Four California lawmakers have introduced a bill that aims to somehow address the large number of recalls issued in the past year.
The legislators said they will work with consumers, dealers, manufacturers and rental car companies to craft a comprehensive recall solution.
Credit Scores Create Consumer Confusion
A recent TransUnion survey reveals consumers are largely confused about what affects their credit score and what is included in their credit report. Even consumers who characterize their credit as “excellent” or “good” had trouble identifying credit report factors.
Very Large, Very Small Units Have Lowest Cost
The cheapest 2015 models to insure include two minivans, seven sport-utilities and the tiny Smart Fortwo, according to Insure.com’s annual ranking of the most and least expensive vehicles to insure.
Certification Eases Alt-Fuel Concerns
ELECTRIC AFFINITIES: While owners of alternative-fuel vehicles might love their cars, used-car consumers remain wary. That’s why manufacturers are putting special emphasis on pre-owned certification.
By Jenny King
Pre-owned certification is designed to create peace of mind for consumers.
And that’s the key to selling used vehicle alternative powertrains.
Toyota launched its certified used hybrid program
back in 2009.
“We were the first to certify hybrids,” says Dave DePew, Toyota corporate manager, fleet/TRAC/
TCUV. “Our initial certified used vehicle program dates from 1996.”
DePew says Toyota was Continued on page 22
Industry Holds Out Hope for Multi-Platform Selling System
By Jeffrey Bellant
LAS VEGAS – Comments at a recent remarketing conference kept the dream of an industry-wide multi-platform selling system alive.
Although the coalition working on MPS disbanded recently, the issue remained a hot topic of conversation at the Conference of Automotive Remarketing.
Ellie Johnson, president of the National Auto Auction Association, discussed the issue during her opening address at CAR.
She said auction customers continue to ask for ways to
sell used cars “more efciently and efectively.”
MPS is something that can address this need, she said.
“This type of innovation is not new,” Johnson said. “Business arrangements like this have been successfully established in real estate, airline and financial services industries.
“With this is mind, I am confident we will keep in mind our customers’ needs and interests front and center. (We will) be open to options that can drive future success for our industry.”
Jay Cadigan, Manheim’s group vice president, brought up
Continued on page 22
Regulators Crackdown on Dealership Practices
The Federal Trade Commission and 32 law enforcement partners announced the results of Operation Ruse Control, a nationwide and cross-border crackdown on car dealers, encompassing 252 enforcement actions.
The six new FTC cases include more than $2.6 million in monetary judgments.
There were 187 enforcement actions in the U.S. since the agency’s last sweep, and 65 actions in Ontario and British Columbia, Canada.
Enforcement eforts by the FTC, the U.S. Attorney’s Ofce in the Northern District of Alabama and other partners at the federal, state and local level in the U.S. and Canada, include both civil and criminal charges of deceptive advertising, automotive loan application fraud, odometer fraud, deceptive add-on fees, and deceptive marketing of car title loans.
For the first time since receiving expanded authority over auto dealers under the Dodd-Frank Act, the FTC has taken two
auto enforcement actions involving add-ons.
Payment Programs
The FTC charged that National Payment Network Inc., headquartered in San Mateo, Calif., allegedly violated the FTC Act by deceptively pitching consumers an auto payment program – both online and through a network of authorized auto dealers – that it claimed would save consumers money.
NPN failed to disclose that the significant fees it charged for the service often cancelled out any actual savings.
The fees to enroll in National Payment Network’s program averaged $775 on a standard five-year auto loan.
In a related case, the FTC alleged that Matt Blatt dealerships, with multiple locations in New Jersey, violated the FTC Act by failing to disclose or adequately disclose the fees associated with NPN’s add-on service and that many consumers would not save money overall due to the program’s significant fees.
Continued on page 6
THE WALK
NEWS BRIEFS
AuctionACCESS has added Floorplan Xpress to its floor plan network. This integration will allow auctions to view updated floor plan availability and originate floor plan transactions with Floorplan Xpress all at the click of a button.
AuctionACCESS is the central credentialing authority at over 250 wholesale automotive auctions
Spencer Capital Holdings Ltd. has acquired SouthWest Dealer Services. SWDS has more than 250
In response to the advertorial published in a recent Used Car News special advertising section titled “2G Is Here to Stay”, PassTime has written the following letter to the editor:
The article, “2G Is Here to Stay”, published recently in the February 16 Technology Spotlight is misleading to customers about a topic that is already often met with confusion. The 2G sunset is happening and its efects are already being felt. Most GPS providers use GSM networks from primarily AT&T or
employees who currently serve over 550 active dealers across 14 states in the Southwest and Midwest.
Financial terms of the transaction were not disclosed.
SWDS is an independent fullservice F&I distribution platform, founded in 1988 by Steve Alderson.
SWDS currently operates eight locations, situated within the dealer markets they serve.
SWDS dealers now have access to products and services across the Spencer platform, including Spencer Re, a reinsurance firm, and USA Risk, an independent captive insur-
T-Mobile, or both.
AT&T’s 2G network has been in a sunset phase and will be completely shut down by 2017. It is true that T-Mobile’s 2G network does not follow the same schedule and will remain active longer.
However, the impact has to do with roaming. After 2016, T-Mobile will no longer have the ability to roam on AT&T’s 2G network and T-Mobile’s footprint will rely primarily on its own home network. Therefore, 2G coverage will be impacted, even if a customer is us-
ance provider.
SWDS will keep its name and continue to operate as it has efectively done for more than 25 years. There will be no personnel changes as a result of this transaction.
Ally Financial Inc. has completed the renewal of $12.5 billion in credit facilities at both the parent company and at its banking subsidiary, Ally Bank, with a syndicate of 18 lenders. The secured facilities represent an increase of $1 billion from the prior lines and can be used to fund con-
sumer and commercial automotive assets.
CarMax Inc. celebrated the opening of its first location in Brooklyn Park, which is the company’s first store in Minnesota.
CarMax’s Brooklyn Park store is now open at 6900 Lakeland Avenue North.
The store will stock more than 250 used vehicles.
The CarMax Foundation will invest approximately $85,000 into building a community playground.
ing T-Mobile. The question is, how good is T-Mobile’s home network in your area, and how long will T-Mobile support that technology? PassTime began notifying its customers of the impending sunset in early 2013 and has worked hard to ofer an even better alternative that is, in most cases, less expensive than 2G GSM.
The nation’s 2G network will not disappear on Dec. 31, 2016. However, to state that “2G Is Here to Stay” is misleading at best. As many customers plan on using GPS devices
for many years into the future, it is prudent to discuss this topic with your provider and find the best migration path for you.
Stan Schwarz Founder & CEO, PassTime
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
Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath Columnist: Tony Moorby
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
Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer
any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.
OUR ADVERTISING APPROVAL POLICY 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.
Remarketing Industry Honors Leaders, Pioneers
By Jeffrey Bellant
LAS VEGAS – The remarketing industry honored some of its top players during the 20th annual Conference of Automotive Remarketing.
Honorees included Paul Seger, of GE Fleet Services; Jay Cadigan, group vice president of Manheim; and Ricky Beggs, who recently retired from Black Book.
The National Auto Auction Association also honored the Barber family, owners of State Line Auto Auction in Waverly, N.Y., with the Warren Young Fellowship award.
Prior to the CAR awards, the International Automotive Remarketers Alliance held its annual meeting and gave its Circle of Excellence award to Tom Adams, president of Auction Insurance Agency.
Kia’s Dave Alfonso presented Adams with his award.
“Auction Insurance has been in business for 60 years,” he said, “and Tom has run it for 45 of those years.”
The company provides check and title insurance,
along with a host of other services, for 370 auctions in the United States and Canada. It also spawned other companies, from AutoCheck to AuctionAccess. Adams is involved in numerous service groups and is a member of the NAAA Hall of Fame.
“It’s really our organization that’s receiving this recognition,” Adams said. “It’s all of the people that we have working for us.
“We are very proud to be a part of the remarketing industry – a great industry –with a great future.”
GE’s Seger won the 2015 Consignor of the Year award. He has spent 25 years in the remarketing industry as a consumer and on the fleet side of the business, according to conference chairman Mike Antich, who presented the awards.
“He gives back to the community and his remarketing program has raised over $1 million (for needy families) in the past nine years,” Antich said.
The award is based on several criteria. Winners have to implement and encourage
best industry practices; create, embrace and implement industry innovation; move the industry forward with professionalism and maintain highest standards, while being willing to share expertise and skills to advance the industry.
“This is a great honor,” Seger said. “I am humbled to
receive it this year.”
Seger said he accepted the award on behalf of GE Fleet Services and his entire team. He also credited the partnerships he’s made with people in the industry over the years.
Cadigan received the 2015 Remarketer of the Year, which recognizes someone
who reflects the same attributes as those of the consignor of the year award.
“(Cadigan) started in the auction industry in 1976,” Antich said. “For 14 of those years he was a fleet-lease consignor. He spent 25 of those years in auction management.”
Continued on next page
Photo by Jeffrey Bellant
CIRCLE OF EXCELLENCE: Tom Adams (left), president of Auction Insurance Agency, is joined by his family as he receives the Circle of Excellence award from the International Automotive Remarketers Alliance in Las Vegas.
CORVETTES FLINT AUTO AUCTION Classics & 201 5
GET YOUR MOTOR RUNNING...
Crackdown
– from page 3
Matt Blatt dealerships received a commission for each of the more than 1,000 consumers they enrolled.
NPN and Matt Blatt dealerships have agreed to settle the FTC charges, and under proposed consent orders are prohibited from misrepresenting that a payment program will save consumers money, unless the amount of savings is greater than the total amount of fees and costs charged in connection with the program. They also are prohibited from misrepresenting that the payment programs or their associated fees will improve, repair or otherwise afect a consumer’s credit record.
NPN will refund more than $1.5 million to consumers, and waive another $949,000 in fees to current customers during the fee waiver period. Matt Blatt dealerships also will pay $184,000 to the FTC as part of the settlement.
The agreements are subject to public comment through April 27.
Deceptive Advertising
Three auto dealers, Cory Fairbanks Mazda of Longwood, Fla., Jim Burke Nissan of Birmingham, Ala., and Ross Nissan of El Monte, Calif., have agreed to settle charges that they ran deceptive ads that violated the FTC Act, and also violated the Truth in Lending Act (TILA) and/or Consumer Leasing Act (CLA).
According to the FTC complaints, ads touted sales, lease or financing options that seemed attractive but were cancelled out by fine-print disclaimers. In other instances, the disclaimers did not disclose relevant terms, such as required down payments.
The proposed settlements in these
Awards
actions prohibit the defendants from misrepresenting the purchase cost or any other material fact about the price, sale, financing or leasing of a vehicle.
Jim Burke Nissan and Cory Fairbanks Mazda are also prohibited from representing that a discount, rebate, bonus, incentive or price is available unless it is available to all consumers or all qualifications and restrictions are clearly and conspicuously disclosed. The proposed orders also address the TILA and CLA violations by requiring the dealerships to clearly and conspicuously disclose terms required by these rules.
The agreements will be subject to public comment through April 27.
Auto Loan Modifications
At the FTC’s request, the U.S. District Court for the Southern District of Florida temporarily halted the practices of Regency Financial Services of Lake Worth, Fla., and its CEO Ivan Levy, who allegedly charged consumers upfront fees to negotiate an auto loan modification on their behalf, but then often provided nothing in return. The court also froze defendants’ assets, and last month entered a stipulated preliminary injunction order. The FTC’s lawsuit filed Jan. 26 is ongoing, and the commission is seeking a permanent injunction to stop defendants’ deceptive practices and to return ill-gotten gains to consumers.
According to the FTC’s complaint, defendants violated the FTC Act and Telemarketing Sales Rule by misrepresenting that they would obtain auto loan modifications for consumers or provide full refunds.
– Continued from prior page
Cadigan is a past president of the National Auto Auction Association.
“I’m very honored to be up here today,” Cadigan said. “I remember being one of the first consignors to go to the auction convention in 1978 with Avis. It was a very small group. Those were the people that pioneered the industry and we should all be grateful to them.”
Beggs was then honored with the Industry Achievement award, a special honor that isn’t given out annually but only for special individuals who have made a measurable impact on the industry, Antich said. The honoree must be a “subject-matter expert” and someone who has promoted the industry.
Beggs praised the industry members in the room and his team back at Black Book and he got choked up when he thanked his wife of 38 years for her support.
Beggs, who had announced his retirement before the conference, joked that when people start receiving awards like this, it’s time to retire.
“What a ride it’s been,” he said. “What a blessing it’s been. Thank you very much.”
NAAA President Ellie Johnson presented Jef Barber, president and owner of State Line Auto Auction, with the Warren Young Fellowship award. His daughters Emily and Bethany accepted the award with him.
“This industry is always changing for the better,” Barber said. “It’s a privilege to be a part of it. I just want to thank everybody for the recognition.”
CAR also created a new award –the Bobit Industry Icon award – in honor of the late Ed Bobit, of Bobit Business Media. It was presented to his son, Ty Bobit.
CFPB Releases Study Critical of Arbitration Agreements
Recent moves by the Consumer Finance Protection Bureau have created concern among used-car dealers and auto finance companies.
The Consumer Financial Protection Bureau released a study indicating that ar-
through class action settlements. The bureau’s report also found that more than 75 percent of consumers surveyed did not know whether they were subject to an arbitration clause in their agreements with their financial service providers,
lions of dollars in redress each year.
“Now that our study has been completed, we will consider what next steps are appropriate.”
The Dodd-Frank Wall Street Reform and Consumer Protection Act
“Tens of millions of consumers are covered by arbitration clauses, but few know about them or understand their impact.”
Richard Cordray
in such a rule are consistent with the results of the bureau’s study.
The CFPB is also finalizing a policy for consumer complaints about financial products and services.
When consumers submit a complaint to the CFPB, they now have the option to share their account of what happened in the CFPB’s public-facing Consumer Complaint Database.
July 2011.
It currently accepts complaints on many consumer financial products, credit reporting, money transfers, debt collection and payday loans.
As of March 1, the bureau has handled 558,800 complaints, with mortgages and debt collection being the most frequent topics.
bitration agreements restrict consumers’ relief for disputes with financial service providers by limiting class actions.
Many buy-here, payhere dealers use these agreements to avoid classaction suits.
The report found that, in the consumer finance markets studied, very few consumers individually seek relief through arbitration or the federal courts, while millions of consumers are eligible for relief each year
and fewer than 7 percent of those covered by arbitration clauses realized that the clauses restricted their ability to sue in court.
“Tens of millions of consumers are covered by arbitration clauses, but few know about them or understand their impact,” said CFPB Director Richard Cordray. “Our study found that these arbitration clauses restrict consumer relief in disputes with financial companies by limiting class actions that provide mil-
mandates that the CFPB conduct a study on the use of pre-dispute arbitration clauses in consumer financial markets.
The Dodd-Frank Act specifically prohibits the use of arbitration clauses in mortgage contracts. And it gives the bureau the power to issue regulations on the use of arbitration clauses in other consumer finance markets if the bureau finds that doing so is in the public interest and for the protection of consumers, and if findings
The CFPB is also publishing a request for information seeking public input on ways to highlight positive consumer experiences, such as by receiving consumer compliments.
“Narratives humanize the problems consumers face in the marketplace,” Cordray said.
The Dodd-Frank Wall Street Reform and Consumer Protection Act, which created the CFPB, established the handling of consumer complaints as an integral part of the CFPB’s work. The CFPB began accepting complaints as soon as it opened its doors more than three years ago in
In June 2012, the CFPB launched its Consumer Complaint Database, which is the nation’s largest public collection of consumer financial complaints.
It includes basic, anonymous, individual-level information about the complaints received, including the date of submission, the consumer’s zip code, the relevant company, the product type, the issue the consumer is complaining about and how the company handled the complaint.
The bureau is currently finalizing its consumer narrative policy after receiving and considering comments from consumer groups, trade associations, companies and individuals.
TRADE PUBLICATION DELIVERS NEWS FOR TWO DECADES USED CAR NEWS 20th ANNIVERSARY
Pre-owned cars.
No.
Second-hand cars.
No.
Experienced cars.
No.
Used-cars.
Yes.
Chuck Thomas was not a man who put on airs. So when he decided 20 years ago to start a newspaper covering the auto auction industry, he called a spade a spade. Auto Auction Shopper/Used Car Week was born.
“Chuck was an entrepreneur at heart,” said his wife, Lynda, who took the paper’s reins after Chuck’s death in 2002. “Chuck figured out early in his automotive journalist days that used cars, and the business of the used car business, was a nearly invisible multi-billion dol-
with the customers’ schedule.
Maurice Van Coillie, 90, recently honored as the oldest active used-car dealer in the country, remembers when Chuck first talked to him about a new publication for the industry.
lar industry. Yet it relied on fax machines to disseminate run lists.”
Lynda said her husband initially envisioned a weekly shopper-type publication, but by its debut the publication was a newspaper dedicated to the used car business.
“It was a weekly for a short while,” she said, “until Chuck realized we’d all keel over. Then we switched to the current first and third Monday publication schedule and changed the name to Used Car News.”
Most factory sales were held once a month so the new publishing schedule also fit
“Chuck would come over,” he said. “He would rack my brain for some of the usedcar information and the industry. Since I was so close (to the newspaper’s ofce) he would talk with me.”
Van Coillie said Chuck would ask him his views and ideas about the industry and his business.
The focus of this new publication is what piqued the interest of the used-car dealer.
“I thought it was unique, diferent. There was no such thing around,” he said.
Although there were publications for new-car dealers, there were none for
his segment.
“I thought he had a good idea,” Van Coillie said. “He worked hard at it and did a great job. Unfortunately, he (died) a little early.”
Van Coillie said the newspaper and the industry have come a long way since those early days.
“Business has changed so drastically,” he said. “I think they took the fun out of it.”
Ted Craig joined the paper in 2000, and has been the managing editor since 2005. He said that starting Used Car News was an “accomplishment in itself.”
“You need to look at what else was going on in the industry at the time,” Craig said. “CarMax had started in 1993 and was growing, soon to be joined by AutoNation.
Franchise dealers were adding certified pre-owned programs. Manheim had bought the GE Capital auctions. ADESA had gone public and then was purchased by Minnesota Power.”
At the time, Craig said, the subprime market had turned into a bubble – and then it burst.
“This led to the formation of the National Automotive Finance Association.
The National Alliance of Buy-Here, Pay-Here Dealers also formed in the late ‘90s. And you had the first dedicated conference for automotive remarketing.”
The time was right for Used Car News.
“The industry was entering a new phase and we
were there to tell the story,” Craig said. “Of course, that’s true of a lot of publications. There were several prominent magazines that debuted at the same time to cover the dot-com craze. The difference is that we’re still here.”
Josie Godlewski, now Used Car News’ media manager, was with the newspaper from the beginning
– in fact, she was the very first employee.
“I first became acquainted with Chuck Thomas through my father, Sam Lafata, who at the time was general manager at Metro Detroit Auto Auction. Early on, Chuck sought his advice when deciding to venture out on his own to start an automotive publication.”
Continued on next page
USED CAR NEWS 20th ANNIVERSARY
Godlewski remembers the early days of the paper – and the early means of producing it.
“The issue was put together on what seemed like the most primitive Apple computers, but at the time it was the latest and greatest technology available,” Godlewski said. “The reporters shared and reviewed articles via Apple Talk – another now extinct networking technology.”
Lynda Thomas remembers once when an advertiser missed a deadline and the ad had to be physically delivered to the printer.
“We had to buy an airplane seat for the four-color separation, then have it delivered to the printer by courier,” she said. “Of course, the printer was in a rural area some 50 miles north of Detroit, so Chuck would stand under the only street light in town to flag down the couri-
er. All of this at 1 a.m. – with a press deadline looming.”
Lynda Thomas said one of the biggest industry-wide changes in the last 20 years has been consolidation.
“In addition to the mostly family-owned and operated independent auto auctions, there were a number of other players,” Lynda said. “There was the 50-year-old Manheim with its 51 auctions; ADT Automotive and its 29 auctions, the Greater Auction Group, ServNet, BSC America Auction Group, ADESA and Brasher’s.”
Lynda said the advent of “certified pre-owned cars” also had a major impact on the industry.
“It was first introduced in mid-1995 by Mercedes-Benz and went through the lanes at select ADT Automotive auctions,” she said.
Colleen Fitzgerald, general manager of Used Car News, recalls that during the early days of rapid growth, Chuck Thomas used to quote one of the most famous movie lines of all time.
“He always said, ‘We might need a bigger boat.’
“He always said, ‘We might “I think it’s a necessary
“Our first web site seemed impressive at the time, but looking back on it, it was just a bunch of links to stories taken from the paper. Today we ofer up-to-theminute breaking news, all in a much more visually appealing format.”
In order to fund the startup of Used Car News, Chuck Thomas reached out to industry players including the auctions and several newcar dealers.
Diane Barton, owner principal of C3 and former vice president at Manheim, remembers Chuck Thomas as an advocate for the wholesale auto auction business.
The income from Manheim’s shares of Used Car News is deposited into an endowment that supports the the Michael P. Fisher Cardiac Intensive Care Unit at Children’s Healthcare of Atlanta.
Van Coillie said he’s not surprised Used Car News is still going strong at 20.
“I think it’s a necessary publication, especially for used-car guys,” Van Coillie. “There’s information in there that helps you with your business.
“But, like anything else, you have to read it.”
FBI Offers Reward for Dealer
The FBI is ofering a reward of up to $20,000 for information leading to the arrest of a former used-car dealer.
Afzal Khan is wanted for allegedly defrauding customers and financial institutions while he was the owner of Emporio Motor Group in Ramsey, N.J.
From approximately December 2013 to September 2014, Khan allegedly obtained loans for vehicles that were never delivered, obtained loans for vehicles without proper title and issued insufcient funds checks.
Khan also allegedly ofered to sell vehicles on consignment and then
neither returned the vehicles nor provided any funds for the vehicle sales.
One financial institution has an estimated exposure of $1.7 million in automobile loans. Additional fraudulent loans, and approximately 75 individual victims, have also been identified. A federal arrest warrant was issued for Khan on Oct. 21, 2014, by the U.S. District Court, District of New Jersey, Newark, N.J., after he was charged with wire fraud.
Khan has a scar on his right arm. He has ties to and may travel to the United Arab Emirates, Canada, the United Kingdom and Pakistan.
Cops Seek Cars Stolen from Lot
CHARLESTON, S.C. (AP) - Po -
lice in the Charleston area are looking for three luxury vehicles stolen recently from three dealerships.
Police say the vehicles had a combined value of more than $200,000. Police have not determined whether the thefts are related.
Ofcers told local media outlets that an Audi was taken from a Charleston dealership March 11.
They say the car was parked in front of the showroom.
An employee said a key for the vehicle had been switched.
Mount Pleasant ofcers responded to the theft of a Chevy Camaro Z-28 Coupe on March 11.
That car was parked in a front lot.
A Mercedes-Benz was taken from a Charleston dealer March 14.
The dealers were unable to track the vehicles using electronic devices.
Our local representatives are backed by a knowledgeable support staff 24/7 account access offers real-time technology On your lot or in the lanes, our people come to you
What matters most to you? Join the conversation at nextgearcapital.com/what-matters-most
ADESA Buys Independent Sale
ADESA has expanded its presence in the Pennsylvania auction market with the acquisition of Pittsburgh Independent Auto Auction in New Stanton, Pa.
This location joins two other ADESA auctions in the region, ADESA Pittsburgh and ADESA PA.
The 200-acre facility is located on the southwest side of Pittsburgh, near the I-70/PA Turnpike intersection. The auction ofers seven fully automated auction lanes and fullservice reconditioning facilities, including a body shop and mechanical shop.
Chris Angelicchio will continue as general manager of the auction.
Dave Angelicchio, former National
Auto Auction Association president and CEO of the auction, will serve in a consultant capacity.
ADESA also announced that its subsidiary, AutoVIN, has signed a definitive agreement to acquire the vehicle inspection business from DataScan Field Services, a JM Family Enterprises company and one of the largest automotive floor plan inventory verification and of-lease vehicle inspection companies in North America.
DataScan utilizes web-based technology to perform vehicle inspection services for major auto manufacturers, financial institutions, leasing companies and warranty companies.
BMW Settles Mini Warranty Suit
BMW of North America LLC has agreed to settle Federal Trade Commission charges that its Mini division violated the Magnuson-Moss Warranty Act.
The manufacturer did so by telling consumers that BMW would void their warranty unless they used Mini parts and Mini dealers to perform maintenance and repair work.
In an administrative complaint, the FTC alleged that BMW, through
its Mini Division, violated a provision in the Warranty Act that prohibits companies from requiring that consumers – in order to maintain their warranties – use specific brands of parts or specified service centers (unless the part or service is provided to the consumer without charge).
The proposed order prohibits BMW from violating the law in connection with any Mini Division good or service.
Feds Bust Luxury Car Scam
Three Chicago-area defendants, and a fourth defendant from Decatur, Ga., were convicted of federal bank fraud charges for fraudulently obtaining 51 luxury automobile loans totaling approximately $1.6 million without ever intending that the borrowers would purchase the high-end cars that they claimed to be buying.
As a result, various credit union lenders, including Credit Union 1, Great Lakes Credit Union, Navy Federal Credit Union, Pentagon Federal Credit Union and SherwinWilliams Credit Union, incurred losses totaling at least $853,000. A jury in federal court convicted two of the four charged defendants.
Two additional defendants involved in the scheme pled guilty before trial.
The two men convicted at trial were Precious W. House, president of Rolling Auto Inc. of Plymouth, Ind., and XPress Automotive of Chicago, two wholesale auto dealerships that purported to be selling many of the autos. House was convicted of five counts of bank fraud.
Also convicted at trial was Brian K. Hughes, 41, of Homewood, the president of Hughes Corporate Consulting. Hughes was convicted of four counts of bank fraud and one count of making false statements on
a loan application. The defendants’ sentencings were set for June.
Two remaining defendants pleaded guilty. Keith B. Foster pleaded in October 2014 to one count of making false statements on a loan application. Foster was sentenced to 12 months imprisonment and has been ordered to surrender April 6. Crystal Williams, of Decatur, Ga., pleaded guilty in September 2014.
According to court records, between February and November 2013, defendants House and Hughes recruited individuals seeking loans and agreed to find loans for them in exchange for a fee of 20 to 30 percent of the loan. The defendants obtained at least 36 automobile loans of the 51 total sought on behalf of the applicants, and the defendants fraudulently obtained approximately $1.12 million of the total $1.6 million for which they applied.
In order to obtain the loans, the defendants made, and caused the loan applicants to make, false representations in documents such as loan applications, vehicle purchase orders, and verifications of employment. The false statements concerned the applicants’ income, employment, credit history, intent to purchase automobiles, and the existence of purchase contracts.
WITH THE RIGHT CARS
SHARP
CONSIGNORS
Pair’s Custom Cars Gain Fame
SPRING GREEN, Wis. (AP) –Architecture bufs flock here for Taliesin. Lovers of the Bard make the summer drive for the American Players Theatre.
Gear heads come for $500,000 muscle cars equal to the quality and acclaim of Frank Lloyd Wright and Shakespeare.
Mike and Jim Ring will still fix a door ding or a crumpled hood from an ill-timed deer on the family minivan at their Classic Autobody business along Highway 14. But it’s the cars and custom parts built under their other business, Ringbrothers, which has led to international attention.
weeks ago, the Rings and the car, dubbed “Recoil,” were featured in a nearly 24-minute YouTube episode of “Jay Leno’s Garage.”
“Everybody thinks you’ve gotta be in L.A. or New York and these major markets where all the suppliers are and you guys are just about in the middle of the country,” Leno told the Rings.
“These boys up there in Wisconsin build good cars,” the former “Tonight Show” star later tweeted to the 65,000 followers of his Jay Leno’s Garage account.
The brothers have been building high-powered Mustangs, Camaros and other stunning vehicles for more than 20 years, and their work has donned the covers and pages of some of the biggest automotive publications.
Over the past few months, the unassuming siblings have catapulted into the classic car world’s stratosphere.
A side project to restore a junked Winnebago motor home has also drawn eyes to Ringbrothers. A video of what appears to be a tenement on wheels has gone viral over the past year with more than 5 million views. It shows the unsightly 1972 RV going from zero to 50 mph in three seconds thanks to a 900 horsepower Chevy LS 427 supercharged engine.
The other surprise is the interior that’s been renovated into a rolling sports bar that includes a fireplace, big-screen television, popcorn maker and a section of floor that is glass so passengers can watch the road beneath them.
In November, a 1966 Chevrolet Chevelle they built for an Ohio man was named the General Motors Best in Show at the Specialty Equipment Market Association show in Las Vegas, one of the largest custom car shows in the world. Then, a few
“It’s just built to go fast,” said Jim Ring, who believes it’s the fastest RV on the planet.
Lauren McCarthy
State Says Dealer Sold Junk
The Pennsylvania attorney general has filed a lawsuit against three Philadelphia-area car dealerships and their president amid allegations they sold and leased used cars at inflated prices, used deceptive business practices and sold vehicles that were not roadworthy.
The lawsuit comes after the Office of Attorney General’s Bureau of Consumer Protection investigated more than 130 complaints concerning Dean Cafiero and his businesses. The lawsuit seeks injunctive relief, restitution and penalties of up to $1,000 for every violation of the Consumer Protection Law.
Cafiero is the president of Drivehere.com Inc. The lawsuit also lists him as president for Peoples Commerce Inc. and DTC Corp., which did business as Car Vision and Carvision.com.
disputes, among several other reported problems. Other complaints were made after Cafiero and his businesses allegedly omitted important details regarding contracts and warranties.
One consumer reported signing documents to purchase a vehicle, only to learn later that the payments were actually to lease the car. The purchase fee was nearly triple the value of the vehicle, according to the lawsuit.
The businesses operated three dealerships in Montgomery County and Philadelphia, advertising bargain deals on used cars that targeted consumers with poor credit or no credit. The company used slogans such as “$1 Drive Today” and “$1 & $79 A Week.”
Customers who did business with Cafiero and his dealerships reported various problems with the condition of vehicles, billing or credit disputes, repair issues and contract
In another case, a customer reported purchasing a car from Drivehere.com that required repairs the day after the initial sale. After several unsuccessful attempts to fix the car, the customer was placed in another vehicle. That vehicle also allegedly had various problems. The customer eventually took the vehicle to another car service center, where numerous problems with the vehicle were confirmed, the lawsuit alleges.
The lawsuit further alleges that Cafiero and the dealerships are in violation of several sections of the Consumer Protection Law and the Automobile Regulations. The Bureau of Consumer Protection also believes there are other consumers who have not filed complaints and who may have been harmed by these alleged scams.
Find the right cars, out of thousands — in a single glance. Pull the trigger before the competition. Never do homework, guesswork or extra legwork again.
partners: All the information you need — on one customizable display.
When you’re purchasing wholesale used cars, you need fast, easy access to the condition reports and values you trust. The dealers who get to the best deals frst use AuctionGenius — in the lanes, on the lot and on the go. Now you can rely on AuctionGenius for support at auction and in your dealer networks. It puts the industry’s most trusted values at your fngertips, so you can work faster and more efciently in every setting.
Download the mobile app and take AuctionGenius on the go!
When you’re searching for a wide variety of the right vehicles for your customers, look to a nationwide industry leader. Look to Chase.
Chase is your source for:
A broad range of vehicle makes and models — from economy to luxury — upstream and through preferred auctions nationwide.
Convenient online and in-lane vehicle availability with on-site Chase remarketers.
Put Chase to work for you. Visit ADESA.com and Manheim.com. Your Source. Chase.
1Subaru, the Subaru logo, and Subaru Motors Finance are trademarks of Subaru of America, Inc. (“Subaru”) and any use by Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”) is under license. Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase.
2Jaguar and Land Rover, their respective logos, and the financial group names (Jaguar Financial Group and Land Rover Financial Group) are trademarks of Jaguar and/or 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 Chase. Retail/Loan and lease accounts are owned by Chase.
responding to increased consumer awareness of hybrids and their subsequent popularity. Toyota appears to be the only major manufacturer to have a certified program specific to hybrids.
Tesla’s recent decision to ofer certified pre-owned cars includes marketing that reminds potential buyers that the electric powertrain in a Tesla Roadster propels the car from 0 to 60 mph in under four seconds.
“Now you can experience this thrill with a certified pre-owned Roadster directly from Tesla,” the company says.
Nissan, Infiniti, Lexus, Ford and Honda certify qualifying hybrids, though they do not have separate programs for these vehicles: their hybrids are folded into participating dealer inventories of gas-powered certified used cars.
Nissan North America says its first Altima Hybrid bowed in 2007, making HEVs available as part of Nissan’s certified pre-owned program from the time the first Altima Hybrid showed up as a used vehicle. Leaf was added to the CPO program in September 2013, Nissan says.
All certification programs, whether for gas-powered or altfuel vehicles, include age and mileage requirements and extensive vehicle inspections.
Nissan says its certification for hybrids is similar to non-hybrid vehicles: the parameters are that the vehicle must have accrued less than 80,000 miles and be no more than six years from its original in-service date. All vehicles, including hybrids, must go through a 167-point inspection system, with seven of the inspection items dedicated exclusively to hybrids.
Beyond the typical 167 point system, Leaf requires a supplemental inspection on 15 additional items and its battery must have at least nine bars of capacity as shown on the battery capacity gauge.
MPS – Continued from page 1
MPS when he accepted the 2015 Remarketer of the Year award.
“As you know, over the past year I’ve been working really hard on MPS,” he said. “It has its pros and cons. I think about the pioneers of the industry and what they have done. I’d like to thank the industry partners that have worked with me (on this).”
He admitted the process has hit an impasse, but he doesn’t want the industry to give up on the issue.
“I would urge everybody to roll up your shirt sleeves and move forward,” he said. “Because if we don’t do it, someone else will.”
Lynn Weaver, general manager of America’s Harrisburg Auto Auction,
Nissan, which reported sales of 751 certified used hybrids (primarily Leafs) in 2014 and 356 in 2013, ofers the same warranty on its certified hybrids as it does on its gas-powered vehicles: 7 years/100,000 miles.
Tesla’s extended warranty for certified pre-owned Roadsters is 37 months/37,000 miles. The company says its seven-hour certification inspection covers 214 points.
Honda, Infiniti, Ford and Lexus include certified pre-owned hybrids in their wider certification programs. Lexus starts its certified used warranty at the time of purchase.
“It is valid for three years or 100,000 total vehicle miles from your date of purchase, whichever comes first,” says Lexus spokesperson Allison Takahashi.
Lexus dealers, all of whom participate, sold 8,776 certified used Lexus vehicles in 2014 and 8,216 in 2013, she says.
Do shoppers care whether a preowned hybrid is factory-certified or not?
“Families who have bought here for years are not as concerned about certified,” says Bill Brooks at Charles Maund Toyota in Austin, Texas.
Maund Toyota was among Toyota’s top certified used hybrid dealers in 2014. The dealership’s website in late March featured five certified among nine used Priuses.
All used cars are inspected, Brooks says.
“A customer should expect to pay more for a certified car because we have higher internal costs.”
Toyota’s DePew says there are 174 inspection points for certifying a hybrid compared with 160 for gaspowered vehicles.
Brooks adds that the fluctuating pump price of gas makes it more difficult to price a used hybrid. Some potential buyers are influenced by higher gas prices.
also expressed hope for an MPS in the future.
“Multi-platform is a great idea,” Weaver said. “I think the industry has to get the politics behind the scenes resolved. It has to be an industry product, so that everyone is equally participating.”
He said one idea that has floated in the background involves autoIMS.
“The way to do (MPS) is to funnel it, house it and maintain it through autoIMS in Atlanta.”
He said the industry owns that product and it already has the condition reports, pictures and conduit.
“Everything’s right there,” Weaver said.
PEOPLE IN THE NEWS
Black Book Taps Tech Exec
Black Book has named Laird Popkin as its chief technology ofcer and senior vice president, efective immediately.
In this newly created role, Popkin has responsibility for all product development and IT operations for the entire group, which includes National Auto Research, Veretech Holdings Inc., and Canadian Black Book.
Popkin joins Black Book from Kaplan Inc., where he was chief enterprise architect. He has more than 25 years of technology management experience.
“Laird is the ideal choice to help drive Black Book’s IT and product initiatives as we continue to leverage technology capabilities and innovations and create breakthrough products and services for the automotive industry,” said Tom Cross, president of Black Book. “Laird’s technical expertise, passion for technology, and operational excellence will help us in our commitment
to continually enhance our market-leading products to meet the needs of our customers.”
Auction Hires Former Dealer
Bill McCroskey has joined the sales team at Plaza Auto Auction of Iowa.
McCroskey comes to the auction with extensive automotive experience, including ownership of a General Motors dealership.
“The market is of to a great start in 2015, and we’re in the fortunate position of adding to our staf so that we can service our growing customer base,” said Plaza owner Mark Greb.
Rockford Auto Auction Adds National Sales Manager
The Greater Rockford Auto Auction announced that John Smith is its new national sales manager, responsible for overseeing sales and marketing eforts.
Smith comes to GRAA with over 22 years of experience in the auction industry, most recently as general manager
of Manheim New Mexico before leaving Manheim in 2011. Smith then went on to own an AAMCO Transmission shop as well as partner with an independent dealership in Albuquerque.
Dent Wizard Promotes Sales Director
Dent Wizard International recently promoted Jessica Stone to director of sales for Mint, Dent Wizard’s onsite repair service program for dealership service drives. Stone was previously the company’s regional business development manager for the Southeast territory.
Stone will work with the Mint team to develop additional sales opportunities and increase the number of Mint locations. She will report to Lindsey Bird, Dent Wizard’s vice president of aftersales. Stone has been with Dent Wizard in various sales capacities since 2004.
Dent Wizard International also recently added Kaylene Cohen as Midsouth regional business develop-
ment manager.
Cohen will manage and expand Dent Wizard’s business in Arkansas, Colorado, Kansas, Louisiana, Mississippi, Missouri, New Mexico, Oklahoma, Texas and Utah. Cohen will work from her ofce in Chesterfield, Mo. She will report to Addison Thomas, Dent Wizard’s regional vice president of Midsouth.
Cohen’s experience in the automotive business includes serving as general manager at Plaza Motors in St. Louis (Audi, Porsche, Land Rover and Cadillac), general manager at Mercedes Benz-Progress Point in Weldon Spring, Mo., and brand manager for Aston Martin.
“Kaylene understands the return on investment and value associated with reducing the number of days that vehicles are not fully reconditioned and ready for the front line, which will certainly benefit our clients,” added Mike Black, Dent Wizard’s chief operating of-
ficer. “She brings a wealth of knowledge, and is committed to creating win-win scenarios for our dealers and Dent Wizard.”
AFC Names VP of Operations
Automotive Finance Corp. announced that Johnny Shroyer has been promoted to vice president of operations, west division.
Shroyer will report directly to Joe Keadle, senior vice president of operations.
Shroyer joined AFC in 2010 as regional manager. In his new role, Shroyer is responsible for managing, directing and coordinating all AFC field operations in the west division.
With more than 20 years of experience, Shroyer brings a wealth of knowledge and insight gleaned from a wide variety of positions in the financial services and automotive industries. Prior to joining AFC, Shroyer was with Reynolds and Reynolds, HSBC Bank of North America and Capital One Auto Finance.
RETAIL MARKETS
Mike Bonicelli, president, Nevada Auto Sales, Colorado Springs, Colo.:
“We’ve been here 47 years. My father and I started it. It’s just one location.
“I carry 125 cars.
“We’re selling 50 to 60 units per month. That’s pretty close to this time last year.
“We’ll see an increase in sales during tax time. We do the anticipation tax returns starting in November. But our true tax season is from January through the first part of March.
“We get most of our vehicles out of the auctions. We also get a few of the street.
“We’re probably 70 percent buy-here, pay-here. The other 30 percent is split between subprime and prime.
“I know a lot of dealers have gotten pretty strong into subprime, but we’ve decided to stay with a majority of our business in buy-here, pay-here.
“The average down pay-
ment is about 10 percent (of retail price). That’s what’s required. The average term length is 42 months. We don’t want to do anything over 48 months.
“The average model year is 2007. Our average mileage is right around 100,000.
“We carry SUVs, fourwheel drive pickups, domestics – we have a pretty good selection of all makes and models. The SUVs are probably the strongest.
“Our retail prices vary all the way from $7,000 up to $20,000. The average would be about $12,000.
“We’re pushing $1,000 per unit for reconditioning. That’s up from last year.
“We have a warranty and we ofer service contracts. The warranty is for 30 days or 1,000 miles.
“We don’t have a service shop. We have five outside vendors that we use.
“Our website is actually CrazyHerman.com. ‘Crazy Herman’ is a person who worked for me for 26 years and retired in 2010. He still
THEY’LL KEEP
does participate with us in all of our advertising, from commercials to appearances.
“In December, we won the Colorado Quality Dealer Award from the Colorado Independent Automobile Dealers Association. This was actually our second time. We also won in 1993.
“We recently sold a yellow 2012 Chevrolet Camaro. It had 30,000 miles. We sold that for $18,995.
“We actually think 2015 will be a good year. We’re excited about it. We haven’t slowed down.”
Mike Caudill, president, Time Auto Sales, Walton, Ky.:
“I can track our dealership back to 1963 through a newspaper in our ofce. But I believe we started in 1958. My dad started it.
“We have two locations in Kentucky. One is in Walton and one in Latonia. The only diference between the two stores is that my Latonia store, which carries
about 30 cars, sells all of the cash cars – anything from $1,500 to $3,000.
“In total, we carry between 150 and 175 cars at the two stores.. We sell 600 cars a year. That’s a combination of credit and cash cars.
“We get all of our cars from auctions, primarily ADESA and Manheim.
“We sell 90 percent buyhere, pay-here and 10 percent cash deals. No outside financing.
“The average down payment is probably $820. The average term length is probably 26 to 28 months.
“The retail price is about $8,495 on average.
“The average model year is 2005 and mileage on cars is probably 120,000 to 130,000. It’s about 150,000 on trucks. That’s the same as this time last year; it’s just harder to get those cars.
“Ninety-nine percent of my (cars) are domestic.
“Probably 75 percent are cars, 20 percent SUVs and 5 percent trucks.
“Average reconditioning is $700. It’s gone up probably $100 from last year. The cars are more challenging (to recondition).
“For advertising, we do TV, radio and we do print through a couple of local newspapers. In the wintertime, I can do more print and TV because people are at home. In summertime, I do more radio.
“This was a particularly brutal winter, as far as the snow. Tax time was terrible this year. It went from Feb. 15 to March 5. For the first time, we (ofered tax preparation service). We didn’t have one person come in to do their taxes.
“We have so many Jackson-Hewitts, H&R Blocks and other independents, that (it hurt us).
“I’ve been in finance my whole life. But it’s going to be a tough sell this year. We’re going to be making weaker deals with weaker people. So the goal is to try and buy less expensive cars.”
WHOLESALE MARKETS
CONNECTICUT
Peter Saldamarco, president/general manager, Central Auto Auction, Hamden, Conn.:
“We just had our nineyear anniversary on Feb. 26. We had to celebrate a week late because of snow.
“It was a tough winter. It was late, though. We were halfway through January and never needed (plow) trucks out. We thought we were going to get a pass. Then it came and it was non-stop for seven weeks.
“We just opened our third lane in January. We have capacity for four lanes, but we had been running two based on volume.
“So we’re now running three lanes for the first time. It’s just normal growth over nine years. Our reputation is being solidified. We have a GSA account and we’re doing quite well with that. Other smaller lease companies have tagged on with that. We’re starting to make our mark.
“We run over 300 cars
every week and we’ve been selling roughly 60 percent. Volumes are up maybe 10 percent from last year.
“Our (percentage of dealer consignment to commercial) is about 70 to 30. We’re making some good inroads into commercial consignment. It’s too soon to tell (how much fleet/ lease consignment is coming back into the market).
The weather has been so bad and so disruptive, that I really can’t get a good read on it at the moment.
“GSA is a big consignor and we do business with a bunch of charity donation vehicles. We work with VRS out of Chicago, FLD and several mid-tier repo companies. It’s been steady, maybe up a tick.
“It seems dealers have been doing well. Our sales percentages were up despite the weather.
“Prices have been up considerably. My average price is $3,800. If you factor in the GSA, that goes up higher.
“We run the GSA monthly
on the third Tuesday. Generally, the (GSA units) run from April to November.
“On those days, we kick the sale of at the normal 10:30 start time, but start of with the GSA (units). Of course, that’s open to the public. For the most part those are passenger vehicles. But we also get a lot of lighter trucks, because our next-door neighbor is Amtrak. The Cedar Hill Rail Yard in New Haven New is one of the biggest railroad yards in the country.
“This is our fourth year selling GSA. Our percentages are good and our performance is good. We’re the No. 1 auction in the U.S. for days to sale, so that gives me some bragging rights (with GSA).
“We’re looking good for 2015. Along with the third lane we’ve got a lot of expansion going on.
“We’re opening up about an acre in the back of our property. That should give us the ability to increase our volume a bit.”
PENNSYLVANIA
Lynn Weaver, general manager, America’s Harrisburg Auto Auction, Mechanicsburg, Pa.:
“We were bought by America’s Auto Auction Inc., out of Dallas, in midDecember. It’s been fantastic. It’s an unbelievably supportive group. They provide us with a lot of support, from IT to human resources and legal.
“It’s been a huge benefit. All of our employees are enthusiastic and on board.
All of our dealers love it because it’s the same as it’s always been. Nothing’s changed except the name. Our staf is all still there.
“We’re starting our 35th year.
Compiled by Jeffrey Bellant
“We have six lanes, but we run all day long. We start with two lanes in the morning for our in-ops and as-is sales. Then we go to six lanes for our dealer consignment sales and follow that up by running three lease lanes. So we’re actually running 11 lanes when you add them all up.
“Volumes have been of a bit, but that’s because of the weather in the Northeast. But we had a great sale March 12 and a great sale March 19.
“Average volumes are around 1,800. Percentages are about 65 percent on average for the year.
“With our relationship with America’s Auto Auction Inc., we’ve had quite a few new dealers added (to our roster).
“About 20 to 25 percent is non-dealer consignment.
“Our average price overall is right around the $6,000 mark.
“Each month we run a truck sale with everything from commercial pickup trucks to bucket trucks, box trucks and up to semis and everything else. We’ll run about 50.
“I keep hearing about all of these cars coming back from of-lease and repossessions, but our consignment has been of a bit. It’s good, but not great.”
• 23 year of collection experience • FDCPA compliant / Quality assurance department
Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other Edmunds.com data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.
Bill Clinton was in the White House, Mexico had just received a $20 billion aid program from the U.S., American astronauts
joined the Russian MIR space station, and Tokyo suffered a terrorist attack from Aum Shinrikyo, gassing their subway system.
O. J. Simpson was put on trial for murder, Bosnia and Croatia were at war, the Million Man March went to Washington, D.C., Timothy McVeigh bombed the Federal building in Oklahoma City and Yitzhak Rabin was slain by a Jewish extremist. Pope
John Paul II came to visit and the Rwandan massacres claimed the lives of some 2,500 unfortunates.
It’s hard to imagine that this publication debuted 20 years ago and how much history has been compressed into that short time.
In 1995 I was executive vice president of ADT Automotive, a successful auto auction business, still learning from my boss, Mike Richardson. We were good marketers and liked to be recognized as innovative market leaders and for that, we realized that a good, solid relationship with the press was important.
Not too many publications concentrated on used-car activities – sure, there were the National Independent Automobile Dealers Association magazines along with their state-sponsored counterparts – but they didn’t carry the sense of up-to-theminute news that a newspaper can when it’s expressing a feeling of urgency.
Automotive News, after
DISCONNECTED JOTTINGS FROM TONY MOORBY INSURANCE AUTO
By Miles Mellor
(2 words)
30. Employer’s tax number description, abbreviation 31. Detroit player
33. South Korean phone maker 34. Org that controls emissions
36. Part of a wheel 38. Nissan sedan 40. Intersect 42. St Paul’s state 43. Conclusion
45. Mercedes rival
SUV from Honda 4. British car company that made the Bulldog and the Sumo 9. Had a burger 11. Superhero’s ___mobile
12. Porsche roadster
13. Musk’s electric model
16. Type of welder
17. Initials of the maker of the Milano and Sprint
18. It’s a series of items
20. Emil Jellinek’s daughter - whose name was given to a luxury car brand
24. Subject of study for an auto designer, abbr.
26. French for friend
46. Kind of engine originally produced by Saab
47. New
49. Cadillac luxury car produced up to 2002, goes with 44 down
51. Auto aka
53. Griffth or Tuscan
54. Summit or Talon
58. Honda’s luxury marque
59. Come together
60. Lotus model
62. Car color that reportedly attracts highway patrol attention
63. VW compact car (one of its options)
64. Chinese basketball giant
much cajoling and advertising expenditure, were persuaded to carry a section relating to used cars and so, once a month a few column inches were devoted to covering important matters and data about a growing segment of interest to their constituents, the new-car dealers and manufacturers.
Back in the early ‘90s, the fellow that covered the used-car beat was Chuck Thomas.
Being the one responsible for media relations, it fell to me to deal with this new character on the circuit.
At first, I didn’t like him. He was gritty, pushy and had a way of posing questions that came across as nosy and loaded with accusation. He posited that auctions were the lowest end of the used-car redistribution channel, enabling “clockers” and title washers to find new markets. We had just been responsible for backing the Truth-in-Mileage Act at great expense, funding lobbyists to ensure its passage.
Chuck posed a challenge as a disbeliever or an opportunity to create a convert and help carry the industry’s message to the wider audience from manufacturers to the retail public. We spent a lot of time together. He had an insatiable curiosity, a natural trait for his calling, and I wanted to tame this tiger that could just as easily malign an industry as flaunt its progress.
He came to like us and softened a little. As interest grew, so did his appreciation of a side of the business that helped move millions and millions of vehicles each year.
His fascination turned to frustration at not getting enough space to tell the full story – dinner conversations turned to “what if…” discussions. Like a wolf in sheep’s clothing he was a capitalist in a leftist Democratic disguise!
He was convinced that a newspaper, solely dedicated to used cars and the business
of used cars, could be successful and have sufcient interest to readers and advertisers, alike.
The trouble was that he didn’t have enough money and like any good, budding American businessman, he knocked on a lot of doors and found investors – friends in the business, including some auction investors. It was an easy decision for us back then. We needed the voice and he had a bellyful of enthusiastic fire to stoke and keep him going.
He did a great job covering the news and feverishly pursued a place in the automotive media. At 55 years old and only seven years into his new game, Chuck died of esophageal cancer so quickly, it was a shock to the industry.
On his path to success, he had cultivated and shared his recipe with a small group of devotees, headed by his widow, Lynda, who still today keep the presses running and afording me a voice.
Here’s to the next 20.
AUCTION S
1. Distinguished car color (2 words)
2. One of the top rated luxury sedans from 2013
3. Owner of Jaguar
4. The P in APR
5. Car storage area
6. Running backs, for short
7. Business degree
8. 827 or Bullet
10. Period of a loan
14. Time just before
15. Iacocca frst name
19. ___ hurry (2 words)
21. Radiator fuid
22. Classic marque created by Walter Chrysler
23. Engineers’ org.
25. Driving (3 words)
27. Mercury sedan
29. Nothing
32. Symbol for nickel
35. Traffc light color
37. State where the Jazz play
39. Mariner is one of their models
41. They handle the medical side of accidents, abbr.
42. Northeastern state
44. Goes with 49 across
46. Luxury model, for short
47. Measurement of distance
48. Campers, for short
50. Freeway division
52. Physical location
55. Nickname of a ‘36 political contender
Pioneer guitar producer Paul
Manning from NY
Start!
High grades
COME TO BEAUTIFUL COLORADO!!! used truck and van lot 30+ years. Turn-key operation inventory,property, & business $2.1millionprincipals only. email trucksandvans81@gmail.com
FOR LEASE. Retail cars. Corner lot. High traffic count. 400 ft. frontage. Salisbury, Mass. 603-997-6872
Clear-up ugly plastic headlites to a like new appearance. Call 1-866-998-4999 or
Payment Books $7.99 Printed & shipped to you or your customer within 24 hrs. Call 800-479-2226.
Dealers: List your cars, trucks, rvs for sale FREE. www.bargaincommunity.com
BEST DEALS ON WEBSITES We want to help you. Since 1999. 888-236-1434 www.AutoRevolution.com
DEALER WEBSITES Starting at $30/mth No Set Up Fee / 877-266-8913 www.YourCarLot.com
Avis Budget Group is seeking auction professionals to oversee our feet deletions operations in South Florida and across the country. If you’re looking for a fast-paced job with room for growth, apply online today at http://avisbudgetgroup.jobs
AROUND THE BLOCK
Southeastern Auto Auction of Savannah held its Cars, Cash & Caring Sale March 4.
The Cars portion of the sale featured a record-breaking number of vehicles sold to a record-breaking number of dealers in attendance.
The Cash portion of the sale featured $30,000 in cash and prizes that were given away after the sale including $10,000 cash, a golf cart, green egg grill, 70-inch TV’s, drones,
Bose surround sound system, and much more.
The Caring portion of the sale featured a donation of over $3,000 to Shriners Hospital for Children.
This donation came from money raised through 50/50 drawings and an auction contribution for every transaction made over the previous five weeks.
“It was a perfect day for selling cars, giving away prizes and helping a great organization like Shriners Hospital for Children,” said Bill McCready, auction vice president.
“The great 80-degree weather we had was just one more reason to smile.
“I want to thank everyone, especially our generous and caring dealers, for helping to raise this amount of money for children in need.”
Baseball Mascot Returns to Auction
ADESA Phoenix invited a special guest - Arizona Diamondbacks mascot, Baxter - to the auction’s Spring Training Sale recently.
Baxter, who has attended the auction before, got the crowd excited about the day’s events.
He interacted with dealers, handed out hats and helped with the early bird baseball throw.
General Manager Ryan Edwards randomly selected bid badge numbers and gave those dealers the option of receiving tickets to spring training games or throwing a baseball through a tire to win a $1,500 jackpot.
Dealers chose to have Baxter throw the baseballs for the cash prize. Unfortunately, the mascot failed in his attempts.
The cash prize then rolled over the cash for a future sale.
CHECK FOR CHILDREN: Bill McCready (left), auction vice president, presents a donation from Southeastern Auto Auction of Savannah to a representative of the Shriners Hospital for Children during the auction’s recent Cars, Cash & Caring sale.
EVOLUTION
LEGACY |
CONNECTING YOU WITH CUSTOMERS, TODAY AND TOMORROW PROJECT: AUTOTRADER
SOLUTIONS TO MEET YOUR FUTURE NEEDS AND EXPECTATIONS
REACHING THE RIGHT SHOPPER AT THE RIGHT TIME
EVOLVE, INNOVATE, NEVER STAND
MEET THE NEW AUTOTRADER. We’ve got a fresh, vibrant symbol that represents how we’re changing and adapting to your ever-evolving needs and the way consumers shop and buy cars. Your success is our driving force. We want you to be amazed by the new Autotrader, excited by the innovation we provide and thrilled by the new ways we’ll be delivering even more ready-to-buy shoppers to your door. In an industry where so much is changing so fast, count on us to help you stay ahead of the curve and outpace the competition. We’re honored to move forward with you. Learn more at WeWorkForYou.com/evolving.
