Used Car News 11/4/13

November 4, 2013

ON THE WEB:

Enterprise Car Sales Airs First TV Spots

Enterprise Car Sales, a service of Enterprise Rent-A-Car, has debuted its first-ever television commercial as part of a broader campaign highlighting the Enterprise brand as a total transportation solution.

The commercial focuses on the ease of a negotiation-free used car-buying experience, a strategy Enterprise pioneered in 1962.

A preview of the spot is available on the Enterprise YouTube channel.

Consumers Start to Default on Loans

Data through September, released by S&P Dow Jones Indices and Experian for the S&P/ Experian Consumer Credit Default Indices, showed an overall increase in national default rates during the month.

The national composite was 1.38 percent in September, slightly up from 1.34 percent posted in August.

The auto loan default rate reported 1.15 percent in September, up from a 1.11 percent previous month level.

CR Ranks Toyota’s Brands Most Reliable

By Ed Fitzgerald

GMC made a promis-

ing leap into the Top 10 of Consumer Reports’ annual reliability survey, as Ford posted its second straight poor showing.

The magazine’s 2013 rankings were released Oct. 28 to the Automotive Press

Association in Detroit.

The survey results managed to put a small dent in the Japanese automakers’ usual dominance, with GMC, Audi and Volvo all taking Top 10 spots.

However, the top three spots went to Lexus, Toyota and Acura, respectively.

The top predicted reli-

ability score went to the redesigned 2014 Suburu Forester.

Jake Fisher, an engineer and tester for Consumer Reports, reminded the journalists in Detroit how the magazine conducts its survey.

The data is collected from CR subscribers’ experi-

ences with over 1.1 million vehicles. Obviously CR subscribers might be more critical.

Fisher said drivers’ various complaints are viewed accordingly.

“It’s not all about ‘we don’t like the cup holders,’’’ he said.

Continued on page 12

Sonic Plans National Chain of Used Car Stores

Sonic Automotive seeks to succeed where others have failed – launching a nationwide used-car chain.

While CarMax Inc. has thrived in recent years, AutoNation shuttered all its used-car superstores at the start of the 2000s. Attempts by Asbury and Lithia both ended almost before they began.

Even CarMax overcame a shaky start.

“They have a very high fence to climb,” said George Hoffer, an economics professor at the University of Richmond.

Still, Sonic executives are confident their plan will succeed.

“We have been preparing for this moment over the last

several years and are excited to be in a position to share our plans,” said Scott Smith, Sonic’s president and co-founder.

“In particular, we are confident that our new model will not only enhance the value of the business for our stockholders and associates, but it will deliver an experience not yet seen in retail automotive.”

The first target market is planned for Denver and will open in late 2014.

Hofer said while the fate of Sonic’s eforts remain yet to be seen, it should mean increased competition for CarMax.

“CarMax has been fortunate to have an open highway for so long,” he said.

Auctioneer Achieves Dream, Opens Independent Sale

By Jeffrey Bellant

A career auctioneer has opened a new independent auto auction in his hometown of Bloomsburg, Pa.

John Vance, who has auctioneered for 25 years, opened the Bloomsburg Auto Auction in August.

Starting an auction has been Vance’s lifelong ambition.

“Since I was in college, it was something I always wanted to do,” Vance said. “You do those business plans in college and that’s what I always wanted: to start an auto auction.”

Vance, 44, has worked at auctions owned by Manheim, ADESA and ADT, along with some independents. He started out at SWADE Auto Auction in Scranton, Pa., and went on to work at, among others, ADESA Long Island in New York, Manheim New York Metro Skyline in New Jersey and Orangeville Auto Auction in Pennsylvania.

For a while, Vance was content to be an auctioneer, waiting for the right time in

start his own sale.

“As an auctioneer, I got to spend a lot of time with my family,” Vance said. “Now my kids (have grown up).”

After an initial efort to buy a site fell through, Vance discovered a vacant trucking terminal in Bloomsburg – a mile and a half of Interstate 80 – and realized he found his site.

“It had three bays and it had a lot of asphalt, so it turned out to be a prime (facility) for a small auction,”

Vance said.

The third bay is being used to wash cars, but can be opened as another lane in the future.

The site has eight acres that are developed and seven acres that are still undeveloped.

Like any independent sale, it’s been a challenge starting out.

“Dealers have a routine, going place to place,” Vance said. “So getting them to break their routine to come to this new auction has been the hardest thing.”

The other challenge is that in recent years, the bulk of

Congratulations Recarnation

2013 Dealer of the Year*

“Without Spartan Financial Partners support, this award would not have been possible.

We are deeply grateful for your patience, support and the monthly reviews that have dramatically improved many of our processes.

Your program has assisted us in understanding and striving for best practices, especially in terms of compliance and performance measurement.

We look forward to learning and growing with you.”

- Marc Powell President Recarnation

Vance’s auctioneering has been in New York and New Jersey, so he’s not as familiar with nearby dealers.

He said it’s just a matter of knocking on doors, meeting dealers and telling them about the sale.

“The other thing is, you have to get cars to draw dealers, but you have to draw dealers to get the cars,” Vance said. “It’s a tricky

thing, if you have too many cars, then the sellers won’t come back and if you have too few cars then the buyers don’t want to come back.”

The auction opened its first sale with 60 cars and a recent sale had 50 units. September was a rough month, but business improved in October, Vance said.

The auction is drawing 30 to 40 dealers in the lanes each week.

But Vance isn’t alone. His auction is a family afair.

“My father, Jim, is the auctioneer and my wife, Heather, runs the ofce,” Vance said. “My mother, Ruth, takes payments in the ofce. The rest of the staf is made up of family friends and other people that I have known. I haven’t had to place an ad in the paper.”

DriveItNow Offers Trade-In Tool

DriveItNow announced its new Trade-in Equity Analyzer is now available as part of its pre-qualified payment quoting service.

DriveItNow’s Trade-in Equity Analyzer lets the dealer and consumer easily see their trade-in value and the efect it will have on their new payment. This information is critical in giving them a more realistic view of the vehicles they can aford to purchase.

BBB Warns About Online Dealer

The Greater Cleveland Better Business Bureau is warning consumers about an online dealer that is generating numerous complaints. Dozens of consumers have filed complaints with BBB about Cars Direct Online (CDO).

CDO is located in Cleveland, but sells vehicles nationwide at autosdirectonline.com. Its website claims, “You will also find ... an accurate, forthright representation of that particular vehicle in our descriptions, including any defects or flaws.”

In the past 36 months, BBB has received nearly 90 complaints, many citing issues with damage and rust that was not depicted in photos of the vehicle posted online. Consumers also report repair issues surfacing soon after purchase

NEWS BRIEFS

or failure to return a $500 deposit as promised.

CDO typically responds by stating the consumer purchased the vehicle “As Is” with no warranty. CDO also has buyers sign an acknowledgement that they had “an adequate and full opportunity to inspect the vehicle and to have a third party or mechanic of [his] choice make the inspection.”

The business has an “F” rating at BBB due to the volume of complaints, failure to respond to or resolve some complaints, and failure to eliminate the causes of complaints.

Cars.com Improves Reviews

Digital Air Strike announced a new partnership with Cars.com.

Digital Air Strike a direct customer survey integration process that allows car buyers and service customers to turn their dealership survey feedback into a Dealer Review on Cars.com, all without leaving the Digital Air Strike survey environment.

This integration is available exclu-

sively through Digital Air Strike’s newly released Review Surge 3.0 product.

This solution automatically generates a survey after a patron buys or services a vehicle at the dealership. The dealership’s DMS triggers a survey with the option of seamlessly leaving feedback on Cars.com within 24 hours of each customer transaction, thus making the reviews generated “verified customer reviews”.

For dealerships, this new product will help increase the number and frequency of reviews on Cars. com, providing a more robust view of their overall sales and service experience.

DataScan Adds Floor Plan Tool

DataScan Technologies has partnered with business manager software provider Appian to release Wholesale Management System (WMS) 4.x software suite.

The software allows DataScan clients to more utilize in-depth workflow and document management capabilities, including the ability to connect documents with various data and transactions. Other advancements include configurable dashboards and more robust workflow reporting tools, such as audit trails, task escalations, and analytics that track when tasks are assigned and completed.

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Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager

Editorial: Ted Craig, Managing Editor Jefrey Bellant, Staf Writer

Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath

Columnist: Tony Moorby

Advertising:

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Circulation: Helen Thomas

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Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.

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Group Honors Former Auction Owner with Special Award

By Jeffrey Bellant

Sam Lafata, an auto auction pioneer, received a special award for his lifelong support of a charity that helps underprivileged and at-risk youth.

Life Directions, a Detroitbased charity helping disadvantaged youths, honored Lafata on its 40th anniversary with a new award named after him – the Sam Lafata Prestigious Award for Investing in Life Directions.

The award, given during the group’s annual golf fundraiser, will bear his name going forward.

Lafata said during the ceremony teenagers who had been helped by Life Directions came and spoke about how the program had changed their lives.

“It was very moving,” he said. “It’s a great organization. I really appreciate the job it’s doing. You just have to help them. You can’t sit back.

“But I’ve had a lot of fun.” Lafata was president of Aptco Auto Auction in Melvindale, Mich. He grew

the auction into one of the biggest in the nation before selling (it is now Manheim Detroit).

He also served as president of the Michigan Independent Automobile Dealers Association, president of the Midwest Auto Auction Association and on the board of directors of the National Auto Auction Association.

He has always been a strong supporter of charities like Life Directions.

“Sam was actually the first donor to the group,” said the Rev. John Phelps, CEO of Life Directions, which has branches in Chicago, New Orleans, San Antonio, Salem, Ore., and Tucson, Ariz.

Lafata said he had first met Phelps at the Detroit Athletic Club, where Phelps gave a lecture on helping young people who were struggling in school and in poverty.

“He gave a heck of a speech and it really got to me,” Lafata said. “I introduced myself and gave him a donation.”

Lafata helped Phelps find a site to host the organization’s first fundraiser. Lafata also started a series of bocce

tournament fundraisers and eventually launched the Life Directions Annual Golf Classic to raise money for the group.

During one of the fundraisers, Lafata also coaxed Phelps to participate in a special fundraising efort.

“He actually put me in a dunk tank,” Phelps said.

Lafata admitted that he

was giving out dollars to get participants to dunk Phelps.

Lafata, who was also involved in the Detroit boxing world, drew in boxer Thomas Hearns and trainer Emmanuel Steward of the famous Kronk Boxing team to promote Life Directions.

Phelps said Lafata also helped in strategic ways.

“He really gave me some

common-sense insights in how to invest in young people so that we can reach more of the them,” Phelps said.

The purpose of Life Directions is to “find young people rooted in (good) values to inspire young people who are rootless,” Phelps said.

“We’ve reached over 163,000 youths and young adults (in the Detroit area).”

Toyota Faces First Court Setback for Acceleration

OKLAHOMA CITY (AP) – Toyota Motor Corp. teached a settlement with the victims of a deadly 2007 car crash, a day after an Oklahoma Country jury became the first in the country to find the company liable in a case of sudden unintended acceleration.

On Oct. 24, the jury awarded a total of $3 million in monetary damages to the injured driver of the 2005 Camry involved in the crash, and to the family of the passenger, who was killed.

The ruling was significant because it was the first case where plaintifs argued that a car’s electronics – in this case the software connected to the Camry’s electronic throttle-control system –caused the unintended acceleration.

The Japanese automaker recalled millions of cars, starting in 2009, following claims of sudden acceleration in Toyota vehicles. It has denied that electronics played any role in the problem.

The Japanese automaker had won all previous unintended acceleration cases that went to trial.

Legal experts said the Oklahoma verdict might cause Toyota to consider a broad settlement of the remaining cases, but that the company is likely to fight

a few more cases before making that decision.

Judge Patricia Parrish announced the parties had reached a deal that eliminated the need for the second stage of the trial over punitive damages.

The terms of the settlement were not disclosed, but Toyota agreed not to appeal the jury’s decision, said Jere Beasley, an attorney for the plaintifs.

“You can rest assured they did not want to go to the punitive phase,’’ Beasley said.

Toyota has blamed drivers, stuck accelerators or floor mats that trapped the gas pedal for the sudden unintended acceleration claims that led to the big recalls of Camrys and other vehicles.

No recalls have been issued related to problems with the vehicle’s onboard electronics. In the Oklahoma case, Toyota attorneys theorized that the driver, Jean Bookout, mistakenly pumped the gas pedal instead of the brake when her Camry ran through an intersection near Eufaula and slammed into an embankment.

Toyota said in a statement that it disagreed with the verdict, and vowed to “defend our products vigorously at trial in other legal venues.”

But Sean Kane, who heads a safety research company in Massachusetts, said the ruling in the Oklahoma case could influence how Toyota proceeds with the dozens of pending lawsuits that target the vehicle’s electronics.

“It’s important that this case is only one of many we’ve examined in which you can point to nothing other than the electronics system in the car,” Kane said.

“The problem for Toyota in this

case was there was a preponderance of evidence to show this wasn’t a driver error issue, and it clearly wasn’t a floor mat.”

On Oct. 24, the jury awarded $1.5 million in monetary damages to Bookout, 82, and $1.5 million to the family of Barbara Schwarz, who died.

Their attorneys maintained Toyota knew about the problems, but concealed that information from the public.

DEALERS

Franchise Dealers Face More Scrutiny, Less Protection

DETROIT – Franchise dealers face new regulations at the same time they face challenges to the traditional franchise system.

Dave Wescott, chairman of the National Automobile Dealers Association, addressed these issues during a recent appearance at the Automotive Press Association in Detroit.

Dealers had secured an exemption from the Consumer Finance Protection Bureau when it was created by the Dodd-Frank Act. But today they face pressure from the regulator through their finance sources on the issue of disparate impact.

This could lead to elimination of dealer flexibility in financing and the move to a flat fee system. Wescott said this move could increase the cost of credit for millions of consumers.

“When it comes to indirect lending, dealers are price discounters,” he said. “We don’t understand how

removing 17,546 price discounters from the marketplace is a good thing.”

At the same time the federal government is looking at making business more difficult, states are considering taking away the protections of existing franchise laws.

Electric manufacturer Tesla wants to bypass the traditional system and sell directly to the public.

This creates a problem for the NADA beyond just Tesla if other manufacturers use the opportunity to create factory-owned stores.

“If manufacturers were allowed to squeeze out independent dealers, the competition we create will give way to a handful of national and international corporations controlling pricing in your local community – because there will no longer be intra-brand competition,” Wescott said.

He said the existing manufacturers understand the value of the current system,

but a new, large entry, such as one of the Chinese automakers, might not.

Wescott said the strength of franchise dealers comes from their customer focus in every area from financing to repairs.

While some critics attack dealers and their franchise

laws,

said most consumers are very happy with their local dealers.

NEXT ISSUE: GIVING BACK

Failure to Report Costs Store

The largest volume used-car dealership in the state of Washington pleaded guilty and was sentenced for failure to file a monetary transaction report.

Zein Automobiles Inc., doing business as Independence Auto Sales and Best Bet Auto Sales with locations in Lynnwood and Everett, forfeited $1.5 million to the United States, paid a $250,000 fine and entered into a corporate integrity agreement to ensure the illegal conduct does not happen again.

The undercover agents were very clear that they wanted the vehicles for drug trafcking purposes.

The salespeople assured the agents that they were familiar and comfortable with such transactions and proposed various schemes that they said would avoid the cash transactions reporting requirements.

Such schemes are illegal.

The car dealership was the subject of searches by law enforcement in September.

As part of the plea agreement the corporation admits that between January 2010 and September 2013, its employees and agents entered into cash sales of vehicles in excess of $10,000 and failed to report those sales to the IRS.

In a search warrant afdavit describing the Drug Enforcement Administration led investigation, undercover ofcers and confidential sources repeatedly purchased vehicles for cash at the two dealerships.

Posing as drug trafckers, the undercover agents told salespeople they did not want the cash transactions reported.

Under the terms of the corporate integrity agreement, the company is required to keep a log and report every cash transaction in excess of $10,000. Both the sales managers and title clerks are required to ensure the reports are made to the IRS.

During a two-year probationary period, the company is subject to unannounced audits to ensure such reports are being made.

The company has also agreed to publicize its guilty plea, penalties, and compliance plan in formats to be approved by U.S. Probation.

The case was investigated by the Drug Enforcement Administration (DEA), the Internal Revenue Service Criminal Investigation (IRS-CI), the Seattle Police Department and the King County Sherif ’s Ofce.

Cop Turned Dealer Avoids Jail

CINCINNATI (AP) – The owner of a used-car store avoided jail time and was sentenced to probation stemming from his connection to a marijuana smuggling operation.

Bryon Roos, formerly an ofcer in a Cincinnati suburb, admitted to depositing money meant to avoid bank reporting requirements as part of the operation that involved at least 10 other men.

In exchange for his guilty plea in February, prosecutors dropped more serious charges.

Roos was sentenced to two and

half years of probation, including six months of home confinement, and ordered to pay a $5 million fine.

Other men charged in the scheme received sentences ranging from four to 14 years in prison.

Federal authorities said the conspiracy began around June 2006, when another defendant began receiving shipments of marijuana hidden in the gas tanks of vehicles at a Cincinnati auto business.

He and Roos would operate used-car businesses to launder drug proceeds.

“It’s about what is really broken. If you have problems with the clock it gets diferent weight than if you have problems with the engine.”

Fisher said problems with the primary components of a vehicle –such as the powertrain – have continued to drop through the years.

Nowadays, the major factor dragging down models is problems with infotainment systems – most notable is Ford’s SYNC system.

He also pointed to a dual screen entertainment system on some Honda models.

Fisher said these problems are not small and could worsen as the vehicles age. He said the resale values will be afected.

“Automakers are not Samsung or Apple,” Fisher said. “They are stumbling with these navigation, audio and communication systems. Electronic problems are increasing.”

Testers have found that it can become a safety factor when the infotainment systems fail drivers.

Fisher said the magazine has taken “a deeper dive” into examining the complaints about these systems.

“We re-contacted respondents. We wanted to know if they were confused by the systems, or if there are actual failures. The young drivers – the power users – are more likely to say the systems don’t work.

“The older drivers might not even be using all parts of the system –

they wouldn’t even know if those parts are broken.”

Some of the most common complaints regarding touch-screens were that they froze up, had too long of a lag time or failed to recognize a voice command, cellphone or an MP3 device.

Probably most surprising in CR’s announcements were the models the magazine is no longer recommending, such as the popular Toyota Camry.

“It doesn’t necessarily mean there is anything wrong with these vehicles, it’s just that there are now more and more cars that are better (in their segment).”

Some of the cars that CR no longer recommends are: Toyota RAV4, Prius V, Audi A4, Chevrolet Malibu Eco, Mazda 2, Kia Sportage, Mitsubishi Outlander Sport, Chevy Equinox, GMC Terrain, Nissan Juke, Nissan Rogue and Volkswagen Passat 2.5.

The top 10 makes overall are, in this order: Lexus, Toyota, Acura, Audi, Mazda, Infiniti, Volvo, Honda, GMC and Suburu.

The bottom 10, ranked 19th through 28th, are: Ram, Volkswagen, Hyundai, Nissan, Jeep, Dodge, Cadillac, Ford, Lincoln and bringing up the rear, Mini.

Out of 31 Ford vehicles tested, only the Ford F-150 with the 3.7liter V6 was rated above average.

White Remains Most Popular

PPG Industries released its annual automotive color trend data, which shows that white continues to be the most popular car color globally based on 2013 automotive build data.

According to PPG’s global data, white ranked first (up 3 percent from last year to 25 percent) and silver and black tied for second (18 percent each). These were followed by gray, red, natural hues, blue and green, all of which maintained the same share of popularity as in 2012. In North America, white remains most popular (21 percent), followed by black (19 percent), gray (17 percent), and silver (15 percent). These were followed by red, blue, natural hues and green.

Sport models are most likely to

feature shades of red and blue.

The largest percentage of gold and beige vehicles is in the minivan segment.

Luxury vehicles, 57 percent of which were gray in 2013, are most likely to feature efect finishes in black metallic and white pearl.

Color varies most across sport utility vehicles, with relatively equal distributions finished in shades of white, black, blue, red and gray. Looking ahead, drivers may see more blue in 2014 models. PPG’s data has shown increases in the popularity of blue for certain regions and vehicle types, such as an increase in North America this year and more than double the popularity in sport models there between 2011 and 2013.

RETAIL MARKETS

INDIANA

Travis Huber, owner, The Auto Store, Portage, Ind.:

“We’ve been in business about two-and-a-half years. We have two locations. They are about a half hour apart. One lot doesn’t have very many cars. It’s just an appointment-only store. I live in that area, so people who know me can just go to that store. The other lot is our main store.

“We carry about 25 cars on our main lot. That’s about the same as this time last year.

“We’ve switched (our inventory) more toward sport utility vehicles and pickups. I only have about 10 percent cars. The rest are split pretty evenly between the trucks and SUVs. That’s just the type of client we have. We have a lot of mill guys, guys who work at the factories and the mills. Typically, those guys want trucks and SUVs.

“We’re selling about 22 per month. I’ve got a little higher-dollar inventory than I did last year. We’re

selling about the same number of units.

“I get vehicles from local auctions.

“It’s been challenging to get cars. I’m not one of those dealers who is getting a ton of cars each week. I’m just buying four or five cars a week and I go to a couple of diferent auctions. I’m pretty selective.

“I don’t do any buy-here, pay-here. I’d say about 80 percent of our business is subprime. I work with companies like Credit Acceptance Corp.

“(For model years), my sweet spot is between a 2005 and 2008. Mileage is typically between 80,000 and 120,000.

“I’m carrying almost all domestic.

“My average reconditioning cost about $500. That’s about the same as last year. The normal stuf I do is the check engine lights and tires. I don’t typically buy anything with body damage. I shy away from that.

“I farm that work out. I’ve always done that.

“Outside of our website, I’m not doing any market-

ing or advertising. We’re located on a heavy-trafc corner. Plus, we took over an existing business. So the name has been around a bit.

“We do a lot of business during tax season. For example, last February we sold 50 cars.

“I recently sold a 2006 Ford Expedition. It had 101,000 miles. We sold that for $11,900.”

IOWA

Robert Pippert, president and owner, Pippert Cars & Trucks, Gladbrooke, Iowa:

“Although we’ve been out here since 1985. We used to sell semis, trucks and had a grain business. After Sept. 11, our insurance got (expensive). I always liked cars, so about eight years ago I switched it from Pippert Trucking and Grain Ltd., to Pippert Cars & Trucks.

“So now we sell used cars, trucks and SUVs, along with some classics.

“Right now, I’ve got about 32 to 34 (vehicles) in inventory. We buy some from local dealers. We also go

to Manheim Omaha, Manheim Kansas City and ADESA Des Moines. I also buy some of the street.

“Trucks are our big thing. I guess it’s because I like trucks. We carry pickups, diesels and quite a few SUVs.

“We also sell some cars and some classics.

“I like to get 10 to 12 (units) out each month. We’ve had months where we sold 15 and we’ve had some weeks that weren’t worth a darn.

“We deal with higher-end cars and trucks. The problem is the new ones cost too much, so the used ones are bringing a lot of money, if they have decent miles.

“We’re straight retail. I have two in-house credit unions. But we don’t do any subprime or any buy-here, pay-here.

“Our average models years are probably 2006 to 2007. But I’ve got some 2012s and some 2005s.

“When I started this, I was way under 100,000 miles (average unit). Now, the average mileage is anywhere from 50,000 to 80,000. Sometimes I’ll go over

Compiled by Jeffrey Bellant

100,000. Now, they run a lot longer.

“We’re almost 100 percent domestic. I just do better with domestic.

“My reconditioning costs are higher than they used to be. I’m kind of ashamed at times. We’re putting in anywhere from $500 to $1,200, on average. We do a lot of fixing on our own.

“If it’s a major repair, it goes to our local Ford or General Motors dealership.

“We have a small shop. But we’re not a repair shop. We’ll give our customers oil changes, which you just have to do nowadays.

“We advertise in Wheels magazine. We’ve done some radio spots in the past, though I’m currently not doing that.

“We run a strip ad in our local paper, which is pretty reasonable. We also have a website and advertise on Craigslist.

“Our average retail price would probably be in the $15,000 to $18,000 range.

“A recent vehicle we sold was a 2007 Chevy extended cab classic. It had 114,800 miles. I got $16,300 for it.”

WHOLESALE MARKETS

GEORGIA

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

“We’ve been here 25 years.

“We have four lanes and we’re running all four.

“For our dealer sales, we’re running around 550 cars. We’re selling in the 60 percent (area).

“We’re up in consignment quite a bit. It’s up about 100 cars per week. We added a couple of salespeople and they’ve been going to areas farther out (than we’d normally go).

“We also have a public sale where we’ll run about 150 (units) and we’ll sell about 50.

“At our Oct. 24 sale, we had around 280 (bidders), which was the first time we had dropped under 300 in a while.

“Dealer consignment is probably 80 percent of our volume.

“The rest is fleet-lease and repossessions. We’ve just joined the International Automotive Remarketers Alliance to help us build that up.

“We’ll do an in-op sale each week prior to our regular sale. We don’t push it hard. We do it as an accommodation for the franchise dealers. We’re probably running around 30 cars.

“We’re on the east coast. We’ll get dealers coming from a 150-mile radius. But since we added these two new salespeople, we’ve got some dealers coming from Atlanta. We also got a guy who comes from Hickory, N.C., which is five hours away. He comes every week. He likes to sell and he’s buying 10 to 15 cars a week.

“The new-car dealers seem to be doing well. The independents are being very careful about what they’re buying.

“A lot of new-car guys are starting to buy the $5,000 and $6,000 stuf, which is a trend I’m seeing lately.

“The dealers are doing less (reconditioning) in my opinion, while the lease companies and the banks are doing more. We’re suggesting things to help dealers (recondition better) and some dealers listen and some don’t. We’ve started

a real push on it and are showing some results.

“Our average price coming through the lanes is $7,800. We have a strong franchise base, which kicks that price up. It’s higher than last year.”

MISSOURI

Scott Wall, president/ general manager, Missouri Auto Dealers Exchange Inc., St. Joseph, Mo.

“In January, we’ll have been here nine years.

“We have a total of three lanes and we’re running two currently.

“Our volume is down a bit. I’ve talked with other (auction general mangers) around the country and it seems many of them are down, too.

“Our volumes are probably down 25 to 30 percent from what would be good volumes for us. A good number for us would 160 to 180 cars a week. That’s what we were doing. Before Cash for Clunkers, we had more than 200 per week.

“Sales percentages for us are around the low

50s (percentile).

Compiled by Jeffrey Bellant

pick up a little bit.

“We are getting about 80plus bidders in the lanes, which is down.

“The mood of the dealers is mixed. Some pockets are doing fine. I recently talked to one new-car dealer and (his sales) are fine. But they’ve got diferent income streams within the group (which helps). I talked to another new-car store and they’ve just got the blahs.

“We’ll have dealers come from a 100-mile radius consistently, but we’ve got some dealers that come from farther away. Generally, we’ll get dealers from Missouri, Iowa, Nebraska and Kansas.

“The majority of our consignment is new-car store trades and dealer consignment.

“We do have lease accounts, but those numbers are somewhat down at the moment. In July and August, we had a good number of lease cars. We were running up to 50 lease cars a week, but that’s down. I’m hearing that those numbers will increase.

“Typically, this time of year, the lease volume will

“I expect it to pick up in November or December, or at least by early next year.

“Our (commercial) accounts are Automotive Solutions and local credit unions.

“We also have an in-op auction every other week, the second and the fourth Wednesdays of the month. The average volume is about 12. That’s a high percentage conversion (sale).

“We sell bank repossessions for many of the local lending institutions.

“Quarterly, we sell (trucks and equipment) from the local counties, municipalities and the Missouri Department of Transportation.

“We’re also contracted to sell for the General Service Administration. We had three GSA auctions in 2013 and they all had 100-percent conversion rates. We expect the same or better in 2014. We average 60 units per sale.

“Overall, four-wheel trucks are selling right now.

“The average price sold in the lanes is $4,450. That’s pretty close to last year.”

Chase is Your Source for

Quality, Value and Selection

When you’re searching for a broad selection of clean, pre-owned vehicles your customers want, when and where you want them, look to an industry leader. Look to Chase.

A wide variety of vehicles — from economy to luxury Convenient online and in-lane vehicle availability with on-site Chase remarketers

Choose Chase on:

1The tradename “Subaru Motors Finance” and the Subaru logo are owned/licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (”Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”). Retail/Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. 2Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase.

3The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. © 2013 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (13-038) 02/13

3

ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES

NOVEMBER 2013

2012 MODEL S

2011 MODEL S

BMW

Hyundai Sonata GLS 4D Sedan 2.4 15750 15300 12700 11275 9575

Lexus ES 350 4D Luxury Sedan 31400 29800 28400 24175 21250

Mercedes-Benz E Class E350 4D Luxury Sedan 42000 36600 34600 29275 24400

Mitsubishi Galant ES 4D Sedan 12600 11800 12200 9750 8325

Nissan Altima Base 4D Sedan 13950 13100 11450 10475 9100

Nissan Altima S 4D Sedan 15150 14400 12750 11550 10050

Nissan Sentra Base 4D Sedan 12500 12200 10900 9450 8250

Toyota Camry LE 4D Sedan 17100 15900 14500 12325 10925

Toyota Corolla LE 4D Sedan 12850 13300 11850 10075 8850

Volkswagen Jetta

2010 MODEL S

Domestic Cars Nov-12 May-13 Nov-13 Nov-14 Nov-15

Buick LaCrosse CX 4D Sedan 16150 14600 13300 11300 9500

Cadillac DTS 4D Sedan 18500 18500 17600 13200 10975

Chevrolet Cobalt LS 4D Sedan 8650 8400 7200 5900 5100

Chevrolet Impala LS 4D Sedan 11000 10200 8350 7150 6150

Chrysler 300 Touring 4D Sedan 13950 13550 12450 10350 8775

Chrysler Sebring Touring 4D Sedan 11050 10300 8550 5850 4625

Ford Mustang 2D Coupe 13500 13400 12000 10400 9100

Ford Taurus SEL 4D Sedan 15900 14950 12950 10450 8700

Lincoln Town Car Signature Limited 4D Sedan 18200 17800 17350 13300 10850

Ford Focus SE 4D Sedan 9600 9600 8550 6950 5575

Import Cars Nov-12 May-13 Nov-13 Nov-14 Nov-15

Acura TL 4D Sedan 21200 20800 18800 15050 12400

BMW 3-Series 328i 4D Sedan 21500 20600 17650 14625 12175

BMW 7-Series 750Li 4D Sedan 53300 42700 38050 31500 26375

Honda Accord LX 4D Sedan 12850 13150 11650 9725 8400

Hyundai Sonata GLS 4D Sedan 10100 10050 8550 7175 5925

Lexus ES 350 4D Luxury Sedan 23950 22600 21400 18075 15325

Mercedes-Benz E Class E350 4D Luxury Sedan 33000 27600 26800 20300 16300

Mitsubishi Galant

Nissan

Nissan

Nissan Sentra 4D Sedan 10500 10150 8900

2009 MODEL S

Fast Track Your Cash

BENEFITS: Sterling Credit Corporation is your key to turning in-house sales contracts into fast

Our seasoned understanding of the industry will help you generate a timely return. Our professional team of finance experts can create a program designed exclusively for you and your dealership. We’ll get you the cash quickly, treat your customers with respect and free you from the hassles of collections, all with a personal touch.

Compiled By Jeffrey Bellant

Manheim Sells ‘Duck Dynasty’ Trucks

Manheim Dallas sold two trucks previously owned by the Robertson family of the “Duck Dynasty” TV show.

Proceeds from the Oct. 23 sale will go to the charities selected by the foundation of McKaig Chevrolet-Buick of Gladewater, Texas, the consignors of the trucks.

“We (were) excited to ofer these two trucks from the ‘Duck Dynasty’ show,” said Manheim Dallas General Manager David Robertson, no relation to the Robertson family.

The 2011 Chevrolet Z71 and the 2010 Chevrolet Z71 trucks, which sold for nearly $72,000, were previously owned by Phil Robertson and his son Willie Robertson. The Robertson’s originally obtained both trucks through McKaig Chevrolet-Buick.

The Robertson family operates Duck Commander of West Monroe, La., which produces duck hunting products. The family is featured on “Duck Dynasty”, a reality show in its fourth season that airs on A&E starring Phil, Willie and many members of their extended families.

Enterprise Names its Top Auto Auctions

Enterprise Holdings, which operates the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands, announced its annual Auction Achievement Awards for outstanding performance.

“We have been working with many of these auction partners for decades,” said Chrissy Taylor, senior vice president of North American Operations for Enterprise Holdings. Sixteen auctions were honored.

Manheim Dallas, Manheim Pennsylvania, Manheim Fredericksburg, Manheim Riverside, Manheim Georgia and Manheim Texas Hobby.

The winners of the 2013 Auction Achievement Award in the damage vehicle category are: IAA Dallas/ Fort Worth, TRA New Jersey, TRA Metro Dallas and TRA Tampa.

The winners of the 2013 Auction Achievement Award in the whole car category were: ADESA Dallas, Manheim Mississippi, ADESA LA, Manheim New Jersey, Greensboro Auto Auction, Manheim Omaha,

Disconnected Jottings From Tony Moorby...

I can’t think of a better case for term limits on political ofce than the disgraceful performance recently by all sides of the Congress. These pompous practitioners held the country hos-

tage and to global ridicule, even causing a confidence crisis that is likely to drag on our international standing for a long time. Discussions have become more serious in banking circles to look at other currencies to set the standard instead of the dollar. If this were sports they’d be sent of and fined – maybe banned.

They cost you and me $24 billion in 16 days. The furloughed federal employees are getting back pay for their time of so what was the

point in laying them of in the first place. The supreme irony is that they increased the debt burden while trying to stave of its growth.

These people think more of keeping their own jobs

total balderdash. They’ve had years to design and build this thing and, even if you can get through, it gives spurious numbers for premiums. If this is indicative of the reliability of a government healthcare system then we’d better stay fit and keep away.

In the middle of all this the Tea Party tried to exert its influence and all they achieved was to strengthen the opposition by weakening the Republican Party.

Our international credibility is really going down the sewer. I’m not naïve enough to believe that we don’t spy on our neighbors and have done for years; you know that old saying about keeping your friends closer than your enemies … and I know that freedom isn’t free.

than they think of upholding the rights and expectations of the folks that put their trust in them and voted for them. They didn’t stop paying themselves either.

They don’t even have to concern themselves with healthcare – if they serve for one day, it’s theirs for life. Now that the Afordable Care Act is law let’s hope they don’t spend all our premiums on designing a website that works. Citing weight of trafc for the government website to crash is

Maybe a three-party system will work in the future but for now it’s just seen as taking votes away from Republicans. We had such an arrangement in Great Britain years ago with the Labour, Conservative and Liberal parties and now all we end up with is frail coalitions, hanging on for dear life between elections, so long as a vote-of-no-confidence doesn’t bring them down in the meantime.

No real policy ever gets fixed as swings in the government sway from side to side like a drunken bum in an alley.

In spite of the president’s protestations that Americans aren’t being listened to and looked at, especially by the NSA, we are and we have been. They currently have the rationale, if not the outright reason, to carry all this out in the name of foiling terrorism. But what else is being picked up on the wires or should I say the Ethernet, these days? It turns out that George Orwell knew a thing or two. But listening to Angela Merkel’s cell phone?

Really? And millions of French people’s data from their cell phones? Seriously? Old fashioned “fishing expeditions” through peoples’ files and data, in case something incriminating was found, were disallowed by the courts. Now you don’t even know it’s being done. I appreciate that war is not now carried out in the same way but liberties are being taken with our liberty! There seems to be an eerie feeling of international distrust and discomfort. America was made of immigrants but you have to wonder who is now immigrating and why. Now, of all times, we need a government that looks strong to the world and not squander an authority that was earned over centuries of sensible self-determination.

____ SQ5 TDI

____ 500 Abarth

Kia compact

Classic chevy feature

Wheels support

VW Golf hatchback

Zodiac sign

Owing

“Guts and Glory” truck 18. Subaru’s XV _____

Require 22. Reporter’s query 23. F 150 makers 24. Famous Acura model

70s

By Miles Mellor

Stinger

Posh school

Third in a family

Material used in car interiors

Toyota subcompact

It’s under your feet in a car

G.M. brand discontinued in 2010

Classic car brand now owned by Chrysler

Compass point

Area for luggage

Old Dodge

Geo model

Toyota sedan

“Back to the Future” transport

One of the BMW Series

__ touch

Hyundai crossover

______ GT500 (2 words)

NASCAR competitor

Self concept

Jaguar __ roadster

Dated

Business promotion

Jeep Cherokee makers

Corvette color, in song

Youngsters

offcer, for short

Subaru crossover

Set

College e-mail address ending

Made it shine

traffc sign

BMW, in slang

Car buyer’s option

Radio wave

Bright green color

Made in ___

Musician Charles

__ and the Sunshine Band

Located on CONE Rd. Sale Every MONDAY 9:30 am Over 180+unitsweekly

855-396-0488. Shepard & Shepard. ShepQuote.com

DEALER WEBSITES Starting at $30/mth No Set Up Fee / 877-266-8913 www.YourCarLot.com Payment Books $7.99. Printed & shipped to you or your customer within 24 hrs. Call 800-479-2226.

Clear-up ugly plastic headlites to a like new appearance. Call 1-866-998-4999 or visit www.uglyheadlights.com

Salvage Yard - Used Car Dealer for Sale or Lease. 2 acre yard on main highway located 10 miles from Metro Baltimore. Under current ownership since 1977, in business since 1946. Owners looking for exit strategy. 275 feet of main highway frontage with local access to MD695, US95 north, US95 south, MD Rt 3 - US 301. Mid 2000’s inventory. All Auto Recycling licenses plus Maryland Used Car Dealers license. Property zoning allows for most auto business applications including Gas & Go. Financing or lease options available. 443-829-1912 Sam

Business & Lot for Sale Buy Here, Pay Here, lot in Southern Maryland. Excellent location with local demographics conducive to BHPH volume. Call Today, Ask for Ray or Bill at 301-609-9550

Offer a 5-Day/4-Night Cruise certifcate for Two to Mexico, the Bahamas, or the Western Caribbean... Only when your customers purchase from you!

Call Dave for more info, 313-527-1044

Used Car Leasing Trumps BHPH for Profits!

For the first time since used car leasing was invented 23 years ago, a side by side comparison has been performed showing the profit diference compared to buy-here, pay-here.

Not surprising, considering the tax implications of buy-here, pay-here, the results were clearly in favor of used car leasing.

The analysis was performed by Northland Auto Enterprises, Inc., the original founder of Ren’T’Own® and Lease’T’Own® using 2011 national averages as published by NABD-NCM

The net profit diference is primarily due to Lease’T’Own®’s tax advantages.

here, pay-here model profit is only $55,920, which isn’t much to buy cars for the next year compared to Lease’T’Own®’s profit of $224,090.

deducting the cost of bankruptcies and repossessions. For buy-here, pay-here, the national default rate is

there are no repossessions since the dealer remains the titled owner of

Associates. The comparison was conservative, figuring 10 deals per month for 12 months and used the time frame of January thru December.

The results were undeniably in favor of Lease’T’Own®.

A few things to point out in the comparison:

taxes on the entire contract at the end

you are paying federal and state income taxes on only the payments received.

the vehicle. There are also federal statute protections to prevent leased cars from being included in bankruptcies. Therefore, the net profit shown for Lease’T’Own® reflects an accurate amount.

This was a very interesting and eye-opening comparison. Contact Northland Auto Enterprises, Inc. at 800-879-3433 to review the analysis in detail. They will also customize the analysis using your specific state’s tax rates rather than an average.

Capital and Customer Service from an Industry Professional

Go Financial has created a unique subprime lending program that gives dealers the best of both worlds: upfront profit at the time the car is sold and a share of the payment stream over the life of the loan.

Over a third of today’s car buyers have subprime credit. Dealers can easily pick up incremental sales each month with the right opportunities to ofer those customers.

By handling every step of the financing process from underwriting through collections, Go Dealer Partners have the ability to build a subprime portfolio without the headaches and heavy capital requirements that often stand in their way.

To be able to succeed at subprime finance, you have to be able to understand and predict risk, and know when to balance it with reward.

Go Financial created a proprietary grading system based on its experience financing hundreds of thousands of subprime loans. That credit scoring model became the basis of the GO Portal – an online site that delivers approvals to all customers.

The Portal instantly updates advance rates as the dealer adjusts the

APR, term, price and down payment to best meet their customer’s needs and the dealership’s profit goals.

After receiving the initial advance, each dealer’s loans are pooled together to create a unique portfolio, which GO services at their national call centers. Dealers share in the future revenue from the pool as the payments are collected.

What if a dealer doesn’t want to wait for the payments to be collected? The dealer has the option to tap into pool equity early through GO’s exclusive Cash Out Now option, ofering flexibility with instant liquidity once their pool is closed.

With a financing program that can approve all customers in an easy to use online Portal, GO is creating a pathway to selling more cars.

All loans are non-recourse and GO has no sign-up fees. Go Financial is licensed in 44 states and currently enrolling franchise and independent dealers. For a demonstration, call 888-GO-Financial (888-463-4626) or visit www.gofinancial.com.

Credit Acceptance program gives our nationwide network of participating dealers the ability to deliver credit approvals to every consumer within 30 seconds, 24/7. We provide opportunities where others can’t...to dealers and consumers.

40 Years of Subprime Success

$ Billions paid to Dealers Fast Funding

230+ In-Field local Market Area Managers

7+ Million APPROVALS to consumers

Christine Hennick Director of Finance CAG Acceptance, Mesa, AZ

Stay Ahead of the Competition

While the economy is moving in a positive direction for most of the country, many consumers are employed at jobs that pay significantly less than before the recession.

What does this mean for buy-here, pay-here dealers? Consumer’s jobs and income may have changed but they still want and expect the new car buying experience.

This is an opportunity for buyhere, pay-here dealers to win some business if they understand these customers.

Sub prime banks are now buying low credit consumers for new car dealers. New car dealers who sell used cars have adapted to working with consumers with poor credit ,providing the experience they expect.

How can buy-here, pay-here dealers compete? By changing their dealer culture from top to bottom. Treat prospects correctly and they will stay with you for multiple sales.

It is not just about the payments, it’s about the experience and the follow up by your staff.

According to NIADA, 58% of sales originate from the Internet.

That number is growing. You must have an online presence and a way to manage incoming internet leads.

To successfully build a relation -

ship with these prospects and give them the experience they expect, use a CRM application.

It’s the key component to building and maintaining a personal relationship with your customers.

A CRM application is crucial if you want to squeeze every last ounce of business out of your leads and get the most return on your ad dollars.

When you lose contact information, or don’t follow up, missed opportunities translate into real money lost.

Adopting a system to maintain your customer information is a worthwhile investment.

Regardless of what type of dealership you operate, you need a CRM application tailored to your needs, with quick access to your information that holds your sales staff accountable.

Buy-here, pay-here dealers all across the country choose AutoRaptor CRM to manage their internet leads and customer follow-up.

AutoRaptor CRM gives buy-here, pay-here dealers the tools they need to build relationships with their customers, convert more leads into sales, get more referrals and sell more cars.

For your personalized business analysis or to find out more visit www.autoraptor.com or 888-421-6533.

Quality Partners Treat Your Customer As Their Own

As a dealer, you work hard to achieve the highest level of customer satisfaction. Satisfied customers are repeat customers, who often act as brand ambassadors supporting you through positive word-of-mouth advertising.

It’s critical that you align with partners who understand the importance of ensuring your customer’s satisfaction. Your partners must understand that if your customer does business with them because of you, how they service the customer reflects directly upon you – good or bad.

Selecting the right partner is most certainly important when it comes to vehicle service contract providers.

You deserve a partner that is reliable, frees you from unnecessary headaches and gives you the confidence that your customers will be covered. There are over a hundred companies competing in the vehicle service contract industry and very few do it well and do it honestly.

A quality vehicle service contract allows customers to buy with confidence knowing that they’re protected from unexpected repair costs with day one, mile one coverage.

A vehicle service contract also provides your customers with the freedom to enjoy their purchase without worries. The right partner will offer your customers 24/7 roadside assistance and nationwide service facilities to ensure they are able to drive anywhere

worry free. Furthermore, knowing that in the unlikely event of a claim, it will be handled smoothly and paid promptly. Getting your customers back on the road quickly provides the reliability that both you and your customers need. Be sure that you partner with a vehicle service contract provider that allows you to ofer your customers the service and support that they’ve come to expect from you. GWC is proud to be one of the most trusted names in the business and to partner with dealerships that also treat their customers well.

About GWC Warranty: GWC Warranty was built on providing independent dealers and their customers outstanding service and personalized attention. A leading provider of vehicle service contracts, GWC Warranty was recently named Motor Trend® Recommended Best Buy for independent dealers. We have been a trusted partner of over 20,000 dealers nationwide and to date have paid over $300 million in claims. GWC Warranty is owned by Stone Point Capital, a Connecticut based investment firm with aggregate committed capital of $9 Billion. To learn more about how GWC can ofer you and your customers outstanding service, visit us at www.GWCwarranty.com . MOTOR TREND® Magazine is a registered trademark of SOURCE INTERLINK MEDIA, LLC ©2013. All Rights Reserved.

Put Talon’s Quality & Performance to the Test for Yourself.

Let’s get to the truth about The Talon GPS Tracking Device from GoldStar GPS. It’s still by far the best-performing and best-selling device in our market.

The Facts Don’t Lie:

• 10th generation patented technology innovation

• Over 500,000 units sold in less than 1 year — more than any other device in our market

• Next to non-existent failure rate of just 0.4%

• High quality, rugged, automotive-grade engineering and design

• Water-resistant, integrated sealed cable for enhanced durability

• Resettable fuse located in-device for greater protection

• Meets & exceeds all required carrier certifcations for receiving and transmitting cellular data

No wonder Talon is the dealers’ frst choice for GPS tracking hardware. But we’re not stopping there. Stay tuned for the next-generation Talon CDMA device — with even faster speeds and bigger bandwidth from the leading MRM provider in the country.

Autosave and E-Credit Express Products Add to Your Bottom Line

Autosave, the original 5-year/100,000 mile warranty company, has over 180 agents throughout the US and Canada that represent and sell our industry leading programs and platforms to dealers.

Autosave has added 1- and 3-year

Cash Back Program” where enrolled sales personnel at Autosave dealers receive a cash reward for their sales on a monthly basis.

Autosave’s sister company E-Credit Express (www.ecreditexpress.com) has products that make all dealers

Interested in Buy-Here,

Pay-Here? There’s a Better Way - Credit Acceptance!

The recent fiscal crisis and government shutdown have spurred economic uncertainty, leaving even more consumers struggling to establish credit or rehabilitate poor credit. Credit Acceptance, a proven leader in automotive financing since 1972, allows dealers to sell to consumers regardless of their credit history. It has all the benefits of buy-here, pay-here, with none of the issues.

warranty terms with additional coverage for air conditioning, electrical and seals and gaskets, making a larger profit center for the dealer.

The competitive pricing structure of these warranty products, E-contracting and the ability to accept online payments from dealers has made Autosave the industry leader in this market.

Claims payments are made electronically to the repair facility.

All Autosave warranty programs include E-contracting, marketing materials, interior signage and outdoor banners for the dealer to display.

red flag and OFAC compliant.

With E-Credit’s GUARANTEED electronic forms compliance in all 50 states and state specific E-forms that include all required initials and signatures – without the costly need for electronic pads or pens.

E-Credit’s electronic forms are 100% compliant in every jurisdiction – with a million dollar guarantee!

E-Credit warrants that each deal submitted through its platform is 100% compliant each time a deal is submitted to a lender – no more deals kicked back – INCREASE YOUR SALES IMMEDIATLEY!

Credit Acceptance eliminates the need for the large capital outlays necessary for buy-here, pay-here, providing a business model that maximizes ROI. 24/7 technology approves and processes deals.

Dealers benefit from sales to consumers who otherwise could not obtain financing; from repeat and referral sales; and from responses to credit-challenged advertisements.

Autosave supports our dealers in all facets of the industry with warranty product training, program training, claims and customer relations.

Call 800-684-1175 for more information on these programs.

“Without the Portfolio Profit from Credit Acceptance, we may not be here today. Business is now back on track and we just surpassed the $2 million mark in Portfolio Profit received from our Credit Acceptance contracts.”

- Lavon Schwartz, owner of KC’s Budget Auto, Kalamazoo, MI

Without Credit Acceptance, consumers are often unable to purchase a reliable vehicle.

An important benefit is an opportunity to improve credit scores through on-time payments, hopefully moving on to traditional sources of financing in the future.

“Nobody would extend me any credit after my bankruptcy – until I found a Credit Acceptance dealer. I never missed a payment and I was able to buy a new car and a house!”

-Janet S., Credit Acceptance Consumer

Credit Acceptance provides dealerpartners nationwide with:

leled funding for buy-here, pay-here consumers, giving dealers a cashpositive position and a share in total contract profits. Funding is straightforward and fast.

agement, managing all aspects of the collection process.

partners with money from collections in retirement.

ability to market Guaranteed Credit Approval*, increasing floor trafc, sales, and profits.

Visit www.creditacceptance.com (click on ‘Become a Dealer’ under Dealers) or call 1-800-873-0512.

*Some states prohibit the use of “Guaranteed Credit Approval.” Alternate marketing materials are available.

Save Time and Simplify Your Business with Floor Plan Financing

Floor plan financing allows dealers to expand their new and used offerings, free up capital for other uses and make the best use of their time.

Recent advances in technology –such as the use of mobile devices – have made floor planning a powerful tool for dealers, saving time and simplifying the process of buying and selling inventory.

Mobile technology allows dealers to conduct business anywhere and at any time, making floor planning easy and efficient.

Dealers have a variety of options for financing inventory purchases.

As a dealer, your time is at a premium. You need simple solutions to effectively and efficiently run your business, and your lender should be part of the solution, not the problem.

inventory for their wholesale/retail remarketing operations.

Generally, the dealer grants the lender a security interest in the dealer’s assets and properties, including the inventory specifically financed with the line of credit, in order to secure repayment of the obligations.

When vehicles are sold, the sale proceeds may be sent directly to

an excellent means to expand your selection of desirable offerings to prospective clients.

Without the benefit of a flexible floor plan, purchasing from these sources can be a significant drain on your cash flow.

A flexible floor plan line of credit may be the solution to cover these various inventory types without drawing on your cash reserves.

vider to service your requests. You should expect and receive timely and efficient service.

A flexible floor plan line of credit may help free up cash for other expenses, and should also help you continue operations without the added strain on your cash reserves.

Using flexible floor planning can allow you to create a cash reserve for unexpected downturns.

With this in mind, consider how your floor plan financing options make your business more successful and your life easier, allowing you more time to run your business.

For those not familiar, “floor plan” is an industry term used to describe short-term inventory financing provided by a finance company, bank or private equity firm.

Dealers use floor plan lines of credit to acquire and/or refinance

the lender to reduce or pay off the related loan balance. When a vehicle is sold, the related advance must be satisfied.

Depending on the terms of the floor plan agreement, the dealer may be required to pay off a specific advance before the vehicle is sold.

Whether buying new or used vehicles, a flexible floor plan allows you to finance trade-ins, auction purchases, wholesale units, dealerowned inventory, and even private owner purchases.

These sources of inventory can be

The ability to floor plan vehicles from anywhere at any time is essential.

Whether from your office, on your smartphone or from your tablet, you need that level of flexibility.

Today’s technology offers dealers 24/7 access to floor plan services via mobile apps and online accounts.

The more flexible your floor plan line of credit, the better chance you have of saving time and money.

It is strongly recommended that you pay close attention to the length of time taken by your floor plan pro -

Cash reserves can significantly reduce the negative impact of lethargic economic periods. A strong cash reserve keeps you flexible and able to quickly react to market fluctuations.

Last but certainly not least, is the all-important level of customer service your floor plan company provides you.

It is important that the company you select has a vested interest in serving the industry.

A floor plan lender that offers these products or services, and does so with a sincere dedication to your business and the industry as a whole is worthy of your consideration.

The simplicity of the service should help you free up time you need to focus on attending to other tasks and growing your business.

Online or In-Lane, CFAA Has it All

In an evolving efort to provide dealers the best marketplace to buy and sell vehicles, Columbus Fair Auto Auction has added a 3-lane Monday Madness sale and a unique Simulcast Suite auction venue to its weekly line-up.

All vehicles are available for preview and bidding both online and in-lane.

Monday Madness

This new sale starts at 3 p.m. every Monday, featuring rental/fleet units in Lane 1, dealer consignment units in Lane 2, and as-is units in Lane 3. Smart dealers are using this opportunity to jump start their week at CFAA.

Auction Everywhere

Auction Everywhere is a virtual auction held every Tuesday at 1 p.m. EST.

The Auction Everywhere format allows inventory to stay grounded and “retail-ready” while being presented in a virtual auction.

Using proprietary technology, Columbus Fair’s Auction Everywhere (CFAE) staf can accept a feed of inventory and images. They will also visit a dealership to create listings.

Auction Everywhere ofers dealers the choice of sitting in the “Simulcast Suite” on CFAA’s second floor, or they can log into the sale through the AWG simulcast platform.

Typically, up to 130 front-line ready vehicles are available for sale. All buy

and sale fees are flat rated at $175, regardless of the cost of the vehicle, garnering the attention of both buyers and sellers alike.

Wednesday Sales

Columbus Fair’s flagship Wednesday sale has 11 action-packed lanes, all equipped with multiple high definition cameras that can be toggled through the AWG Simulcast application.

More than 90% of the vehicles presented each Wednesday have a minimum of 10 pictures and the majority have condition reports available.

On any given Wednesday, over 1,000 bidder badges are issued. Almost 200 registered users from 33 diferent states attend via AWG simulcast.

The typical lane composition runs from rental cars and fleet lease to dealer consignment, both late model and as-is.

Once a month, CFAA hosts a “float” sale, extending payment terms to 30 days. CFAA’s public repo sale starts each Wednesday at noon, often running in multiple lanes.

As an authorized GSA auction, CFAA hosts a monthly sale, also available to the public buyer.

Beyond the Lanes

Columbus Fair facilities include: Secure 90-acre auction facility and

44-acre satellite storage lot, with guard gate

11 lane auction building with administrative ofces and convenient intake facility

All lanes are equipped with multiple, high definition cameras

Reconditioning

Columbus Fair’s reconditioning department is capable of detail work from highline to simple wash and vac. With 70 employees, the department has the capacity to detail 300 cars a day.

Mechanical Repair

Columbus Fair’s mechanical shop is a 10,000 square foot facility with 13 service bays, each with its own lift.

With eight mechanics, the department ofers services ranging from simple oil changes, radiator and transmission flushing to complete engine or transmission replacement.

Collision Services

Sixty employees work two shifts daily at the 56,000 square foot body shop. The impressive facility boasts 48 bays and three state-of-the-art paint booths with down drafts.

Columbus Fair Auto Auction remains poised to help dealers drive sales by matching dealer demand with available supply.

Online Simulcast

Columbus Fair Auto Auction has

embraced selling online by leveraging the AWG Simulcast platform for online bidding.

AWG Simulcast supports 125 auctions throughout the United States, Canada and Europe.

It’s an easy-to-use interface that is intuitive and best-of-class technology.

Every vehicle registered at CFAA is run through our indoor photography center. A minimum of 10 pictures are taken of each vehicle.

Most vehicles also have access to Columbus Fair’s proprietary condition report.

These condition reports provide the online credibility that assure buyers they are “virtually” touching and feeling the car online.

Whann Technology Group

Dealers can leverage all available technology assets to make their buying and selling process efcient and profitable, including using Whann Technology Group’s suite of online listing tools and condition report writing tools.

Whann Technology Group also ofers an entire suite of technology applications.

These products utilize mobile technology to produce condition reports and register vehicles for the sale. The applications also create listings for a variety of remarketing channels.

Missed Payments: When GPS Is Not Enough

While GPS is the newest, sexiest technology, it is not foolproof. Unfortunately, you can still lose cars with it. So what’s a dealer to do?

First, understand that GPS is a “reactive” answer to the problem after

modification device that encourages your customers to pay as agreed.

The PT2000 can be used as an “active decoy” (ask us).

Mounted right on the dashboard,

The Future of Wholesale Remarketing Technology

Wholesale remarketing – in lane or online – keeps getting easier. Sellers are taking advantage of electronic condition report data and photos, along with new tools that allow the broadcast of each vehicle

the day for many.

Errors are frequent and often go uncaught thanks to lackluster reporting tools and inconsistent processes. Do you have one source of the truth? The end of the spreadsheet era may

SUBPRIME LOANS REPRESENT OVER 33% OF VEHICLES SOLD TODAY.

How much of that very lucrative slice of the sales pie are you getting?

Go Financial has created a subprime lending program that puts you in control. It’s an end-to-end solution that provides up-front profit and future cash flow streams. And best of all, every loan is purchased non-recourse and there are absolutely no sign-up fees. Take the headaches out of making your subprime finance deals work. Sell more cars. Make more money.

Visit gofinancial.com/news for the whole story or call us at 888-GOFINANCIAL for a quick demo.

2G Sunset: What It Means to the Automotive Industry

On the surface, the automotive and wireless communications industries appear to have little in common.

But recent announcements by a handful of major wireless carriers generated some concern in the automotive finance market.

AT&T was the first to publicly declare its plans to phase out all of its 2G GSM wireless service by the end of 2016.

Several other carriers have also announced plans to eventually sunset 2G, though not as aggressively or as quickly as AT&T.

The reason for the push for 2G sunset is simple: wireless carriers are looking to “refarm” the towers in their network for 3G and 4G service that delivers much faster speeds and larger bandwidth.

There are some downsides to the 2G sunset, however, specifically for the automotive finance industry.

2G (second generation) is the cellular technology behind the vast majority of machine-to-machine (M2M) devices used by businesses across a wide range of industries.

Members of the automotive finance industry currently mostly use 2G devices for their vehicle tracking eforts. As of today, 2G ofers the lowest price point for the widest coverage.

While slower than 3G and 4G networks, 2G data speeds are more than enough to meet the needs of most

GPS vehicle tracking system users.

So when the news came that carriers like AT&T plan to retire 2G, many providers and users of GPS vehicle tracking systems voiced their concerns.

Before panic sets in, let’s take a closer look at what the 2G sunset really means for the automotive finance industry.

First, it is important to differentiate between the two mobile communication standards used by major carriers today for 2G: GSM and CDMA.

GSM is the most common mobile communication standard used throughout the world, making it a popular choice for businesses that need to track assets that move across borders, but its main downside is that 2G GSM devices will be the first to become obsolete.

CDMA is adopted by five of the seven top cell phone carriers in the U.S. Compared to GSM, CDMA provides greater coverage in the U.S. and Canada, higher security, more reliability and better quality of services, but its drawback is its lack of coverage outside the U.S. and Canada.

The truth is, the complete demise of 2G is farther away than it seems.

While AT&T has been vocal about its plans to shut down 2G GSM by the end of 2016, many other wireless carriers have been less hasty.

Sprint and Verizon have all publicly said they will continue to support 2G CDMA, while T-Mobile has also stated their continue support of 2G GSM well into the future.

All wireless carriers, AT&T included, have vowed to work closely with device providers and their end users to ease the transition from 2G to 3G and eventually 4G.

The fact is, demand for 2G remains high. As long as the demand is there, wireless carriers will continue to support 2G.

But that doesn’t mean you should just sit back and ignore this topic all together, either. Now is the time to start planning a migration strategy that will minimize the impact on your business operations and bottom line.

The first step is to talk to your solutions provider to understand their future roadmap and migration strategy.

Be sure you’re asking your provider the right questions about your current wireless carrier and technology, and how long the carrier plans to support that technology.

Find out if your provider plans to take a phased approach that eases your transition to

next-generation cellular technology to ensure you continue to enjoy wide coverage without dramatically increasing your costs.

Beware of the provider who pushes you to jump ship to 3G right away — before the costs come down and the service is widely available.

Your provider should clearly explain all the technologies available and help you identify the right technology for your needs, and develop a practical plan for moving you toward newer technologies.

At Spireon, we’re collaborating closely with major wireless carriers to offer flexible solutions that protect current 2G investments while paving the way for a seamless migration to next-generation networks through its leading brand GoldStar GPS.

Contact Spireon today to discuss your migration strategy. Call (866)-655-8825 or visit www.spireon.com.

Disclose the Use of GPS Devices

By Jeff Karg, Director of Corporate Communication

In today’s technology driven world, using GPS to track assets as well as collection technology to help customers make their payments and assist in vehicle recovery is a common practice.

Informing the consumer of the device, how it operates, and how it will be used by is essential to maintaining a good customer experience and addressing compliance and liability concerns for the lender.

PassTime, a leading provider of GPS tracking and automated collection technology devices takes compliance seriously. The company provides written disclosures free of charge and also takes measures to stay involved in state and federal legislation impacting the industry.

If you are not disclosing, your argument against it is either the customer will object to the device and you will lose a sale or the customer will tamper with the device if they know it is in their vehicle.

There are two reasons that you should be fully disclosing these devices.

First of, it’s a good business practice.

Disclosing the device in a positive way can help get “buy-in” from the customer, which can reduce the

likelihood they will become delinquent.

Many technology providers ofer written disclosure forms for lenders to have customers sign at the time of installation. These documents provide information about the devices, how they operate and what responsibilities the customer has in relation to the devices.

A signed consent is the best way to ensure that the customer understands and agrees with the use of a device.

Additionally, a benefit of disclosure is the psychological aspect that afects a customer who knows a device is installed on their vehicle.

When a customer knows their vehicle has a GPS device that can determine their location and/or prevent them from driving if they do not stay current on their loan, they have good incentive to make payments. If you don’t disclose the device, this psychological tool disappears.

A recent, independent survey study conducted by the National Alliance of Buy-Here-Pay-Here Dealers (NABD) addressed the issue of disclosure.

94% of NABD survey respondents indicated that they use written disclosure forms from device providers. You may think you will lose customers if you tell them about the device.

The NABD survey study found that customers rarely object to the device.

Specifically, only 1% answered that their customers objected to a device as a condition of financing.

Disclosing is a good business practice, and customers rarely object to the device as a condition of their loan.

The second and most important reason to disclose the use of GPS and collection technology devices is to reduce your legal liability.

The type of device you are using and its features may determine how far your legal obligations go with customer disclosure.

Right to Cure laws, Consumer protection acts, Consumer Privacy Acts, could open you up to legal issues such as fines or even civil action if you don’t disclose the use of the device.

Even if you are reluctant to disclose based upon the possibility of tampering, the risk of legal liability greatly outweighs it.

Tom Hudson, partner at law firm Hudson Cook LLP encourages disclosure. “Every state that has legalized devices by statute has also required a dealer or finance company to disclose that a vehicle has been equipped with a device.

“Further, more than one state has fined dealers for failing to disclose the devices for engaging in an unfair,

deceptive or abusive act or practice. You’d have to be brain dead not to disclose the presence of the device,” he says.

Additional interest in the buyhere, pay-here industry by various governmental agencies has brought legislation to the books in California and other states, seeking additional regulation on the industry.

While there may not currently be a law in your state that expressly requires the disclosure of the device, there could soon be.

It makes sense to get ahead of any additional regulations and cover your business before it becomes an issue.

Having a customer sign a written disclosure helps reduce the liability of your company that could prevent a lawsuit or other type of consumer complaint.

It is also a good business practice, increasing the likelihood of repeat or referral business.

The NABD survey proves customers rarely object to the installation of a device as a condition of a loan.

Many device providers ofer dealers access to disclosure forms they have created, so you’ll not likely need to create your own.

To find out more about how PassTime devices can help you stay compliant, contact us at 877-727-7846 or sales@passtimeusa.com.

Mobile App Makes Dealerships More Efficient

The best technology makes life simpler. That’s why dealers love AutoManager.Mobile.

With this free app for Android and Apple smartphones and tablets, you can take cars from the lot to the Web faster than ever.

AutoManager.Mobile takes pictures of each vehicle, scans and decodes the VIN, runs title/history checks, conducts Black Book valuations then beams all that information back to WebManager, AutoManager’s online marketing platform. From there, your listings can be sent to more than 100 popular vehicle marketplaces or copied

into DeskManager dealer management software, where you can build a deal.

“Online marketing is essential to the modern dealership,” AutoManager CEO Kami Tafreshi said, “but it requires maintenance to really succeed. Now that you can take care of these things right from the auction with an easy-to-use mobile app, you won’t be chained to a computer all day updating listings and researching inventory values. It saves dealers a huge amount of time and money.”

To learn more or download AutoManager.Mobile, visit www.automanager.com.

Turn Your Notes into Cash

Have you ever thought, “I have too much cash on hand, I wish I had less.”

Of course not!

Running an independent dealership takes a lot of cash flow. Floor plan expenses, advertising expenses, parts and mechanical shop needs –the list goes on and on.

If you were able to access more cash, you could take control of your inventory needs and costs.

Have you ever thought of opening another location, only to decide the startup costs are too much right now?

What if you could access the cash

to buy the lot your dealership is on?

At Flex Capital Corporation we help dealers solve these concerns every day. We help buy-here, payhere dealers turn their auto notes into cash.

We help provide the capital to stock up on inventory, pay off existing loans and flooring lines, or to increase advertising to drive more customers to your lot.

Whatever your cash flow need, Chris Shearer, with Flex Capital Corporation can help. Call Chris at 702-659-9100.

Find the Capital for Tax Season Inventory

It is difcult for many operators to maintain desired inventory levels for their normal course of business and at the same time plan ahead for tax season, especially with record inventory prices.

With a fixed dealership size and a steady level of capital in the business, it is challenging to keep the lot full to be properly prepared for seasonal fluctuation in sales volume. You most certainly do not want to miss those golden sales opportunity days.

Luckily, additional capital is available in the marketplace for inventory financing – for all dealers, big and small. Acquiring a new or additional credit

facility will allow a dealer to reach beyond their current capital limitations and buy cars in preparation for tax season.

You have to have cars to sell cars. In the next couple of months, consumers will receive their tax refund checks, and they will be in their best position to buy.

Expand your capital resources far enough in advance so you have everything in place to take advantage of the most predicable sales season in the used car industry.

Visit www.VACorp.com/UCN or call 888-573-4248 for information regarding our floorplan today.

Supplies to Enhance Your Business

SSW Dealer Supply is a new affiliate of Store Supply Warehouse.

SSW Dealer Supply maintains a sharp focus on the always growing, ever changing auto sales industry.

The business includes an online website and catalog of merchandise for dealers to enhance their business.

With a wide range of products including (but not limited to) die cut window numbers, message flags, dealer signage and service department supplies, SSW Dealer Supply’s

showroom and warehouse are both located in Bridgeton, Missouri. Showroom hours are MondayFriday 7:00am-5:30pm and Saturday 8:00am-12:00pm.

Orders received by 3:00 pm CST are shipped the same day, and usually are filled within minutes of receipt.

SSW Dealer Supply also offers a vast variety of custom products. Their friendly customer service representatives can be reached at 800-269-9704 or visit them online at www.sswdealersupply.com.

Maximize Your Productivity with Work Queues

We all have a daily routine. Whether it’s the way we brush our teeth, the route we take to work, or the workout we do at the gym– we’re all creatures of habit. Our routines at work are no different. We come to work and do a similar variety of tasks each day. In collections this is especially true. How can we structure our tasks to work efficiently and effectively?

The key is organizing your collection workload so you’re contacting the right customers at the right time. How do you do this?

The traditional approach is to run a series of reports.

You pull the data, print the report and go through accounts one by one. However, as soon as you need to call the customer, you leave the report, look up the customer and make notes on your DMS. What if the customer wants to make a payment or they refuse to pay and now you have to place them out for repo? As soon as a customer calls in and a change to their account is made, your report is now dated. You don’t have the most live up to date information that you need. Who wants to call a customer to ask them for payment only to have them tell you they just made it 5

minutes ago online? A report has provided you with nothing but a static list of names and information.

The better way is a system generated interactive work list, or queues as we like to call them, giving you the ability to take action and document your efforts all from the same screen. These types of lists can be used and accessed all throughout your dealership. You now have the ability to take payments, make notes on accounts, and email customers right at your fingertips.

Maybe you need to manage your aged inventory, or pull up a list of

customer prospects. Maybe you’d like to send a welcome letter to your new buy-here, pay-here accounts, or perhaps you want to work and review your first payment defaults. Whether its managing collections, sales or inventory, queues are an effective way to quickly and easily see the job at hand and take the appropriate action.

We’re all looking for ways to streamline our processes, save money and making the best use of our time. Queues ensure consistency while maximizing productivity and efficiency in your dealership.