According to a survey by AutoTrader.com, 44 percent of shoppers believe they only need to test drive a vehicle one time before making a decision, and nearly half (49 percent) believe they only need 30 minutes or less to thoroughly test a vehicle.
Industry Veteran Opens
His Own Auto Auction
Industry veteran Tim DeBerry has chosen his home state of Colorado to build his first auto auction.
Mile High Auto Auction will hold sales every Tuesday at noon at the newly renovated facilities at 9750 East Costilla Avenue in Centennial, Colo.
Used Hondas Move Fast Off Dealers’ Lots
Used-car sales by franchise dealerships are up in the first half of 2013.
Hondas sold faster at franchise dealerships than any other used-car brand in the second quarter; Lincolns sold the slowest.
Classic Car Sales Heat Up This Summer
By Jenny King
PLYMOUTH, Mich. –Duesenbergs, collectible Cadillacs from several decades, an Imperial Crown Convertible and a number of Packards highlighted the RM Auctions event here on the grounds of the Inn at St. John’s.
The July 27 sale generated over $7.7 million and included 77 automobiles, two boats and one motorcycle. RM reported a 90-percent sales rate.
A 1929 Duesenberg Model J Dual-Cowl Phaeton was the high seller, bringing a hammer price of $682,000. That was followed by a 1932
Packard Individual Custom Eight Convertible Victoria at $374,000 and a 1932 Packard Twin Six Sport Phaeton at $330,000. Michigan residents Linda and Richard Kughn ofered for sale several vehicles from their respected collection. Sales successes included the Kughns’ 1934 Packard Super Eight Convertible Victoria ($225,500); a 1934 Lincoln Model KB Convertible Sedan ($275,000), and a 1942 Lincoln Continental Cabriolet ($126,500). Hy Gray brought his beautifully restored 1956 Plymouth Belvedere Convertible from Illinois to the RM sale. Continued on page 6
Buy-Here, Pay-Here Chains Add More Locations
The nation’s largest buy-here, pay-here chains continue to expand.
DriveTime Automotive Group Inc. is expanding into a new market.
The buy-here, pay-here chain has opened a store in Louisville, Ky.
The new store is the company’s eighth dealership to open in 2013, and becomes the 105th DriveTime location.
America’s Car-Mart, Inc. announced the opening of its 126th dealership.
The dealership is located in Rome, Ga. Rome is the 2nd dealership in Georgia and the 2nd new dealership opening
for fiscal year 2014.
The Rome dealership will be managed by Chris Grifn.
Meanwhile, J.D. Byrider has opened five new franchise locations in the first half of the year.
The next J.D. Byrider dealership, opening in Colonie, N.Y., will be the company’s 150th location.
The buy-here, pay-here franchisor also marked a milestone when ts South Attleboro, Mass., sold Byrider’s one millionth vehicle.
The car was given away to the lucky customer.
J.D. Byrider has signed new store rights to four new franchisees and 10 existing franchisees.
Photo by Jenny King
MR. BELVEDERE: This 1956 Plymouth Belvedere Convertible, with push-button automatic, a Hollywood steering wheel, power top and Highway Hi-Fi, sold for $90,750.
States Make Progress in Battle Against Curbstoning
By Jeffrey Bellant
Dealers have scored two more legislative victories in their struggle against curbstoning.
Mississippi and Texas recently strengthened their laws against unlicensed dealers.
Mississippi lawmakers approved a law that creates a curbstoning penalty between $1,000 and $5,000. The law went into efect July 1.
Andrew Caldecott, executive director of the Mississippi Independent Automobile Dealers Association, said the local municipalities should be happy with the additional revenue those penalties will bring in.
“Dealers as a whole in Mississippi are excited that the bill passed,” he said.
“Our board chairman, Lester Howell, spearheaded the effort.”
Howell, owner of Professional Used Car Sales in Clinton, Miss., said other states should follow Mississippi in trying to get approval for local enforcement of curbstoning.
Mississippi House Speaker Philip Gunn said this change would help dealers and consumers.
“We wanted to make sure that consumers in Mississippi were getting the best quality used vehicles,” he said.
In Texas, the state IADA also pushed through a curbstoning penalty.
“The passage of this bill is a victory for the industry,” said Jeff Martin, executive director of the Texas IADA.
The new laws allows local law enforcement to tow vehicles that are illegally displayed for sale.
There is an additional penalty of $1,000.
If an ofcer has probable cause, he can attach a notice that the vehicle can be towed in two hours if not removed.
Once vehicles are towed, owners cannot receive the vehicle unless they provide evidence of ownership in their name.
Since curbstoners normally don’t title the vehicles – to avoid taxes – it prevents
them from getting the vehicle unless they pay the tax and registration fee.
The Arizona IADA is also working on the issue, with represetatives serving on a state curbstoning committee.
“We reached out to other states to get their curbstoning legislation,” said Dave Warkentin, Arizona IADA executive director.
He said the three keys to make curbstoning rules successful are: defining what curbstoning is; developing methods to enforce laws against it; and providing penalties for those who violate curbstoning laws.
Warkentin said the group got a report from one company, LTAS Technologies, which estimates that there were an estimated 6,642
curbstoners in the state.
LTAS reports that curbstoning in the United States is a $17 billion underground economy.
The firm reported that the efects on the economy are felt through lost titling fees, lost taxes, and lost business to dealers.
Curbstoning also affects consumers and insurance companies.
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ARI, SRG, New Car Units, Banks, and Credit Unions SALE: Tuesday, 5 p.m.
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Photo Courtesy of the Mississippi IADA
CURBING CRIME : Andrew Caldecott, executive director of the Mississippi IADA, said dealer groups, law enforcement and legislators worked together to pass a law making it easier to punish curbstoners.
NEWS BRIEFS
Wholesale Prices Rise
Wholesale used vehicle prices
(on a mix-, mileage-, and seasonally adjusted basis) rose in July, the second straight monthly increase.
On a non-seasonally adjusted basis, prices fell between June and July. The Manheim Used Vehicle Value Index now stands at 120.9, a decline of only 0.2 percent from its year-ago level.
CPO Sets Another Record
Certified pre-owned sales reached their highest daily selling rate ever in July.
CPO sales were 182,753 in July, according to AutoData Corp. That is down 1.5 percent from June, but up 21 percent from July 2012.
There were 25 selling days in July vs. 24 in July 2012 and 26 in June.
July year-to-date sales were 1,229,276, up 15.1 percent from July 2012.
Kia and Subaru sales were at alltime highs.
Vehicle Fleet Grows Older
Polk reports the average age of all light vehicles on the road now stands at a record high of 11.4 years, based on review of over 247 million U.S. car and light truck registrations earlier this year. For passenger cars, average age also met a record high at 11.4 years, while the average age
of light trucks also increased to a record 11.3 years.
Polk expects this trend to continue, while a shift in the fleet of vehicles in operation (VIO) is under way.
As part of its most recent analysis and the growth of vehicle registrations in the past few years, Polk found that the volume of 6- to 11-year-old vehicles is declining, while the group of vehicles older than 12 years is on the rise.
Auto Finance Highpoint for Ally
Ally Financial Inc. reported a net loss of $927 million for the second quarter of 2013, compared to net income of $1.1 billion in the prior quarter and a net loss of $898 million for the second quarter of 2012.
The net loss for the quarter was driven by an approximately $1 billion loss from discontinued operations, primarily due to a $1.6 billion charge resulting from Ally’s comprehensive settlement agreement in the ResCap Chapter 11 bankruptcy case. This was partially ofset by approximately $600 million in tax benefits
related to the settlement charge and the sales of certain of Ally’s international businesses.
Ally’s core auto finance operations continued to generate strong yearover-year U.S. earning asset growth and improved U.S. net financing revenue for the quarter.
Remarketer Marks Milestone
GE Capital Fleet Services announced a major milestone with the sale of its 100,000th customer vehicle through its Remarketing by GE program. Launched in 2007, Remarketing by GE has enabled more than 300 customers nationwide - including credit unions, independent
finance companies, banks, and corporations with owned fleets - to outsource the disposition of automotive assets to GE Capital Fleet Services.
The milestone vehicle was sold at Manheim Chicago and the seller was the Chicago-based Turner Acceptance Corp.
GE Capital Fleet Services also announced the launch of an expanded Remarketing by GE website for customers.
The website content includes auction sale calendars, information on promotional events, customer testimonials, and a direct link to GE Capital Fleet Services’ YouTube channel.
Published By General Media LLC
USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080
Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400
www.usedcarnews.com
Charles M. Thomas
Founder (1947-2002)
Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager
Editorial:
Ted Craig, Managing Editor
Jefrey Bellant, Staf Writer
Contributing Writers:
Sheila McGrath, Jenny King Columnist: Tony Moorby
Advertising:
Shannon Colby, Account Manager
Megan Frump, Account Manager
Marie Hingst, Account Manager
Circulation: Helen Thomas
Production:
Josie Godlewski, Media Manager
Tim Montie, Graphic Designer
Used Car News is published the first and third Monday of each month. Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved. Reproduction in any form is prohibited without the written consent of the publisher.
Please submit clear, legible copy. Payments from first time advertisers must accompany the insertion order. Distribution is guaranteed by U.S. Postal Carriers. The advertising reservation deadline is 5:00 p.m. Friday, 10 days prior to the issue date. Camera ready ads must be received by noon on Monday prior to the issue date.
PAGE 21
Dealers Grow Happier with Finance Sources
Dealer satisfaction has increased in all finance provider areas for the second consecutive year, with product ofering significantly contributing to increases in satisfaction, according to the J.D. Power 2013 U.S. Dealer Financing Satisfaction Study.
The study examines dealer satisfaction with lenders in four finance areas: prime retail credit; sub-prime retail credit; retail leasing; and floor planning.
“In addition to more improved services, competition and new entrants into the market provide dealers with more choices and product innovations,” said Michael Buckingham, senior director of the auto finance practice at J.D Power.
“This combination also creates a highly competitive marketplace for dealers to select their finance provider and increase vehicle sales.”
Satisfaction is measured across three factors in the prime and subprime retail credit areas: finance provider ofering; application/ approval process; and sales
representative relationship.
Four factors are measured in the retail leasing area: finance provider ofering; application/approval process; sales representative relationship; and vehicle return process.
Three factors are measured in the floor planning area: finance provider credit line ofering; floor plan support; and floor plan portfolio management.
Overall dealer satisfaction with prime retail credit lenders is 890 on a 1,000-point scale, an increase of 5 points from 2012, and retail leasing satisfaction is 891, up 3 points from 2012.
Floor planning satisfaction has increased the most among the four lending areas – an increase of 11 points to 924 in 2013.
Increasing industry adoption rates of such process innovations as e-contracting combined with improvements to dealer support and a solid product ofering have contributed to satisfaction increases.
The study finds that 30 percent of lenders ofer
dealers such options with 39 percent of dealers that are ofered these options sending business to them regularly.
The study dealers want lenders who will work with them.
To dealers, the sales representative is the most important touch point with a lender, the study found.
Sales reps must have the knowledge and tools to teach and train dealers on the various finance product
oferings.
“Indirect auto finance lending is a relationship business between dealer and lender,” said Buckingham.
“A customer-focused staf is a cornerstone for success.”
Alphera Financial Services ranks highest among prime retail credit lenders, with a score of 970. Following in the rankings are BMW Financial Services (965) and Mercedes-Benz Financial Services (953).
BMW Financial Services
ranks highest among lenders in the retail leasing area for a second consecutive year, with a score of 958. Following in the rankings are Mercedes-Benz Financial Services (954) and Ford Credit (929).
Mercedes-Benz Financial Services ranks highest among floor planning lenders for a third consecutive year, with a score of 971. Following in the rankings are BMW Financial Services (966) and Ford Credit (948).
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Classic Cars
Continued from page 1
“I’ve known this car since it was new,” said Gray, who bought it in 2006 from its second owner, a friend. The car had been disassembled by a restorer who later walked away from the project and left it in pieces.
“I did the mechanical assembly,” Gray said. “The body was soda blasted; I had it painted turquoise and midnight blue, which were factory colors.”
The push-button-drive Belvedere has a Highway Hi-Fi, Hollywood steering wheel and a power top. It’s close to impossible to get records for the 16-2/3 RPM hi-fi, he said. In spite of its small diameter, a record would play at the slow RPMs for 45 minutes.
Figuring perhaps only a dozen convertibles like his ’56 Belvedere still exist, Gray’s careful restoration paid of
The car sold at auction for $90,750 – at the top of its estimated price range prior to the auction.
As is often the case, there were disappointments and surprises.
A 1940 Packard Super Eight 160 Convertible, which appeared to be in fine condition and had a presale estimated value of $50,000$70,000, went for a hammer price of $44,000.
A 1957 Mercury Custom Eight wood-sided station wagon ignited a bidding war that drove its sale price up to $134,750. The car’s pre-sale estimate was $90,000-$110,000.
A handsome 1936 Chevrolet FA Master Deluxe rumble-seat coupe with dual side mounts seemed a steal for the buyer who bid $29,700. An iconic 1959 Ford Skyliner Retractable Hardtop sold for $38,500, below its pre-sale estimated range. Jaguars also did not fare well, with the exception of a 1950 Jaguar Mark V 3.5 drophead coupe, which had a hammer price of $88,000.
Another high-bid surprise was the extraordinary Virgil Exner-designed 1961 Imperial Crown Convertible, one of 429 built for the model year. It sold at auction for $148,500 - far above its pre-sale estimated value of $70,000-$90,000.
System Assesses Repairs
A new system aims to ease consumer concerns about buying cars with accidents on their vehicle histories.
True Frame is a patent-pending system created by Auction Insurance Agency. The firm saw that dealers were unwilling to pay full price for a vehicle with an accident history.
Ben Puckett, True Frame’s president, said these vehicles often sell for 10 percent below the market average, regardless of the extent of the damage. The goal with True Frame is to provide an accurate assessment of vehicle repairs.
“The entire process is an objective
analysis,” Puckett said. There is a cosmetic score based on the extent of the work performed, as well.
Consignors pay for the service. The reports are available for anyone who wants to view them, free of charge.
True Frame did beta-testing at auctions in central Florida, Puckett said. A key goal was gathering dealer feedback on the reports.
One response from dealers was that they hoped to use the system at their stores to evaluate trade-ins before taking them to auction. True Frame partnered with Inviso to meet that demand.
Photo by Jenny King
RED HOT: This 1961 Imperial Crown Convertible, one of 429 built for the model year, sold at auction for $148,500 - far above its pre-sale estimated value of $70,000 to $90,000.
PAGE 8 - TRAINING & EDUCATION
Dealers Can Go Back to School This Fall at Events
Dealers interested in expanding their knowledge of buy-here, pay-here and subprime finance operations will have plenty of opportunities this fall.
First up is The Industry Summit, a joint venture between Used Car University and Bobit Business Media.
The event now includes four shows – Subprime, CRM, Used Vehicle Retailing and F&I.
The Industry Summit takes place Sept. 16-18 at the Paris hotel in Las Vegas.
A week later, Sept 22-25, AutoStar Solutions will host its annual gathering at the Omni Hotel in Ft. Worth, Texas.
“This year, we’re expanding the scope of our industry-focused classes in the same way that we improved our technology training last year,”said AutoStar CEO Allen Dobbins.
AutoStar has announced several changes from the previous year’s event, including new tracks and ses-
sions, which will focus on areas that are vital to independent auto dealers, including compliance.
“As with last year’s event, AutoStar has recruited some of the top legal experts in the industry to cover relevant legal issues and their inevitable efects on the business,” said AutoStar chief legal officer Steve Levine. “The centerpiece of these compliance sessions will be the mock trial, which will help to bridge the gap between in-class learning and the real world.”
Finally, the National Alliance of Buy-Here, Pay-Here Dealers will host its East Coast conference Nov. 3-5 at the New Orleans Marriott Superdome hotel.
The agenda this year will focus on making the right decisions to succeed in buyhere, pay-here, with the conference theme “Critical Decisions that Bring Success.”
“New operators are entering the buy-here, pay-here industry in significant numbers,” said NABD founder
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Ken Shilson. “These new operators need to understand how to succeed by avoiding the pitfalls. Trial and error mistakes will cost them millions of dollars.”
Photo by Jeffrey Bellant
MORE HELP: National Alliance of Buy-Here, Pay-Here Dealers founder Ken Shilson addresses the audience at the spring’s conference. The NABD fall event will be one of three opportunities for dealers to gain more knowledge.
ADESA Boston September 6, 20 508-626-7000
ADESA Charlotte September 5, 19 704-587-7653
ADESA Cincinnati/Dayton September 3 937-746-4000
ADESA Golden Gate September 10, 24 209-839-8000
ADESA Houston September 4, 18 281-580-1800
ADESA Indianapolis September 3, 17 800-925-1210
ADESA Kansas City September 3, 17 816-525-1100
ADESA Lexington September 19 859-263-5163
ADESA New Jersey September 12, 26 908-725-2200
ADESA San Diego September 12 619-661-5565
ADESA Tulsa September 13 918-437-9044
America’s AA-Chicago September 4 708-389-4488
Brasher’s Salt Lake AA
September 10 801-322-1234
Columbus Fair AA September 4, 11 614-497-2000
Manheim Atlanta September 11, 12, 26 404-762-9211
Manheim BaltimoreWashington September 24 410-796-8899
Manheim Dallas September 11, 25 877-860-1651
Manheim Denver September 25 800-822-1177
Manheim Detroit September 5, 12, 19 734-654-7100
Manheim Fredericksburg September 26 540-368-3400
Manheim Milwaukee September 11, 25 262-835-4436
Manheim Minneapolis September 18 763-425-7653
Manheim Nashville September 4, 18 877-386-5004
Manheim Nevada September 27 702-361-1000
Manheim New Jersey September 11, 25
609-298-3400
Manheim New Orleans September 11 985-643-2061
Manheim Orlando September 3, 10, 17, 24 800-337-8491
Manheim Pennsylvania September 12, 13, 26, 27 800-777-2053
Manheim Phoenix September 5, 12, 19, 26 623-907-7000
Manheim Pittsburgh September 25
724-452-5555
Manheim Riverside September 3, 5, 17, 19, 24 909-689-6000
Manheim Seattle September 18 206-762-1600
Southern AA September 18 860-292-7500
Chase Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current sale information.
ADESA Boston September 6 508-626-7000
ADESA Golden Gate September 10 209-839-8000
Manheim Atlanta September 11 404-762-9211
Manheim Dallas September 11 877-860-1651
Manheim Milwaukee September 25 262-835-4436
Manheim Orlando September 3 800-337-8491
Mazda Capital Services
ADESA Boston September 6, 20 508-626-7000
ADESA Golden Gate September 24 209-839-8000
ADESA Kansas City September 17 816-525-1100
Columbus Fair AA September 11 614-497-2000
Manheim Atlanta September 12 404-762-9211
Manheim BaltimoreWashington September 24 410-796-8899
Manheim Dallas September 25 877-860-1651
Manheim Detroit September 5, 19 734-654-7100
Manheim Milwaukee September 11 262-835-4436
Manheim Nashville September 4 877-386-5004
Subaru Motors Finance
ADESA Boston September 20 508-626-7000
Brasher’s Salt Lake September 10 801-322-1234
Columbus Fair AA September 4 614-497-2000
Manheim Dallas September 11 877-860-1651
Manheim Denver September 25 800-822-1177
Manheim Detroit September 5, 19 734-654-7100
Manheim Fredericksburg September 26 540-368-3400
Manheim Milwaukee September 25 262-835-4436
Manheim New Jersey September 11 609-298-3400
Manheim Orlando September 24 800-337-8491
Manheim Pennsylvania September 12, 26 800-777-2053
Manheim Phoenix September 12 623-907-7000
Manheim Riverside September 5, 19 909-689-6000
Manheim New Jersey September 11, 25 609-298-3400
Manheim Orlando September 17 800-337-8491
Manheim Pennsylvania September 13, 27 800-777-2053
An Oklahoma City used-car dealer was sued after regulators said he sold securities without a license, then failed to pay investors back after his businesses were shut down.
According to the Oklahoma Department of Securities, Bill Thompson, owner of Triple T Motors, started Invest in Car Notes.com and Buy Car Notes.com in 2010 to sell car notes from buyers with poor credit ratings.
Investors learned of the potential business opportunity through websites and a YouTube video, and were told they stood to make returns of up to 21 percent on the notes, according to a Petition for Permanent Injunction filed July 8 in Oklahoma County District Court.
The suit was filed by the state’s Department of Securities.
The suit alleges Thompson did not invest the funds in any way that could have generated the promised returns. It also alleges that he had no adequate surplus to replace nonperforming notes, and that he withdrew investor funds for personal expenses and to pay earlier investors.
Thompson did not return calls requesting comment, but he told The Oklahoman newspaper that it had
never entered his mind that selling car notes was illegal.
Rather, he said, the plan allowed investors a chance to earn money and buyers with poor credit an opportunity to purchase a car.
The Note Purchase Agreements investors bought were to be funded by payments on car loans generated from the sale and financing of used cars.
If the buyer defaulted on the note, investors were told they would get a good, paying car note in its place.
At least $500,000 was raised from investors, according to the suit.
But in August 2011, the state ordered Invest in Car Notes.com and Buy Car Notes.com to stop selling the notes because the securities were not registered and Thompson, as president of the companies, was not licensed to sell them.
In January 2012, Thompson and a business partner, David Harris, were ordered by the court to pay a pro-rated initial sum of $25,000 to investors, and to make their best eforts to make monthly payments of $20,000 until the investors were repaid.
But court records show that after the initial $25,000 was paid, the payments were sporadic and weren’t fairly distributed among the investors.
Body Shop Kept Insurance Money
A Rhode Island auto body shop owner pleaded guilty to 60 counts of obtaining money under false pretenses, three counts of issuance of bad checks, four counts of unlawful appropriation, and one count of larceny.
Dino Coccia was sentenced to a total of 20 years, with three to serve on home confinement and the remainder suspended with probation. Coccia was also ordered to pay in excess of $210,000 in total restitution.
During 2011 and 2012, Coccia was engaged in an elaborate scheme to defraud 70 customers of his auto
body repair and used-car business, Americar Sales and Collision Center, in Pawtucket.
Among the ofenses, Coccia would promise to repair motor vehicles involved in accidents and serve as a go-between for the customer and insurance company. Instead, Coccia used the insurance money for his own benefit without repairing the customers’ vehicles.
In addition, Coccia took deposits for the sale of motor vehicles that he did not own, and when pressured by some of the individuals to return their deposits, he wrote checks on a closed account.
Study
Finds Women Prefer to Lease
leasing their next vehicle, compared to roughly the same amount of men (70.4 percent).
A new survey from Swapalease. com shows women have been reluctant to lease in the past, but that trend may change in the coming years.
According to the results, 42.2 percent of women said they had never leased a car, compared with 23.6 percent of men. Conversely, 15.5 percent of women have leased five or more cars in their lifetime, compared with 26.2 percent of men. Looking forward, though, 67.2 percent of women say they are “likely” or “extremely likely” to consider
While many brands are viewed similarly between the two genders, men prefer BMW and Cadillac. However, more women prefer Honda, Lexus, Toyota and Nissan.
Other findings from the results show 40 percent of men prefer lease terms of 24 months, while 33.6 percent of women prefer 36-month terms. Additionally, more women prefer less expensive monthly payments.
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Enterprise Names Remarketing VP
Enterprise Holdings announced that Nate Lattimer is the new vice president of remarketing sales and operations for the company’s Enterprise Rent-ACar, National Car Rental and Alamo Rent A Car brands, as well as its Enterprise Commercial Trucks business and Enterprise Fleet Management afliate. Combined, these businesses accounted for $15.4 billion in revenue and operated 1.3 million vehicles throughout the world in fiscal 2012.
In Lattimer’s new role, he is responsible for vehicle remarketing for all North American operations in addition to overseeing more than 400 local account representatives. Lattimer succeeds Mike Bystrom, who was promoted to a senior executive position within the company.
Lattimer began his career with Enterprise as a Management Trainee in 1996 and was later promoted into management positions in Memphis, Tenn., and Louisville, Ky.
After moving to the company’s corporate ofces in 2008 as cor-
PEOPLE IN THE NEWS
porate fleet manager for the West Coast, he was promoted to assistant vice president of fleet, West Coast, in 2011.
Lattimer is based at Enterprise Holdings corporate headquarters in St. Louis.
Caprock Hires Auction
Vet
Hollie Fleming has joined Caprock Auto Remarketing as its new auction manager.
Fleming brings 15 years experience in the auto auction industry to this position. She previously worked at Manheim DFW Auto Auction, where she managed specialty sales, including boats, RVs and motorcycles.
Prior to that, she served as commercial accounts manager, overseeing operations and administration for all fleet and factory customers. She also held the roles of Ford factory manager and Ford administrative manager.
Earlier in her auction career, Fleming worked at Manheim Fort Worth Auto Auction as Ford account coordinator and posting clerk.
She also worked in accounts payable at Hilcher Ford.
NAC Adds Development Director
NAC announced the addition of Tim Black as director of agency and dealer development.
In his new role, Black will be working with existing agents and dealerships to grow the size of their portfolios and working with NAC’s sales team to develop new business opportunities.
Law Firm Opens New York Office
Hudson Cook LLP recently announced the addition of Jef Levine as a partner establishing the law firm’s New York ofce.
Levine’s practice will focus on helping financial institutions, sales finance companies, motor vehicle dealers and manufacturers to establish and maintain automobile financing and leasing programs private student loan providers and servicers establish and maintain private student loan programs. He will also leverage his regulatory exam management experiences to support bank and non-bank clients with their federal and state regulatory exams.
Before joining Hudson Cook, Levine was a senior vice president and general counsel of JPMorgan
Chase’s auto finance and student lending businesses, where he was a member of the executive committee and managed all legal and compliance matters from 1993 to 2013. Levine also served as the president of JPMorgan Chase’s student lending business, from 2002 to 2005, where he was responsible for restructuring the business from a joint venture to a fully in-sourced business model.
Levine earned his law degree at St John’s University School of Law where he graduated cum laude.
He attended Long Island University where he earned a B.A. in Economics, graduating magna cum laude.
He is a member of the New York State bar.
Edmunds.com Exec Retires
Edmunds.com announced the retirement of its vice chairman, Jeremy Anwyl
Anwyl, who relocated to the Las Vegas area earlier this year, has plans to keep up his automotive industry activities by consulting through Marketec Systems, the company he founded in the 1990s that led him to a full-time role with Edmunds.com in 2000.
Through Marketec, Anwyl has agreed to provide strategic consulting to Edmunds.com.
Nate Lattimer
Jeff Levine
RETAIL MARKETS
ALABAMA
Charles Moring, owner, Midtown Motors, Midland City, Ala.:
“I’ve been in business 33 years.
“I have one location.
“I keep around 80 vehicles on the lot. That’s pretty much the same as this time last year.
“In terms of sales, we’re (a little up from) what we were doing last year.
“We’re up about 10 percent.
“We buy our cars from auctions.
“We do some conventional financing and we also do some buy-here, pay-here financing.
“The average retail price here is $15,000 and down.
“Inventory is probably a 50/50 split between cars and trucks/sport utility vehicles. That’s typical of what I normally carry.
“As far as model years, we’ll carry stuff from 2010 on down to 2006.
“The mileage will range accordingly. Mileage ranges from about 50,000 to 1250,000.
“Mileage has been a
problem (in finding the inventory we want).
“Probably 75 percent of my inventory is domestic.
“We do not have a service shop.
“We recondition our vehicles before we put them out on the lot. I’d rather not say how much.
“Reconditioning has gone up from this time last year.
“The marketing and advertising we do mostly involve our website.
“But we do run advertisements in these local shopper types of magazines.
“We get a lot of local traffic (coming by our dealership).
“I think the rest of 2013 is going to be pretty good. I think it’s going to be in line with last year.
“(Our local economy has) a lot of medical jobs.
“We also have a lot of military people since we’re located relatively close to a military base.
“Although we don’t do a whole lot of business with enlisted people, we still do a lot of business with civilian-type employees.”
NEBRASKA
Charles Rogers, owner. Chuck Rogers Auto Sales, Tekamah, Neb.:
“I’ve been here 12 years. I have one location.
“I keep about 25 to 30 cars on my lot. I’m actually down a little bit from where I was this time last year.
“But (I changed my inventory) because I had a little too much for what I was selling. If I keep my inventory down, then I can buy other cars as I need them.
“On average, I’m selling about 10 or more per month. I’m actually doing a little bit better than this time last year.
“I don’t know exactly what to attribute the (improvement) to, but the farmers here have had a good economy the last couple of years. Also, it’s maybe because I’ve been doing a little more advertising.
“I get my vehicles from Manheim and ADESA auctions. I also buy from SmartAuction online. I’ll get older stuff through
trade-ins.
“I sell vehicles straight retail (no buy-here, payhere or subprime). I have a bank that I use a lot.
“For model years, I try to stay 5- to 10-years old, or less. I like vehicles less than 100,000 miles. I don’t typically buy stuff over 100,000 miles.
“I carry about an equal amount of cars, trucks, vans and SUVs. So it’s about (25 percent) of each.
“We’re in a rural area, so I’m probably carrying 90 percent domestics and 10 percent imports.
“I don’t have a service shop. I’m just kind of a one-man operation. I have a part-time bookkeeper and cleanup person.
“I have a guy who does my reconditioning. With cleanup and mechanical work, the average recon costs are about $400 per vehicle.
“The cost of recon is probably up a little because I’ve had to buy higher mileage stuff. Plus, the cost of tires has really gone up.
“We do some advertising.
Compiled by Jeffrey Bellant
We’ve got a shopper called the Midwest Messenger that we use. I also use websites like Craigslist, Cars. com and Carsonline.com.
“Compared to this time last year, I’m doing a little bit more advertising. I’ve expanded a little in some of the local newspapers.
“I’ve also started giving a 90-day warranty on everything that’s not already covered. That has seemed to help (sales) a little.
“One recent vehicle I sold was a 2012 Ford Fusion. It had about 20,000 miles. I got a trade in, but the retail price was probably in the $17,500 area.
“I think the rest of the year is going to be pretty good. We’ve got a pretty good crop (for the local farmers).
“The economy is pretty decent around here.
“(I won the) Nebraska Quality Dealer of the Year award.
“It’s something you always hope for but never expect. It was pretty awesome to win it.
“I’ve used that (award) in my marketing.”
WHOLESALE MARKETS
CONNECTICUT
Peter Saldamarco, president/general manager, Central Auto Auction, Hamden, Conn.:
“We’ve been in business 7 1/2 years.
“Our building is a fourlane (facility) and we’re currently running two. But we plan on opening the third lane on or about Jan. 1, 2014.
“Consignment volume has been increasing slowly, but substantially over the years. Particularly, it’s increased over the past year, hence the need for some physical expansion.
“We’re not only opening a third lane, but we’re expanding the parking area by about an acre. So, we’ve got a whole expansion mode going on for the rest of this year so we can hit the ground running in 2014.
“We’ve been running between 300 and 350 (units), which is up from 250 this time last year. I want to add that it’s good, quality consignment. I think it’s (due to) the fact that we’ve been here for almost eight years and people have had the chance to try us. They like
us and we perform well.
“The increase in our volume is probably 50 percent new-car trades and 50 percent commercial.
“Now that we have some longevity, we have several good commercial accounts.
We also have the GSA account, so a lot of other commercial consignors tagged on when they found out. The GSA account adds a lot of credibility to our organization because it proves we have the ability to perform.
“This is a second year doing GSA. I think we’ll run 700 (total for 2013). I also got notice they’ll be using us next year, too.
“We’re getting known in the industry. We’re very involved in the National Auction Association. I’m the president of the eastern chapter. So we’re getting exposure.
“The bulk of the volume is new-car trades. It’s probably 60 percent new-car trades, 10 percent used-car trades and 30 percent commercial.
“Our conversion rates have been in the 55 percent to 59 percent range consis-
tently, but that’s (dipped) in August because of vacations (and the time of the year). It’s similar to this time last year. It seems to happen every year at this time.
“We draw anywhere between 140 and 180 dealers in the lanes.
“Our average price coming across the block is $4,500. That’s about $1,000 higher than this time last year. ]
“Inexpensive cars are not doing well. The low-end stuf (under $2,500) has not been selling at all.”
VIRGINIA
Mike Hockett, president/general manager, Tidewater Auto Auction, Virginia Beach, Va.:
“The auction has been in business for 46 years.
“We have eight lanes and we’re running eight.
“Our volumes are 1,200 per week on (our dealer) Wednesday sale and 300 a week on Saturdays (for a public sale).
“(Compared to last year), our Saturday sale has doubled and our Wednesday sale is up about 150 cars per week.
Compiled by Jeffrey Bellant
“Sales percentages have been mixed. For example, I looked at our July 4th sale and thought it was low. But then when I checked it against last year’s sale, I saw that we were up 2 points.
“The dealers are extremely picky about what they are buying right now.
“(But when it comes to what they’re buying), some dealers are starting to spend a little bit of money to make sure the cars are a little better.
“They’re finding out the buyers are a little more picky.
“Dealers are giving more money for trade-ins, but the trade-ins haven’t improved.
“We’re drawing between 500 and 750 dealers in the lanes. It’s about the same as last year, maybe a little less.
One reason is that (some dealers have said that) retail is horrible.
“Our dealers come from Texas, Florida, New York and Pennsylvania. (Closer to auction), we have people coming from all over Virginia, North Carolina and South Carolina.
“We’re ofering 70 percent
(dealer consignment) and 30 percent repossessions (institutional vehicles).
“Many of the fleet companies are not doing much business with the independents.
“But I think the repossessions will start to go up with the (implementation of the Afordable Care Act). But I think that increase in volume will be modest.
“I think we’re one of the top GSA sales in the country right now. It’s working out well for us.
“The trick, though, is making sure you have efcient operation systems and procedures – in order to handle it – because it is not a big profit center.
“Our average price coming through the lanes is about $5,000, which is the same as this time last year.
“I’m actually fairly optimistic about the rest of the year. But I am seeing more trades coming from the new-car stores.
“What’s selling well? Two-wheel-drive pickups just bring blood and I don’t know why. Part of it might be high gas prices.”
2011 MODEL S
2010 MODEL S
Honda
Mercedes-Benz
Mitsubishi Galant ES 4D Sedan 12100 10450 10200 8575 7200
Nissan Altima Base 4D Sedan 13200 11650 11200 9850 8600
Nissan Altima S 4D Sedan 14500 12950 12500 10850 9475
Nissan Sentra Base 4D Sedan 12200 10500 10100 8425 7300
Toyota Camry LE 4D Sedan 14800 14150 13250 11525 10225
Toyota
2009 MODEL S
Chrysler 300 Touring 4D Sedan 13650 12100 11850 10275 8600
Chrysler Sebring LX 4D Sedan 9200 7450 6500 5050 3900
Ford Mustang Base 2D Coupe 13000 11000 10500 9300 8050
Ford Taurus SEL 4D Sedan 11300 9250 8750 7050 5850
Lincoln Town Car Signature Limited 4D Sedan 17250 15400 14550 11275 9300
Ford Focus SE 4D Sedan 9150 8000 7300 5900 4775
Import Cars Aug-12 Feb-13 Aug-13 Aug-14 Aug-15
Acura TL Base 4D Sedan 19800 18800 18600 13750 11225
BMW 3-Series 328i 4D Sedan 19400 17900 16800 13600 11125
BMW 7-Series 750Li 4D Sedan 48500 39800 35300 30150 24850
Honda Accord LX 4D Sedan 12050 11300 10850 9100 7775
Hyundai Sonata GLS 4D Sedan 9550 8200 7700 6725 5475
Lexus ES 350 4D Luxury Sedan 21800 20100 18900 15550 13325
Mercedes-Benz E Class E350 4D Luxury Sedan 26800 22200 20400 17450 13775
Mitsubishi
2008 MODEL S
Auction Fights MS with ‘Muckfest’
MUD FIGHT: Participants in the National Multiple Sclerosis Society’s Muckfest celebrate their efforts, which helped raise money to fight the disease.
Manheim St. Louis recently raised $2,527 for the National Multiple Sclerosis Society’s MuckFest, a mud and obstacle fun-run.
All of the proceeds go to the National MS Society.
The five-mile course features a gauntlet of muck-filled mazes, pits and craters with over 20 gigantic steel obstacles for participants to navigate.
The auction’s dealer services department played a big part in the fundraiser.
“When you fundraise on behalf of the National MS Society, you are helping others overcome obstacles, so that people living with MS can live full, active lives,” said Kelley Cofey, team captain and dealer services supervisor.
“We had a great time playing in the mud and we will be raising money again next year to help find a cure for this disease,” said Victor Ferlaino, the auction’s general manager. “It’s great to see such passion among our employees. Everyone was on board with a mission to make a diference, and they did.”
Sale Celebrates 29th Anniversary
BSCAmerica’s Tallahassee Auto Auction marked its 29th year in business with a sale that set records across the board.
“It was a fantastic day at Tallahassee Auto Auction from start to finish,” said General Manager Doug Rodriguez.
The June 28 sale drew more than 400 dealers in the auction lanes, with another 100 customers attending online. The auction also shattered the previous records set for numbers of cars consigned and sold. Featured remarketers at auction included ARI Fleet, PHH, EmKay Leasing, and SRG Remarketing; new-car franchises included Legacy
Following the sale, customers enjoyed putting for cash prizes. In addition, all buyers and sellers qualified for the grand prize giveaways: two travel packages to Florida’s St. George Island. We
jef@usedcarnews.com
Compiled By Jeffrey Bellant
Disconnected Jottings From Tony Moorby...
Detroit’s once proud and hard-nosed, gritty past has gone, as we know it. I always liked Detroit; for one thing it has some of the most beautiful buildings and architecture in the country. The suburban mansions of
the automobile oligarchy exude the prosperous – and sometimes pompous – Arts and Crafts movement’s best showings. Mock-Tudor timber-framed edifices at the apex of swooping driveways, long enough to test the fuel economy of the owners’ products, sit handsomely at the edge of the river in all the Grosse Pointe neighborhoods.
The downtown buildings equally show of the results of the highest income-percapita economy of the ‘60s and ‘70s. A city, reflective
of the chrome plate it was renowned for and built around the industries of the automobile, all the way from the River Rouge steel plant to makers of seat cushions, is now the equivalent of a salvage yard.
for it without going further into hock. Detroit’s $2 billion indebtedness is probably going to be dispersed at 10 cents on the dollar – that’s if proceedings are allowed to go forward as an appeal has been lodged to stop the filing. Someone’s going to have to pay – no cigar for guessing whom, in the long run!
some nodding to their past with bits and pieces of machinery now attached to a wall as “art moderne!”
Social movers and shakers are girding their charitable loins to help fund the regrowth along with corporations who see a social responsibility in hurrying things along.
New VW model being readied for the US for 2015
Italian sports car
Big name in Russian cars
Famous hybrid
Sun ____
Studebaker 60s coupe
Rolls 18. Part of a wheel
Customize
Perhaps as a non-resident, it’s unfair of me to make these comparisons, as surely there are pockets of well-healed neighborhoods resisting the push to financial collapse.
But Detroit’s filing for Chapter 9 bankruptcy is the biggest for a city in history and reflects the irony of dependency on social services and pensions. They can be no longer paid for from current incomes of the industries or the city. There’s inherently nothing wrong with debt – so long as you can pay
By Miles Mellor
How many other cities are in the same boat or close to it? Cleveland, Baltimore and others like it come to mind. The larger question maintains – ere go the whole country? I’ve quoted before that socialism can’t pay its way without the financial capacities of capitalism and I think we’re seeing that in its epitome.
All is not lost though. Americans are a resilient bunch so long as not too many are standing in the handout line.
Property developers, once considered the raptors of the financial world, are staring at the carcasses of hollow buildings and seeing opportunity for a potential feast. Trendy loft accommodations for residences as well as ofces are being refurbished and reassembled,
There’s a lot to do in the nine-mile square that used to house a population of 1.8 million people in Detroit. There are only 700,000 now so the tax base is thin, at best. Once the investment ball starts rolling and takes advantage of a proud workforce, much can be achieved in a short space of time.
One measure of success will be the popping up of natty and decent restaurants and cafes to feed the new society of hand-held device us-
ers who would shun the old bastions like The London Chop House - host to Henry Deuce – or the Pontchartrain Wine Cellars and, for the most part, will look for urban transport to get there and back, not a motor car; an ironic slap in the face or the realistic pointer to a future with an almost-blank canvass? The monorail might get people to actually use it!
I think Detroit will always be edgy and the old ethnic neighborhoods that make a city in this melting pot age should embrace the invitation to return with a broadbased, new age economy.
Detroit could signal the way to the future of electronics, carbon fiber, plastics and nanotechnology. All it takes is vision and commitment.
Oh, and money.
Holden ___, 70s GM car
Cadillac sedan
Italian car maker
Adjusted for better functioning (goes with 31 across) 30. Scratch the surface of
See 27 across
Sporty two-seater, _____ Alpine
Made in ____
Camaro rival
Owing
Loan interest (abbr)
Formerly known as
Bring back an antique car to its former glory
Luxury car now owned by BMW
Most produced Lamborghini
frst to market
Bentley Continental
Old Dodge
Sumptuous
Raleigh state
Car class
___ Romeo
Chassis metal
Demands
Compete with a rival
Luxury option from Kia
CX-9 is one of its models
CUV from Mitsubishi
Vital safety feature in a car (2 words)
That person
___ belt
Tony Moorby
CLASSIFIEDS
AUCTION BUYER. Flat fee purchasing. All cars checked for accident/damage. 17 years, Florida based but will travel. Licensed and bonded dealer. Global Auto Group Inc., 561-262-3008, STEKRA@AOL.COM
WHOLESALE BUYER -REP 30 yrs exp. Fl based. Will travel, references avail. Call Michael P. 954-445-6589
WHOLESALE BUYER - 15 yrs. exp. New England area. Will travel. Call Alex, 207-831-3030 or drivemaine@yahoo.com
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Fastest Growing Salvage Sale in FLORIDA FREE Breakfast 8:30 am
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(813) 247-1666 5109 Cone Road Tampa, FL33619
LOOKING FOR A NEW START? This is it. Frontline, pre-owned dealership for lease in Victoria, Texas, right in the middle of Houston, San Antonio, and Corpus Christi. Booming economy. Business is 27 years old, 7 in our new location. Looking to lease property and building, with option to buy down the road. Great conservative town. We have raised our children here and can’t think of anywhere better to live. No snow, except on rare occasions, great fishing, golfing, and the list goes on. Major companies have moved here, (Caterpillar) and more are coming. Time for me to semi-retire and visit grandkids. Visit our website, www.northpointautosales.com to see how we operate. Have dealt mostly in late model, low mileage vehicles, but would be great for BHPH, we are in the middle of 13 neighborhoods. Call 361-655-9191
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