-3400
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December 4
985-643-2061
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December 3, 10, 17
800-337-8491
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800-777-2053
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December 5, 12, 19
623-907-7000
Manheim Pittsburgh December 18
724-452-5555
Manheim Riverside December 10, 12, 17 909-689-6000
Manheim Seattle December 11 206-762-1600
Southern AA December 11
860-292-7500
Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
ADESA Boston December 13
508-626-7000
ADESA Golden Gate December 3 209-839-8000
Manheim Atlanta December 4 404-762-9211
Manheim Dallas December 4 877-860-1651
Manheim Milwaukee December 18 262-835-4436
Manheim Orlando December 10 800-337-8491
Mazda Capital Services
ADESA Boston December 13
508-626-7000
ADESA Golden Gate December 17
209-839-8000
ADESA Kansas City December 10 816-525-1100
Columbus Fair AA December 4 614-497-2000
Manheim Atlanta December 5 404-762-9211
Manheim Detroit December 12, 19 734-654-7100
Manheim Fredericksburg December 5 540-368-3400
Manheim Milwaukee December 4 262-835-4436
Manheim Nashville December 11 877-386-5004
Manheim New Jersey December 4, 18 609-298-3400
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ADESA Boston December 13
508-626-7000
Brasher’s Salt Lake December 3 801-322-1234
Columbus Fair AA December 18 614-497-2000
Manheim Dallas December 4 877-860-1651
Manheim Denver December 18 800-822-1177
Manheim Detroit December 12, 19 734-654-7100
Manheim Fredericksburg December 19 540-368-3400
Manheim Milwaukee December 18 262-835-4436
Manheim New Jersey December 4 609-298-3400
Manheim Orlando December 10, 17 800-337-8491
Manheim Pennsylvania December 5, 19* 800-777-2053
Manheim Riverside December 12 909-689-6000
Manheim Orlando December 10 800-337-8491
Manheim Pennsylvania December 6, 20 800-777-2053
Manheim Pittsburgh December 18 724-452-5555
Manheim Riverside December 17 909-689-6000
Manheim Seattle December 11 206-762-1600
Manheim Pennsylvania December 20 800-777-2053
Manheim Pittsburgh December 18 724-452-5555
Manheim Riverside December 10 909-689-6000
Manheim Seattle December 11 206-762-1600
Southern AA December 11 860-292-7500
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PEOPLE IN THE NEWS
Manheim Moves Managers
Manheim and AutoTrader Group have announced a pair of key personnel moves.
Andrea Kane has been appointed chief people ofcer at Manheim and AutoTrader Group.
Rock Anderson, Manheim’s former chief people ofcer, has been named regional vice president of the west region.
Both appointments became efective Nov. 1.
Kane previously served as senior vice president of human resources for the AutoTrader Group, where she led the company’s human resource functions, including training and leadership development, organization efectiveness, human resources management, talent acquisition, and employee communications.
She has more than 25 years of human resources experience including 15 years serving as the head of human resources at global companies including Belkin, ADT Securities Inc. and CNBC.
In his new role, Anderson takes over business and operational leadership of markets located in the western half of the U.S.
He has played a key role previously in strengthening and engaging
Manheim’s employees in new and better ways to drive innovation and serve customers.
Prior to joining Manheim, Anderson held leadership positions with leading large companies including Siemens, Wachovia Bank and Inroads Inc.
Auction Hires CFO
Shelly (Angelicchio) Walker has been named chief financial ofcer at Pittsburgh Independent Auto Auction (PIAA).
Walker has a Bachelor of Science in accounting from Pennsylvania State University with more than 12 years of experience in accounting, financial analysis and treasury.
Walker is replacing Bob Bilinsky who retired after more than 31 years of service at PIAA.
ADESA Realigns Personnel
ADESA has realigned the reporting structure of several key personnel.
The company’s e-business department, customer-relationship management team and inside sales division will now report directly to Tim Zierden, senior vice president of dealer sales and services.
During the past few years, the company has made significant investments in its online platforms.
RETAIL MARKETS
KENTUCKY
Joyce Caudill, vice president, Time Auto Sales, Walton, Ky.:
“We’ve been in business for 48 years. My husband’s father started it and then when he passed, my husband bought the business.
“We are a buy-here, payhere dealership. We have a related finance company.
“We have two locations. We have one (store) in Richwood and one in Covington. One is a large lot and the other is a smaller satellite lot. All of the collections are centrally located at the larger lot.
“On average, we carry 120 to 130 cars. That’s about the same as this time last year. We sell about 500 to 600 (units) per year.
“My husband is the president of the dealership and he’s also the buyer.
“We just go to the local auto auctions. We buy everything on the block. Nothing online.
“Our average retail price is probably $8,995. We have some as low as $5,995 and some as high as $12,000. I think those prices are a little
higher than they were this time last year. But cars also cost a little more.
“(For model years), we’ll sell everything from 2001s and 2002 to 2006s and 2007s.
“On average, those cars will have 100,000 miles and change. This year, actually, the mileage hasn’t crept up on us like I would have expected. But my husband’s been buying cars for 40 years, so he’s really good at it.
“Our (inventory) is domestic, almost all domestic.
“We have an inner citytype store that sells lots of cars and we have a more rural store where trucks and (sport utility vehicles) are more popular.
“I would say that the average down payment is around $800.
“On term lengths, we try to stay at 24 months or less. But on the newer cars that have a higher price point, the terms will run out 30 months or more. We try not to go out longer than that because it’s just not our business model.
“On our reconditioning
costs, we just had Ken Shilson and Subprime Analytics look at our numbers and it showed that our recon costs are about $862 (per unit). Recon has gotten more expensive.
“We don’t do any heavy lifting (on the reconditioning): no engines or transmissions. We also don’t do any bodywork. But we do everything else.
“(For advertising), we have a good ad rate with the local cable company. We do probably 50 percent television and 50 percent radio.
“After having some extensive conversations with Shilson and (industry attorney) Tom Hudson, I think it’s not a time for growth. It’s a time for doing things right. It’s a time for cutting every corner you can in terms of cost.
“Don’t change your underwriting and don’t panic. A car on the lot is better than a bad deal, all day long.
“It’s a time to sit tight, hunker down and wait until the (wave of deep subprime sellers entering the market) get tired of it.
“One recent vehicle we
sold was a 2005 Dodge Durango. It had 113,000 miles.”
OKLAHOMA
Chris Thiel, owner, Shields Credit Connection, Oklahoma City:
“I’ve been in business for 17 years. I actually started with my father and nine years ago I bought him out.
My dad’s retired now.
“I have four employees.
“I carry about 30 cars on the lot. That’s typical. That’s about the same as this time last year.
“I sell about 15 per month.
“Absolutely I’m gearing up for tax season. I start buying near the end of the year, early December.
“I have a wholesaler that I buy (vehicles) from.
“He’ll buy cars mainly from other dealerships. Inventory is getting harder to find.
“We try to carry vehicles that are (no more than) 8 years old. We try to keep the mileage at 150,000 or less.
“We carry more cars than trucks. It’s probably a 60-40 mix.
“Mostly the inventory is domestic.
Compiled by Jeffrey Bellant
“My average down payment is about $750. That’s gone down a little bit.
“I use GPS units on the cars to locate them, but I do not use starter-interrupt devices.
“The key is to stay on top of collections.
“The average retail price is about $10,000.
“The average (contract) length is two years. The payments are $400, on average.
“We advertise in the (local car trader) book. We also run TV commercials. I have an advertising agency that handles the ad (placement). Right now, we’re running in the middle of the day. We’ve also done television commercials.
“Reconditioning runs in the mid $500s. That’s higher than this time last year.
“The industry is getting very competitive. It’s a whole diferent world than five years ago. In the buyhere, pay-here (segment), the competition is coming from the franchise dealers.
“I recently sold a 2005 Impala. It had 120,000 miles. I got $10,995.”
WHOLESALE MARKETS
TEXAS
Dale Martin, general manager, Lone Star Auto Auction, Lubbock, Texas:
“Things are going well.
“Our volume has been really good here lately. In the month of October, we had a record month.
“It was the best sales and consignment in the history of our auction.
“We’ve been around 27 years. We have seven lanes and we run six to seven lanes, depending on the consignment.
“Our recent consignment has averaged 750.
“The economy is thriving really well out here in West Texas, you know, with the oil boom.
There are a lot of dollars in the marketplace.
“Our sales conversions have been right around that 60 percentile rate. We’re blessed.
“Our average sales price is between $8,000 and $9,000. We like to attribute (that high selling price) to our customer service and our ability to find great sellers and consigners.
“We’ve got a lot of big
dealer groups in the mix.
“There are a lot of trucks in this market, with farming and the oil (fields).
“Overall, compared to last year, consignment is up 15 percent probably. Also, percentages are up about the same amount.
“But (sales prices) haven’t changed a lot from last year. But, before that, we had a steady increase over the last three to four years.
“We’re getting about 250 to 300 (bidders) in the lanes every week. That’s up about that same percentage (15 percent).
“We are the largest dealer consignment auto auction between Dallas and Albuquerque, N.M., and from San Antonio to Denver. So I get dealers from that entire circle.
“We’ll get dealers from Kansas, Oklahoma and a lot of El Paso, Texas, business –and everywhere in between. We’re also drawing a lot of new people.
“I don’t know that there’s been any change in the moods of the dealers. You know how dealers are, sometimes they’re happy
and sometimes they’re not.
“Our dealer consignment is a lot higher percentage than some. It’s probably close to 75 percent. So we’ve got (the remaining volume) in fleet/lease/repossessions and we work hard at that.
“With our fleet/lease/ repo mix, it’s probably about a 75 percent of repossessions versus volume from fleet-lease companies. We are hoping that we (continue) to gain a little bit on the fleet/lease side.
“We do some online through AWG. (Online activity) is one of those things that grows as we go along. It’s not where we want it to be yet, but we work through our sales department to get more people involved in it.
“I haven’t noticed any huge changes in the other services (we ofer) like reconditioning, inspections, etc.
“That $7,000 to $10,000 stuf is working really well at this sale.
“Dealers are buying all kinds of diferent things.
“We’re excited about the rest of the year and going into 2014.”
Compiled by Jeffrey Bellant & Ted Craig
WISCONSIN
Rick Lallemont, general manager/owner, Western Wisconsin Auto Auction, Chippewa Falls, Wis.:
“It’s been a typical November. Sales are starting to slow down and prices are falling a little bit.
“We’ve probably already had our big runs on trucks. Our trucks really soar in October as the retail markets are rising.
“Now the holidays are coming, so people slow down their business. They spend more time with family.
“The cheaper cars, that $1,500-to-$2,000 car, have seen their prices go down. But the higher dollar vehicles are strong.
“We have two locations –Wisconsin State Auto Auction and Western Wisconsin Auto Auction. We’re seeing that at both places. The cheaper cars aren’t bringing the money, but the $10,000, $15,000 cars are flying of the shelf.
“Dealers are saying they can’t sell people into those cheap cars because there’s no profit in them.
“There’s some pent-up
demand out there. For the last few years, people have been buying the cheaper cars. Things have changed in the last six months.
“Right now, the market has been really soft here. I’ve had dealers who haven’t sold cars for week.
“The volume is running pretty close to what it always does. We’re a threelane auction. We’ll have 250-300 units at each sale.
“We have an RV/marine sale. That has slowed down. Some of the finance companies aren’t sending as many units as they once were.
“We also run a GSA sale. They’re winding down for the season.
“We had a very good year for GSA. We sold more than 400 cars.
“Those sales are open to the public, but the majority of vehicles are sold to dealers.
“The drop in gas prices hasn’t really affected behavior at the auction. Gas prices have been up and down for years now.
“People aren’t as stressed as they used to be.”
Disconnected Jottings From Tony Moorby...
Last Christmas, my wife and kids bought me a Big Green Egg; the ultimate backyard barbecue machine. It was like manna from Heaven for a guy who likes to cook.
The back patio now looks like a parking lot for vari-
ous cooking machinery as I already have most outdoor cooking gizmos including an infrared gas grill, piped into the house so I don’t have to run down to the gas station wielding an empty blue canister half way through entertaining the neighbors and friends to an all-American meal. It’s flexible, to the extent that you can turn the temperature up and down with three knobs, enabling direct and indirect cooking. It’s quick to set up – you turn it on and within minutes you’re capable of producing some-
thing edible. In the business, it’s known as a ‘gasser’.
I also have a side oven smoker large enough to hold four Boston butts for barbeque and a couple of chickens for good measure. Terry and I catered a 50-person rehearsal dinner
holds pellets of diferent wood shavings. When lit, they smolder for a long time and produce enough smoke to hide a battleship – applewood, mesquite, hickory and oak all give diferent results. A pork loin, brined, dried, cold smoked and then cooked, renders (pardon the pun) a homemade ham that would do justice to any Thanksgiving table.
An electric smoker is also on hand. It has more control over temperatures but lacks the ability to impart complex flavor characteristics so is rarely put to use.
cook directly over the flame or indirectly by the use of a ceramic deflector known as a plate-setter. You can decide where to place your food in the dome – the higher, the hotter. It’s a sophisticated Weber but it’s made of thick ceramic clay that holds heat and distributes it evenly. The whole set-up allows you to cook anything from a ‘low and slow’ roast or a loaf of bread to a screaming sear for a steak done Pittsburgh-style.
with its help.
Patience and constant tending throughout the course of a 15-hour smoking session is reward in itself for the results it yields. The tough shoulder meat finally gives way to mouth-watering tenderness with a dark crispy “bark” on the outside. I also use the chamber for ‘cold smoking’ –things like salmon, haddock and cheese are enhanced by being slowly smoked at low temperatures and then cooked as part of a normal recipe. It’s achieved with a crazily simple device like a flat cage that
Pride of place on the patio is now given over to the Egg. Obviously its name is derived from its color and shape. But this simple description belies the fact that it’s one of the most flexible cooking utensils known to man. Though it’s marketed as a new and innovative barbeque grill, the ovoid spherical shape goes back for centuries when Middle Easterners and the Chinese recognized the efciencies ofered by its ability to operate at diferent temperatures from gently warm to hell-hole hot.
The user can decide the amount of airflow, whether to
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21. Computer department, abbr.
22. Isuzu SUV
24. Hit the accelerator hard
25. Licenses, for example
Pizzas are fabulous with a grey-brown crust and gently browned top and all the toppings that can come from the imagination.
Jaguar roadster 4. Luxury full-size car from Hyundai 8. Comic
10. Once round the Indy 500
11. Brit. company that built the “Bond Bug” 12. Full-size Chevys
13. Beautify 16. Nissan minivan
18. Neighbor of Mo.
26. Accord maker
27. Manheim events
29. ___’easter
31. Single item
32. Blocking a line 34. Complete 35. Automatic transmission setting
36. Take a quick spin (2 words)
39. Bring into play 40. “Rocky ___”
41. Price ____
1. Luxury Italian car
2. Color for a Lamborghini, often
3. Historic period
4. Classic model (2 words)
5. Lotus model
6. 1500, 2500 or 3500 truck
7. Software program, briefy
8. Joining metal surfaces
9. Tanks’ need
14. Abbreviation for the Transportation Department
15. Altima, for example
17. _____ radius
22. Include an accessory
23. Sticker
25. They make a Q80
26. Veloster makers
19. Line of cars on the lot, say 20. Coffee holder
42. No longer good, as a license Down
28. More loud
30. Word that ends a negotiation
There are also various blogs and forums – I follow one called The EggHead Forum. Recipes and methods are swapped and discussed at length. Pictures of ‘set-ups’ and results support the users’ addictions. They speak in a language all their own along with an insider sense of humor.
The “What am I going to do in retirement?” list just got shorter.
But there are some drawbacks – buying a Big Green Egg is like buying a Harley Davidson and both pieces of basic equipment are expensive and, like the bike you start buying accessories; in the BGE world they’re known as ‘eggcessories.’ You can imagine all the dreadful puns brought into their marketing lexicon; “bring the temperature to eggactly...” you get it. The range of extras is awe-inspiring and eggspensive (sorry) but, again like the Harley, you feel you can’t live without them. I’ve known people to design complete outdoor kitchens around them to accommodate all the diferent sizes from mini to extra large.
INSURANCE AUTO AUCTION S
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Tony Moorby
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