Manheim found in a recent study that the presence of a physical title at the time of sale can potentially double vehicle conversion rates.
The research also revealed that vehicles with same-day titles contribute to slightly higher online sales via Simulcast and OVE.com.
Car Prices Low in East
CarGurus’ Regional Used Car Price Study finds that the most affordable cities to buy a car are Miami, Cleveland, New York City, and Stamford, Conn. The most expensive cities for used car shopping trended westward, including Fresno, Calif., Seattle, and El Paso, Texas.
Regulations Top Taxes As Business Concern
The friendliness of professional licensing requirements was the most important regulatory issue in determining a state’s overall friendliness to small businesses, according to a recent study by staffing service Thumbtack.
Tribal Settlement Spurs Auto Sales
By Jenny King
First it was October, then November, and then maybe December.
Members of the Northern Arapaho and Eastern Shoshone tribes were expecting thousands of dollars from the federal government from a land trust settlement
dating from 2010. But the timing was uncertain.
And that made it tricky for businesses like Fremont Buick Chevrolet GMC in Riverton, Wyo., to plan their inventories. No point in over-stocking the lot, but no one wanted to run short once the money and customers arrived.
Finally on April 23 registered members of the Arapaho tribe each received $6,300. Days later, qualifying Shoshone tribe members got $13,000 apiece, according to Kort Kinney, general sales manager at Fremont Chevrolet Buick GMC.
The Fremont dealership was ready – or as ready as it could be. Kinney said he was somewhat surprised that used cars outsold new ones.
“We had 60 to 70 additional used cars, many of
Continued on page 15
Then, in spite of some days with hard rain, came the shopping.
Wholesale Prices Soften, But Remain Higher Than Last Year
Wholesale prices in June fell more than usual for the season, although they remain significantly above year-ago levels.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in June averaged $10,004 - down 3.1 percent compared to May, and up 4.7 percent relative to June 2013.
Prices declined on a month-over-month basis across virtually all model classes, with midsize SUVs being the hardest hit.
Prices for used vehicles remarketed by manufacturers
were up 0.6 percent month-over-month, though down 0.1 percent year-over-year, reflecting volume pressure.
Prices for fleet-lease consignors were down 3.9 percent sequentially and up 2.5 percent annually.
Dealer consignors saw a 2.3 percent average price decrease versus May, and a 3.4 percent uptick versus June 2013.
The Manheim Used Vehicle Value Index Wholesale fell 0.6 percent in June after declining 0.2 percent in May.
On a quarterly average basis, the second quarter was still 1 percent higher than the first quarter. And, on a year-overyear basis, the June Manheim Index was up 3.6 percent.
Photo by The Associated Press
WINDFALL: Nicole Goggles smiles after putting down a deposit on a car in Lander, Wyo. Members of the Northern Arapaho tribe began receiving checks for $6,300 from a $157 million federal settlement stemming from a 1970’s lawsuit concerning mineral rights on the Wind River Indian Reservation.
NIADA Honors Dealers, Industry Allies with Top Awards
By Jeffrey Bellant
LAS VEGAS – Two longtime dealers and two allies of the used-car industry received awards from the National Independent Automobile Dealers Association at its annual convention.
Charles Teel and Bob Lawrence received the Michael R. Linn NIADA Lifetime Achievement award, which was introduced last year in honor of Linn, who stepped down from his post as NIADA’s chief executive ofcer in 2013.
The NIADA also inducted two new members to its Ring of Honor, an award given annually to an allied industry executive who, through outstanding performance and leadership, has contributed to the professionalism and growth of the automobile industry.
Frank Hackett, executive director of the National Auto Auction Association, and Mike Stanton, vice president and chief operating ofcer of NADA Used Car Guide, became the 24th and 25th members of that elite group.
NIADA Chairman Keith Hagler and Linn presented the lifetime achievement awards to Teel and Lawrence.
Hagler read a statement from Linn about the honorees. After Linn had received the inaugural award, he immediately thought of two people who had paved the way for Linn and the NIADA to achieve the association’s goals.
“These two individuals are responsible for the success and financial stability which the association enjoys today,” Linn stated.
Lawrence, of Salisbury, Md., started out as a new-car dealer, becoming the youngest Volkswagen dealer in the country at age 29.
In 1967, he was the Maryland and NIADA Dealer of the Year. In 1975, he was Time Magazine’s Northeast Dealer of the Year.
He was National Quality Dealer of the Year in 1987.
He later moved into the used-car business and got involved in the Maryland IADA, where he served as president seven times. Law-
rence also served as NIADA president and served on numerous boards.
Teel, of Savannah, Ga., has been in the auto industry since 1966. He also helped establish a regional bank in 1984 and was secretary on its board before selling it. Teel joined the Georgia IADA in 1991 and has been active with the state and national associations.
Teel has served president of the Georgia IADA twice and was chairman of the NIADA’s State Presidents Council.
In addition, he was NIADA treasurer for several years.
Teel was NIADA president in 2009 and has served as the chairman of the succession planning committee.
NIADA Executive Director Steve Jordan presented
the Ring of Honor award to Hackett and Stanton. Hackett served as a county sherif in Maine for a decade, and won several weightlifting titles.
He worked for Volunteers for America and later became executive director and chief executive ofcer of NAAA.
Continued on page 15
Photo by Jeffrey Bellant
LIFETIME ACHIEVEMENT : Charles Teel (left) and Bob Lawrence celebrate after each received the Michael R. Linn NIADA Lifetime Achievement Award during the NIADA’s annual convention in Las Vegas
CarMax Opens Another Texas Store
CarMax Inc. has ofcially opened its second store in Ft. Worth, Texas.
This is CarMax’s sixteenth store in Texas. The store is more than 20,000 square feet, occupies more than 11 acres, employs nearly 70 associates and stocks approximately 250 used vehicles.
FLD Updates Website
FLD Inc. has launched a new version of its website, www.fldinc.com aimed at promoting user engagement with enhanced functionality and design.
The new website will further assist FLD customers in all aspects of remarketing and inventory management to ultimately help them determine the most cost-efcient strategy for their business. In addition, site visitors will have access to a depreciation calculator, relevant industry news and informational videos.
Revamping the website is one of several recent initiatives FLD has taken this year to ensure enhanced productivity and customer engagement through advanced technology.
In January, FLD released the latest version of OnceOVR, an electronic condition reporting smartphone app. This app includes specialized inventory management and fleet audit functionality aimed at alleviating the issues faced by fleet manag-
NEWS BRIEFS
ers and strategic sourcing and procurement professionals nationwide.
More States Join Database
The Department of Justice’s Office of Justice Programs’ announced a milestone for the National Motor Vehicle Title Information System. Illinois, Michigan, and Texas are joining 41 states in submitting title and brand data to the system, which now includes 96 percent of the U.S. vehicle population. Overseen by OJP’s Bureau of Justice Assistance, NMVTIS provides vehicle history information to prospective used car buyers, protecting them from concealed vehicle histories.
A NMVTIS Vehicle History Report provides information to consumers that can potentially warn them of a vehicle’s prior condition, such as “salvage” or “flood” indicating that it may be unsafe.
Captives Provide Credit Scores
Hyundai Capital America, which does business as Hyundai Motor Finance and Kia Motors Finance,
has partnered with FICO to be the first captive auto finance company to provide free FICO Scores to customers as part of the FICO Score Open Access program.
HCA will ofer free FICO Scores to new customers enrolling in the new 2014 College Grad Programs. Customers participating in these programs will start receiving their FICO Scores from HMF and KMF on a quarterly basis, beginning this fall.
In addition to receiving their FICO Scores, HMF and KMF customers also will be given on-line access through the respective websites to tools to help them understand and
track their FICO Scores. These tools will include the top two factors currently afecting the customers’ individual FICO Scores, as well as provide educational content to help customers understand their credit score..
ADESA Launches LiveBlock App
ADESA announced the launch of its LiveBlock mobile app, available free for iPhone users.
Registered auto dealers can now participate in live vehicle auctions at ADESA locations across the country from their smartphone.
The LiveBlock mobile app is very similar to LiveBlock on ADESA.com.
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
Advertising:
Shannon Colby, Account Manager
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Circulation: Helen Thomas
Production: Josie Godlewski, Media Manager Tim Montie, Graphic Designer
Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.
Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.
State Executive: ‘Take Charge of Your Destinies’
By Jeffrey Bellant
LAS VEGAS – Georgia’s Paul John received the Association Executive of the Year award during the National Independent Automobile Dealers Association’s annual convention here in June.
But in his acceptance speech, the executive director of the Georgia IADA gave a stirring challenge to his fellow directors to lead their associations in helping their dealers succeed.
Bruce Eklund, chairman of the NIADA Association Executives Council, presented the award and cited John’s success in building the association.
“When he started (dealer training) in 2002, Georgia had 1,200 members,” Eklund said. “Today, it has almost 2,400 members. It’s NIADA’s largest afliate state association.”
John urged industry leaders to grow membership in the NIADA. He said believing in your ability to succeed and a desire for success are just as vital as other factors.
“You may be smart, educat-
ed, have a lot of professional savvy and experience,” John said, “but if your heart isn’t in this business we’re in –and you don’t have the burning desire to help car dealers succeed – then I’m sorry, you don’t have the ‘it’ factor.
“And without the ‘it,’ you’re not going to win and you’ll most likely have to change careers.”
John also challenged his fellow state directors to stop pointing fingers at the NIADA for difculties faced by the state associations.
“We cannot put blame on anybody, especially NIADA, for our inability to turn a state association into the healthy business that it should be and truly needs to be in order to help dealers,” he said.
Executive directors of the state associations are the CEOs of their groups, John said.
“CEOs, the last time I checked, are responsible for the failure or success of their companies,” he said. “If anybody’s going to be doing any finger-pointing, it’s got to be back (to the director).
“So take charge of your destinies, fellow directors, and take charge of your associations.”
John thanked the AEC members who voted for him, and gave special thanks to Georgia IADA staf member Amy Bennett and association members Dennis Pope, Kimberly New, Glen Reeves and Roy Daniel.
The four members have won multiple Crystal Eagle awards for those who recruit at least 100 new members in a 24-month period.
“They’re responsible for almost 25 percent of our membership,” John said.
John began his career in the automotive industry working at a Chevrolet dealership in 1977, Eklund
said. In 1992, John moved to Atlanta to start a company providing customized window marketing for dealers. He later sold the company. In 1998, he became the fifth employee of a new start-up called AutoTrader. com. Late, John was hired by Georgia IADA to grow membership along with education training.
Photo by Jeffrey Bellant
CLARION CALL: Paul John, executive director of the Georgia IADA, won the NIADA’s 2014 Association Executive of the Year award and gave a rousing acceptance speech directed at his fellow executives.
Thursday, September 25, 2014 | 7PM - 9PM WILD HORSE PASS HOTEL & CASINO
- Acacia Ballroom
Dinner Reception, Silent and Live Auction
7:00 PM Dinner and Cocktails
Friday, September 26, 2014 WHIRLWIND GOLF COURSE
7:00 AM Registration, Check in, Warm up and Breakfast
8:00 AM Shotgun Start Lunch and Awards Each player will participate
CO-SPONSORS: SPONSORED BY:
Trucks, CUVS Set to Gain Share
By Jenny King
aggressive (enough).”
The automaker’s goal of gaining market share is “pie in the sky,” he added.
DETROIT – While the market share shifts of the recent past are likely to remain largely unchanged, the automakers with the greater number of product launches between 2015 and 2018 will have an edge in the competition, according to a recent study by Bank of America/Merrill Lynch.
“Car Wars 2015-2018” suggests light trucks and crossover vehicles will increase their shares of the market as mid-size and large cars, small cars and luxury/sporty vehicles yield some percentage points. The report says their rates of introductions are overweight.
“We’re in a stable market,” BoA Merrill Lynch research analyst John Murphy told the Automotive Press Association here in early June.
“The industry is in great shape going forward,” Murphy said. “In the next four years we’ll see great new models.”
BoA Merrill Lynch is predicting sales of 18 million new vehicles in the U.S. in calendar year 2018 based on current annual miles driven.
General Motors’ product replacement rate will be good for the next two years -- especially if its new and re-styled smaller crossover vehicles are able to attract buyers looking for efciency while shying away from vehicles perceived as “small.”
As it moves toward a goal of building on only nine platforms worldwide by 2016, Ford understands the importance of (fast) replacement rate and competitive pricing, Murphy said. The study predicts this strategy should drive higher market share and sustained pricing.
While Ford’s lighter-weight 2015 F-150 will shake things up in the pickup segment, the market will decide if the loss of 700 pounds and a better powertrain will afect its towing and work capacities, he said.
“Chrysler-Fiat still has a lot of work to do,” Murphy said. “We don’t see FCA pricing becoming
VW launches are “perplexing”; Toyota is likely to be weakened for the next two years because of its product replacement rate, though its concentration on Lexus should help.
Look for Hyundai and Kia to increase introductions in the wake of a two-year lull that followed a wave of new and renewed products.
Honda’s strength is in consistently turning product and is likely to gain share. Murphy said the new compact HR-V 2015 crossover from Honda “could revive the small car market.”
Nissan “seems to be a ship without a rudder and is at significant risk of losing market share,” the study shows.
The BoA/Merrill Lynch report says GM product launches for the next three model years should support its market share and pricing; there is both risk and opportunity for GM in model year 2018, it states.
Earlier this spring GM announced it will invest $449 million in operations including the Detroit-Hamtramck assembly plant and Brownstown engine facility.
Hamtramck is the site of Volt production; lithium-ion batteries are built in Brownstown.
GM described the move as further preparation for the next generation of electric vehicles and advanced battery technologies.
In addition to the Volt, Hamtramck presently builds the electric-powered Opel Ampera and Cadillac ELR.
The Detroit-area plant also builds Chevrolet Malibu and Impala sedans. GM said two products are scheduled to be added to the Hamtramck line.
Model replacement rates and showroom age are what drive market share shifts, Murphy said. Newest and freshest are best.
Credit Feels Regulatory Stress
By Ted Craig
The biggest challenges for subprime finance in the past have been internal in the form of loose underwriting. But now the industry faces a new pressure - regulatory scrutiny. Ally Financial has paid $80 million to settle disparate impact claims from the Consumer Financial Protection Bureau. And Consumer Portfolio Services has paid $5.5 million to the Federal Trade Commission for illegal marketing practices.
The threat for creditors comes not just from federal regulators, however, but also states using new federal laws.
The New York Department of Financial Services filed suit in April against Condor Capital Corp.
The NYDFS claims Condor misled customers about refunds they may have been entitled to, failed to pay refunds owed to customers, and did not have adequate protections in place to safeguard their personal
and financial information.
What was diferent about this suit is the New York regulator used the standard set out in the Dodd-Frank Act of unfair, deceptive or abusive acts or practices.
“Before the Dodd Frank Act, a state regulator would usually base a claim like this one on the state’s unfair and deceptive acts and practices law, or would ask the state attorney general to sue,” said attorney Tom Hudson. “I predict we’ll see more of these.”
Greg Goebel, CEO of Used Car University, has predicted the subprime industry will see a shake out in the next year due to poor underwriting. He now wonders about the efect of poor compliance.
“Condor was one that I didn’t have my eye on, and its problems were operational/regulatory rather than poor underwriting,” Goebel said.
He said CPS’ situation is more concerning potentially, not because of the large fine by the FTC, but because of the forbearance of collections on 35,000 accounts.
“It could mean very little, or it could have a monstrous efect,” Goebel said. “If it is the latter, they could be the first domino. I don’t want that to happen, and I like the people at CPS, so my fingers are crossed.”
Combining Live and Live-Online Buyers
We understand that your business is driven by retentions. That’s why IAA’s unique combination of live and live-online auctions and deep market expertise helps you reach the right buyers in more than 110 countries. At IAA, we see the importance of every type of vehicle.
Tom Hudson
PAGE 8 - AUCTION TECHNOLOGY FOCUS
Buyers Shop Online Even When at Physical Auctions
(This is the second part of an interview with Insurance Auto Auctions CEO John Kett.)
UCN: What is your mobile strategy?
Kett: We were the first in the industry with a mobile app on both the buyer and seller side. We operate on both the Apple and Android platform for smartphones and tablets. We continue to enhance it.
In many foreign markets, broadband penetration isn’t really that significant. They work on their phones.
So providing a robust mobile solution is really important to our international buyers.
I was just at an auction
in northern California and even the buyers coming to the live auctions are using their mobile devices to either bid at the sale they are at or to bid at a sale in another market.
We’re rolling out the availability to finance purchases online with an Automotive Finance Corp. floor plan. We’re really driving our technology for mobility.
We’re always working on improving our imaging. We have some new technology that’s coming out later this year that will make the viewing experience even better for the mobile or Internet buyer.
Sellers haven’t been as fast to embrace mobile.
We have rolled out our market value app. It’s a way to quickly get a salvage value on a vehicle.
An insurance adjuster trying to determine whether a vehicle is a total loss can use it to make that determination.
UCN: What surprises you in regard to how your customers have adapted to technology?
Kett: I’m not surprised at the rate that buyers have adapted to new technology. On the seller side, I’ve been surprised they haven’t adapted faster. But I think some of that involves security issues or they have already invested heavily in other technology.
UCN: What’s next for technology?
Kett: Internal efciency is the next big thing.
We’re investing in technology to obtain a lot more information about a vehicle when it first comes in.
Our buyers are telling us that’s what they want. They want a richer data set to make their bidding decisions.
More information is going to lead to more bids because we’re taking some of the risk out of the equation for them.
UCN: You still run live auctions while your biggest competitor (Copart) went online only. What is the logic behind that?
Kett: Our data shows us, and our customers tell us, this is the preferred method to sell vehicles.
We’re ofering the vehicles to as wide a population as possible.
Every total loss vehicle is diferent.
So there is a segment of buyers that really want to touch and look at that vehicle very closely before they decide if they want to bid on it.
They can look at pictures on the Internet, but they
want to actually see it.
About 40 percent of the vehicles we run operate. We drive those cars past the buyers like at a traditional auto auction.
The buyers want to hear that engine. They want to see the vehicle operate.
The Internet buyers like the fact that we have a live auction.
It gives credibility to the process.
They’re seeing on the screen that there are live bids coming in and that gives them confidence to bid when they’re sitting halfway around the world.
We feel we’re getting the highest recoveries for our sellers because we’re ofng the vehicles to as many buyers as we can.
The results we get are more than worth the investment in the physical sales.
NEXT ISSUE: FINANCE AND WARRANTY
John Kett
Alex Perez, owner of A+ Auto Sales in West Chester, Ohio, says NextGear Capital’s partnership was instrumental in growing his business. He has increased his inventory and stayed updated on all the latest dealer and auction information with NextGear Capital’s innovative processes.
“Everything I need is on the NextGear Capital website and mobile app. For instance, I can request titles, and within 24 hours I will have them in my offce. Everything I need is at my fngertips.”
Listen to more of what Alex and other dealers have to say at nextgearcapital.com/why/innovation
Study: Market via Smartphone
Experian Marketing Services published a new report on the demographics, behaviors and attitudes of Millennial adults ages 18 to 34.
According to the report, Millennials are the most digitally connected generation, with 77 percent of adult Millennials owning a smartphone and the average owner spending about 14.5 hours a week using his or her phone. In fact, Millennials spend so much time on their smartphones that they account for 41 per-
cent of the total time that Americans spend using smartphones, despite making up just 29 percent of the population.
Fifty percent of Millennial smartphone owners say that they access the Internet more often through their phone than through a computer.
Also, Millennials spend the most time using media compared with other generations, at approximately 9.5 hours a day, or 67 hours a week.
Fast Track Your Cash
Suzuki Dealer Admits Fraud
The owner and general manager of what was the nation’s top-selling Suzuki store have pled guilty to engaging in illegal practices.
Paul Michael Gibson, of Spartanburg, S.C., and Billy John Mills, Jr., of Huntersville, N.C., have pled guilty as charged to a three count federal wire fraud indictment. Gibson and Mills join seven others who have entered pleas of guilty for their roles in the operation of Suzuki dealerships operating in Spartanburg and Gafney, S.C., under the name of Joe Gibson Suzuki.
The U.S. Attorney for South Carolina said during the case that
Joe Gibson Suzuki, at one point one of the most productive Suzuki dealerships in the country, was an organization riddled with illegal practices. These practices included false advertising, false statements to induce banks to finance uncreditworthy purchasers, and false reporting of sales to cause bonuses to be paid by Suzuki of North America. Gibson was the owner of the dealership and Mills ran the day-to-day operations of the business. The U.S. Attorney stated that many aspects of this case were novel and that he was unaware of other criminal prosecutions of car dealers for misleading advertisements as in this case.
Site Takes Bitcoin Payments
Online car-buying platform Beepi has integrated with BitPay, a bitcoin payment processing service, to allow its users to purchase cars with bitcoin.
icon to purchase the car with bitcoin.
Through Beepi’s partnership with BitPay, the buyer can complete their purchase using bitcoin while the seller still receives cash.
In addition, the company will also ofer prospective buyers pre-approval for loans at check-out.
Bitcoin is a software-based payment system.
Once a customer selects “checkout” on the Beepi site, they will then be prompted to click “payment options” and can select the bitcoin
Beepi is ofering a $1,000 rebate to the first three Beepi buyers who purchase a vehicle using bitcoin with a value over $10,000.
Beepi will also now ofer customers pre-approval for loans and financing from one of its financing partners at check-out.
Settlement - from page 1
which we got through our other dealerships,” Kinney said. “We did our best to prepare for it.”
Kinney said local businesses had been anticipating a spending surge, but the delays were like the boy who cried wolf, and frustrated, some grew gun-shy when it came to building inventories.
Kinney said the dealership was able to put some used car shoppers into new cars.
Fremont Buick started staying open until 10 p.m. most nights and even did business on Sundays. The sales staf was exhausted.
The Wind River Reservation, home to some 23,000 Arapaho and Shoshone, borders Riverton in west central Wyoming, said Tina Pugh at independent dealership Alex’s Auto Repair. Riverton itself has a population of about 10,000.
“We stocked a few extra cars beforehand,” Pugh said. “We typically have 40 for sale, between $2,795 and $11,500. We were sold out in two days.”
Pugh estimated 600 to 900 cars sold in Riverton as a result of the payments, which, she said, totaled $157 million in Fremont County.
“People were buying cars and houses and mobile homes,” she said. Rumor had it that the local Walmart recorded record sales - perhaps
even on a national scale.
Things have slowed considerably since the end of April. That might have put some in a post holiday funk.
But those who spent wisely, or invested, did themselves and their community a favor, said Anne Alexander, an associate dean and director of international programs at the University of Wyoming in Laramie.
“The tribes’ business councils brought in (financial) counselors to help those receiving money,” Alexander said. “It was a very smart thing to do.”
Those who saved or invested in home improvements or better cars had the efect of adding financial stability to the community, she said.
Buying clothes or going on a shopping spree for everyday or impulse “must-have” items can distort the economy of a region, she suggested. For example, a retailer might staf up for a short time and then have to let people go, as happens after the Christmas season.
Fremont is among the Wyoming counties with the highest unemployment rate.
Alexander said a lack of public transportation and the great distances between communities and work sites creates a pressing need for dependable vehicles.
Awards
– Continued from page 3
“I’m really humbled and honored to receive this (award),” Hackett said. “I’m deeply honored to be part of this distinguished group.”
He thanked the NAAA presidents he has worked with, along with his wife and children.
Stanton’s automotive career spans more than 20 years and includes stints at Nissan and American Isuzu Motors in sales and marketing. In 2000, he joined NADA as national sales manager of the NADA Used Car Guide Co., and served in several other roles over the years. In 2006, he was named to his current role.
“He’s been instrumental in working closely with NIADA, assisting our association and promoting the professionalism of independent dealers throughout our country,”
Jordan said.
Stanton joked about receiving his honor during a Kelley Blue Booksponsored event, and that he joins other Ring of Honor members who worked with NADA Used Car Guide and Black Book.
“It’s one of the best parts of this industry,” he said. “As competitive as it is, you still develop great relationships across those lines.”
“My husband, Tromane, and I are co-owners of the business.
“We’ve been licensed for about 11 months. We’re actually located in a warehouse, so we only have the ability to carry about six or seven vehicles at a time.
“But we’re located right next to Manheim Ft. Lauderdale, so that allows us the flexibility to purchase cars (quickly) that we don’t have in inventory.
“We do have a nice ofce set up, so we cater to customers who might not know exactly what they want. Once they have secured the funding, if we don’t have the vehicle they want in inventory, we can go ahead and purchase it directly from the auction.
“We also get cars from other sources, like other auctions or dealers in the area.
“We sell, on average, between five and seven per month.
“Our average retail price is in the $10,000 to $15,000 range.
“The vehicles we carry are Nissans, Hondas, Acuras, Infinitis, BMWs – cars that are in the higher price range. So we buy mostly imports.
“Even if the customer wants something diferent, we’re able to provide that for them.
“The model years we carry are in the 2005 to 2008 range.
“The average mileage is in the 80,000 to 90,000 range.
“We don’t do any buyhere, pay-here, but we do have quite a few subprime deals. It’s about 50/50 between subprime and (straight retail).
“We’re carrying mostly cars (as opposed to trucks or SUVs).
“When we buy cars, we definitely get them PSI’d (post-sale inspections) at the auction and then we bring them to a mechanic to look them over. We have a relationship with an ASEcertified master mechanic who’s near us.
“On a good vehicle, a detail is all we need to do. So the average reconditioning is $100 to $150.
“We’re starting to beef up our advertising. Before we were primarily Craigslist. But we do have an AutoTrader.com account and we use CarsforSale and an eBay account.
“We also use a lot of social media. Whatever car we bring in, we’ll put it on our Facebook page. We also use Instagram, Google Plus, etc.
“We recently sold a 2007 BMW 3-series. It had 89,000 miles. I think we sold that for $13,500.”
NEBRASKA
Les Bockmann, owner, Bockmann Auto Sales, St. Paul, Neb.:
“I’ve been in business since Feb. 1, 1978.
“We normally keep about 50 or 60 cars in inventory, but we’re down about 10 units right now.
“We get vehicles from auctions and I have contacts with new-car stores, so I’ll buy directly from them too. We also trade and if a cus-
tomer comes in and wants to sell a car, we try and help him out.
“Cars are really tough to get right now, especially the cars with the kind of quality that I want to ofer my customers. They’re rare.
“Our goal is to sell 30 to 35 a month, but we’ve been in the 20 to 25 range. I attribute it to (the difculty) of finding good inventory.
“The other thing that has hurt us is we’re in an area where agriculture is dominant and the price of commodities has tanked. They are about half of what they were. So the disposable income of the farmers is less and it’s a trickle down. But if agriculture prospers, everybody prospers.
“We do straight retail. We have several banks that we use. We really don’t do any subprime.
“Our average retail price is around $12,000.
“The average model year is probably a 2009 or 2010.
The average mileage is about 80,000ish.
“We feel pretty good if we can get a five- or six-year old
Compiled by Jeffrey Bellant
car with 120,000 miles. It’s a diferent ballgame than it was even a few years ago.
“We carry 60 percent trucks and SUVs and 40 percent automobiles.
“We’ll spend $800 to $1,000 on average for reconditioning. You throw a set of rubber on it and you have 2/3 of that money spent.
“When people come to buy a car they don’t want to spend a lot more to get them on the road.
“We do light mechanical and detail here. Then we have a partner who does the heavier mechanical stuf
“We use AutoTrader.com, Cars.com and we’re in (publications) like Wheels for You and Big Red Auto Book. We also have a website.
“We also do a lot of repeat and referral business. I have one customer we’ve sold 21 vehicles to over the years. That comes with treating people right.
“We just sold a 2007 Ford F-150 extended cab, fourwheel drive with 140,000 miles.
“That one sold for $11,500.”
WHOLESALE MARKETS
CALIFORNIA
John Brasher, general manager, Brasher’s Sacramento Auto Auction, Rio Linda, Calif.:
“We’ve been here since 1978.
“We’re currently running 13 lanes. We have the ability to run 16 total.
“Volumes are up about 7 or 8 percent from this time last year.
“With everything, we’re running 1,800 to 1,900 cars a week, something like that.
“That’s about 60 percent dealer, maybe a little higher – 65 percent. The past few weeks, the sales percentages have been just over 50 percent.
“We’re kind of in a weak little market right now.
“It might be a little bit of a hangover from tax season. But I also think that everything is pushing a little more toward new (cars). At least that’s the way it seems around our neck of the woods.
“We run a Ford factory sale in addition to dealer consignment. We also run Wheels, Wells Fargo, ARI,
Enterprise, DTG, Capital One, GM Financial, Lobel, Repo Remarketing and Westlake.
“We’ve seen the repossessions drop – the number of cars, not accounts. There are more lease returns. But on the West Coast, leasing doesn’t play as big of a part here than it does in other markets. There might be a little uptick in the rentals and program cars.
“We have a GSA sale. That sale doesn’t run every month, but it runs about 10 times a year.
“Since this is the busy time of the year, we’ll run 300 or 400 cars. Those are selling well.
“Every other week we run an RV/powersports sale. We run about 100 for each sale. Those are running about 70 percent. We don’t see any ‘seasonality’ afecting volumes on the powersports sale.
“About 60 percent of that sale is RV units, 30 percent boats and marine products and 10 percent are bikes, ATVs and of-road stuf.
“However, I think the powersports market is still
in recovery. That market was really decimated from the recession. It’s still not what it was a few years ago, at least for us.
“Overall, though, the (wholesale) market is still very strong. I think after the summer is over, I expect there to be a lot more program and rental cars. I also expect there to be a lot more lease returns across the board, especially with the captives.
“I think that will add a softening to the market. Again, I think that softening is not unnatural. I just think it’s bringing (wholesale prices) out of the stratosphere into the normal level where used cars ought to be.”
KENTUCKY
Clint Lutz, general manager, Paducah Auto Auction, Paducah, Ky.:
“We’ve been in business since 1991.
“We have three lanes and we’re running all three.
“Volumes are pretty much the same as this time last year. They may be of just
Compiled by Jeffrey Bellant
a hair, but we’ll run 200 to 225 every week.
“Sales percentages have been in the high 50s, low 60s. On a good week, it will hit almost 70 percent.
“(Percentages are) about the same as this time last year. Of course, July always turns around and it’s slow.
“We get about 150 dealers in the lanes. It’s probably about the same as this time last year.
“Just looking across the lanes, it seems the same.
“But last year, we didn’t have the computer system we have now that keeps up with that. We have a good set-up that tracks the bidders, the number of them in the lanes, the sales percentages (etc.), the whole nine yards.
“Our old system would just check people in but not really track who was here and when they came.
“We’re in the western part of the state, so our dealers are coming from a 150 mile to 200 mile radius.
“They are coming from Missouri, Illinois, Indiana and Kentucky.
“It seems like at the sales, there is a shortage of really nice cars with low mileage. When you get one, it brings top dollar.
“Dealers, most of them, sound like they’re doing just fair. Nobody’s bragging.
“A majority of our cars are dealer consignment.
‘But we’ve got some (repos from) local banks and some from TitleMax and payday loan places. We’ll sell for those places.
“On a normal week – out of our 200 to 225 total (units) – we’ll get 50 or 60 that are new-car trades, maybe 30 or 40 are repo-type cars and the rest will be regular dealer consignment.
“Everybody I talk to is expecting a bigger increase in repos over the coming months than they expected they would have this time last year.
“We also try to do a salvage sale once a month.
“The average price is in the low $4,000s.
“I really feel that if the demand for the good mileage stuf and nicer cars stays the way it is, the prices are going to stay strong.”
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MANHEIM HONORS REMARKETER
Manheim recently honored Toyota Financial Services with the OVE.com Highest-Volume Seller Award for 2013.
It was the highest-ever volume sold by one customer on OVE.com in a year.
“It is an honor to be recognized by both Manheim and OVE.com, two of our company’s great auto remarketing partners,” said Michael Reid, national manager of Toyota Financial Services /Lexus Financial Services Remarketing.
“Our company counts on OVE.com and Manheim to help us to provide solutions, deliver results and sell vehicles.”
Allan Wilwayco, general manager of Manheim Digital Marketplace, said the top-seller online earned the award.
“TFS has set the standard for digital remarketing, while establishing a transactional market that provides above-average retentions,” he said. “TFS is an excellent partner, and is a leader in the industry.”
Reid accepted the award last month at Lexus Financial Services offices in Torrance, Calif.
AFC Moves, Expands Western Branches
Automotive Finance Corporation, a business unit of KAR Auction Services, announced recent moves by several of its Western U.S. branch offices into larger, more conveniently located spaces.
AFC San Diego more than double its original ofce space.
“Our San Jose branch is yet another location where our growth has exceeded our space,” said AFC’s Joe Keadle. “The new location (opening Aug. 1) is close to auctions, easy to get to and nearly double the size of our existing branch.”
AFC Denver moved from a downtown location to a larger, more accessible space closer to sister organization Insurance Auto Auctions and independently owned Dealers Auto Auction of the Rockies.
Further west, AFC Albuquerque moved to a larger space adjacent to the New Mexico Independent Dealers Association.
In San Diego, renovations at ADESA recently concluded, providing
HIGH VOLUME: Michael Reid, national manager of Toyota Financial Services (from left), accepts an award from Manheim representatives Lou Verrengia and Rich Coutu.
Compiled By Jeffrey Bellant
Disconnected Jottings From Tony Moorby...
I’ve resisted complaining about the government for as long as my spleen would bear. However I think we’ve reached a point at which all the faux pas would qualify for a David Letterman Top Ten List.
10. Benghazi. If you think we’ve heard the last of this, think again. Especially if Mrs. Clinton decides to get on the ticket for 2016. She was Secretary of State at the time –congressional investigations are ongoing and whilst we’ve caught one of the alleged attackers, questions remain over the reason for the attack, why security was so lax and what exactly was the CIA and some of their “contractors” doing in the adjacent compound. Some suggest arms were being peddled to the
Syrian regime. Arms that now adorn the chests of members of Al Qaeda and their afliates.
9. Radical Muslimism. How could our years of investment in foreign afairs have misread this growth? One reason
the assumptions that these people have made as to their authority.
Their buddies in the CIA are stomping around Europe in size 14 shoes and raincoats which may as well have spy printed on the back. These guys are probably advising the diplomats on tapped phones!
7. The IRS. Trying to figure out whom to screw while on a tax payer-paid boondoggle in Las Vegas. Note the irony here. Again, these people think they’re beyond the pale.
Give our vets a gold standard healthcare card for any provider in the country; fire the administrators and managers; we wouldn’t need them now, making them pay back what they stole, yes, stole. In fact put them in the slammer. I wonder if they paid taxes on their ‘unearned’ income!
4. Russian Expansionism. See # 9 above. There was an absolute parallel in the late ‘30s – history repeats itself.
bly spend $3.7 billion on, handling people who shouldn’t be there and sent back immediately? They’ll get the message sooner rather than later and the problem will look after itself – cost a couple hundred thousand. Liberal lawyers will be the only ones to reap any benefit.
is that our diplomats are patsies being repaid for contributions to the party. We need career people in these posts with years of experience in what it takes to keep ears to the ground. It’s too late to bring back Saddam Hussein –at least his dictatorship kept a tight lid on sectarianism and fewer people died than since our cloddish involvement.
8. The NSA. The Department of Proctology and Endoscopy. Enough said but whilst I’ve got nothing to hide, I thoroughly object to
6. Healthcare reform. Regardless of where your political tendencies lean, the rollout was a disgrace and there seems to be neither rhyme nor reason to premium calculations. A seventy-year-old, one-armed, asthmatic with diabetes, high blood pressure and a drinking problem can pay less than a young married man with two kids.
5. The Veterans’ Afairs Administration. Like their cousins in other agencies, they lie and cheat to earn bonuses on fiddled performances. All this while the brave men and women of the armed forces are forgotten and left in lines waiting for treatment.
CR R O O S S W D Sponsored by
By Miles Mellor
1. Lamborghini supercar
6. VW sedan 10. Kia sedan
12. High-dollar luxury car
13. Alfa Romeo executive car
15. Acura ___
16. Lending term, abbr.
17. Doing a carwash task
19. Flat or pearl color
20. Short for navigation, abbr.
22. 1920 Belgian auto
29. Honda CR-Z and Mazda MX-5, for example (2 words)
31. Upholstery 32. Lexus ___
33. Retro roadster known as “Drive Art”
35. Fiat nationality
38. The “p” of m.p.h.
39. Korean carmaker bought by GM 41. __ location
Down 1. Car with a roof that folds down
Coffee container
Dodge SUV
Road fees
Porsche 4-door
7. The AW in AWD (2 words)
8. Hyundai 4-door 9. Scion ___ 11. Big maker of S.U.V.’s 14. Vectra maker
17. Modifed auto, for extra power and speed 18. Woman, in Westerns 21. Shaking
23. Mary Kay car color
25. Gas brand
28. Being at the wheel
3. Immigration and Border (Out of) Controls. Here I have to declare my right-of-center sympathies - like you didn’t already know them – allowing unfettered access is going to be a burden on the greater populace, not just in monetary terms but living standards for all will slip. See Europe. Obama wants to spend $3.7 billion on facilities to handle Mexican border crossers from the whole of South America. What can we possi-
2. Budget Deficit. Just because it hasn’t been mentioned in Congress lately because they kicked the can expensively down the road. The meter continues to tick along at $370 billion and the national debt is still a staggering $18 trillion.
1. Unemployment. We can’t aford any of the above, no matter how badly handled or expensive, without a thriving economy and full employment.
That should do me for a few months! In the meantime I’ll look for more shaggy dog stories.
INSURANCE AUTO AUCTION S
Hello Across
Deceived (2 words)
42. Recreational offroader (2 words) 45. Closed, two-door car 46. Head __ head
30. Type of car window 31. Drink with ice
Exhibition
American gas company
They’re painted by pedicurists
Too noisy
Oil level ___stick
Chinese language
Ford model
Tony Moorby
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