Used Car News 5/6/13

May 6, 2013

ON THE WEB:

SEC Settles Suit with Capital One Financial

The Securities and Exchange Commission charged Capital One Financial Corp. and two senior executives for understating millions of dollars in auto loan losses incurred during the months leading into the financial crisis. Capital One agreed to pay $3.5 million to settle the SEC’s charges.

An SEC investigation found that in financial reporting for the second and third quarters of 2007, Capital One failed to properly account for losses in its auto finance business when they came in higher than originally forecast.

Buying Habits Differ for New, Used Car Buyers

A report based on CarFinance.com’s financing data indicates that below-prime, newcar-purchasing behavior differs from the car buying population as a whole: only one model, Dodge Ram, consistently topped both CarFinance.com’s below-prime and overall industry Top 10 sales lists.

The Big Three dramatically overwhelmed imports.

Conditions Prime for Used Car Sales

By Ted Craig

Sales are booming for latemodel used cars.

The publicly traded dealership groups are announcing record used-car sales.

Sonic Automotive announced a record used-car sales month in March and a record of 26,469 units sold

at its dealerships in the first quarter.

Used retail sales at AutoNation Inc. stores were up 9.5 percent

CarMax Inc. reported record results for its quarter ended Feb. 28. The usedcar superstore chain’s total used unit sales rose 12 percent and comparable store

sales rose 6 percent.

“It’s a terrific set of market conditions out there for both new-car sales and used-car sales,” said Paul Taylor, chief economist for the National Automobile Dealers Association.

Among those factors are low incentives on new cars and a good supply of late-

model used units.

Taylor said many consumers feel more flush thanks to an improving housing market and near-record stock market. That means they are shopping and, more importantly, those consumers are being approved for loans with low rates.

Continued on page 3

Dealers Sue Carfax, Claim They Must Use Service

More than 100 dealers filed suit against Carfax, claiming they were forced to use the company’s vehicle history reports.

Dealership law firm of Bellavia, Blatt, Andron & Crossett, PC, has filed a $50 million mass action, anti-trust lawsuit on behalf of 120 auto dealerships, who allege that actions by Carfax unfairly and illegally preclude dealers from selecting a vehicle history report provider of their choice and negotiating a fair price. The lawsuit was filed on April 23, in the United States District Court for the Southern District of New York. The plaintifs, led by the law firm’s founding partner

Leonard A. Bellavia, claim that dealers have been overpaying for Carfax vehicle history reports because of the provider’s monopolistic practices of tying its products to competitors such as Autotrader.com, Cars.com and nearly all of the manufacturers’ certified pre-owned programs. Furthermore, Bellavia claims the reliability and integrity of Carfax’s report data are in question, and as a result, dealers and consumers are the ones who are hurt in the process. If the case proves successful, plaintifs participating in the mass action will recover treble damages (three times the overcharges) for six years as well as legal fees. In addition, prospective pricing will be at a competitive level.

By Ted Craig

FORT WORTH, Texas –

An increasing number of dealers are considering leasing used cars, especially as an alternative to buy-here, pay-here.

Used-car leasing actually grew fairly popular before the recession, reaching 8.71 percent of all sales.

Today it has fallen to 3.23 percent, but the financing option is showing signs of recovery.

“I would expect to see more used leasing as more late-model cars come into the market,” said Melinda Zabritski, director of automotive credit for Experian Automotive, speaking at this year’s National Vehicle Leasing Association conference.

Dealers contract a third of all used-car leases through their own in-house operations. A track at the NVLA conference provided information about lease-here, pay-here’s advantages and challenges.

Jim Holman, owner of The Car Store in Oklahoma City, Okla., leases cars at all three of his locations through his own company, Pinnacle Auto Lease.

Holman said leasing came

naturally to him as a former new-car dealer.

A main advantage of leasehere, pay-here is the dealer continues to own that vehicle, which eases the repossession process.

For example, the dealer gets the vehicle back when the lessee declares bankruptcy, rather than it becoming part of the bankruptcy estate. Also, the car is considered stolen if the lessee skips town with it.

Owning the car can have a downside, however, especially if the lessee’s insurance lapses.

“You’re not only worried about the asset, you’re worried about the liability,” said Ken Sevier, vice president and program manager for Williams & Stazzone Insurance Agency Inc.

There are nine states with vicarious liability laws, which hold the lessor accountable in some cases.

There are also 20 states with their own leasing laws and 18 with tax laws that show less favor to leasing.

That is why Holman recommends finding a lawyer who can learn all the specifics of state and federal leasing laws.

More important, he said, is

finding an accountant who understands the tax implications of leasing.

The most crucial law to understand concerns residual values.

Attorney Angela MaynardShovein said setting the residual too close to the total value creates a “sale in disguise.”

There are also significant advertising requirements, Maynard-Shovein said, and approximately 30 specific required disclosures.

If the rules are followed, there are plenty of rewards for lease-here, pay-here, Holman said.

It allows dealers to ofer a nicer car to consumers and

turn customers more often. The model creates repeat sales, along with repeat customers, as the same vehicle can be leased out two or three times. Holman said his record was a Daewoo Nuberia that he bought for $4,600 and grossed $32,000 by the time it was done.

Lease-Here, Pay-Here Seems Set for Growth Association Works with State to Solve Plate Issue

By Jeffrey Bellant

Arizona dealers and state officials worked together to pass a compromise bill that protects wholesalers’ rights to use dealer plates, while setting some limitations on them.

Dave Warkentin, executive director of the Arizona Independent Automobile Dealers Association, was pleased with the result.

Under the original House Bill 2372, wholesalers would have lost the right to use traditional dealer plates. Instead they would have received limited use, temporary paper tags.

But the Senate amended the bill in a way favorable to the IADA, Warkentin said. Gov. Jan Brewer signed the legislation into law.

Dealers and wholesalers worked together in the lobbying efort that will set new rules for wholesalers,

while still allowing them to use dealer plates under specific circumstances.

Warkentin said the original legislation would have unfairly hurt legitimate wholesalers who followed the rules.

He said the new law requires that wholesalers must title any vehicle into the wholesaler’s name before transferring the title to another dealer or wholesaler.

In order to renew their license, the wholesaler must submit evidence that they have sold at least 10 vehicles in the previous year. The wholesaler can receive two dealer plates, plus an additional plate for every 50 vehicles sold, based on reported sales in the previous year.

A wholesaler is limited to no more than 10 dealer plates, the law states.

The reason the DOT had pushed for the original measure is that some non-wholesalers were taking advantage of the law to avoid registration taxes on their personal vehicles, according to Arizona IADA ofcials.

Owners of more expensive highline vehicles, for example, were

using a loophole to avoid registration costs that could be as high as $17,000 on a $300,000 vehicle, Warkentin said. So some of these owners were obtaining wholesaler’s licenses that allowing them to use dealer tags to avoid traditional registrations.

Warkentin said it’s actually cheaper for them to become wholesalers than paying the registration fees.

In an efort to rally association

Late Model

members, Arizona IADA President Aubrey Strickstein, owner of Right Choice Automotive in Phoenix, moderated a meeting of two dozen wholesalers to discuss options to replace HB 2372.

Both Strickstein and Warkentin said the association has a great relationship with the DOT.

That should help as the association hopes to tackle curbstoning as its next issue.

– Continued from page 1

The used-car business is so good these days that CarMax is actually shedding its new-car stores, said George Hofer, an economist at the University of Richmond.

“When something comes up that they can sell, they sell it,” Hofer said.

The latest results from Asbury Automotive Inc. show the advantage used cars have over new for franchise dealers.

The company saw revenues for both new and used cars increase by

16 percent in the first quarter. However, used-car gross profit rose by 11 percent versus 6 percent for new cars.

The relative strength of used cars reflects a permanent shift in the economy, Hofer said, as more consumers find themselves on tight budgets and new cars are out of their price range.

At the same time, cars have lost appeal as a status symbol. Hofer said his students today place more value on smartphones than cars.

NEWS BRIEFS

Firm Sheds Repo Business

Primeritus Financial Services has sold its remaining direct recovery repossession business to Connect 1 Recovery LLC.

This transaction finalizes Primeritus’ exit from the direct recovery business.

Since completing three acquisitions in 2012, Primeritus has expanded and optimized its agent network.

The strategy has been to focus on core business units: forwarding; skip and remarketing services.

NIADA Creates Insurance Exchange

The National Independent Automobile Dealers Association will launch a Health Insurance Exchange for members to shop health insurance rates online this summer. Plans available for the rest of 2013 will include a rate and benefit lock until December 2014 so members will have more time to prepare for the increase in rates that are expected in January.

The NIADA will also be ofering the subsidized State and Federal Exchange plans available through the Afordable Care Act once they become available in the fourth quarter of this year. This is an anticipated date.

The NIADA also renewed its partnership with ShipCarsNow recently.

Kia CPO Adds Satellite Radio

Sirius XM Radio and Kia Motors America announced that Kia dealers will give customers a three-month SiriusXM subscription when buying pre-owned vehicles equipped with satellite radio.

Participating Kia dealers join more than 9,000 auto dealers across the country enrolled in the SiriusXM Pre-Owned Vehicle Program.

Customers buying pre-owned vehicles with a factory-equipped satellite radio, regardless of manufacturer, from any Kia dealer participating in the SiriusXM Pre-Owned Vehicle Program will automatically receive a three-month SiriusXM subscription.

NAAA Welcomes Members

The National Auto Auction Association recently announced several new members.

The following received regular membership: Wisconsin State Auto Auction LLC, in Lomira, Wis.; Center Point Auto Auction in Birming-

ham, Ala.; Manheim Jacksonville in Jacksonville, Fla.; Auctions in Motion - Santa Ana in Santa Ana, Calif.; Auctions in Motion - Thousand Oaks in Thousand Oaks, Calif.; and South Bay Auto Auction of Stockton in Stockton, Calif.

Masney Auto Transport Inc. and Spireon, Inc. - Goldstar GPS received associate memberships.

Flagship Funds Growth

Flagship Credit Acceptance LLC completed an asset-backed securitization of $222 million of notes in a transaction that closed on April 18. The notes were issued in four tranches and were assigned ratings

by Standard & Poor’s Ratings Services and Kroll Bond Rating Agency.

This is the company’s second asset-backed securitization.

Flagship also announced the recent completion of a new $100 million senior lending facility with Barclays Bank PLC.

The addition of this facility increases the company’s total borrowing capacity to $275 million.

Flagship announced that it will open a Western Regional ofce in Phoenix.

This location will function as a complementary service center primarily supporting West Coast automobile dealers and consumers.

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

Contributing Writers:

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Advertising:

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

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Bees Create Buzz at Dealership

By Jenny King

When the sky briefly darkened at Casa de Autos one weekday morning in April, dealer Danny Gamboa and his son Gabriel hardly noticed – until they realized it was an enormous swarm of bees.

Their unexpected guests, numbering perhaps as many as 2,000, settled in a tree whose branches were over a section of their lot.

“They didn’t build anything there but were resting atop each other,” says Gabe Gamboa. “They were over part of our customer parking area and we were afraid they might sting customers. I had never seen anything like it.”

So the Las Cruces, N.M., businessmen contacted the city, which suggested they reach an exterminator.

“We didn’t want to destroy them,”

Gamboa explained, “so we called the county and eventually got some good advice: leave them alone.”

The Gamboas were told that the bees likely were migrating and would not stay long. Danny and Gabe blocked the afected area with cones.

The local newspaper heard of the incident, sent out a reporter and ran a story the following morning.

Gabe Gamboa said people who heard or read about it stopped by to have a look. He wasn’t sure if it might somehow help business at the 35-year-old, family-owned Casa de Autos. No visitors bought from the 60-car lot the second day.

And by then, cars and trucks were all there was to see. Gamboa said the bees departed the day they arrived.

“In about six hours they were gone – poof,” he said.

Auction Edge Adds New Pricing Tiers

Auction Edge has introduced new pricing and discount opportunities:

EDGE ASI Premier, a new pricing structure for Auction Edge’s ASI auction management system, and EDGE Complete, a monthly discount for customers who subscribe to two or more Auction Edge software platforms.

EDGE ASI Premier provides customers access to all of EDGE ASI’s

non-integration modules at one monthly price, including modules that an auction currently does not have.

Under EDGE ASI Premier, customers also will have access to new ASI features and enhancements at no additional charge. EDGE Complete ofers a discount to current customers who subscribe to two or more EDGE software platforms.

Details Key to BDC Success

By Jeffrey Bellant

LAS VEGAS – People, process and procedure are critical to a successful business development center, especially in the buy-here, pay-here dealership.

Consultant Mindy Cutshaw, owner of Beebles Inc., based in Cornelius, N.C., said the details of every-

thing from the location of the BDC to the ratio of leads-to-sales must be part of a dealership plan.

Cutshaw spoke at the recent Leedom & Associates World Conference.

Business development centers remain a key area for buy-here, payhere dealers to boost sales.

Continued on next page

BDC

– Continued from prior page

But getting it right requires diligence by dealers.

The BDC and its staf must be separate from other areas of the dealership to minimize distractions. That includes a smaller ofce space with no windows, even if that sounds cruel, Cutshaw said.

Sales stafs and BDCs should also be separate from each other so that no one’s getting preferential treatment.

Cutshaw said having a steady flow of leads is crucial for business development.

“The No. 1 thing you have to be sure to focus on is: be sure you can feed your BDC,” she said. “Be prepared to spend money on advertising.”

Cutshaw said dealers should have some standard ratios for leadto-business development representatives.

“(You should have) 200 to 250 leads per BDR,” she said. “That’s a fair assessment.”

Those include all types of leads, from new incoming calls, to Internet leads, she said.

“You want to make sure you have a good balance of leads and (reps),” Cutshaw said.

Inbound calls should take about five to seven minutes per call, she said.

“You should expect (each BDR) to set 100 appointments, have 50 people show up and – depending on your closing ratio – have about 10 cars sold (in the first month),” Cutshaw said.

After 60 days, those numbers should increase and then, again, after 90 days.

“But remember, the BDC is not going to sell the cars,” she said. “It’s going to sell the opportunity, by bringing trafc into the store.”

BDRs should be expected to ask for a referral from every call.

“That (referral) will cost zero dollars per lead,” Cutshaw said.

In terms of pay rates, dealers should ofer the lowest possible pay rate they can, and use bonuses to push them.

“You always want to dangle that carrot a little bit,” Cutshaw said.

“You want them to be driven for that bonus.”

Dealers should also use customer relationship management programs to make sure they are following up with leads.

Cutshaw said there is also software available that allows a dealership to pre-record all of the outbound messages that a BDR leaves a customer.

“It leaves a perfect message every single time,” Cutshaw said.

PAGE 8 - NABD CONVENTION

Convention Offers Dealers New Perspective on Business

By Jeffrey Bellant

The buy-here, pay-here industry needs a new to-do list.

That’s why Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers, will introduce a “12-Step Decisions Checklist for Buy-Here, Pay-Here Dealers” during his 2013 NABD Dealer Academy.

The event will kick of a five-day, two-track conference. The 2013 Buy-Here, Pay-Here Dealer Academy will run May 19 through May 21, followed by the 15th annual NABD Buy-Here, Pay-Here National Conference May 21 to May 23 at the Wynn Las Vegas.

Shilson said his new 12step checklist focuses on the critical decisions operators must make to be successful in today’s marketplace.

The comprehensive list covers everything from developing a business model to creating a compliance management program.

“To do this, I contacted some of the best people in the business for feedback,”

Shilson said.

The list will focus on changes dealers need to make to keep up with a constantly changing market.

dealers with information to help them assess the best products for their dealership is just one purpose of the checklist.

“We want to help them make more informed decisions,” he said.

mental as selecting an operation location is part of Shilson’s checklist.

This year’s show will ofer dual tracks: one for newer operators and another for more experienced dealers.

The NABD will follow up

“The old ways are just not working anymore.”

Ken Shilson

information at the convention this year.

Twelve concurrent workshops will update dealers on the most important industry developments.

Presentations on legal and regulatory compliance, the use of credit data, selling contracts, payment devices, accounting, DMS systems, maximizing recoveries and inventory acquisition are just a few areas featured in the conference.

“The old ways are just not working anymore,” Shilson said.

For example, in the old days, getting a payment device meant just finding the cheapest item.

But today, starter-interrupt devices include GPS and other tools that help both collections and recovery.

Shilson said providing

The checklist also gives indepth advice and ideas on: projections, policies/procedures, alternative capital resources, financial planning, marketing plans, stafng and underwriting.

Identifying stafng needs and creating a compensation plan are also critical to buyhere, pay-here success.

Even something as funde-

the Dealer Academy with the national buy-here, payhere convention.

The keynote address will feature Joe Gibbs, a National Football League Hall of Fame coach and founder of the NASCAR team Joe Gibbs Racing, which has won three NASCAR championships.

More than 60 other speakers and experts will present

Shilson said he’ll also reveal some new developments in the area of vehicle recovery that will better help dealers locate vehicles, since every unit is precious in a time of tight supply.

Moving toward more recent developments, experts will discuss the use of social media and digital tools to boost business.

Shilson will also present his annual buy-here, payhere industry benchmarks and trends to give dealers a complete overview of the buy-here, pay-here market.

AUTO DETAILERS

Scrapping Cars Funds Scholars

DENVER (AP) – Colorado car dealers are disabling and donating old high-polluting cars to provide industry scholarships.

Dealers are contributing vehicles – 400 over the past year – to the Clear the Air Foundation, which will begin accepting scholarship applications in the auto industry later this year.

The program, sponsored by the Colorado Automobile Dealers Association, has doubled in size over the past year.

Dealers get a tax deduction for donating the cars. Proceeds from selling the vehicles to salvage yards – an average $300 per vehicle – are funneled to a scholarship fund that has collected $168,000 to date, The Denver Post reported.

The dealers association also has agreed to contribute $1 million for a

scholarship endowment for students in auto industry training programs.

“We’re basically taking these vehicles’ cash value and putting that into scholarships to train the next generation’s workforce,’’ said association president Tim Jackson. “And we are cleaning the air.’’

The donated vehicles are among the worst air polluters. The Clear the Air Foundation’s donated car engines are disabled to make sure they never run again. Titles are flagged as “salvage” to prevent their resale.

“It’s kind of a neat way for dealers to have a meaningful impact on air quality,’’ said Lee Payne, owner of the Planet Honda and Hyundai dealerships. “These are cars that still could run or do run, but clearly they are high emitters and near the end of their useful lives.’’

Associations Plan Autumn Event

Maryland, New York, New Jersey, Ohio, Pennsylvania and West Virginia will come together for the event at Caesar’s Atlantic City.

Seven states will partner for the second Mid-Atlantic Regional Independent Automobile Dealer Associations Conference on Sept. 28 to Sept. 30 in Atlantic City.

Last year, several state associations partnered for the first event, also held in Atlantic City.

This year, state independent dealers associations from Delaware,

While last year’s afair was a twoday event, this year’s will span three days.

The event will be open to dealers and their employees, as well as vendors, auctions and their families.

Renewal Causes Relocation

By Sheila McGrath

When owners of a Collierville, Tenn., used-car lot discovered that the town planned to revitalize their neighborhood without them, they didn’t get mad.

They got busy.

Collierville Auto Sales has been operating for 10 years at 220 S. Center St., one block south of the historic town square in the Memphis suburb.

Last summer, the Tennessee Department of Transportation awarded Collierville a $756,846 enhancement grant for improvements to Center Street. City ofcials said the “Collierville Center Connect” project would provide an attractive gateway to the town square and help tourism and economic development.

It wasn’t until the architectural drawings were unveiled at a Chamber of Commerce meeting last year that the car lot’s owners realized their business wasn’t on them.

“Oh my gosh, we’re gone,” owner Mike Hamby recalled saying when he saw the plans.

But Hamby said if that was going to be the future of Center Street, they didn’t want to stand in the way.

So they found a new location about a mile away, a former gas

station at the corner of U.S. 72 and Poplar Avenue.

The triangle-shaped property has better visibility and gets more traffic.

They’re already refurbishing the building inside and out, with a new roof, doors and windows. The perimeter is getting new sidewalks and landscaping.

“The gas station was a bad site,” Hamby told the Collierville Board of Aldermen when his project was up for approval.

“I love fixing things up and it’s going to be nice. I want the town of Collierville to be proud of us.”

Linda Spillyard, who owns the property, said the land had been in her family for generations. She wanted something special for the site, and she liked what she saw.

“When we drove by the site on Center Street and saw those upscale cars, we were just so excited,” Spillyard said.

She said the formerly run-down building now has hardwood floors and is filled with antique furnishings.

“If you pass this, you are going to be so pleased,” she told the board.

The board approved the plans, and Collierville Alderman John Worley said he was completely behind the project.

THE PLAYBOOK

STRATEGIES

Airbag Recalls Hit Imports

DETROIT (AP) - Six automakers, including Toyota, Honda and Nissan, are recalling nearly 3.4 million older-model vehicles worldwide because of defective air bags that can send shrapnel flying into the passenger compartment.

The recall mainly afects cars sold by Japanese automakers in North America, Europe and Japan. A small number of cars made by Germany’s BMW AG and General Motors Co. and also involved.

The front passenger air bags all were made by the same parts supplier, Japan’s Takata Corp. They have faulty inflator mechanisms

that don’t route gas into the air bags. Instead, the high-pressure gas can launch plastic and metal parts from the air bags into the cars’ passenger areas. Takata says no one has been hurt, but there have been six incidents of the air bags deploying improperly on roadways.

The recall is so large because many automakers use common parts on multiple models to cut costs and simplify manufacturing. This approach was pioneered by Japanese automakers.

The recall will bring a great deal of unwelcome publicity for auto-

Continued on page 16

500 Cox Road Cocoa, FL 32926 321-636-2233 | Fax: 321-636-9212 www.cocoaautodealers.com

General Manager John Puhl, ext.230 Offce Manager Kathy Cramer, ext.226

Sale Day Information: Every Thursday at 4:30pm. 500+ weekly consignments in 4 lanes. Specializing in new car dealer trades. Restaurant and transportation lot.

Airbag Recall

makers, especially Toyota Motor Corp., said IHS Automotive analyst Paul Newton. The world’s top-selling car company is trying to rebuild a reputation for quality that was hurt by previous big recalls.

The latest recall is the fourth for Toyota since October that involves more than one million vehicles, Newton wrote in an email. And the company endured a series of huge recalls in 2009 and 2010 for faulty braking, sticky gas pedals and defective floor mats.

Toyota will have to inspect or fix 1.7 million vehicles worldwide, including about 580,000 in North America, 490,000 in Europe and 320,000 in Japan. The models include the Corolla compact, Matrix hatchback, Sequoia SUV, and Tundra pickup, as well as the Lexus SC 430 sports car. All the vehicles were manufactured from 2001 to 2003.

But the latest recall afects other major automakers, including Toyota’s chief Japanese competitor.

Honda Motor Co. is recalling 1.1 million vehicles worldwide, including about 680,000 in North America, 270,000 in Japan and 64,000 in Europe. Models include the Civic compact, CR-V small SUV and Odyssey minivan from the 2001 to 2003 model years.

Also, Nissan Motor Co. is recall-

- from page 14

ing 480,000 vehicles worldwide, including about 265,000 in the U.S. Models include the Nissan Maxima midsize sedan, Pathfinder SUV and Sentra compact as well as the Infiniti FX crossover and QX4 SUV, all from the 2001-2003 model years. Recalled models in Japan include the Cube, X-Trail, Maxima and Teana.

Mazda Motor Co. is also part of the recall. About 45,000 Mazda RX-8 and Mazda 6 cars are afected, including 4,000 in Japan. The company said recalls will be announced in North America, Europe, China and elsewhere.

At GM, only 55,000 Pontiac Vibe hatchbacks sold in the U.S. and Canada are being recalled. The 2003 models are nearly identical to the Toyota Matrix and were made at a California plant that was jointly run with Toyota.

BMW says it’s researching the problem but no numbers or models are available.

The air bag problem happened because of two human errors during production. A worker forgot to turn on the switch for a system weeding out defective products, and parts were improperly stored, which exposed them to humidity, according to Honda spokeswoman Akemi Ando.

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CPS Sees Big Income Jump

Consumer Portfolio Services Inc. announced earnings of $3.8 million for its first quarter ended March 31. This compares to net income of $512,000 in the first quarter of 2012.

Revenues for the first quarter of 2013 were $54.6 million, compared to $44.5 million for the first quarter of 2012. Total operating expenses for the first quarter of 2013 were $48.1 million, compared to $44 million for the 2012 period.

During the first quarter of 2013, CPS purchased $180.1 million of new contracts compared to $150.8 million during the fourth quarter of

2012 and $119.9 million during the first quarter of 2012. The company’s managed receivables totaled $968.5 million as of March 31, an increase from $897.6 million as of Dec. 31 and $781.8 million as of March 31, 2012. Annualized net charge-ofs for the first quarter of 2013 were 4.23 percent of the average owned portfolio as compared to 3.9 percent for the 2012 period.

Delinquencies greater than 30 days (including repossession inventory) were 4.16 percent of the total owned portfolio as of March 31, as compared to 3.51 percent.

Junk Cars Cost Dealer His License

The Illinois Secretary of State revoked the dealership license of Harjak Motors Inc. in Bloomington for illegally selling 13 vehicles that originated from Florida with certificates of destruction.

A certificate of destruction in Florida is the equivalent of Illinois’ junking certificate, which means the vehicle is only suitable for parts

have a junking certificate or a certificate of destruction designation. A police investigation found that used motor vehicle dealer Harjak Motors Inc. and Florida salvage buyer/used vehicle dealer Elite Transfers are owned and operated by the same entity. Harjak Motors Inc. and Elite Transfers worked in concert to disguise and to wash the

Harjak Motors purchased the damaged vehicles from Florida, brought them to Kentucky or Virginia and issued a new title, and then transported them to Illinois.

Dealers Surpass Benchmarks

By Jeffrey Bellant

LAS VEGAS – Some buy-here, pay-here dealers are average and some hit benchmark numbers, but peak performers are doing business at the very highest level. And the diference between average dealers and peak performers can be more than $1.5 million per

year in profit.

Chuck Bonanno, executive vice president of the Leedom Group, outlined the traits of these peak performers during the 19th annual Leedom Group Buy-Here, Pay-Here World Convention in April. He said many dealers stay in business for years, even though they Continued on next page

Peak Performance

may have charge-of rates “that would make me have a stroke.”

But dealers within Bonanno’s client base who are in the top half of performers are used to determine “benchmark” sellers. Bonanno takes the top 50 percent and uses the average numbers of those dealers to determine benchmark numbers.

Peak performers are those who sit in the top tier of inventory, profits, collections, charge-ofs, expenses and sales – surpassing even benchmark dealers.

The process starts with buying the right car at the right price.

Dealers often dislike Chevrolet Impalas, Malibus and Dodge Stratuses, because “they’re boring.”

But if those cars are flying of the lot, dealers should be re-stocking with those same vehicles.

Bonanno’s research into peak performers shows some clear trends. For example, an average dealer will bid for a specific car at $6,000. The peak performer will buy the same car for $5,000.

Likewise, an average dealer will get an average down payment of $500, while a peak performer draws a $1,000 down payment, Bonanno said.

So the average dealer ends up with $5,500 cash-in-deal, compared to a peak dealer who has $4,000

– Continued from prior page

on the street: a $1,500 diference, Bonanno said.

He went through several other categories, from reconditioning to collections and the pattern was the same. Peak performers paid less, in various categories, thereby increasing the bottom line.

When it comes to inventory, forget cars that are projects, Bonanno said.

“Cars that take three, six, nine or 12 months to (put on the lot), don’t make payments for three, six, nine or 12 months either,” he said.

Bonanno was surprised that several of his clients said they didn’t even write budgets. But budgets don’t have to be extravagant.

“Just write down how many cars you plan to sell, how much you’re going to gross, what your chargeofs are going to be and then lineitem your expenses,’” he said.

Dealers must get in the mindset that they can cut expenses, such as challenging vendors for the best prices or getting cheaper, more efficient service.

Bonanno also said deliquencies or recency in payments aren’t everything.

“You know what the bottom line is?” he asked. “If every one of my customers is past due and they pay me of, I’m (feeling) spectacular.”

Tax Change Causes Confusion

AUGUSTA, Ga. (AP) – Georgia’s new automotive tax law is creating confusion in car deals, with companies, private sellers and courthouse ofcials all struggling to understand the requirements.

Mike Combs, general manager of Fairway Ford in Evans, told The Augusta Chronicle that there has been a steep learning curve and little training for his employees or tax officials dealing with the law.

No one was ready for the tax, which took efect March 1, he said.

The new title ad valorem tax, which does away with sales tax on automobiles, imposes a 6.5 percent tax on every car purchase. It includes deals between private individuals, which were exempt under the old system.

Tax ofcials agree that many details need to be worked out before the system runs smoothly. Jenny Bales, director of motor vehicle collections for the Columbia County Tax Commissioner’s Ofce, said some of the problems involve companies that process titles for the dealers.

“There are many, many errors being made that we are having to clean up at the local tag ofce,’’ she said.

“There’s still a lot of confusion with the dealers on what the taxable value is and what the tax is.’’

Takiyah Douse, the motor vehicle director for Richmond County, said mistakes involving the new law make for unhappy customers.

“I would describe the problems as a disconnect between the state and the implementation of the law and the system being able to carry out the demands of the new law,’’ said Douse. “Mainly, we are finding it commonplace that the customers are not aware of the new law.”

The law was meant partly to capture some of that lost sales tax revenue from private sales and to “ºlevel the playing field’’ between private sales and those that take place at dealerships, which always were responsible for collecting sales tax, said Bill Morie, president of the Georgia Automobile Dealers Association.

Morie’s organization was a strong backer of the legislation that changed the car tax law, but he said changes may be needed.

“When we do this kind of major overhaul, it is hard to think of everything,’’ Morie said. “I think, in time, we believe a lot problems will work themselves out.’’

In the meantime, he has been getting an earful from frustrated car dealers.

“I can imagine it is an administrative nightmare,’’ Morie said.

CarMax CEO Receives Raise

RICHMOND, Va. (AP) – Used car dealership chain CarMax Inc. gave its CEO, Tom Folliard, a pay package valued at nearly $7.2 million for fiscal 2013, about 17 percent more than the previous year, according to an Associated Press analysis of a regulatory filing.

The pay package came in a year when the Richmond, Va.based company saw its net income rise 5 percent to $434.3 million and its revenue grow 10 percent to a $10.9 billion. Used vehicle unit sales at stores open at least one year grew 5 percent during the fiscal year.

The compensation package was disclosed in an annual proxy statement filed with the Securities and Exchange Commission.

Folliard’s salary rose 5 percent to $1.09 million, the value of his stock options and stock awards grew 19 percent to $4.6 million, and he received a $1.2 million performancebased bonus.

The leader of CarMax since 2006, Folliard also received other compensation worth $283,140, includ-

ing the personal use of the company plane and a personal car allowance.

His pay package was worth $6.1 million the previous year.

CarMax also announced it will hold its annual meeting June 24 in Richmond.

The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest that the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year.

The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly diferent in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive’s stock and option awards was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company’s stock in the years after the awards are granted.

We Sell Fleets of Vehicles

Auction Chain Adds Sale

Auction Broadcasting Co. has begun construction of its all new ABC Baton Rouge facility in Louisiana.

The new remarketing center is located on the Baton Rouge International Airport property and, in phase one, will feature six lanes on 30 acres of land.

ABC Baton Rouge will conduct its sale every Thursday at 10 a.m. The facility will be a full service auction with everything from a gourmet Cajun restaurant by Chef Lynn Boutin, to mechanical and reconditioning departments.

All of the auction lanes will stream

Online Ringman simulcast through AuctionPipeline and vehicles will be posted on SmartAuction, OVE, and Openlane through Liquid Motors.

The location will be managed by industry veterans Butch Royall, as managing partner, and Kevin Rembert, who will fill the role of general manager.

The position of commercial accounts manager will be filled by Glyn Morden, whose career has included management positions with GE Auction, BSC America and ADT Automotive.

State Cuts Automobile Fees

TALLAHASSEE, Fla. (AP) – The Florida Senate unanimously passed a bill that rolls back automobile fees, saving an individual driver $12 a year on annual registration.

The Senate passed the bill (SB 1832) on a 39-0 vote.

The state will make up the lost money – between $220 million and $230 million – by eliminating a decades-old tax break to insurance companies. Those companies pay a state tax on insurance premiums but also get a rebate worth 15 percent of the salary paid to their workers.

“The tax credit has helped produce jobs over the years,’’ said Sam Miller, executive director of the Florida Insurance Council, the state’s largest insurance trade association.

“It is not clear that repeal of the credit won’t endanger job creation. The state should move cautiously and be sure.’’

Indeed, a united front of business and insurance lobbyists had opposed the measure, many of them suggesting that getting rid of a tax break to pay for the rollback could cost the state thousands of insurance-sector jobs.

Sen. Jeremy Ring, a Margate Democrat, who described lobbyists’ rhetoric as “there’d be Armaged-

don if this passed,’’ said “it’s nice to finally call a bluf.’’

State lawmakers increased auto fees in 2009 to help close a multibillion-dollar budget gap, part of a $2.2 billion package of tax and fee increases.

It included a 35 percent increase in annual tag fees, which went up $5 to $11.40, depending on a car’s weight.

The initial vehicle registration fee went from $100 to $225. And the cost of an initial driver’s license increased from $27 to $48 and a renewal got boosted from $20 to $48.

Earlier this year, Senate President Don Gaetz had asked his committee chairs to review the state’s many tax incentives.

Sen. Audrey Gibson, a Jacksonville Democrat, voted ‘yes’ after failing to stop the bill with an amendment requiring a study of the tax rollback.

Sen. Thad Altman, a Viera Republican, said the increase had never been discussed in committee and came up only late in the 2009 legislative session in budget conference.

Sen. Nancy Detert, a Venice Republican, called it “a Robin Hood bill,’’ and Jef Clemens, a Lake Worth Democrat, said the measure was “a direct break for working people.’’

Chase is Your Source for Quality, Value and Selection

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1The tradename “Subaru Motors Finance” and the Subaru logo are owned/licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (”Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”). Retail/Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase.

2Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase.

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

PEOPLE IN THE NEWS

Manheim Names Tech Officer

Manheim has selected Michael Noel as its chief technology ofcer. In this role, Noel will lead Manheim’s technology systems, applications and operations.

Noel will report to chief operating ofcer Janet Barnard efective May 6.

Noel brings more than 15 years of global business, consulting and technology strategy to Manheim. He most recently served as chief information ofcer and senior vice president of shared services for PRGX Global Inc., where he led efforts to evolve a single-service business into a multi-service business that drove increased growth and profitability. During his tenure, Noel was also responsible for developing industry-leading IT-enabled business services, innovative software solutions and a customer-centric shared services delivery operation in Pune, India.

Noel began his career at A.T. Kearney, where he led the development, design and execution of IT solutions for Fortune 500 clients. He also held key leadership roles at Infosys Consulting, Inc., including partner of their Information & Technology Strategies Practice. Noel holds a bachelor of computer science degree from the University of the West Indies in Jamaica and an M.B.A. from

the University of Texas at Austin.

Lemon Lawyer Receives Accolade Law & Kolakowski announced that California Lemon Law attorney Douglas D. Law recently received a “Preeminent” AV rating from Martindale-Hubbell, an international ranking service for attorneys.

Preeminent is the highest AV rating awarded by Martindale-Hubbell and first requires that the attorney receive perfect scores on ethics from surveyed peers consisting of attorneys and judges who have personal experience with the attorney. The attorney is then ranked on such items as creativity, quality of written work, and trial skills. The attorney must receive perfect scores in each of the categories in order to receive the “Preeminent” ranking.

Law began his education at University of California, Santa Barbara where he received a Bachelor of Arts degree in economics with honors in 1978. Law then attended University of San Diego, School of Law where he worked with one of the original “Nadar’s Radars” Prof. Robert Fellmuth.

Law has practiced exclusively in the area of California lemon law ever since 1988. He was a co-founder of a statewide organization of lemon law lawyers.

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RETAIL MARKETS

LOUISIANA

Joseph “Peanut” Cornett, general manager, Ledet’s Auto Sales, Gonzales, La.:

inventory is trucks and sport utility vehicles. About 40 percent of our inventory is automobiles. That’s pretty much what we’ve carried over the years.

about 2013.

“Recently, I sold a 2008 Cadillac Escalade DXT. That particular unit had about 60,000 miles on it. We sold that vehicle for about

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Compiled by Jeffrey Bellant

they’re getting good money.

“It’s still hard to get those vehicles.

“We average about 25 vehicles sold per month. That hasn’t changed compared to of that is for construction workers. We have a good market compared to other states. But it’s still hard to find good pickups.

“The average mileage goes

Can someone, for the love of profitability, tell me how to turn more of my subprime apps into cash?

WHOLESALE MARKETS

MONTANA

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

“We’ve been in business nine years.

“We have four lanes and we’ve been running three. But our volumes are between 500 and 600 units consistently.

“Our volumes are about the same as last year, maybe just a few of. But the revenues are up a little.

“(The conversion rates) are anywhere from 46 percent up to 60 percent. We can figure on 50 percent as an average. That’s close to last year.

“About 150 to 200 units of our volumes are repossessions and fleet-lease units. The rest is dealer consignment.

“Repossessions are a little down from this time last year. But they are actually redeeming a lot of them.

“We’re getting about 150 dealers in the lanes. That’s about the same as this time last year. The Internet sales have picked up, as well. We sell quite a few on the Internet. We use Ringman.

“Buyers are searching farther for vehicles.

“We draw our dealers consistently from North Dakota, South Dakota, Montana, Wyoming, Minnesota and Washington.

“As far as North Dakota, that oil boom has been great for us.

“The (bidders) that are coming to the lanes are serious about buying cars. They’re not there to socialize. We’re actually seeing more new-car stores than we had.

“Our new-car stores are doing good. In fact, a lot of the new-car stores are buying more franchises. One local store is up to seven franchises.

“Overall, our economy is doing pretty good.

“We also have in-op sales every week. It’s usually a handful of dealer and repos stuf. No big numbers.

“We used to have a salvage sale years ago, but sold that of to Copart.

“The Government Services Agency sales are good. We’ll have a couple of them this month, running 70 to 80 units per sale. Those are

starting to pick up again.

“We’ve actually done some of those sales via video in the lanes. We ran one where the cars were in Denver. That was a first time for that.

“Our average price coming through the lane is in the $11,000 to $12,000 range. That hasn’t changed too much.”

SOUTH CAROLINA

Jimmy Rawls, owner, general manager, Rawls Auto Auction, Leesville, S.C.:

“We have seven lanes.

“Depending on the sale, we’ll run up to all seven lanes.

“On average, we’re running between 500 and 700 units.

“Our sales percentages are in the 60 to 65 percent range.

“We’re a little bit ahead in terms of ‘sold’ units compared to last year. I think we’re about 75 to 100 ahead of last year.

“We’re selling dealer trades.

“About 300 to 350 (bidders) are coming in the

Compiled by Jeffrey Bellant

lanes to bid each week. That’s a few more than this time last year.

“Most of the sellers are coming from the Augusta and Columbia areas.

“(In terms of bidders), they come from North Carolina, South Carolina and Georgia. We have signed up a lot of new dealers. Although they are not coming from outside those three states, we’re getting more dealers from those states.

“The reason is they’re just hunting for cars. Most of the sales are down in volume, so they are just going to more sales to find cars.

“Buyers have been pretty aggressive. They want to buy. They say business is (strong). Sales of used cars and new cars have been pretty good.

“About 50 percent of our volume is dealer consignment and 50 percent is fleet-lease-repo.

“Prior to the regular sale, we’ve run a (salvage, inop) sale. We’ll run 25 to 50. Those sell pretty well.

“We run vehicles from the GSA once a month. Right now, volumes are a little of

But last year, we sold about 1,800 units. I think we’re going to have about that much or more this year, according to GSA. But they’re just guessing, since many of those will be coming later in the year.

“We also have utility sales, for electric and gas companies.

“We recently ran 120 units, which is what they had accumulated at that point this year. Those are work trucks, service vehicles, bucket trucks – just a variety of equipment they have.

“We’ll have about six of those sales per year.

“In terms of what’s selling in the regular sales, it’s anything that’s decent with good miles. Later models do well.

“But anything that’s $10,000 sells well, period, unless it’s just junk.

“For late model cars, anything under 70,000 miles does well. On the older cars, mileage doesn’t matter as much, if it’s 100,000 or more.

“The average price coming through the lanes is about $6,000.

Manheim Hosts Ambassadors

Manheim Pennsylvania recently hosted 14 international ambassadors and dignitaries. They toured its facilities, learned about the remarketing business and meet with local leaders and media.

Five countries were represented, including Mongolia, Malaysia, the Philippines, the Ukraine and Lithuania.

U.S. Congressman Joe Pitts from Pennsylvania initiated the ambassador visit on April 19, as Manheim Pennsylvania is one of the largest employers in his district. This, coupled with Rep. Pitts’ interest in global business, sparked the congressman’s return to Manheim Pennsylvania. He visited the auction several years ago and is passionate about highlighting local businesses, his community and opportunities for global business growth.

“It was truly an honor to host Congressman Pitts, the ambassadors and the diplomats at Manheim Pennsylvania,” said Tim Van Dam, general manager.

“We not only made some new friends, we also saw opportunities to partner globally in the future.”

Auction Wins Award from Firm

Dealers Auto Auction of Murfreesboro joined the Emkay 100 Percent Club Award for 2012.

“This past year was a complete success for our team,” said Stephanie Baker.

“We know that the choice is not ours – it is our customers – and we are very appreciative of Emkay’s recognition of our team, led so well by our own Nikki McCoy.”

DAA’s owner and President David Andrews said, “On behalf of Dealers Auto Auction of Murfreesboro we are grateful to be business partners with the Emkay Team.

“We strive to exceed expecta

tions with our clients and customers, and it was a great honor to receive this accolade from one of our top clients.”

In another initiative to better serve clients and customers, DAA Murfreesboro has purchased property adjacent to their auction on Old Fort Parkway.

2011 MODEL S

2010 MODEL S

Honda

Hyundai Sonata GLS 4D Sedan 2.4 16200 14150 13850 10750 8850

Mitsubishi

Nissan Altima S 4D Sedan 15800 13350 13200 11250 9900

Nissan Sentra Base 4D Sedan 13100 11450 10900 8550 7375

Toyota Camry LE 4D Sedan 16100 14100 14150 11775 10450

Toyota Corolla LE 4D Sedan

2009 MODEL S

Buick LaCrosse CX 4D Sedan 11650 10700 10200 8350 7175 Cadillac DTS 4D Sedan 16800 16500 15400 12625 10525

Chevrolet Cobalt LS 4D Sedan 8300 6950 6750 5650 4875

Chevrolet Impala LS 4D Sedan 10400 9200 9150 7450 6425

Chrysler 300 Touring 4D Sedan 14100 13000 12250 10800 9175

Chrysler Sebring LX 4D Sedan 9100 8250 7550 5525 4400

Ford Mustang Base 2D Coupe 13100 11500 10950 9325 8050

Ford Taurus SEL 4D Sedan 11750 11000 9275 7975 6775

Lincoln Town Car Signature Limited 4D Sedan 18950 16200 14700 11300 9325

Ford Focus SE 4D Sedan 10100 8350 8000 6250 5150

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

Acura TL Base 4D Sedan 21000 19000 19000 14175 11725

BMW 3-Series 328i 4D Sedan 20300 18150 17600 14025 11675

BMW 7-Series 750Li 4D Sedan 50500 46000 36500 31925 26300

Honda Accord LX 4D Sedan 13100 11500 11800 9325 7975

Hyundai Sonata GLS 4D Sedan 10000 8500 8600 6925 5625

Lexus ES 350 4D Luxury Sedan 22400 20550 19600 15675 13425

Mercedes-Benz E Class E350 4D Luxury Sedan 27200 24200 21000 17650 13925

Mitsubishi Galant ES 4D Sedan 9850 8900 7700 6025 4875

Nissan Altima Base 4D Sedan 11900 10300 9600 7775 6625

Nissan Altima S 4D Sedan 12700 11100 10400 8750 7500

Nissan Sentra Base 4D Sedan 10700 9700

2008 MODEL S

Disconnected Jottings From Tony Moorby...

“England is a nation of shopkeepers.” An observation that was attributed to Napoleon Bonaparte; it was more probably a twist on a statement by the economist of the same era, Adam Smith, who opined, “Eng-

land is a nation governed by shopkeepers.”

The late prime minister, Baroness Thatcher, was born to a corner-store grocer who also happened to be a local politician in Grantham, Lincolnshire. She followed his footsteps to a political career, although she studied chemistry at Oxford University. After being a research chemist, she later passed the bar and specialized in tax law.

She made most of her early afliations to the Conservative Party while she was at university.

Early attempts at election were unsuccessful, but in 1958 she became the Member of Parliament for the London Borough of Finchley. She made a rapid rise through various government departments, becoming Sec-

the slightest warrant – most were quite unnecessary as a way to negotiate better wages and conditions, especially in the face of growing competition from Europe and Japan. She believed in less government, lower taxes and more freedom for business and consumers while exacting rigorous wage restraint to maintain competition. Does any of this sound familiar? A Russian newspaper called her “The Iron Lady”, a soubriquet she gladly adopted.

as theirs, Las Malvinas, as they called them. Maggie Thatcher staunchly stated that as long as it was a British Sovereignty and that Brits were living there, we would defend them to the hilt. It was costly, as any war is – many lost their lives and ships were sunk. Eventually Britain retained its grip on this colonial outpost and Thatcher’s popularity was further underpinned. She was again re-elected.

and in spite of her hatred of communism, regarded Chairman Gorbachev as “someone with whom I can do business.” She was also one of President Reagan’s biggest supporters.

Many thought that she started believing that her opinions could not be wrong and her popularity started to slip. Her own party members challenged her leadership and she left Downing Street in November 1990.

Honda SUV

Bentley _____

70’s Ford Mercury

Mid-size Chevy

Aston Martin _____

Antique cars 20. V-10 powered sports car

21. They get flled up

76 station

Pluses

____-owned

Hyundai family sedan

RAM 2500 _____ Cab

retary of State for Education and Science in 1970.

When Sir Edward Heath lost the 1974 election to the Labor Party, Mrs. Thatcher became the leader of the opposition and the first female prime minister in 1979, sweeping out the Labor Party with a massive 44seat majority in the House of Commons.

I had been in the business world a solid 12 years by then and had already seen foment and strife between labor and the industrialists. Unions promoted strikes at

By Miles Mellor

Sooners’ state

Jet black

Engine chamber

offcer, for short

Small recess opening off a larger room

Distance measurement (abbr.)

70’s compact from Dodge

Chevy compact

For many, including me, she was a stalwart for individual success, believing that successful people promote a healthy economy in which everyone benefits. She stood her ground so firmly that strikes and even riots from the leftists wouldn’t make her budge. Eventually the economy turned around, rampant inflation was brought under control and manufacturing got back to full swing. Things were on the up and she was reelected.

She maintained a similar posture when the Argentine government wanted to claim the Falkland Islands

There were troubles in Northern Ireland, which peaked during her tenure, and she even survived a bombing at a hotel in Brighton where the Conservative Party Conference was being held.

She had a major presence on the international scene, supporting President George H.W. Bush in the ouster of Iraq from Kuwait

As in any political position, it’s a ‘love/hate’ relationship. Many couldn’t stand her high-handed ways but just as many believed that her bearing and style helped Great Britain through some very hard times.

I think we could do with more icons that come from everyday backgrounds, but we’re unlikely to find them on supermarket shelves.

Mustang competitor

Option to lease

Respectful address

___ and aahs

60’s AMC model

Wheel turners

port, abbr.

Former

Pal in French

California University

for one

Drop steeply

Former Saturn compact

A Cadillac

Ferrari 458

Wrecked

Toyota model

TN neighbor

Old Ford from the UK

making BMW’s, for short

Wrench type

Dad

Acura sedan

Superstar

For sure

CLASSIFIEDS

November

Jim Arrigo Owner President, Arrigo Automotive Group

“ Jim’s story ... WE INCENTIVIZE PEOPLE IN OUR STORES TO DO THINGS BIGGER, BETTER AND FASTER BY USING THE TOOLS WE GIVE THEM. THAT’S WHY WE’RE SUCCESSFUL.”