Losses on both prime and subprime U.S. auto ABS rose in July following lows seen earlier in the spring, according to Fitch Ratings.
Auto ABS losses are likely to increase as the seasonally weak fall progresses. Dealers will begin discounting existing 2013 models to make way for new 2014 models, which typically impacts loss severity and drives loss rates higher.
AutoTrader.com Marks
Mobile Milestone
Over 2.1 million unique visitors interacted with AutoTrader. com from a smart phone during July, which represents a 60 percent increase year-overyear. AutoTrader.com’s mobile properties include a mobile site and a car shopping app for iPhone and Android phones.
Odd Designs Need Time To Catch on with Public
Consumers’ preferences for products with odd designs depend on how many times they viewed the product.
Auction Association Gathers in Indy
The National Auto Auction Association has hosted its convention at some of the top destinations in the United States, such as New York, Chicago and Orlando, Fla.
So what’s the deal with Indianapolis?
“There’s going to be a lot of people who are going to
be pleasantly surprised,” said NAAA president Paul Lips about his hometown. Indianapolis has long had much to ofer visitors. It is second only to Washington, D.C., in the number of war memorials, was named one of the best downtowns by Forbes and is home to one the top
sports venues in the nation – the Indianapolis Motor Speedway.
According to a recent USA Today article, Indianapolis ranks 27th on the list of Top 50 convention sites in the nation.
The JW Marriott hosting the NAAA is the largest hotel in the chain. It was built
for the 2012 Super Bowl. Lips recommends taking a stroll down to Massachusetts Avenue for attendees with free time.
Of course, there may be little of that.
The association has more educational sessions scheduled this year than ever before.
Regulators Look for Discrimination in Auto Finance
By Ted Craig
Several federal agencies are on the look out for discrimination in indirect auto lending.
Representatives of the Consumer Finance Protection Bureau, the Federal Reserve and the Justice Department spoke on a recent teleconference about the topic.
The CFPB’s Patrice Ficklin said while the many dealers are exempted from the regulator’s oversight, the finance companies are covered.
“(We) will use that authority wherever appropriate to ad-
dress discrimination,” Ficklin said.
All credit applications other than those for mortgages are barred from collecting demographic data.
But the feds said they will use proxies to look for patterns of discrimination.
The proxies include geo-coding, which looks for discrimination based on the number of minorities who live in a specific area. This is sometimes called “redlining.”
Regulators will also check databases for Hispanic last names and female first names for signs of discrimination.
Continued on page 16
Photo by Jeff Kowalsky
TEAM OF RIVALS: Outgoing NAAA President Paul Lips, left, and incoming President Jack Neshe show off their hometown colors. The Indianapolis Colts and New England Patriots might be fierce rivals, but the two ADESA execs are old friends. See more on page 8.
Young People Like Cars, But Don’t Drive, Buy Them
By Ed Fitzgerald
Isabelle Helms of AutoTrader.com knew her recent survey would tell plenty about the car buying habits of young people. And the most important question of all might be whether these “millennials” even care about cars.
The study, “Next Generation Car Buyer,” quizzed millennials ages 16-24 and 25-32, and compared their car shopping attitudes with Gen Xers (ages 33-47) and Baby Boomers (ages 44-66).
The study confirmed other data showing a car might not be a top priority with these young people.
Helms said in addition to delaying car purchases, 36 percent of young millennials are putting of getting a driver’s license.
“We learned quite a bit about these people, who are projected to be the wealthiest generation of all time,” said Helms, who is AutoTrader.com’s senior research and marketing director. “And cars are indeed important to a millennial
and central to their life.
“Many of them (23 percent) say they are simply too busy to drive,” Helms said.
“They are busy with school or overloaded with extracurricular activities. They are also referred to as the over-scheduled generation.”
The AutoTrader.com study showed that 19 percent of the millennials say they are afraid of driving and 15 percent say it’s too expensive.
Helms pointed out that the millennials who live at home might have parents who both work, which would mean at least two vehicles are already in the household.
The study also shows millennials have a somewhat conflicting attitude when it comes to salespeople and dealerships.
The study showed that millennials are more likely than Gen Xers or boomers to visit dealer lots multiple times before making a purchase. Also, 49 percent of millennials say they rely heavily on a salesperson for information, compared to 38 percent of boomers.
But 56 percent of millenni-
als say they are more likely to go out of their way to avoid interacting with salespeople for fear of high-pressure sales tactics. Only 37 percent of boomers said the same.
“They (millennials) said they thought a dealer might try to sell them a service they didn’t want, like an extended warranty,” Helms said.
When it comes to particular brands of cars, the mil-
lennials show their eyes are often bigger than their stomachs.
Both groups of millennials list Audi as their favorite brand. But when it comes time to buy a car, the millennials are much more practical, with Honda, Ford, Toyota and Chevrolet topping the list of cars purchased.
Helms said brand was also important to the millennials
who said they were likely to be shopping for a used car.
The study did not ask specifically about used cars. It also did not ask where the respondents lived, which would increase their likelihood of using mass transit.
The millennials surveyed also say they are more reliant on word-of-mouth information on cars, which includes social networking.
Photo by Ed Fitzgerald
LOOKING FORWARD : Isabelle Helms of AutoTrader.com speaks to reporters at the Automotive Press Association lunch in Detroit. Helms shared recent studies on young buyers.
NEWS BRIEFS
CPS Sees Earnings Jump
Consumer Portfolio Services Inc. announced earnings of $4.8 million for its second quarter.
This compares to net income of $1.3 million in the second quarter of 2012.
Revenues for the second quarter of 2013 were $70.5 million, an increase of $26.3 million, to $44.2 million for the second quarter of 2012.
Total operating expenses for the second quarter were $61.9 million, compared to $42.8 million for the 2012 period.
During the second quarter of 2013, CPS purchased $203.8 million of new contracts compared to $180.1 million during the first quarter of 2013 and $137.9 million during the second quarter of 2012..
Another States Switches to Electronic Titles and Liens
VINtek reports that it assisted with the passage of electronic lien and title legislation in North Carolina.
Senate Bill 407, signed by Governor Pat McCrory on July 23, requires the North Carolina Division of Motor Vehicles to implement an ELT program by July 1, 2014.
Within a year of implementation, banks, credit unions and other automotive lenders in the state will begin to replace their paper-based
liens with an electronic exchange of data with the NC DMV.
Website Offers Subscription Service
EBay Motors announced the launch of a national subscription program for dealers, which enables small and mid-size dealerships to reach millions of car shoppers across the nation for a fixed rate.
With the subscription program, dealers can leverage a consistent monthly online sales channel, complete with dedicated account support and in-depth reporting.
Services include advanced seller tools, detailed reporting and dedicated one-on-one account onboarding and support
NAAA Sets Date for Policy
The National Auto Auction Association has set a date for its new arbitration policies.
NAAA Chief Executive Ofcer Frank Hackett announced changes to the arbitration and structural damage policies will now take efect Oct. 13. Since this is the first time
these policies have been updated since Jan. 1, 2011, additional time is needed for new arbitration and structural damage posters and materials to reach all member auctions.
PAR Acquires Remarketer
ADESA announced that its subsidiary, PAR North America, has acquired Auto Depot Remarketing.
Located in Fontana, Calif., Auto Depot Remarketing works with several credit unions, regional banks and finance companies.
The acquisition will allow PAR to ofer repossession, skip and title services to ADR’s client base.
PAR will retain key members of
the ADR management group and plan to begin integration of the two companies shortly.
Auction Edge Adds Liquid Motors
Auction Edge has integrated Liquid Motors capabilities into the Auction Edge platform.
Auction Edge will now ofer “EDGE Multi-List,” a custom version of Liquid Motors “One Click Remarketing,” to its customers.
Edge Multi-List pushes inventory to all of the major online marketplaces. If a bid meets reserve or the vehicle sells with a buy now or accepted ofer, the system will automatically remove the listing.
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
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.
the Conversation! Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be taken directly to the website.
NICB Expands ‘Hot’ List
The National Insurance Crime Bureau released an expanded, data-rich version of its popular Hot Wheels report - its list of the 10 most stolen vehicles in the United States.
The report examines vehicle theft data submitted by law enforcement to the National Crime Information Center and determines the vehicle make, model and model year most reported stolen in 2012.
A first-edition feature is also contained in the report: a look at the Top 25 2012 vehicle makes and models that were reported stolen in calendar year 2012.
In previous Hot Wheels reports, rankings were determined based on the most stolen model year vehicle within each vehicle make and model. Only one make/model/year would appear on the Top 10 list, even though other model years of the same vehicle would have earned a position on the list.
This was done to ofer a more varied list with significant theft numbers than to focus on just one or two makes year after year.
Beginning with this report, the Top 10 most stolen will appear by make and model only with its corresponding theft total. Beneath the make and model will appear its various model years with their corresponding theft totals for 2012.
For 2012, the most stolen vehicles
in the nation were (total thefts in parentheses):
Honda Accord - (58,596)
Honda Civic - (47,037)
Ford Pickup - (Full Size) - (26,770)
Chevrolet Pickup (Full Size)(23,745)
Toyota Camry - (16,251)
Dodge Caravan - (11,799)
Dodge Pickup (Full Size) - (11,755)
Acura Integra (9,555)
Nissan Altima (9,169)
Nissan Maxima - (6,947)
Older Honda Accords and Civics were by far the most stolen models in 2012. The 1996 Accord led the list with 8,637 thefts. In fact, Accords and Civics account for the first 16 spots on the most stolen list and all are 19902000 models. By comparison, newer Hondas are rarely stolen, thanks to improved anti-theft technology.
The new feature in Hot Wheels this year is the addition of a list of the top 25 model year 2012 vehicles that were most stolen in calendar year 2012. The Top 10 on this list are:
Nissan Altima - (921)
Chevrolet Impala - (778)
Chevrolet Malibu - (727)
Toyota Camry - (665)
Ford Fusion - (655)
Ford Pickup Full Size - (595)
Ford Focus - (523)
Chrysler 200 - (449)
Dodge Charger - (416)
Dodge Avenger - (412)
New Car Dealers Team with Carfax
An agreement to give used car shoppers on DriveChicago.com access to Carfax Vehicle History Reports has been reached by the Chicago Automobile Trade Association (CATA) and Carfax. In addition, the CATA is working with Carfax to provide Carfax Vehicle History Reports to its dealer members through a unique CATA subscription.
Kicking of this partnership
is a 90-day campaign providing no-charge Carfax Vehicle History Reports to DriveChicago.com site visitors on nearly every used vehicle listed.
This campaign will run through November.
A part of the agreement, the companies also will promote the availability of Carfax Reports on DriveChicago.com.
GONE IN 60 SECONDS: The Nissan Altima is starting to pass Honda in a competition it would rather avoid – most stolen car. According to the National Insurance Crime Bureau, thieves are starting to avoid Hondas due to improved anti-theft technology.
State Passes Odometer Law
would keep coming back “session after session after session” to get
Another law passed requires that dealers renewing their licenses after Jan. 31, 2014 must take four hours of continuing education per year, according
The state also passed a law that allows local governments to set maximum towing rates and create a complaint process to draw public input and get feedback.
“Predator towing companies pay their employees on commission, which gives them a perverse incentive to tow as many cars as possible – sometimes illegally,” said Senator Mark Hass
This might have an effect on customers of buy-here, pay-here dealers, who might get their cars towed but don’t have the money
If they walk away, the dealer is stuck with the bill if he wants the
House Bill 3159C allows cities with a population of over 15,000 to regulate towing companies by requiring these companies to obtain an annual license and to establish caps on the amounts that towing companies can charge car owners to recover their vehicle.
The bill also allows cities to set up a process to receive and respond to complaints from car owners regarding towing
Under HB 3159C, areas outside of these larger cities may also regulate towing companies, either through the jurisdiction of the
“Towing companies charge obscene fees to people just trying to get their car back. A hook up fee, a gate fee, a storage fee, a parking brake fee – it’s outrageous and just plain wrong,” said Senator Jackie Dingfelder (D-Portland).
Bus Bench Ad Angers Officials
DES MOINES, Iowa (AP) – The general manager of Des Moines’ transit system wants the city to ban advertisements on bus stop benches that encourage people to buy a vehicle rather than ride the bus.
Elizabeth Presutti of the Des Moines Area Regional Transit Authority asked ofcials in a letter last month to update city code to ensure future advertisements don’t send a conflicting message about riding the bus, The Des Moines Register reported. She requested the city prohibit anti-transit advertising similar to how it doesn’t allow the marketing of alcohol and night clubs.
be sending,” Presutti said in the letter. “Not only does it discourage transit use, it also reinforces a false stereotype that transit riders are made up entirely of those who can’t aford a car.”’
A spokeswoman for J.D. Byrider, which has nearly 150 dealerships in 30 states, told The Associated Press that the company has used transit advertisements in other markets without any issue. However, the company could not specify whether those advertisements also included the marketing question of why someone would use the bus.
The newspaper reported that
“This is not a message we should be sending.”
Elizabeth Presutti
“We unintentionally cloud such important messages by simultaneously allowing these anti-transit ads in the public right-of-way,” she wrote to City Manager Rick Clark.
Presutti’s letter was in response to several bus stop bench advertisements by J.D. Byrider, a usedcar dealership franchise based in Indiana. The advertisements read: “Why ride the bus? You can drive with us!”
“This is not a message we should
some of the advertisements have been taken down since Presutti’s letter was sent in July.
The issue was discussed at a City County meeting, and City Councilwoman Christine Hensley said she would look into it.
“Our tax dollars are paying for public transit and we have an ad on our bus benches encouraging people to buy a car instead of ride the bus. To me, that’s not right,” she said.
PAGE 8 - NAAA CONVENTION
Incoming President Wants to Hear from Industry
(Jack Neshe is the incoming president of the National Auto Auction Association. Neshe is the general manager of ADESA Boston.)
UCN: What’s your background?
Neshe: I worked at a franchise dealer from 1980 to 1990. One day, the used-car manager asked me to go to the auction to bring a vehicle back to the store. I saw the excitement there and decided that’s where I wanted to be.
A mutual friend of Tom Caruso and mine put us together. Tom was looking for a manager of the mechanical shop.
I started working at Concord Auto Auction in January 1990 and I’ve been in the business every since.
UCN: So was seeing Tom become NAAA president what inspired you to get on the same path?
Neshe: Tom said being NAAA president was a great experience and that I should get involved with the association.
I had been on the board of the Massachusetts Independent Automobile Dealers Association. I joined the NAAA’s membership committee and the legislative committee. They were great groups
of people and I had the opportunity to make a lot of new friends.
Then I became president of the Eastern Zone. Following that the opportunity arose to become president of the national association. It’s been such a rewarding experience and the support has been tremendous.
UCN: What has been the biggest eye-opener for you as you visit the auctions?
Neshe: It really gave me a chance to see how other auctions work and talk over industry issues with the other general managers.
We’re all competitors, but we all go through the same
things. It allows us to bring some ideas back and improve on the processes.
That’s one of my goals as president – to open up the lines of communication and see what we can do to help the industry.
UCN: What are your other goals as president?
Neshe: The auction standards are going to be really important as online sales grow every day. I’d like to ofer more opportunities to provide training for the independent auctions in those standards.
UCN: Every president seems to say it takes more than a year to get anything done.
Neshe: That’s true. You think about things you’d like to do and then the year just flies by. But I hope to get a few things done in the next year.
Continued on page 10
The Institute has been fantastic. We’re working with the Ritz-Carlton for the next session. The revised arbitration policy is going to give dealers more confidence in the lanes. I hope to continue to grow on what the past presidents have put in place and leave something that others can use after me.
Outgoing President Reflects on Well-Traveled Tenure
(Paul Lips is the outgoing president of the National Auto Auction Association. Lips is ADESA’s executive vice president of operations and finance.)
UCN: How was your year as president?
Lips: It was a great year. It was a very rewarding experience.
I set a goal to visit 50 auctions in the year and then we upped that to 65 in honor of the NAAA’s anniversary. The year flew by because it was so busy. It was really nice to walk
S eptember 2 , 2013
into some of the auctions.
The employees would get really excited and say, “Nobody from NAAA has ever visited us before.” They rolled out the red carpet.
It was also a year of accomplishments. We have the new arbitration policy that’s coming out, a new structural damage policy that will be in place soon, and we’re making progress on standard grading.
We continue the good work Charlotte (Pyle, the NAAA chairman of the board) started with the po -
litical action committee and the Day on the Hill, as well as the leadership initiative.
UCN: It’s unusual to have two presidents from the same company back-toback. How well did you know each other before this?
Lips: We knew each other pretty well.
One of my first trips for ADESA was to Boston. We’ve known each other
for almost 17 years now. Boston was always a location where we hosted analyst meetings.
UCN: What will you take away from your time as NAAA president?
Lips: Having been in this position, you get feedback from other auctions, feedback from customers. You really learn how complex our industry is and how we can work together.
Photos by Jeff Kowalsky
ON THE ROAD AGAIN: Paul Lips, left, and Jack Neshe joke around during a stop in Detroit. The pair have visited 65 auctions in the past year to celebrate the National Auto Auction Association’s 65th anniversary. Neshe, who started in the car business at a new-car store, wants
member auctions.
NAAA President
UCN: Is there anything in Washington, D.C., that you’re keeping an eye on?
Neshe: A few things have come up, but nothing that’s afected the industry yet. It’s going to be very important to watch out for bills that will afect the industry. I had the chance to attend the Day on the Hill for the first time this year. It’s very eye opening.
UCN: Is there a way for the NAAA to work more with the dealers?
Neshe: A lot of dealers attend our auctions and see the logo, but they don’t really know what the NAAA is. I’d really like to promote the benefits of doing business with an NAAA member.
- Continue from page 8
UCN: How do you get more auction executives involved with the NAAA?
Neshe: One way is through the site visits we’ve been making. People have told us they want to get more involved, so we set them up on some of the committees. Frank and the NAAA staf have been putting more information on the website than ever. We’re seeing a lot of interest.
UCN: Is there a theme for this year?
Neshe: With the NAAA anniversary coming up, our theme is “The Symbol of a Quality Auction.” We’re going to have a new logo that reflects that theme.
Fleet Firm Moves into New Office
Fleet remarketer FLD Inc. has relocated its corporate ofces.
FLD’s new ofce is now located at 1515 N. Congress Ave. in Delray Beach, Fla.
Measuring at more than 6,600 square feet, the new ofce brings all departments under one roof, allowing for increased efciencies and a better customer service experience for clients.
The new space will allow FLD to continue expanding into the title registration and warehousing segment of the fleet remarketing industry, bringing greater value to the company’s growing customer base. In addition to the Delray Beach location, FLD also has ofces in Baltimore, Denver, Los Angeles, Philadelphia, the Metro DC Area, and Richmond, Va.
CONGRATULATIONS
Marc Ray General Sales Manager/Partner, Grogan’s Towne Chrysler Jeep Dodge Ram
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Dealer Claims Phantom Classics
A classic car dealer in Texas has been sentenced to prison for bank fraud and money laundering.
statements and income tax returns to financial institutions to secure credit for himself and his dealership.
Ricky Prince pleaded guilty in 2012 to bank fraud and money laundering and was sentenced to 36 months in federal prison on Aug. 13. Prince was also ordered to pay restitution in the amount of nearly $1.5 million.
According to information presented in court, from March 2007 to August 2010, Prince owned and operated North Texas Muscle Cars Inc., specializing in antique automobile sales, in McKinney, Texas. During this time, Prince submitted materially false personal finance
To further the scheme, Prince included antique automobiles such as a 1963 Chevrolet Corvette, a 1974 Pantera Detomasoy, a 1967 Chevrolet Chevelle and a 1938 Ford Custom Street Rod, that were never purchased.
As a result of the fraudulent activity, the financial institutions incurred actual losses totaling approximately $1.4 million.
Prince was ordered to report to prison on Sept. 27 to begin serving his sentence.
Sirius XM Launches New Program
Sirius XM Radio announced the launch of Service Lane, its new program that provides a complimentary 2-month SiriusXM subscription to qualifying customers who have their satellite radio-equipped vehicles serviced at participating auto dealerships.
most of the nation’s top franchise dealer groups. Now SiriusXM and participating dealerships are able to reach many more satellite equipped vehicle owners, who otherwise may not have had the opportunity to fully experience a SiriusXM trial subscription.
Service Lane builds on the success of the SiriusXM Pre-Owned Vehicle program, which has surpassed 10,000 participating dealers across the country and includes
Dealers interested in enrolling in the Service Lane Program or the SiriusXM Pre-Owned Vehicle Program can sign up at no cost at www. siriusxmdealerprograms.com.
TUESDAYS
WEDNESDAYS
THURSDAY
FRIDAY
Fast Track Your Cash
Feds Take Funds in Forfeiture
By Sheila McGrath
An Albuquerque, N.M., used-car dealer lost nearly $842,000 from his bank accounts after federal prosecutors filed a forfeiture action against him early this year.
Prosecutors say he broke the law by structuring his bank deposits to avoid triggering Currency Transaction Reports, which banks are required to file whenever a transaction exceeds $10,000.
But the dealer, Reza Ella, a naturalized U.S. citizen from Iran, says he has done nothing wrong and is being targeted because he is Iranian.
CTRs are a tool designed to combat money laundering, drug dealing and terrorist activities. If an individual intentionally structures large transactions to avoid triggering the reports – by breaking deposits into smaller amounts or depositing them in diferent banks on the same day – federal rules provide for the seizure of the funds connected to the violation.
In 2007, the FBI seized nearly $490,000 from his bank accounts, alleging he structured his withdrawals to evade reporting requirements. But nearly all of that money was returned to him in a settlement of the claim.
Ella told the Journal that the only reason he settled in 2007 instead of going to trial was so he could get back to running Discount Auto Sales, the used-car dealership he has been operating for 23 years. And, he said, he thought settling would mean an end to his troubles.
The U.S. Attorney’s Ofce in Albuquerque filed the most recent action in January, claiming that from Sept. 19, 2011 to July 3, 2012, Ella and his employees made 223 structured cash deposits totaling more than $1.7 million into three diferent Albuquerque banks.
“Of the approximately 223 cash deposits, 37 were same day deposits at two banks totaling over $10,000 per day,” the complaint states.
General Manager John Puhl, ext.230 Offce Manager Kathy Cramer, ext.226
Sale Day Information: Every Thursday at 4:30pm. 500+ weekly consignments in 4 lanes. Specializing in new car dealer trades. Restaurant and transportation lot.
Ella told the Albuquerque Journal that he started getting visits from federal agents around the time of the 9/11 attacks. Shortly thereafter, the Internal Revenue Service began questioning him about his business practices.
General Manager Joe Killory, ext.112 Offce Manager Tara Napier, ext.135 SmartAuction Ed Murphy, ext.113
Sale Day Information:
Every Tuesday at 2pm, 2000+ consignments every week, ALLY Auto Remarketing & SmartLane at 3pm in lane six and online. GSA Sale, second Tuesday of every month. Sell inventory all week long with SmartAuction. Online sales at www. auctionpipeline.com.
“Based on the Homeland Security Investigators’ investigation, it does not appear that Discount Auto Sales, a small car dealership, generates sufcient vehicle sales to account for the cash deposits,” the complaint says.
General Manager Richard Galway Offce Manager Dawn Hensley
Sale Day Information:
Every Wednesday at 5pm. 500+ weekly consignments specializing in new car dealer trades.
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Regulators
– Continued from page 1
Some creditors claim they cannot control actions by the dealers they work with. The regulators said they would not accept that defense.
“Lenders should not assume they are only liable when they have
a way of getting compensated by the finance companies. Ficklin said creditors could avoid these problems by compensating dealers in other ways, such as a flat fee structure.
“Dealer compensation is not the problem.”
Patrice Ficklin
actual knowledge of discrimination by a particular dealer,” Ficklin said. They should also not assume that discrimination is limited to favoring whites over other groups.
Coty Montag of the Justice Department used the example of Nara Bank, a lender that was sued for giving better rates to Asian borrowers. Ficklin said the problem arises from dealerships setting rates as
“Dealer compensation is not the problem,” she said. “Only one particular method of compensation out of several creates fair lending risk.”
While many dealers are outside the CFPB’s direct scope, buy-here, pay-here dealers fall entirely in the Bureau’s oversight. As a result, Ficklin said the CFPB is also looking for possible discrimination by dealers who do their own financing.
Can someone, for the love of profitability, tell me how to turn more of my subprime apps into cash?
Social Media Influences Buying
Consumers are driving the changes in the car buying experience and automakers are adjusting their marketing strategies to influence the decision-making process.
According to PwC’s Autofacts Analyst Note for August, automakers are investing in new social media and digital campaigns to launch vehicles and engage the next generation of consumers.
apps to enhance the driving experience. Each factor is connected to the car buying experience, ultimately molding the strategies of OEMs’ marketing programs.
While automotive manufacturers may still need some convincing about the benefits of using readily available information from social media, engagement in these channels is driving change in the automotive industry.
Three underlying consumer trends that are creating opportunities for innovation and driving change in automotive retail include:
Millennials, defined as 18 to 30 year olds, make up 40 percent of the total available car buying population, contributing $200 billion to the US economy annually.
The acceleration of social media usage, with 70 percent of consumers using social media to learn about other customer experiences when making car-buying decisions.
Proliferation of connected mobile devices, such as smart phones, provides integration and connectivity for OEMs to develop cross-platform
Automotive companies can leverage available data through social media channels in varying stages of the “social engagement journey,” by one-way communication, and also by utilizing the feedback from consumers to customize their marketing strategies. According to a recent PwC survey, consumers are more likely to recommend a product after following the brand on Twitter. Specifically, 69 percent of consumers share their negative experience with others through social media, and 40 percent of consumers value the option to shop across multiple channels, such as web, mobile and in-store.
Automotive selling has transitioned from one-way sales to a twoway digital platform. Buyer expectations continue to drive toward flexibility and accessible purchasing options. OEMs should embrace the benefits of a strong social media presence and utilize the on-going dialogue of their brand and products to better understand consumer sentiment to adjust their marketing strategies and help drive revenue growth.
Car-Mart Revenues, Income Up
America’s Car-Mart Inc. recently announced net income of $7.5 million on revenues of $123 million.
Same store revenue increased 5.6 percent.
“Even though our revenues were up, we feel like we could have done even better as we believe that increased funding to the subprime auto industry continues to have a negative efect on our business especially on the provision for credit losses line,” said America’s CarMart CEO William H. (“Hank”) Henderson.
“We believe that many companies that are competing for our customers on the funding side are not focused on earning repeat business tied to customer success. We believe that by helping our customers successfully complete the terms of their contracts, which has always been and will always be our primary focus, we will continue to fulfill our vision of being the most respected buy-here-pay-here organization in the country.”
Retail unit sales increased 9 percent to 10,643 from 9,753 for the prior year quarter with productivity increasing to 28.4 retail units sold per store per month from 28.3 for prior year quarter.
Average retail sales price increased $252 to $9,836, or 2.6 per-
cent, from the prior year quarter and decreased $127, or 1.3 percent, from the prior quarter.
Net charge-ofs as a percent of average finance receivables were 6.2 percent, up from 5.9 percent for prior year quarter.
Provision for credit losses was 24.3 percent of sales vs. 22 percent for prior year quarter.
Selling, general and administrative expenses were 18 percent of sales vs. 18.2 percent for prior year quarter.
The chain opened two new dealerships during the quarter. The dealership count now stands at 126.
The active accounts base is now over 59,000.
Debt to equity is 47.3 percent and debt to finance receivables is 26.2 percent.
Allowance for credit losses stood at 21.5 percent of finance receivables at July 31.
“Our provision for credit losses is certainly higher than we would like but our expected cash on cash returns continue to be very attractive even with the higher credit loss amounts,” said Jef Williams, chief financial ofcer of America’s CarMart.
Contract lengths extended to an average of 29.5 months up from 28.1 at this time last year.
Chase is Your Source for Quality, Value and Selection
When you’re searching for a broad selection of clean, pre-owned vehicles your customers want, when and where you want them, look to an industry leader. Look to Chase.
A wide variety of vehicles — from economy to luxury
Convenient online and in-lane vehicle availability with on-site Chase remarketers
Choose Chase on:
1The tradename “Subaru Motors Finance” and the Subaru logo are owned/licensed by Subaru of America, Inc. and are licensed to Chase Bank USA, N.A. (”Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”). Retail/Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase.
2Jaguar, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar and any use by JPMorgan Chase Bank, N.A. (“Chase”) is under license. Land Rover, the Land Rover logo, and Land Rover Financial Group are trademarks of Land Rover and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase.
3The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to JPMorgan Chase Bank, N.A. (“Chase”).
Retail / Loan and lease accounts are owned by Chase.
Thumbtack.com, in partnership with the Ewing Marion Kaufman Foundation, has released the results from the second annual Thumbtack.com Small Business Survey.
The study, drawing upon data from over 7,000 small business owners, provides new insights into state and local business environments across the nation.
Professional licensing requirements were 30 percent more important than taxes in determining a state’s overall business-friendliness, confirming the findings from last year’s study. Furthermore, this year’s research revealed that 40 percent of U.S. small businesses are subject to licensing regulations by
multiple jurisdictions or levels of government.
Utah was the top rated state, and Austin, Texas, was the top rated city. At the other end of the spectrum, Rhode Island and Newark, N.J., were the lowest rated state and city.
The ease of obtaining health insurance was an important factor for many businesses. One-third of small business owners rated obtaining and keeping health insurance as “Very Difcult,” versus only 6 percent who rated it “Very Easy.”
Small businesses were relatively unconcerned with tax rates. More than half of small business owners felt they pay about the right share of taxes.
More Consumers Approved for Credit
Swapalease.com reports increases this year for customer credit approval on lease transactions through the end of July.
According to website data, total year-to-date credit approvals were 75.6 percent through July, up from 73.9 percent through the end of June and the highest cumulative average recorded so far this year.
Historical data show that 70 percent approval is considered healthy for the online car lease marketplace,
which matches a person looking to exit a vehicle with a car shopper looking to take over a short-term lease. Approvals have continually increased since 2011, and the current 75.6 percent approval rate compares to 61.6 percent year-todate approvals through July 2012. In July approvals, 80.6 percent of Swapalease transactions were approved by the incoming bank. That’s the second best month this year, behind only May’s 88 percent.
Enjoy purchasing vehicles in-lane or online
THURSDAYS
6 Lanes - 1200 cars
INOP/Oversized/Motorsport Sale: 9:15am
Consignment & Fleet/Lease Sale: 10:00am
Auto Auction of New England 8 Action Boulevard Londonderry, NH 03053 ph. 603-437-5700 fax. 603-437-5800 www.aane.com
Feds Unveil Recall Database
DETROIT (AP) – Starting next summer, U.S. consumers will be able to search a giant database to find out if their cars or motorcycles have been recalled and if the vehicles have been fixed.
Only about 70 percent of recalled vehicles are taken to dealers for repairs, leaving thousands of cars on the road with potentially critical safety flaws.
The database will let car owners search for free to see if they missed a recall notice, and used car shoppers will be able to see if all recall work has been done on cars they want to buy.
The National Highway Trafc Safety Administration, the agency that regulates auto safety, said that it would require major auto and motorcycle makers to give customers online access to data so it can be searched by vehicle identification number.
The searches will give people “peace of mind knowing that the vehicle they own, or that they are thinking of buying, is safe,’’ NHTSA Administrator David Strickland said in a statement.
Currently, automakers search state registration data to find owners of vehicles that are being recalled and notify them by mail.
Some automakers, such as Ford Motor Co., already ofer the database searches.
Those that don’t will have to make the data available by Aug. 14 of next year, NHTSA said in a statement. People also will be able to access the data through NHTSA’s website, www.safercar.gov, which will have secure connections to the manufacturers’ systems.
Customers will be able to go to NHTSA’s website and key in a vehicle identification number.
NHTSA plans to develop an app to allow for searches on mobile devices, the agency said.
Currently, people can search
NHTSA’s database by company, model and model year to find out if cars have been recalled. But they can’t find out if the repairs have been done on a particular vehicle.
Manufacturers will be required to update their recall data at least once per week, NHTSA said.
NHTSA said its rule on the databases also requires manufacturers to tell the agency about each car’s propulsion system and safety technologies.
The agency says this will help it spot problems with the systems. Also under the rule, auto and motorcycle makers will have to notify owners about a recall within 60 days of telling NHTSA of the recall, the agency said.
In other recall news, Hyundai is recalling 239,000 model year 200610 Sonata vehicles manufactured March 1, 2005 through Jan. 21, 2010; and model year 2006-11 Azera vehicles manufactured Sept. 27, 2005 through Nov. 22, 2010 originally sold in, or currently registered in, Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and the District of Columbia.
Road salt and water can enter portions of the rear cross member, leading to corrosion of the cross member steel. This may lead to detachment of one of the rear control arms.
Control arm separation may suddenly change the rear wheel alignment, afecting the handling of the vehicle, increasing the risk of a crash.
Hyundai will notify owners, and dealers will repair or replace the cross member assembly. The recall is expected to begin by the end of September.
Hyundai’s recall number is 113.
“ We Don’t Just Build Solutions, We Build Relationships ”
Solutions Built on Relationships .
At Spireon, our customers come frst. Which might explain why Paul Rosenthal, Vice President of Sales for Spireon’s Automotive Solutions Group, took a personal interest in helping Jim and Renee at Preferred Funding. “GoldStar GPS has been helping us win for over 5 years. In my business, people make the difference and Paul and the GoldStar team are always there when I need them.”
– Jim Willis, President of Preferred Funding.
With over 25 years industry experience, Paul has continued to build long-standing relationships with automotive dealers and lenders nationwide by setting the Gold Standard in service and quality. More automotive lenders and dealers have chosen GoldStar GPS over any other tracking system. We keep working hard to earn your trust and your business, with innovative technology that meets your evolving needs and through giving you the support and service you deserve.
Join our family: GoldStarGPS.com/Family
— Paul Rosenthal, Vice President of Sales – Automotive Solutions Group
Auto Manufacturers Fail to Satisfy Car Shoppers
Automakers are not pleasing customers as much as they did a year ago, although pent-up demand is pushing strong sales, according to a report released by the American Customer Satisfaction Index (ACSI).
Customer satisfaction with automobiles and light vehicles declines to an ACSI benchmark of 83 on a 0 to 100 scale, following back-to-back years of improvement.
The slide in customer satisfaction for autos comes at a time when sales of both domestic and import brands are surging. The industry’s sales growth is most likely due to pent-up demand, along with inexpensive financing and the return of dealer incentives.
The ACSI’s 2013 Auto Industry report covers customer satisfaction with 20 nameplates—both foreign and domestic—which comprise some of the most popular brands bought by U.S. consumers.
The erosion in customer satisfaction for autos impacts domestics as well as imports. Overall, only 26 percent of the individual nameplates improve, while 53 percent decline and 21 percent remain unchanged.
Among Asian vehicles, three of nine show decreases. Likewise, two
of three European brands drop. On the domestic side, five of eight nameplates are down compared to a year ago.
Although the drop in customer satisfaction afects most automakers, Detroit is losing ground to imports.
The customer satisfaction gap relative to imports is now the widest in five years. As recently as 2010, Asian and domestic carmakers were tied for customer satisfaction, but the Asian group has reestablished a significant advantage.
Of the eight nameplates above the industry average, only two are domestic (Cadillac and GMC), while the three bottom entries are all domestic (Jeep, Dodge, and Chevrolet). While domestic automakers reported strong sales for July, the aggregate of the Big Three’s market share has shrunk slightly since 2011 and remains below pre-recession levels.
As in previous years, luxury brands have the upper hand when it comes to pleasing customers in 2013. Mercedes-Benz captures the industry lead, jumping to an ACSI benchmark of 88.
Toyota’s Lexus brand slips but retains second place at 87, followed closely by three cars at 86—Subaru,
Toyota, and an improved Honda. GMC rises to 85, tying luxury plate Cadillac. Volkswagen dips slightly, but still exceeds the industry average at 84.
Honda’s upscale brand Acura enters the ACSI at 83, equaling the industry average, but a far cry from Toyota’s upscale Lexus nameplate.
The Ford nameplate ties Acura with an unchanged score of 83.
Several vehicles cluster a point lower at 82. Kia and Mazda are flat compared with the prior year,
while Buick, BMW, and Hyundai show declines.
Both GM and Chrysler show mixed results in 2013, with two of three brands sufering downturns in customer satisfaction.
For GM, both Buick and Chevrolet drop compared to the prior year. The loss for Chevrolet places it in a tie for last with Chrysler’s Dodge, down to 79.
Chrysler’s Jeep retreats as well, down to 80, but the Chrysler nameplate rebounds to 83.
FALL TR UCK SALE
Auto Expenses Vary by State
Where a consumer lives can greatly afect their auto expenses, a pair of new studies show.
Georgia is the most expensive state to operate a motor vehicle and Oregon is the cheapest, according to a new Bankrate.com report.
Bankrate factored in the costs of gasoline, insurance, repairs, taxes and fees.
In Georgia, a typical driver spends $4,233 per year to operate his or her vehicle.
That is almost double the cost in Oregon ($2,204).
The national average for the cost of operating a vehicle was $3,201.
Georgians’ long commutes lead to above-average gasoline costs and insurance rates.
And Georgia has the highest state automobile taxes and fees in the nation.
Oregonians benefit from the absence of a state sales tax as well as relatively low car insurance costs. Plus, the typical Beaver State resident drives 16 percent fewer miles than the national average.
California ($3,966), Wyoming ($3,938), Rhode Island ($3,913) and Nevada ($3,886) round out the five most expensive states.
Alaska ($2,227), South Dakota ($2,343), Montana ($2,660) and Indiana ($2,698) join Oregon among
the five cheapest states.
Meanwhile, a new GoBankingRates.com study finds the West Coast boasting lower auto loan rates overall, while the North East ended up with the majority of states with rates of 4.01 percent and higher.
Although the average interest rate for a new vehicle is 3.65 percent APR nationwide, state averages varied from a low of 3.03 percent in Michigan to a high of 5.11 percent in Rhode Island.
The states with the lowest average auto loan rates ranked as follows: Michigan, 3.03 percent; Oregon,3.04 percent; Alaska, 3.04 percent; New Hampshire, 3.08 percent; South Carolina, 3.15 percent; Vermont, 3.17 percent; Oklahoma, 3.23 percent; Utah, 3.28 percent; Washington, 3.29 percent; and North Carolina, 3.31 percent.
The states with the worst average auto loan rates were: Rhode Island, Connecticut, New Jersey, Massachusetts, Louisiana, West Virginia, Delaware, Mississippi, Pennsylvania and Virginia.
The best auto loan rates in the country come from Californiabased Burbank City Federal Credit Union and Oregon-based First Community Credit Union, which ofer a 0.99 percent APR base rate for 36-month terms.
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’ team of professional automotive remarketers.
The milestone vehicle was sold at Manheim Chicago and the seller was the Chicago-based Turner Acceptance Corporation, a longtime Remarketing by GE customer.
“GE’s expertise in vehicle asset disposition has allowed us to remain focused on our core business: lending to and serving our customers,” said Jonathon Levin, president of Turner Acceptance Corp. “We truly appreciate the relationship we have with GE Capital Fleet Services, both locally and across the country.”
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.
RouteOne Enhances ID Verification
RouteOne LLC and National Credit Center announced that they will integrate to ofer identity verification and authentication services to help auto dealers streamline and improve their compliance eforts.
These services enhance RouteOne’s current compliance ofering, and are delivered through its IDOne product.
Dealers using the service will be able to verify applicant information across multiple data sources simul-
taneously with one mouse-click, including an Ofce of Foreign Assets Control check.
If an alert is identified, dealers can then quickly administer an “out-ofwallet” risk-based quiz conveniently from the same system as another method to confirm identity.
In addition to verification, IDOne provides an audit trail to ensure compliance, and works seamlessly with RouteOne’s credit application system to eliminate duplicate data entry and the potential for error.
TrueCar has hired Alison Sternberg as vice president of investor relations and administration.
Sternberg will manage investor relations and serve as the conduit for all investor communication with TrueCar in the newly created position.
She will also develop the company’s administrative functions, working closely with TrueCar’s administrative support team, as well as handle special projects.
Sternberg joins TrueCar from Modular Wind Energy (a venturebacked clean technology company), where she was chief of staf to the CEO.
Prior to that, she was the business unit manager for the Los Angeles private wealth business at Goldman Sachs after working two years for an executive search firm Sternberg also worked at Ares Management across a range of human capital, investor relations and administrative functions.
“TrueCar is revolutionizing automotive retail to improve the carbuying experience for buyers and sellers,” Sternberg said. “Investors have already taken notice of the company, and I’m looking forward to the opportunity to work with TrueCar’s current and future investors to continue to keep the compa-
ny moving forward.”
She spent nine years at Goldman Sachs in New York fulfilling a variety of management and strategy roles in investment banking and sales trading.
Sternberg has a B.A. in English from Barnard College/Columbia University in New York.
Global Lending Services LLC has appointed Michael T. Miller as chief information ofcer.
Miller has spent more than 20 years serving in C-level positions for both public and private organizations. He has worked with some of the industry’s leading companies, including serving as chief credit officer and chief operating ofcer for AmeriCredit Corp., where he led the development of analytics, technology, marketing and operations.
Most recently, Miller served as the chief strategy and technology ofcer for Sixth Gear Inc., leading the technology platform that launched the business
MetroGistics announced the hiring of Craig Clayton as director of technology. Clayton will be responsible for continuing to expand the
company’s technology infrastructure, designing new Web and mobile applications to support clients, and leading innovation in the auto transport industry.
With more than 11 years of IT management experience, Clayton’s background in information security, Web design, database design and networking provides him with the skills needed in his new position. Clayton most recently served as the director for information services in a Nashville area school district. Before that, he served as the chief technology ofcer at AmeriFlex, a financial services/health benefits administrator.
Clayton is a native of western Kentucky, and graduated from Murray State University with a bachelor’s degree in telecommunications systems management.
The Consumer Financial Protection Bureau recently announced the addition of several members to senior positions within the Bureau, including Laurie Maggiano as the program manager for servicing and securitization markets in the Division of Research, Markets, and Regulations.
Prior to joining the Bureau, Maggiano worked at the U.S. Department
of the Treasury, where she served as the Director of Policy in the Ofce of Homeownership Preservation.
During her time at Treasury, Maggiano was one of the principal architects of the Making Home Affordable program, a nationwide foreclosure prevention program that helped form the basis for CFPB servicing rules.
Prior to joining the Treasury, Maggiano managed servicing policy at the U.S. Department of Housing and Urban Development.
Additionally, she spent 20 years in the private sector as a director at Freddie Mac and as a senior vice president for two major mortgage banks on the West Coast.
In 2011, Maggiano was honored with a lifetime achievement award for Leadership in Mortgage Servicing, and in 2012 was named a Woman of Influence in the mortgage industry by Housing Wire Magazine.
Other additions include Sartaj Alag, who is returning to the CFPB and will serve as chief operating ofcer.
“In his previous role at the Bureau, Alag was in charge of starting up and managing the Ofce of Consumer Response.
Prior to his time at the Bureau, Alag worked at Capital One for nearly 10 years.
RETAIL MARKETS
ARIZONA
Frank Sarwark, owner, Consolidated Auto Sales, Phoenix, Ariz.:
“Our dealership has been in business for 71 years. My father started it.
“We have one location.
“We keep about 100 cars on the lot. We’re selling about 35 to 40 per month, somewhere around that.
“(To acquire vehicles), we go to auction. We’ve got several wholesalers we work with. We also go to new-car dealer bid sales.
“About 80 percent of our business is buy-here, pay-here.
“The average retail price is around $8,000.
“It’s gone up a little bit from this time last year.
“The scary part is the cars out there are older than they’ve ever been.
“It’s hard to find a nice car with reasonable miles on it.
“We carry about 70 percent cars and 30 percent trucks and sport utility vehicles.
“We have a pretty good selection of imports.
“One of the bid sales we go to has a selection of BMWs, Jaguars, Mercedes and Volkswagens. We also have a pretty good market for them.
“For mileage, I try stay under 120,000 if I possibly can. But we do get some with 140,000 and 150,000 miles.
“The average model year is a 2003 to 2004.
“We’ve got some 2008s out here, but also 1999 to 2000 models with a lot of mileage left in them.
“This is just off the top of my head, but we’re probably averaging $300 to $350 for reconditioning per car.
“We do service in house. We just service our customers.
“We have a website. We use Craigslist.
“We use several of the (local) auto publications to advertise.
“We use social media, like Facebook.
“One car we sold recently a 2001 Mercedes CLK 320. It had 102,000 miles.
“It was a very nice car. We got $9,000 for it.”
MICHIGAN
Ray Campise, vice president, Certified Motors, St. Clair Shores, Mich.:
“My wife, Lori, and I have been in business 11 years.
“I have one location.
“I carry about 30 cars on my lot. We’re turning more than 20 cars a month.
“My business is up 10 percent from this time last year. The reason is financing has loosened up. Creditors have loosened up.
“Secondary financing is much more aggressive than it was at this time last year, so is conventional financing. Credit unions are also lending.
“I don’t do any buy-here, pay-here.
“I do subprime and conventional financing. It’s probably 65 percent conventional, 35 percent subprime. That’s actually the correct balance that I want so the cash flow stays (consistent).
“I get vehicles from the western part of the country. I go all the way out to Washington, Colorado and Montana. I go
through auctions.
“Also, since I’ve been in the business 40 years, I have dealers I buy from.
“I’m on the hunt for cars 24/7.
“Right now, our (inventory) is at an average price that is probably $6,950. That’s what our average vehicle is, if not a little lower.
“It’s a good price point, because that’s my market. That’s my price point.
“Last year, the average price was a little bit lower, since it was a little tougher year (economically). Ever since the recession, though, the average price has gone a little higher each year. During (the recession) I was hunting for cars that were $4,000 to $5,500 or $6,000 and it was hard finding that market.
“All of my cars are under 100,000 miles. So I’m not selling cars with 125,000 or 150,000 miles, everything is under 100,000.
“My inventory is over 90 percent cars and 10 percent trucks and SUVs. I’ve just got a strong car market
Compiled by Jeffrey Bellant
in my area.
“It’s all domestic. I’m red, white and blue. On this side of town, we have Chrysler, Ford and General Motors workers, but it’s mostly a Chrysler town.
“My average model year is about a 2004 or 2005. The mileage runs from 85,000 and below.
“I had a 2001 Dodge Stratus go out recently. It had 85,000 miles. With taxes, transfer of plate, the car (sold) for $4,987. It also had a six-month, 6,500mile warranty.
“Most of my cars, though, go out with a one-year warranty. I don’t want to send out a bad car. It covers air, gaskets, transmission, etc.
“I’m still spending $500 to $700 per car for reconditioning. I’m going through that car from end to end. We put brakes and tires on them. That work is farmed out. I have a small company – basically just my wife and me.
“I live off of referrals. I’ve got families that have bought nine or 10 cars from me over 11 years.
WHOLESALE MARKETS
NEBRASKA
Mark Cooley, general manager, Nebraska Auto Auction, Lincoln, Neb.:
“We just had our five-year anniversary on Aug. 20.
“For that sale, we had 600 cars and sold 60 percent and had a great sale.
“We have three lanes and we’re running three lanes.
“Last year, we were running 300 to low 300s. This year we’re running in the 350 to 400 (range).
“We acquired SAC Federal Credit Union as a consignor and that helped us grow. They run exclusively here.
“I (also attribute it) to hard work.
“For the year, our average sales percentage is about 50 to 55 percent. It’s about the same as this time last year. We’re just getting more cars.
“The majority of our cars are dealer consignment, about 95 percent.
“The average number of buyers in the lanes is between 180 and 200. That’s pretty much the same as this time last year.
“Mostly, dealers are coming here from a 200-mile ra-
dius. But others come (from farther away).
“We have a guy from Eastern Motors who flies in from Wisconsin for sales. He’s pretty consistent. We have guys that drive here weekly from Sioux Falls, S.D. We also have dealers coming from Kansas City consistently.
“Dealers’ moods are mixed. Some are having a good year and some are struggling.
“It’s an agricultural area and the farmers around here have had bumper crops the last three or four years. They’ve really rocked. It’s kept the economy strong here. But the automobile industry seems to be of a little.
“What I see is that people seem to be keeping their cars and repairing them, rather than trading them (for newer cars). I’m seeing more higher mileage cars than normal.
“The other change is that, last year, our average car sold was probably $3,500 to $4,000. This year, it spiked up to $5,000.
“The growth of the pieces
and the quality has really gone up.
“We’re averaging, every week, 20 to 25 franchise stores that run cars.
“As far as online sales, we use Auction Pipeline and sell cars every week via simulcast sales. We’ve sold cars to (buyers) in every state, across the entire continental United States.
“We store (units) and facilitate sales for VSE Corp., a Flynn Jensen company, that provides governmentseized vehicles from the Internal Revenue Service, Homeland Security, etc. We’ve been doing that for about 2 ½ years.
“Some of these units might sit seven or eight months waiting on trials to finish or until the issue with the government settles.
“In a year, we might sell 100 to 150. When they go up for bid, though, high bidder wins. Those (units) have been everything from motorcycles and jet skis to – actually – logging equipment out of South Dakota.
“Trucks are selling strong in this area. With other vehicles, anything
Compiled by Jeffrey Bellant
80,000 miles and under is selling well.
“We’ll finish strong. This will be our best year ever and we’re looking forward to the first quarter of next year.”
NEW MEXICO
Ray Vickers, owner, Farmington Auto Auction, Farmington, N.M.:
“We’ve been in business since 1994.
“We have two lanes and we’re running about 125 units a week. That’s about the same as this time last year.
“Sales percentages have risen a little bit from this time last year. We’re close to 60 percent. I’d like to say it’s from our hard work.
“We’ll get up to 75 bidders in the lanes. They’re coming from New Mexico, southern Colorado and Arizona.
“Dealers are saying that business is a little of. They’re not setting any records.
“About 60 percent of my volume is dealer consignment. The rest is repossessions and lease returns.
“The nice repos are bring-
ing a lot of money. The repo volumes are (similar) to last year.
“The lease returns do seem to be picking up.
“We haven’t had very much salvage. We only get one or two pieces a week.
“We also have a GSA sale that we run once a month. We’ve had the sale since June 2012.
“Over the past two months we’ve run 200 units per month in just the GSA sale. In total, we’ll have about 1,200 to 1,300 units in GSA volume for the year. It’s a lot of work, but they’ve sold very well. They’ve brought a lot of money and the (sellers) have been happy.
“With (non-GSA) units, anything nice is still bringing rain.
“I think the trucks are of a little bit here even though we’re in truck country.
“The GSA volume has driven up (the average price on the block). The average price now is about $6,500 a piece. Before GSA, we averaged about $3,200 per unit.
“I feel that the rest of the year is going to get better.”
ABC Kicks Off Baton Rouge
ABC Baton Rouge loaded the lanes with vehicles from several consignors during its grand opening sale earlier this summer.
“The grand opening sale at ABC Baton Rouge was a huge success,” said Auction Broadcasting Co. President Jason Hockett. “We were really pleased with the dealer turn out as well as the turnout and support of our commercial accounts.”
ABC Baton Rouge opened a new 30-acre auction facility located just behind the Baton Rouge Metropolitan Airport. The auction has a gourmet Cajun restaurant operated by Boutin’s.
Baton Rouge Mayor Kip Holden was on hand for a ribbon-cutting ceremony for the sale.
Representatives from ARI, Capital One Automotive, Lease Plan, PHH, Santander Consumer, and regional financial institutions were represented at the sale. ABC Baton Rouge managing partner Butch Royall said the fleet and lease lane had an 88 percent conversion rate.
Dealer consignment sold at a 63 percent rate, which included 60 consignment vehicles from new-car dealerships.
Auction Hosts ‘Buffalo’ Sale
Buyers and sellers got a taste of the Old West and an opportunity to bid on a large consignment of cars and trucks at the annual “Bufalo Sale” at Brasher’s Portland Auto Auction this summer.
Dealers crowded into the auction arena to bid on more than 1,000 vehicles, and at day’s end, sold 63 percent of the vehicles.
To add incentive to the excellent selection of cars, trucks and SUVs, Brasher’s Portland Auto Auction offered 60- and 90-day floats throughout the sale.
There was also free local drive-in transport during promo week and no consignment fees.
In addition, special promotions were held in every lane, with dealers winning a variety of gifts and prizes, including Brasher’s Rewards Points, shirts, hats and gift cards.
Auction customers were treated to a Western cookout in the lanes, enjoying bufalo brisket sandwiches and dessert.
DRAWING A CROWD: The Auction Broadcasting Co. celebrated its new 30-acre auction facility in Baton Rogue with a grand opening sale recently.
Compiled By Jeffrey Bellant
Disconnected Jottings From Tony Moorby...
Many of you know that I commute weekly from just south of Nashville to Chattanooga. For the most part I use I-24 as, going against the trafc, it’s rarely busy and afords an easy ride of two hours from
doorstep to doorstep. I’ve been doing it for over three years and actually enjoy the “down time,” catching up on thoughts, dreaming, scheming, making the occasional phone call – yes, that’s still legal here – while observing the changing seasons in what must be one of the prettiest parts of the country. The back-roads route, when the occasion dictates such a diversion, such as Bonnaroo or a rare trafc tie-up, profers an even greater reward of spectacular scenery but with
CR
twists and turns, the full efect is forfeited to good driving sense.
Talking of driving sense, road disciplines in the south in the past have been a little, let’s say, relaxed, lax even. But with a little anticipation
There’s now an urgency to get from A to B where none was before and a southern laissez faire attitude has now become an anxious, let’s-getthere-now dash as quickly as possible.
and forgiveness one could overlook a signal to go left when the driver actually wanted to turn right, or no signal at all on the presupposition that the driver knew exactly where he or she wanted to go, without regard to others’ safety or capabilities. With the influx of newcomers from all over the country or even the world, if you include people like me or the German bulge in population in Chattanooga, at the behest of VW, skills have improved no end.
There are exceptions, of course. Manners on the interstates are nothing short of appalling. American visitors to Europe are horrified at how fast people drive, especially on the motorways, autoroutes or autobahns. But disciplines are observed that would please the harshest topsecurity prison warden. One wouldn’t dream of driving in the outside lane, even at the speed limit, if you were not overtaking – drivers overtake without dawdling and return to the innermost lane available. Big trucks travel at the speed limit in convoy and only overtake in dire necessity so there are no trucks travelling side-byside, with governed engines, holding up the progress of swifter and more agile trafc. The whole thing is business-like and, amazingly, accidents are few and far between. To pass a driving test in Europe is arduous,
R O O S S W D Sponsored by
By Miles Mellor
23. Negative word
25. Fuel usage term
26. Winner at the Pebble Beach Concours 2013
30. Concept performance pickup shown at the Woodward Dream Cruise, 2013 (3 words)
33. Buick sedan
Across 1. Luxurious Bentley 5. Pony car frst introduced in 1966 9. Steal
10. Large open cars with open tops
11. 70s Austin made in the UK
14. Electric vehicle, for short 15. Daytona and Indianapolis, for example
19. Old Toyota model
Stop ___ dime (2 words)
35. Alongside
36. Rolex, for one
38. Porsche model
40. Type of fuel
43. Flat___ truck 44. Start!
45. Part of A.P.R.
46. Have title
47. Buying prospect who doesn’t keep his appointment (2 words) Down
1. Old GM auto shows name 2. SEC football contenders, abbr.
difcult and long-winded. The written test allows no mistakes over pages and pages of direct questions; no gambling on multiple choice here. The driving part of the test typically would last about 45 minutes to an hour on roads of all descriptions, under the hawk-like and intimidating glare of an examiner akin to a doctor performing an autopsy. The waiting list for a test can be months long. If you pass your test with an automatic car, you are disallowed from driving a manual shift –that takes a diferent test! Needless to say, the result is a well-qualified and deft new driver.
Here, if you can fog a mirror in one breath, take an eye test without thinking it’s a Polish wedding invitation and shift from Park to Drive, then make
it out of the parking lot and back again, you are awarded that precious document that guarantees so much freedom in this country and is taken as a right more than a privilege. In my three years of using the same stretch of I-24, I’ve made a study. The highway links Chicago via I-65 to Key West on I-75, I-85 and I-95. I’ve managed to determine which states, through which these roads meander, and what types of cars, provide drivers to avoid. A green minivan, registered in Indiana with stick figures in the rear window denoting an attachment to a wife, three kids and a dog, whose driver wears a ball cap and possibly smokes a pipe while he polices the outside lane at 67 miles per hour is to be avoided at all costs and an invitation to go the back way.
INSURANCE AUTO AUCTION S
3. Lamborghini model
4. They make the Versa Note
5. USMC rank
6. 1917 American car
7. Mercedes-Benz CLA45 ____
8. Sale abbreviation
9. It may go on a roof 12. Time before 13. Fan noise
16. Piece of an engine
17. Inside prefx
18. Radar user
20. Mustang rivals 21. State where the Ducks play
24. Approve 27. Metal mixtures
28. Power measurement
29. Excess of revenues over outlays in a given period (2 words) 31. Yearly payment percent 32. X5 maker 33. V10 SRT sports car
Aka brand
Silverado 1500 ____ cab 39. Bolt’s partner
Cosy room
Bachelor’s last words
Swelled head
Tony Moorby
Salvage Yard - Used Car Dealer for Sale or Lease. 2 acre yard on main highway located 10 miles from Metro Baltimore. Under current ownership since 1977, in business since 1946. Owners looking for exit strategy. 275 feet of main highway frontage with local access to MD695, US95 north, US95 south, MD Rt 3 - US 301. Mid 2000’s inventory. All Auto Recycling licenses plus Maryland Used Car Dealers license. Property zoning allows for most auto business applications including Gas & Go. Financing or lease options available. 443-829-1912 Sam
FORMER DRIVE THRU
BANK on app.1/2 acre asphalt lot currently leased as used car dealership. Tenant will stay or move what ever works for the buyer. Get away from the cold and have your business in sunny FL. Located in Manatee county city of Palmetto near Port of Manatee. Price $325,000 U.S. negotiable. For more info, contact James Mount, 941-266-6617. Pic on request.
CAR LOT FOR LEASE.
$6,500. Can be divided. 820 S. Dixie Hwy., Pompano Beach, Florida 33064. Tel:954-687-4673
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
USED TRUCK AND AUTO BUSINESS AND REAL ESTATE. 3 acres of fenced and lighted mini-storage on sight (great cash flow). Fully equipped mechanical shop with Pa. State inspection. Full recon shop. Great sales history, F&I Dept. with 3 banks. Over 30 years in business. Western Pa. Location. Reply Box #1170, c/o Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080
- 3
2 baths. Lot and house $275,000 - may separate. Selling due to illness. Call Bob, 207-852-1500
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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