Used Car News 3/17/14

March 17, 2014

ON THE WEB:

Subcompact Vehicles

Retain Their Value

Three-year-old cars in the subcompact segment have the highest retaining value at 54.4 percent of the MSRP for a typically equipped model, says NADA Used Car Guide. Meanwhile, the electric vehicle segment ranked the lowest at 39.9 percent.

Certified Sales Set

Another Record

February was another record-setting month for certified sales.

Franchise dealers sold 179,042 certified pre-owned vehicles in February.

There were 24 selling days in February. The daily selling rate was 7,460, an all-time high.

Wholesale Prices Rise From Year Ago’s Level

Wholesale used vehicle prices rose 0.8 percent in February.

The Manheim Used Vehicle Value Index reading was 123.3 in February, which represented a 1.1 percent increase from a year ago.

GM Recalls More Than 1 Million Cars

By Ted Craig

It’s early in the year and already two of the nation’s largest automakers have issued massive recalls, with General Motors recalling more than 1 million vehicles.

GM is recalling 1.4 million model year 2003-2007

Chevrolets, Saturns and Pontiacs. A combination of extra weight on the key ring and jarring due to road conditions may cause the ignition switch to move out of the run position. If the switch is not in the run position, the air bags may not deploy if the vehicle is involved in a crash.

The recall comes at a time when GM had started showing progress in the quality rankings. It now must face increased scrutiny from consumers and regulators.

“It’s not fair, but the domestics pay a higher price for recalls,” said Duane Trojniak, vice president of statistical modeling for the RDA Group. Trojniak spoke on a panel at a recent event covering recalls and warranties put together by the Society of Automotive Analysts. Toyota has actually led all brands in recalls for the past two years, but remains atop most quality surveys.

Continued on page 15

AutoTrader.com Sees Prices, Volume Driving Market

AutoTrader.com recently shared three trends dealers need to pay close attention to this spring.

The first is new-vehicle pricing. Even with a slower than expected start to the year due to the weather, the auto industry is still expected to return to new-vehicle sales levels not seen since 2007, increasing sales between 3.5-4.5 percent in 2014.

However, not all manufacturers will achieve their much higher internal 2014 volume target. As a result, the competitive landscape will provide plenty of purchasing opportunities as manufacturers continue to ofer aggressive pricing and incentive programs.

Used-vehicle prices, meanwhile, are expected to see slight downward pressure in 2014 due to continued increase in supply.

Many of these new car buyers will likely have a current vehicle that they need to ofoad. In addition to more shoppers trading in their current vehicles, a notable volume of leased vehicles will be returning to dealership lots this year. Finally and most importantly, access to credit will continue to open up in 2014 – even in the subprime market. This will continue to increase the pool of potential consumers that will regain purchasing power not seen in several years.

Academy Graduates Industry’s Future Leaders

By Jeffrey Bellant

LAS VEGAS –A dream in 2011 became reality with the first graduates from the Next Generation class of the Auction Academy.

Pierre Pons, president of TPC Management Co., introduced the idea of an education program to train the future leaders of the wholesale auto auction business two-and-a-half years ago during the National Auto Auction Association convention in Chicago.

This month, members of the inaugural graduating class walked across the stage at the Conference of Automotive Remarketing in Las Vegas, illustrating the future is now.

Pons was joined by TPC’s Dick Curtis, along with auction leaders Charlotte Pyle and Lynn Weaver, to congratulate students as they walked across the stage.

Graduates received plaques, handshakes and applause, but the conference wasn’t just about celebration.

“This was a working session,” said Pons, “they didn’t just come here to pick up awards. They came here to work.”

During the week, the class got a tour of ADESA Las Vegas and attended a class by a national dealership trainer.

Pons took time to praise sponsors of the program starting with Black Book’s Tim West and Tom Cross, the first supporters of the program.

“Our industry could not have better partners than Black Book,” Pons said.

The idea began when Pons spoke with industry veterans Weaver and Bob McConkey, who both had children in the class. The discussion centered on how to train the next generation of auction leaders.

The two-year training and development program – dubbed Next Generation/ Sons and Daughters – was put in place in 2012 and included the sons and daughters of independent auction owners, includes 16 students representing 14 auctions and one vendor.

The two years wasn’t just spent in class, but in visiting auctions across the country and meeting with consignors and other leaders in the remarketing business.

Graduate Clint Weaver shared the moment with his family at CAR.

“It was a great experience,” he said. “I wasn’t sure what to expect when we first started. The class sessions were great and the teams brought in a lot of big names in the industry to guide us and teach us.”

Weaver said it his favorite part was visiting other auctions, something that he wouldn’t have been able to do apart from the program.

“The other great part of it was getting to know my classmates,” he said. “That’s

something that the first generation didn’t get to do. They had to do it the hard way by meeting through conferences.

“That gives us an advantage because we’re friends now and we’ve built relationships.”

Pons admitted that the closing of the first class was difcult.

“I’m actually not too good at goodbyes,” he said. “So that’s been a little hard for me.”

But Pons wanted to leave a special message to the industry.

“Our industry is succeeding into good hands,” he said. “You can be comfortable with the succession, especially in this part of the business. I didn’t find arrogance. I didn’t find entitlement. I found kids who got together and got along great.

“I feel very comfortable as we (transition) into the next generation.”

NAAA, Black Book Plan Charity Pedal Car Auction

The National Auto Auction Association and Black Book have teamed up to present the inaugural Black Book Pedal Car Auction.

The charity event will be held at the 2014 NAAA Annual Convention this September in Boston with the goal of raising $50,000 for its nonprofit Warren Young Scholastic Foundation.

The four NAAA chapters each selected three pedal car sponsors to be the finalists in the fall show and auction.

A lottery choosing the order of the auction’s run list will be held at the National Independent Automobile Dealers Association Convention in June.

The rules allow the sponsors to modify new or preowned pedal-powered vehicles — whether trains, planes or automobiles (but no carts) — as much as their imagination and skill permit. That includes paint,

decals, graphics, exhausts, lights, sirens and other parts or accessories.

The pedal car bringing the most money wins the Best in Show title, along with being featured on both the cover of NAAA’s On the Block magazine and 2015 Directory. Awards will also be given for Most Creative, Best Custom, Best Accessories and Most Unusual Paint Job categories as determined by the four NAAA Chapter presidents.

“We thought this ofered our members a great way to demonstrate their creativity and abilities in a friendly competition while raising money to support our scholarship fund, which helps deserving students achieve their dreams of higher education,” said NAAA President Jack Neshe.

He said that since its creation in 2004, the Warren Young Scholastic Foundation has raised more than

$1.5 million and awards a total of $40,000 in merit scholarships annually for full-time study at an accredited institution. It was named in honor of Warren Young, Sr., a pioneer of the auto auction industry.

“We are big supporters of the Warren Young Scholastic Foundation and believe in giving back and supporting this terifc cause. We also believe in the NAAA and will do whatever we can to lend a hand,” said Black Book President Tom Cross.

In related news, named Mike Reid of Toyota Financial Services as a Warren Young Sr. Fellow.

Reid received a framed commemorative certificate, a gold medallion and a distinctive lapel pin. Also, his name will be engraved on a plaque listing the esteemed Fellows displayed at NAAA headquarters.

“I’m proud to name Mike as a Fellow because in ad-

dition to his professional accomplishments, his willingness to serve as a speaker or panelist at many remarketing events sharing his experience and knowledge to prepare future industry leaders exemplifies the Scholastic Foundation’s mission of helping students achieve their dreams of

higher education and success,” Neshe said. “He also finds the time in his busy schedule to be an active supporter of the Rio Aquatics in his Orange County, California, community, which trains young special-needs athletes to participate in the Special Olympics.”

Carfax Adds Vehicle Listings

Carfax has added vehicle listings to its website.

At Carfax.com, online shoppers now can search for used cars with specific vehicle history details – such as no accidents reported to Carfax, service records and Carfax 1-Owner.

Plus, vehicles are shown based on the history attributes shoppers want, making the shopping process for carfax.com visitors easier and faster. Visitors begin their search of more than one million used cars by selecting the vehicle history attributes they want.

Listings from Carfax Advantage Dealers also include price, photos and a detailed description of the vehicle.

J.D. Byrider Expands

J.D. Byrider has added seven new franchise locations to its nationwide portfolio of dealerships. The locations opened between Dec. 16 and March 3.

J.D. Byrider currently consists of 135 franchise- and 23 companyowned dealerships in 33 states. Each location employs an average of 20 employees.

The company opened a total of 13 new stores in 2013 and looks forward to continued double-digit store growth in 2014.

NEWS BRIEFS

Family Acquires Auction

The Angelicchio family, owners of Pittsburgh Auto Auction, entered into an agreement to acquire the assets of Winchester Auto Dealers Exchange through a newly formed corporation: Winchester Auto Auction, Inc.

Winchester Auto Auction is located on the Virginia/West Virginia border and has been operated as a public auto auction for more than 12 years. After extensive renovations and system updates, the auction will begin holding weekly dealer-only sales on Fridays, beginning April 11. The auction will continue to host weekly public auctions on Saturdays through the end of the March. Beginning May 17, the auction will hold public sales on a monthly basis, on the third Saturday of each month.

NIADA Warns of Scam

The National Independent Automobile Dealers Association is warning of a scam around this year’s convention.

Caesars Palace is the ofcial contractor for hotel reservations at the NIADA Convention & Expo in Las Vegas in June.

The NIADA Convention & Expo staf has received phone calls and emails from members and exhibitors who are being solicited by unaffiliated hotels and reservation companies to book hotel rooms.

Only Caesars Palace is authorized by NIADA to ofer hotel room rates, cancellation policies and registration. The only way to register your hotel rooms directly at Caesars Palace is to call them at 866-227-5944 or book via https://aws.passkey. com/g/20078150.

CarMax Hires Employees to Staff Used Car Superstores

CarMax Inc. is recruiting for more than 1,200 positions in locations across the country.

The majority of open positions are in sales, with additional positions in service, purchasing and the business ofce.

Positions range from full and parttime permanent positions, with day and evening shifts available.

Some of the areas with a large number of sales opportunities include Albuquerque, N.M.; Hartford, Conn.; Baton Rouge, La.; and locations in the Washington, D.C. and Baltimore, Md. area.

Published By General Media LLC

USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080

Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400

www.usedcarnews.com

Charles M. Thomas Founder (1947-2002)

Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager

Editorial:

Ted Craig, Managing Editor Jefrey Bellant, Staf Writer Gabriel E. Camero, Intern

Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath

Columnist: Tony Moorby

Advertising: Shannon Colby, Account Manager

Megan Frump, Account Manager

Marie Hingst, Account Manager

Circulation: Helen Thomas

Production:

Josie Godlewski, Media Manager

Tim Montie, Graphic Designer

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.

Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.

Join the Conversation! Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.

Experts Warn Auctions of Cybersecurity Threats

By Gabriel E. Camero

As Target recently learned, hackers can cause a lot more problems than just the immediate loss of funds.

Taking into account costs like lawsuits, public relations management, refunds and other legal penalties the average loss from a data breach in 2012 was $5.4 million.

In the auto auction business, this roughly translates to a total cost of $188 per auction record.

To address this issue, the National Auto Auction Association recently hosted a webinar presented by Michael Roy and Michael Rohdy from the insurance brokerage and risk management services firm Arthur J. Gallagher & Co.

Roy and Rohdy said businesses can buy either firstor third-party insurance to cover cybersecurity losses.

First-party loss is for internal concerns like technological repairs, bank fraud and lost income.

First- party loss coverage also ensures the business

has protocols and security that meet state and federal regulatory compliance requirements.

Third-party liability covers expenses related to the business’s failure to prevent the attack, the harm caused to clients and any illegal alterations to the website like a logo changed to look like another company’s logo.

The webinar presented possible attacks including familiar threats.

These include Trojan horses and identity theft as well as others like internal attacks, e-commerce extortion and distributed denial of service.

Electronic materials vulnerable to such attacks include auction management systems, computer networks, dealer registrations and employee information. Some corporate hackers break in or otherwise gather hard copies of information as well.

Roy and Rohdy advised businesses to use protective protocols like the encryption of all sensitive materials, restriction of access to

information by department, securing of documents in fireproof cabinets and the shredding or deleting of information every 30 days.

They also advised that select employees be given the added responsibility of being on a risk management team.

For protection, Roy and Rohdy said firewalls are a minimum and encouraged companies to use web application firewalls as well.

Web application firewalls monitor the network’s interaction with the web and when the interaction between the two drastically changes the firewall goes up to prevent exchanges.

There are also intrusion protection systems that identify signatures and prevent known threats from infiltrating the network.

The presentation also covered state and federal laws that require consumer screening processes and compliance in corporate cyber protection and notification regulations.

Auctions can visit the National Conference of State

Legislators at NCSL.org to verify the notification laws in their state. The webinar is currently available at the NAAA website. Roy and Rohdy also directed attendees to ponemon.org for more information regarding cyber risk planning.

Auto Finance Sets Records

The use of long-term loans and leasing for new-vehicle retail sales was on pace to reach record levels in February, according to an analysis by J.D. Power.

Talon by GoldStar GPS. Still the best-selling and best-performing GPS tracking device around.

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. But don’t take our word for it. Just take a look at the numbers.

The Facts Don’t Lie:

• 10th generation patented technology innovation

• Over 800,000 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

• and transmitting cellular data

next-generation Talon CDMA device — with even faster speeds and bigger bandwidth.

PUT TALON TO THE TEST.

Call Today and Test The Talon Performance for Yourself.

Long-term loans – classified as loans that are 72 months and longer – account for 33.1 percent of new-vehicle retail sales in February, according to data gathered by the Power Information Network from J.D. Power. If that pace continues, February will set a new record for long-term loans as a percentage of new-vehicle retail transactions in a single month.

The current record was set in September 2012, when 30.6 percent of new-vehicle sales were loans of 72 months or longer. Simultaneously, lease penetration is at its highest level on record, representing 26.5 percent of retail sales in February. The current record for lease penetration in any month is 26 percent, which was set in May 2000.

In addition to these numbers, Swapalease.com believes consumers are looking to switch lease vehicles at a quicker pace, further fueling the growth in leasing today. According to data from December 2013 listings, the average months remaining on cars listed was 22.1, a new record for the 14-yearold marketplace.

The previous record was 21.8 months remaining set back in August 2006 and prior to the recession. More recently, this number has continued to fall, reaching 22 months remaining according to all listings in the Swapalease.com marketplace. With average lease terms still set at 36 months, this data says the average person looking to escape his or her lease looks to part ways with their car just shy of 15 months into the lease term.

Experian Automotive reports that the share of new vehicles financed with a lease is at its highest level since the company began publically reporting the data in 2006.

According to its latest State of the Automotive Finance Market report, Experian Automotive found that 28.4 percent of all new vehicles financed were leases in the fourth quarter, up from 24.8 percent the previous year.

Other findings from the report showed the average amount financed for a new vehicle was $27,430 in the fourth quarter. This marked the highest average loan amount for a new vehicle since 2008 and the first time the amount has exceeded $27,000.

The average loan amount for a used vehicle during the quarter was $17,974, also a record high.

PAGE 8 - PAYMENT ASSURANCE TECHNOLOGY

Payment Technology Grows Smaller, Less Expensive

By Ted Craig

Payment assurance technology has come a long way in the last decade.

Ten years ago, buy-here,

The reason, he said, is they want to serve more underbanked consumers, as well as the swelling ranks of poor credit customers.

The increased availability

worry if their provider will stick around.

The biggest challenge remains overcoming technophobia, Behnke said. That’s changing as dealers see the

“I have concluded from our studies that there are two types of buy-here, pay-here operators: those who are already using payment devices and those who should be,”

Ken Shilson

ready using payment devices and those who should be,” Shilson said.

Shilson said the NABD studies find starter-interrupt devices cause customers to prioritize their car payments and reduce delinquencies. Operators say that collectors can potentially handle twice as many.

they do delinquencies, according to NABD study results.

Dave Ronsky, owner of Paytech, has been involved with the industry for more than a decade, working mostly on the technology side. The biggest advances he sees today, however, are in training.

pay-here dealers were installing brick-sized devices under a cloud of suspicion.

Each generation of devices grows ever smaller.

“Today, the device is about the size of a stick of gum,” said Mark Behnke, Spireon’s vice president of operations.

The devices are also expected by almost all creditors these days. Behnke said he is working with several credit unions that want to start using payment assurance technology.

of these devices means they are costing less.

The cost of on-going services is also lower, thanks to the dropping expense of bandwith.

Stability helps, too. The market is down to about a half-dozen larger players that are invested for the long haul.

The days of fly-by-night start-ups and constant consolidation are over, Behnke said. Dealers and other users no longer need to

success of others and younger, more tech-savvy operators enter the business.

Ken Shilson, founder of the National Alliance of BuyHere, Pay-Here Dealers, said data shows the investment is worthwhile.

“I have concluded from our studies that there are two types of buy-here, pay-here operators: those who are al-

The devices also reduce net bad debt losses by increasing recoveries. In addition, they alter customer behavior by making the customer call the lender rather than vice versa.

GPS devices produce lower default rates because they deter customers from “walking away” from the deal, Shilson said.

Easier communication between operators and the customers also keeps default rates down.

GPS devices seem to impact recoveries more than

He said dealers are using the devices more efciently by following best practices. For example, it’s better to turn of cars when they are least likely being used so customers don’t wind up stranded away from home.

The next step in the segment’s evolution will come from tapping into the massive amounts of data collected by the devices, Behnke said.

This information can help dealers improve every aspect of their business, he said.

NEXT ISSUE: FLEET/LEASE FOCUS

Fast Track Your Cash

City Now Allows Used Car Stores

HORN LAKE, Miss. (AP) _ Horn Lake aldermen have voted to make it easier for used-car dealerships to locate in the city.

On the recommendation of the Planning Commission, The Commercial Appeal reports the board voted 5-1 this week to amend zoning ordinances to allow dealerships in the M-1, M-2, C-3 and C-4 zoning districts.

Previously, used-car dealerships were allowed only in conjunction with new car dealerships. Some existing used car lots were grand-

fathered in before current regulations, however.

Some aldermen, however, wanted to ease restrictions to allow upscale, high-volume used dealerships.

Some city leaders said they have been burned by past experiences with used-car dealerships that they said ofered only a few older cars before going out of business without contributing anything to the city’s image or tax base.

The change was made as part of the city’s push to attract new business.

67 Years Can’t Be Wrong.

Scam Hits Dealer, Customer

By Sheila McGrath

A Minnesota man found himself without a car last December after state police confiscated a stolen Chevrolet Cobalt he had recently purchased from a Bloomington dealership.

referenced the VIN plates on the dashboard and doors to make sure they matched the title. But they hadn’t taken out the engine to check the hidden VIN, which had not been changed.

Lupient Chevrolet reimbursed McCoy the $7,200 he paid for the

“It’s tough for dealers to identify a stolen vehicle.”

The dealer, Lupient Chevrolet, had been duped as well.

Customer Pat McCoy learned from the Minnesota State Patrol that he, Lupient Chevrolet, and two previous owners had all purchased the stolen Illinois vehicle after its VIN had been altered in a sophisticated scam.

Police say the alleged perpetrator, Charles Swisher, had stolen more than 200 cars since 2006 and altered the VIN plates. He was arrested in August and charged with 14 counts of vehicle theft, among other charges.

Lupient general manager Pam Guilford told the Minneapolis Star Tribune it was the first time in 33 years of business she had run into the scam.

The dealership had acquired the Cobalt on a trade-in, and had cross-

Robert Henderson

car, but the dealer won’t be reimbursed by insurance.

Robert Henderson, a Minnesota investigator with the National Insurance Crime Bureau, said he investigates between 25 and 50 cases of VIN switching each year in Minnesota.

It’s tough for dealers to identify a stolen vehicle they might take in on trade, he said. Still, they should abide by the old maxim “Let the buyer beware.”

“There’s not a whole lot they can do unless they want to devote a lot of money and personnel to checking all the vehicles, but it’s kind of impractical for a dealership to do that,” Henderson said.

“The best thing they can do is check the paperwork on vehicles they purchase.

Continued on page 14

Your source for quality, value, selection: Chase.

ADESA Boston April 11, 18, 25

508-626-7000

ADESA Charlotte April 3, 17

704-587-7653

ADESA Cincinnati/Dayton April 15

937-746-4000

ADESA Golden Gate April 1, 15, 29 209-839-8000

ADESA Houston April 2, 16, 30 281-580-1800

ADESA Indianapolis April 1, 15, 29 800-925-1210

ADESA Kansas City April 1, 15, 29 816-525-1100

ADESA Lexington April 3

859-263-5163

ADESA New Jersey April 3, 17

908-725-2200

ADESA San Diego April 3

619-661-5565

ADESA Tulsa April 11

918-437-9044

America’s AA-Chicago April 16

708-389-4488

Brasher’s Salt Lake AA April 22

801-322-1234

Columbus Fair AA April 16, 23

614-497-2000

Manheim Atlanta April 2, 3, 17, 30 404-762-9211

Manheim BaltimoreWashington April 8 410-796-8899

Manheim Dallas April 9, 23

877-860-1651

Manheim Denver April 9 800-822-1177

Manheim Detroit April 3, 10, 17

734-654-7100

Manheim Fredericksburg April 10, 24 540-368-3400

Manheim Milwaukee April 9, 23 262-835-4436

Manheim Minneapolis April 2, 30

763-425-7653

Manheim Nashville April 16, 23

877-386-5004

Manheim Nevada April 18 702-361-1000

Manheim New Jersey April 9, 23

609-298-3400

Manheim New Orleans April 9

985-643-2061

Manheim New York Metro Skyline April 1, 29

973-227-0100

Manheim Orlando April 1, 8, 14, 15, 22, 29 800-337-8491

Manheim Pennsylvania April 3, 4, 17, 18 800-777-2053

Manheim Phoenix April 3, 10, 17, 24

623-907-7000

Manheim Pittsburgh April 9

724-452-5555

Manheim Riverside April 8, 10, 24 909-689-6000

Manheim Seattle April 2, 30 206-762-1600

Manheim Southern California April 17

909-822-2261

Southern AA April 9 860-292-7500

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

ADESA Boston April 18 508-626-7000

ADESA Golden Gate April 1, 29 209-839-8000

Manheim Atlanta April 2, 30 404-762-9211

Manheim Dallas April 9 877-860-1651

Manheim Milwaukee April 9 262-835-4436

Manheim Orlando April 14 800-337-8491

Mazda Capital Services

ADESA Boston April 11, 25

508-626-7000

ADESA Golden Gate April 15 209-839-8000

ADESA Kansas City April 1, 29 816-525-1100

Columbus Fair AA April 23 614-497-2000

Manheim Atlanta April 3 404-762-9211

Manheim Detroit April 3, 17 734-654-7100

Manheim Fredericksburg April 24 540-368-3400

Manheim Milwaukee April 23 262-835-4436

Manheim Nashville April 16 877-386-5004

Manheim New Jersey April 9, 23 609-298-3400

Subaru Motors Finance

ADESA Boston April 11, 25

508-626-7000

Brasher’s Salt Lake April 22 801-322-1234

Columbus Fair AA April 16 614-497-2000

Manheim Dallas April 23 877-860-1651

Manheim Denver April 9 800-822-1177

Manheim Detroit April 3, 17

734-654-7100

Manheim Fredericksburg April 10 540-368-3400

Manheim Milwaukee April 9 262-835-4436

Manheim New Jersey April 23 609-298-3400

Manheim Orlando April 8 800-337-8491

Manheim Pennsylvania April 3, 17* 800-777-2053

Manheim Riverside April 10*, 24 909-689-6000

Manheim Orlando April 1, 29 800-337-8491

Manheim Pennsylvania April 4, 18 800-777-2053

Manheim Pittsburgh April 9 724-452-5555

Manheim Riverside April 8 909-689-6000

Manheim Seattle April 2, 30 206-762-1600

Manheim Pennsylvania April 18 800-777-2053

Manheim Pittsburgh April 9 724-452-5555

Manheim Seattle April 2, 30 206-762-1600

Manheim Southern CA April 17 909-822-2261

Southern AA April 9 860-292-7500

N.A. (“Chase”). Retail / Loan and lease accounts are owned by Chase. © 2013 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (12-381) 06/12

CHASING

VIN Scam

– from page 12

“Make sure everything adds up. If it doesn’t, start asking questions, and if need be, call authorities.”

There are a few common schemes thieves use to resell stolen vehicles, he said.

The most common is a “retag,” where thieves swap the VIN plate with one from a car that’s been salvaged or is no longer on the street, he said.

Dealers should always be sure to inspect VIN plates, looking for any oddities such as tool marks or scratches on the corners.

In another common scheme, crooks “clone” vehicles. They copy down a VIN from a legitimate vehicle, then produce their own VIN plates and counterfeit labels for a stolen car of the same model. For that to be successful, the two vehicles have to be registered in diferent states, Henderson said.

What’s unique about vehicle crime is that cars can be retagged and sold the next week, but a dealership may not see it for two or three years.

“And then the dealer gets stuck with it,” Henderson said.

Recalls – Continued page 1

Among the latest actions, Toyota is recalling 700,000 model year 2010 through 2014 Priuses. The recall requires a software update to avoid a loss of power, including a possible shut of Toyota remains the most valued automotive brand in the world despite this spate of recalls, according to brand valuation consultancy Brand Finance. While brand value took a hit in the short term, it also rebounded quickly.

Recalls actually play a surprisingly small role in quality judgments, said Neil Steinkamp, managing director at Stout Risius Ross Inc.

“Quality is related to consumer perception and many factors are involved in that, more than warran-

ties and recalls,” Steinkamp said at the SAA event.

Manufacturers and dealers should prepare for even more recalls in the future as the National Highway Trafc Safety Administration grows more aggressive.

NHTSA has expanded both the number of units included in recalls and the scope of what defines a safety recall. Chrysler recently entered a public spat with the regulator over a recall for trailer hitches.

NHTSA now requires that all manufacturers use distinctive labels on required mailings that notify owners of recalled vehicles or equipment. The use of the new label is strictly limited to only the recalling manufacturers.

RETAIL MARKETS

KANSAS

John Hattan, owner, Family Motors, Wichita, Kan.:

“We’ve been in business for about 15 years under this name. We had a subprime lot and I was a principal in a Chevrolet store for about 30 years.

“We currently have one location. We turned the corner in July, 2011, and went primarily into lease-here, pay-here.

“In the state of Kansas, all the sales taxes are due for the transaction upfront.

“So for a $10,000 sale we’d have to put $730 with the state and our typical customer is a $350 down payment.

“On a lease, the money to the state is typically less than $20 and the payments are taxed.

“We typically have bumper-to-bumper warranties on the cars for the full term. So it’s kind of like buy-here, pay-here on steroids.

“We display around 35 cars and lately we’ve been turning about 30 cars a month.

“And I’ve got 260 cars in

the lease fleet.

“Last year we averaged about 24 transactions a month and this year we’ve kicked it up.

“I think we did 35 in February.

“I have two outside buyers and my son and I attend a couple of local auctions, but I would say 50 percent of our inventory is from local auctions and 50 percent from our buyers.

“Our lease payments tend to be pretty much on par at our store because we include the warranty in the payment.

“Payments are usually $90 a week for 30 months.

Our buy-here, pay-here payments average $100 a month for a 36-month term.

The average retail price is around $8,000.

“We’re 40 percent SUVs and trucks and 60 percent sedans.

“We have about 95 percent domestic.

“We typically run from the 2000 model to 2007, but typically the cars are going out the door at 120,000 to 140,000 miles.

“So we’ve got a surprising-

ly higher mileage fleet out there that is holding up very well because we do the service and the maintenance on them.

“We recondition our vehicles in-house in our two bays for about $530 per vehicle.

“I’m meeting with an architect about adding four bays to our store. We’re just covered up right now in service with the number we’ve got out there on warranty that we’re doing the service for, but I have 12 acres so I have plenty of space to expand.

“We use the local weekly auto shoppers for marketing to a great deal. We’re in a very expensive television market here in Wichita, so it’s kind of hard to be noticed against the big bucks being spent by the franchise dealers.

“We do some Internet but the majority is the electronic signage we have up for the drive-by customer. We’re between the main north-south drag of Wichita and we’ve got an interstate highway and a bypass that goes all the way around us

Compiled by Ganriel E. Camero

so we’re highly visible.

“We recently contracted out a 2002 GMC Envoy with 160,000 miles for $7,999. The customer paid $485 down payment on a 24-month contract.”

SOUTH CAROLIN A

Jody Boswell, general manager, Floyd Motor Co., Lake City, S.C.:

“We’ve been a family owned business since 1937. We stock about 30 to 35 vehicles on our single lot.

“We’re just an independent dealer.

“I buy our stock from auctions, dealers, individuals and the Internet, anywhere I can find product.

“We probably run half car and half trucks and SUVs.

“We probably have a domestic to import ratio of 2-to-1, about 20 domestics and 10 imports.

“Our average model year is probably 2009 or 2010, if you average it out.

“Our average retail price is around $12,000 to $13,000. It’s hard to say because we do have a lot of high dollar stuf we sell and a lot of cheap stuf, so you could even say $15,000 and that’s

probably close.

“Our cars average 75,000 miles, gosh that’s gone up over the years.

“People put more on cars than they used to, you know?

“We ofer regular and subprime finance for our vehicles.

“We recondition our vehicles here in our five-bay service center.

“We do basic stuf - oil changes, very small jobs.

“Mostly when I buy cars they’re usually front-line ready so the recon price is not much, unless I trade one in. I probably spend about $200 on trade-ins.

“I’m not a full-service center anymore.

“I used to be a franchise, but I’m just independent now.

“I’ve been an independent since 2009.

“I do Internet marketing mostly, a little paper but mostly Internet. I use the Internet because it just works better.

“We sold a Camry yesterday (March 4), 2009 for $12,500 with 58,000 miles on it.”

WHOLESALE MARKETS

LOUISIANA

Butch Royall, managing partner, ABC Baton Rouge, Baton Rouge, La.:

“We had our first sale last June and our grand opening was in July 2013, so it’s a brand new facility.

“In fact, come June, I’ll have been in the industry 50 years.

“We have six lanes and we’re running four. During a recent sale we sold 376 cars. We’re running 375 to 400 units.

“One recent sale was 77 percent (conversion) overall, while a previous week we had an incredible 79 percent sale.

“We’re running about 55 percent commercial accounts and 45 percent dealer (units).

“We’ve been very fortunate. We’ve got the Capital One sale. We have Santander. They’ve been very good to dealers and dealers like their product.

“We also have ARI, PHH and we just got Westlake Financial and we have General Electric. As a matter of fact, we ran more than 70 GE units on March 6. We

also have cars from Mike Albert Leasing.

“Our timing is right. We’re experiencing a very strong tax season. We work very hard to please the dealers and bend over backwards for them. They seem to appreciate it.

“Our average price (on the block) during a recent sale was $7,460.

“It’s been a little diferent than most years. Dealers are cautiously optimistic. They see demand going into a really good tax season.

“But they‘re still a little hesitant about how strong it’s going to be after tax season. In other words, the cars that they’re buying are ones they know they are going to sell. They’re not going out on a limb and buying something unusual, something outside their normal (purchases).

“We’re getting dealers out of New Orleans, Jackson, Miss., and a number from Houston. Of course, we’re drawing from home in Baton Rouge, La., and Vicksburg, Miss. I’d like to say I’m getting some out of Birmingham, Ala., but our sis-

ter auction (ABC Birmingham) is able to keep theirs.

“We’ve built the auction on the airport property, so we’re three minutes from door-to-door. While we knew we’d get commercial business, we were surprised at the acceptance that the dealers have given us.

“We’ve had some of the most unusual weather that I’ve seen. One recent Sunday I was sitting on my porch, wearing a T-shirt and shorts. It was 84 degrees. But when I got up to go to work the next morning, it was 29 degrees.

“So we had one sale that we had to postpone and move over a day because of ice. We probably haven’t had ice since sometime in the 1980s. That always hurts.

“I think 2014 is going to be a good year. But I think 2015 is going to be outstanding.”

PENNSYLVANIA

Clint Weaver, assistant general manager, Harrisburg Auto Auction, Mechanicsburg, Pa.:

“We’ve been in business for 32 years.

Compiled by Jeffrey Bellant

“We have six lanes and we turn those into 10 every week (by running double blocks).

“We run about 1,700 to 1,800 cars a week. Volumes have stayed about the same compared to this time last year.

“We’ll normally draw 700 to 800 dealers in the lanes.

“Volumes are starting to pick back up a little bit with lease cars and repossessions coming back around. But it’s been steady.

“During two recent sales we did 81 percent and 79 percent. I just think it’s because everything had been slow before that with the bad weather. Also, the spring market is finally coming and tax time is here. So with all of those things together, it’s usually the best time of the year.

“But 81 percent was our best percentage ever at Harrisburg Auto Auction. We’re proud of that.

“About 80 percent of our volume is dealer consignment and 20 percent is fleet-lease.

“Dealer consignment has picked up for us tremen-

dously in the last couple of years. It’s grown from 800 a week to 1,200 to 1,300 a week. So it’s a big part of our auction.

“On the commercial side, we run most of the major consignors, like GM Financial, GE Remarketing, Wheels, ARI, Avis, Exeter Finance and the biggest sale for Pennsylvania credit unions in the state.

“We hold a weekly in-op sale with 50 lease vehicles and 50 dealer consignments.

‘Once a month – the last Thursday of the month –we’ll run our heavy truck and equipment sale. That’s everything from heavy trucks and boats to RVs and motorhomes. We try to run at least 75 units.

“In the spring, we run a classic car and toy auction. We’ll usually get about 50 or 60 of those. That’s coming up soon.

“The average price is about $5,500. That’s actually increasing. We added a couple of more lease accounts with newer model cars. So bringing those cars in helps.”

Partner with us!

• Second to none in customer service

• No pre-verification without dealer approval

• No bait and switch on price

• No Limits to Portfolio size

• Will purchase all makes and models

• All terms considered

Dealer management software so complete and easy to master it practically teaches you to use it. Call or visit our web site today to request your FREE DEMO!

Certified Pre-Owned Retail Sales

ASIAN

EUROPEAN

ACTUAL WHOLESALE AND PROJECTED RESIDUAL VALUES

MARCH 2014 SOURCE:

2012 MODEL S

2011 MODEL S

Honda

Hyundai Sonata GLS 4D Sedan 2.4 15350 13550 12450 10250 8725

Lexus ES 350 4D Luxury Sedan 29900 29000 26300 22250 19550

Mercedes-Benz E Class E350 4D Luxury Sedan 37200 36300 31800 26800 22375

Mitsubishi Galant ES 4D Sedan 11700 11800 11150 8950 7650

Nissan Altima Base 4D Sedan 12600 12300 10800

Nissan

2010 MODEL S

Chevrolet

Chrysler

Chrysler

Ford Mustang 2D Coupe 13200 12700 11500 9825 8600

Ford Taurus SEL 4D Sedan 14700 13950 12850 9700 8050

Lincoln Town Car Signature Limited 4D Sedan 18200 17350 17950 13575 11075

Ford Focus SE 4D Sedan 9300 9050 7900 6275 5275

Import Cars Mar-13 Sep-13 Mar-14 Mar-15 Mar-16

Acura TL 4D Sedan 20600 20000 17700 13750 11350

BMW 3-Series 328i 4D Sedan 20500 19000 16500 13550 11300

BMW 7-Series 750Li 4D Sedan 46000 39100 37250 30925 25825

Honda Accord LX 4D Sedan 12600 12400 11200 9425 8150

Hyundai Sonata GLS 4D Sedan 9850 8800 7850 6825 5625

Lexus ES 350 4D Luxury Sedan 22700 22000 19300 16325 13875

Mercedes-Benz E Class E350 4D Luxury Sedan 29200 28500 24800 18350 14775

Mitsubishi Galant ES 4D Sedan 9100 8400 7800 6275 5225

Nissan Altima 4D Sedan

Nissan

Nissan

Toyota Camry LE 4D Sedan 12500 11750 10250 8725

2009 MODEL S

Compiled By Jeffrey Bellant

KIA HONORS TOP AUCTIONS

Manheim Riverside received Kia Motors America’s 2013 Auction of the Year award during the recent Conference of Automotive Remarketing in Las Vegas.

David Alfonso, remarketing manager for Kia Motors America, presented the firm’s awards to its top consignors.

Auctions were honored for cost-control, vehicle preparation, following directions, dealer services and market development.

“Overall, our core auctions did an excellent job for us,” Alfonso said.

But, he added the Auction of the Year winner is based on “undisputed top numbers in all of our sales categories throughout the year.”

That includes top sales percentage, value retention, high percentage of vehicles sold online, best ratio of dealers to vehicles ofered and other categories.

Alfonso also presented ADESA Golden Gate with Kia’s High Performance award.

He praised the auctions for boosting penetration into the tough California market, which has been a goal of Kia’s.

GM Names Auction of the Year

GM Financial named Rawls Auto Auction, Leesville, S.C., its 2013 Auction of the Year as part of the company’s annual nationwide Auction of Excellence program.

GM Financial announced the Auction of Excellence winners at its annual Auction Summit in Dallas. Auctions were judged on performance in a variety of categories, including customer service, marketing promotions, pre-sale activities and overall auction success.

“The road to Auction of the Year is a difcult one. Rawls makes it seem relatively simple,” said Brad Bollman, vice president, remarketing solutions. “Throughout our rela-

tionship with Rawls, they are a consistent force in the rankings.”

This is Rawls’ fifth Auction of the Year award. The 2013 regional winners were: Grand Rapids Auto Auction (Northwest); Manheim Harrisonburg (Northeast); ADESA Austin (Southwest) and Brasher’s Sacramento Auto Auction (West).

Disconnected Jottings From Tony Moorby...

Tax time looms large again. While Benjamin Franklin pointed out that nothing is more certain than death and taxes, it was Will Rogers who observed that death doesn’t get any worse every time

Congress sits. It also seems that the working classes pay more and more to subsidize those who don’t.

These days it would take a very sound argument to dislodge a belief I hold in a universal flat tax. There are arguments, I’m sure. I’m just not intelligent enough to think them all through.

Those that would put up those arguments are normally the ones to gain most by the retention of this crazy maze we call the tax code. Accounting companies

would have to redeploy their pencil pushers if things were made easier to the point where few payers required their services.

What could be easier and, dare I say, more efcient,

be no special cases. Fifteen percent it is…cough up!

I truly believe that people would be pleased to avoid the annual hassle and pay up, what in essence, seems a reduced amount of what we currently pay. Avoidance, a just-about-legal way of evasion, would wane to next to nothing as it would cost more to figure out how to avoid paying taxes than paying them.

and therefore pay the tax or walk away.

Florida’s punitive taxes come at you from every direction with the exception of income taxes. The result is that people buy a little house to claim residency but don’t show up for the required six months that it takes to qualify and spend their money on other in-state things.

to run to an astonishingly ridiculous 77,000 pages, is to reduce the ofces of the IRS to a mere skeleton of its currently overblown, Las Vegas-partying, obese and ugly, intrusive (which suits the NSA) body.

than requiring a 15 percent Federal tax across the board?

It could apply to individuals as well as corporations and have no exceptions. Not for anything.

Half the lobbying firms in the Beltway would go out of business or look for something more productive to do than fend of unfriendly tax overtures for clients paying them kings’ ransoms (I chose the word) to avoid paying taxes or applying for subsidies and pleading special cases. There would

Companies wouldn’t spend fortunes on working out ways to stash the money overseas in some haven when they could put the money back to work right here in the good old US of A; produce more, employ more, create more new tax-payers, more consumers, more purchasers, more producers… you get the drift, I’m sure.

“What about state taxes?” I hear you say. Leave them alone. If you don’t like them, move. Tennessee has no income tax but a buttclenching sales tax (even on most foods), currently running at 9.75 percent. The beauty is that it’s my choice whether to buy something

CR R O O S S W D Sponsored by

By Miles Mellor

Down

1. Classic English car, the _____ Bulldog

2. This speed is way over US speed limits

3. Boston’s state

4. “And I could go on...”

5. Popular Jeep

Across

1. Luxury 4-door saloon

5. Popular Toyota

8. __ his wits’ end?

10. ____ Rover

11. Dodge _____ R/T Classic

15. Usedcarnews.com is an example of one 16. Gear _____

17. Event controller, abbr.

18. Select and Krom are two versions of these Nissan SUV’s

19. Outer part of a wheel

21. Baltimore state

22. Compete

23. ___ Grand Cherokee

29. Sporty Studebaker

31. Koenigs____ 32. Mini ____man

35. From head __ toe

37. Speedometer reading

38. Nation where Rolls Royce engines are made

40. Approve

41. Big oil company

42. Mercedes-Benz ____ Class

43. Walks up and down 45. Rust

46. Emeril Lagasse, for example

49. Small cars for speed races

50. Buick sedan

6. Large Dodge coupe from the late 70s

7. Popular Toyota hybrid

9. The A in AWD

12. Tank like truck

13. Type of welding

14. Iconic Chevy sports car

20. 2nd in the family

23. XF and XJ

24. Energy measurement

25. Super___, political group

26. Debtor’s note letters

27. It’s offered in many auto sales ads

29. Banking machine

30. Saturn model

33. MKZ or Navigator

34. Money allocated for spending

Eventually the state loses out, providing overly expensive infrastructure for a population that needs looking after, but can’t pay or have their hands out for someone else to pay (i.e. you and me). Many folks are now looking at other southern states for eking out a bargain way of retirement life.

An overarching reason to simplify the tax code, which by the way, this year is likely

Who benefits from such a lengthy mandate? The IRS, that’s who. Assured government employment, with all the attendant benefits for 160,000 people. They could all find jobs counting the money of growing companies investing in a growing economy where it pays to work and it works to get paid.

So if we all paid 15 percent of our income, we should limit the government to spend no more than 15 percent of our economy. Meanwhile, dig deep!

INSURANCE AUTO AUCTION S

36. Ford crossover 39. Yukon is one of these SUV’s

42. Toothed wheel

43. Part of mpg

44. Back part of a ship

47. Laughter word

48. Classic car, __Lorean DMC-12

Shop Hertz Dealer Direct. Join Today!

• Over 22,000 Vehicles Available Online

• Over 33 Makes & 250 Models to Choose From

• Simple Online Bid Now/Buy Now Process

• Direct - Real Time Rep Access

Buy Online. Buy Direct. Call 877-216-4748

In Canada

FACILITIES FOR SALE/LEASE

Ideal “Buy-Here-Pay-Here” site that fits over 150 cars, on LeJeune Rd (Main artery into the Airport) and just south of MIA. 1.25 acres with 435 linear feet on LeJeune Rd, which offers exposure to a captive Car market. Contact Jonathan with Caval Real Estate at (786) 402-2990

Used Car Store, 3 service bays, Sales offices, Showroom and elevated display at front of property in Kingman, Arizona. Purchase and Financing options, call Riley at 619-850-4085

USED CAR LOT. NW Indiana, 30 min. to Chicago. Est. 16 years. Ready to go. $188k. Call 219-942-3222

USED CAR LOT FOR RENTLevittown, PA. $1,995 / month. Call: 609-473-0070 OR 215-550-9550

to a like new

Call 1-866-998-4999 or visit www.uglyheadlights.com

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

Proudly featuring: Ford Credit, Progressive, All State, Geico, State Farm, and various Fleet Lease Fastest Growing Salvage Sale in FLORIDA FREE Breakfast 8:30 am (813) 247-1666 5109 Cone Road Tampa, FL33619 Indoor VIDEO SALE located at Cone Rd. Simulcast NOW Available! Manheim Tampa 4/9/10 3:25

TRANSPORTATION SERVICES LOMEN AUTO TRANSPORT Serving the upper Midwest 37 yrs, 10 car haulers 800-697-0757

AUCTION BUYER. Flat fee purchasing. All cars checked for accident/damage. 18 years, Florida based but will travel. Licensed and bonded dealer. Global Auto Group Inc., 561-262-3008, STEKRA@AOL.COM BUYERS

WHOLESALE BUYER - REP 30 + yrs exp. Midwest based Call Glenn, 708-738-9255

VECHILES FOR SALE 1985 JAGUAR 4 DOOR J6 Mint condition Call: 734-266-6097

April 7 - Fleet Lease Focus Deadline Thurs., March 27

21 -

Showcase Advertorial Deadline Thurs., April 10 May 1 - Data Source Book Deadline Tues., April 1 May 5 - Specialty Sales Focus Deadline Tues., April 24

May 19 - NABD Issue Deadline Tues., May 8

June 2 - How to Get a Life Off the Lot Deadline Tues., May 22

June 16 - NIADA Issue Deadline Tues., June 5

July 7 - NIADA Quality Dealer Deadline Tues., June 26

July 21 - Auction Technology Focus Deadline Tues., July 10

August 4 - Finance & Warranty Advertorial Deadline Tues., July 24

August 18 - Best of Auctions

Deadline Tues., August 7

September 1 - Dealers: The Next Generation Deadline Tues., August 21

You may think that people only shop for used cars on AutoTrader.com. The truth is most of our shoppers don’t know exactly what they’re looking for. In fact, 44% OF NEW CAR BUYERS ON AUTOTRADER.COM WERE ORIGINALLY CONSIDERING A USED CAR. This gives you a tremendous opportunity to influence them when they are actually expanding their consideration set. See how you can impact undecided shoppers at WeWorkForYou.com/Karen.

Dealers like Larry Larsen, owner of Revolution Motors LLC in Wentzville, Missouri, tell us their foor plans have never been easier to manage since they started using NextGear Capital online and mobile account applications.

Larry says he truly appreciates having the power of NextGear Capital at his fngertips. The convenience of instant, anytime access to his inventory fnance accounts saves him time so he can stay focused on running his successful business.

Listen to what dealers like Larry have to say at nextgearcapital.com/why/technology