Used Car News 12/19/16

2016 MOVERS AND SHAKERS

The veteran buy-here, pay-here consultant joined the National Independent Automobile Dealers Association late last year as national director of twenty groups and seminars for NIADA.

Bonanno’s hire was part of NIADA’s acquisition of Leedom & Associates LLC.

As president of the National Auto Auction Association, Browning oversaw the group’s inaugural presentation of Auction of the Year award, recognizing auctions that give back to their communities. That’s a topic Browning learnedaboutfirst-handwhenhewasgeneral manager of Manheim New Orleans in 2005.

TheOhioattorneygeneralcontinuedasone of the most active prosecutors in the nation when it came to going after used-car dealers. DeWine filed suit against eight dealers in thepastyear.OnMay26,DeWineannounced hewouldseektheRepublicannominationfor governor of Ohio in the 2018 election.

Creditors Tighten As Delinquencies Rise

A recent uptick in delinquencies for subprime auto finance is raising some concerns, but finance sources appear to have already taken steps to avoid larger problems.

Auto loan originations in the third quarter remained at the high levels seen over the past six quarters and comparable to the peak seen one year ago, the Federal Reserve Bank of New York reports.

Despite the increase in originations, the overall 90-plus day delinquencyrateforautoloansincreased only slightly through the end of September to 3.6 percent.

However, the New York Fed’s analysis shows an underlying problem in those numbers.

The 90-plus day delinquency rate for auto finance companies worsened by a full percentage point over the past four quarters, while delinquency rates for bank and credit unions improved slightly.

Finance companies focus more on subprime consumers, most of whom are buying used vehicles.

“The worsening in the delinquency rate of subprime auto loans is pronounced, with a notable increase during the past few years,”

states a recent blog post by the New York Fed.

Experian also sees an increase in 60-day delinquencies, but the firm reports that financing for subprime consumers fell in the third quarter for both new and used sales.

The steepest drop came at the lowest end of the spectrum.

Financing for deep-subprime new-car buyers dropped to the lowest level since 2011 and for used buyers it was the lowest Experian recorded since tracking began in 2007.

The average credit score for new-

car buyers climbed to 712 in the third quarter, marking the first time average credit scores for new vehicle loans rose since hitting a record high of 723 in the second quarter of 2012.

For used vehicle buyers, the average credit score jumped five points to 655.

“For anyone making doomsday predictions about a subprime bubble in the auto industry, the third quarter provides a stark reality check,” said Melinda Zabritski, Experian’s senior director of automotive finance.

Thieves Use New Technology to Steal Vehicles

The National Insurance Crime Bureau (NICB) says new technology is being used to not only unlock and open vehicles, but to also start and steal them.

NICB recently obtained one of the so-called “mystery devices” that the public was irst warned about over two years ago.

At the time, thieves were being seen on security cameras across the country, using unknown devices to unlock vehicles and steal valuables inside. In recent months, NICB has noted reports of thieves not only opening the vehicles, but also starting them and driving away.

The device obtained by NICB was purchased via a third-party security expert from an overseas company. It was developed by engineers in an efort to provide manufacturers and other anti-theft organizations the ability to test the vulnerability of various vehicles’ systems.

Called a “Relay Attack” unit, this particular mod-

el only works on cars and trucks that use a keyless remote and a push-button ignition.

In a series of unscientiic tests at diferent locations over a two-week period, 35 diferent makes and models of cars, SUVs, minivans and a pickup truck were tested.

The bureau partnered with NICB member company CarMax.

Tests were also done at a new-car dealership, an independent used car dealer, at anautoauctionandonNICB employee vehicles and ones owned by private individuals.

The vehicles were tested to see if the device could:

• Open the door;

• Start the vehicle;

• Drive it away; and

• Turn of and restart the engine without the original fob present.

The NICB was able to open 19 (54 percent) of the vehicles and start and drive away18(51percent)ofthem.

Of the 18 that were started, after driving them away and turning of the ignition, the

device was used to restart 12 (34 percent) of the vehicles.

NICB says there are a number of diferent devices believed to be ofered for sale to thieves.

Some use diferent technology and may work on diferent makes and models and ignition systems.

More expensive models mayhaveagreaterrangeand

better capabilities for opening and starting a vehicle.

“We’ve now seen for ourselves that these devices work,” said NICB CEO Joe Wehrle. “Maybe they don’t work on all makes and models, but certainly on enough that car thieves can target and steal them with relative ease.”

NICB chief operating of-

icer Jim Schweitzer, who oversees all NICB investigations, said vehicle manufacturers must continue their efortstocountertheattacks on anti-theft technology.

“Vehicles are a valuable commodity and thieves will continue to wage a tug of war with the manufacturers to ind a way to steal them,” Schweitzer said.

ï CASH for your auto notes –Bulk Purchase.

ï Payment Strip Program (3 to 15 months) Dealer collects.

ï Reduce administraiveburden of collecion calls and taking cash.

ï Build your inventory to sell more.

ï We are your source for capital and servicing soluions.

ï Quick, simple and consistent funding process.

NEWS BRIEFS

XLerate Adds Another Auction

The XLerate Group announced that it has added a new member to its auction family with the acquisition of Lone Star Auto Auction.

The Lubbock-based auction joins XLerate’s existing Texas locations in Dallas,Austin(2)andElPaso. XLerate Group also maintains sales in California, Florida, South Carolina, Michigan and Wisconsin.

Jim McNulty owned the auction. Dale Martin and his LSAA team will join XLerate’s operating management team. LSAA commenced operations in 1985. The auction operates a seven-lane arena, reconditioning facility and mechanical shop situated on approximately 111 acres.

DealerSocket Offers Insurance Option

DealerSocket’s newly launched iDMS platform for independent dealers has integrated with FetchAQuote.com (also known as Fetch), an electronic auto insurance service. Fetch is accessible to iDMS users without a login or password, simply by clicking the “More” icon and choosing “Save Customers Money on Car Insurance” within the Deals module in iDMS. Independent dealers can use Fetch

to help their buyers secure afordablecarinsurancequotesinamatter of seconds. Customers then select the coverage they prefer and purchase it on the spot.

Consumers Want to Spend Less Time at Dealerships

A new survey of auto dealers, ielded by ELend Solutions, shows a distinct disconnect between actual start-to-inish transaction times in the dealership and what dealers believe is the “ideal” time consumers should spend in a dealership buying a car.

The survey also found that unengaged wait time in the dealership outpaced negotiation as the biggest consumer pain point in the car buying process.

More than half of respondents reportanovertwo-hourstart-to-inish transaction time. About 10 percent report an under one-hour start-toinish transaction time.

Ideally, 79 percent want an under two-hour process.

Time spent in F&I was cited as the top pain point by one in four dealers.

Nearly 60 percent of dealers indicate wasted consumer time is potentially their biggest CSI issue.

Seventy-three percent of those

surveyed agree that the greatest obstacle to success in F&I and CSI is the time it takes to complete the F&I portion of the car buying process.

Over half wait to pull credit until well into the purchasing process.

Credit Unions Grow as Auto Finance Source

CU Direct has helped its credit union partners collectively become the second largest auto-inancing source in the nation, surpassing Ally Bank.

In aggregate, the more than 1,000 credit unions using CU Direct’s CUDL Lending Platform have been the nation’s third largest inancing source the previous two years.

Auto lending now makes up one third of credit unions’ total loan portfolio, and has the fastest rate of growth among all credit union portfolio segments, including irst time mortgages, according to CU Direct data. Credit unions as a whole continue to be a major force in the auto lending space, holding 22 percent of market share, according to AutoCount.

Credit union lenders on the CUDL Platform are experiencing the highestloanoriginationgrowthrate(15.4 percent) of any auto lender among

the top nine lenders in the nation, according to data from AutoCount, and CU Direct.

Byrider Names Top Stores

J.D. Byrider recognized winners of the company’s annual awards at its November convention in Scottsdale, Ariz.

The Franchise of the Year winners were chosen in three categories

– Single (one location), Mid (twothree locations) and Multiple (more than three locations).

The winners were:

• Single: Keith Kocourek for his location in Wausau, Wis.

• Mid:BarryBiggersandteamfor their locations in Pearl and Jackson, Miss.

• Multiple: Russ Larson and team for his eight locations. This is their 11th-consecutive Franchise of the Year award.

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 Jeffrey Bellant, Staff Writer Contributing Writers: Ed Fitzgerald, Jenny King, Sheila McGrath

Advertising: Shannon Colby, Account Manager Marie Hingst, Account Manager

Used Car News is published the irst 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.

Columnist: Tony Moorby

Circulation: Helen Thomas

Production: Tom Savage, Production Manager Cee Lippens, Web Master & Graphic Designer

Reproduction in any form is prohibited without the written consent of the publisher.

OUR ADVERTISING APPROVAL POLICY

Payments from irst time advertisers must accompany the insertion order. Distribution is guaranteed by the USPS. he advertising reservation deadline is 12:00 noon hursday, 11 days prior to the issue cover date. Ad materials are due by 5 pm Friday, 10 days prior to issue cover date. For advertising speciications please email colleen@usedcarnews.com. Join 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.

Ally Gathers Dealers, Staff to Build Bikes for Kids

Ally Financial joined with local nonproit organizations to build and donate bikes to Miami children for the holidays.

The bike-building event was part of a leadership training conference for auto dealers, called Ally Automotive Leadership Academy.

Duringtheconference,more than 100 people gathered to hear a panel of dealers and Ally representatives discuss the importance of giving back to their communities.

They then divided into several groups to assemble 22 bikes.

After the bikes were assembled, the Boys & Girls Club of South Beach arrived with a special surprise – a bus full of children who selected their new bikes in person.

“This event was meaningful for both the dealers who attended the conference and built these bikes and the local children who came to pick out their special holiday gift,” said Jacqueline Howard, director of corporate citizenship at Ally Fi-

nancial. “One of our goals at Ally is to spread awareness to our dealer network about the importance of giving back, not only because it has positive reputational and business impacts, but also because it’s the right thing to do.

“We want to encourage and support dealers in their eforts to give back, and this event was a great example.”

Charitable giving was a new topic for the Ally Automotive Leadership Academy conference, which was held recently in Miami.

The topic was chosen because of Ally’s focus on corporate citizenship and the company’s belief that charitable giving can help to strengthen and enhance the reputation of a dealership in its community.

“This was such a heartwarming surprise for our kids,” said Ronny Vera, director of the Boys & Girls Club of South Beach. “There is a great need in our community, and we are thankful not only for Ally’s donation of bikes, but also that the

company is inspiring other businesses across the country to get involved and make a diference.”

TheAllyAutomotiveLeadership Academy launched in 2015.

It aims to gather dealers from across the country for in-depth training on topics of interest to auto professionals like F&I management, leadership and compliance education.

Gift Bows Prove Popular

• Local Point of Service in YOUR Market

• Bulk Purchase Program with NO hassles

• Stream of Payment Advances (6-15 months)

• Aged Pay Share Program that gives you Capital and Cash Flow!

Yes, people really do give cars with a bow on top.

The Car Bow Store is a familyowned company that has built a business of manufacturing giant car bows at its Warminster, Pa., headquarters.

Founded in 2009, the company sells over 25,000 giant bows per year.

“December is the busiest month for new car sales,” Rudolph said. “Car dealers use the bows to decorate their showrooms for the holiday season and often include a bow to close the deal.”

Car Bow Store is a division of MBR Marketing, a company that sells supply items to the automotive industry.

• Floorplan for select BHPH Dealers for BHPH Vehicles with NO audit fees

• Servicing for all types of Auto Receivables

“We have had customers tell us thattherecipientsaremoreexcited about the bow than the car itself,” said president Michael Rudolph. “The car bow is the inishing touch that shows how much you care.”

Car Bow Store’s large bows are popular all year round for birthdays and gifts, but sales increase dramatically around graduation time and Christmas. About 40 percent of the company’s sales are direct to consumers for gift giving occasions.

“We never thought that car bows could be a business,” Rudolph said. “We started with one product, which has now developed into a substantial manufacturing business with many diferent colors and styles of bows.”

Rudolph believes that the key to his company’s success is innovation and attention to detail.

• Backup Servicer and Custodian for Banks and Finance Companies

However, the majority of the business is providing car bows to thousands of car dealerships around the world that are looking to dress up their showrooms for the holiday season.

“Every year we develop several new styles of car bows, which allow ustostayahead,”Rudolphsaid.“We also proudly manufacture our bows 100 percent in the United States from U.S. materials, which means that our quality, craftsmanship, materials, and quality control are light years ahead of the competition.”

Feds Say Manager Stole $2 Million from Store

ST. LOUIS (AP) – The former general manager of a suburban St. Louis car dealership is accused of defrauding the company, causing nearly $2 million in losses.

The U.S. Attorney’s oice in St. Louis announced the indictment of 42-year-old William Cafarella, now living in Davie, Fla.

Cafarella was general manager of West County Honda in Ellisville, Mo., a city west of St. Louis.

Carafella received monthly bonuses from the dealership equal to 10 percent of proits.

Federal prosecutors say that from

September 2011 through June 2013, Cafarella misrepresented the profitability of the dealership by lying about the sale of 308 cars, causing manufacturer’s warranties to begin on each vehicle.

The U.S. Attorney’s oice says the scheme netted Cafarella nearly $400,000 and cost the dealership $1.8 million.

The indictment also accuses Cafarella of taking more than $50,000 in bribes and kickbacks.

The FBI and the U.S. Postal Inspection Service are handling the investigation.

Mobile Appraisals

Payment Calculator

Unlimited Syndication

Auto Description Builder

Transactional Data

Historical Data

Market Data

Inventory Book Difference

Multi-Quote Feature

YEAR IN REVIEW

2016 SAW GROWTH OF REGULATION, VOLUMES

This was the year that the publicly traded franchise groups decided to get into the used-car business in a

kets, of which ive are expected to open in 2017.

Wholesale prices inally started their decline this

Consumer Financial Protection Bureau has authority over all of them.

ation since 1997 and has ive locations operating in the Philadelphia and Pittsburgh, Penn., market areas, including southern New Jersey.

The Penske move came about a month after AutoNation Inc. announced it would launch AutoNation USA, a chain of standalone pre-owned vehicle sales and service centers.

AutoNation has identiied 25 AutoNation USA potential sites in its existing mar-

to 124.7 for November, a decrease of 0.3 percent from a year ago.

A panel during the National Auto Auction Association said this move down is the start of a trend set to last for several years.

One factor that has helped slow the decline has been the large number of vehicles that can’t be sold until they have recalls repaired.

Thiswastheyearbuy-here, pay-here dealers learned the

In February, Herbies, a standalone buy-here, payhere dealer in Greeley, Colo., wasorderedtopay$700,000 inrestitutiontoharmedconsumers, with a suspended civil penalty of $100,000 to settle a suit from the CFPB. Those consumers were harmed, the CFPB says, by the dealership concealing inance charges and the real

SO LONG, 2016: This year, clockwise, auctions started to see a great influx of vehicles as more cars came off-lease, dealers continued to grapple with enough regulations to fill up 39 feet of paper and the National Independent Automobile Dealers Association once again lobbied Congress.

FLOP OF THE YEAR: ASBURY’S Q

Asbury was one of the irst public dealership groups to launch a standalone used-car brand. It has also been the least successful, so far.

During the company’s third quarter earnings call, Asbury executives announced plans to scale down the scope of its Q used-car stores.

Whatwasoriginallyintended as a chain of standalone operations will now become

a brand addition for existing stores.

“It’s an area where, quite frankly, we didn’t live up to our internal expectations,” said Asbury CEO Craig Monaghan.

“And it’s going to get a tremendous amount of focus fromusaswemoveforward.”

Asbury’s history in the used-car business is spotty. In 2002, the company en-

tered into a joint-agreement with Wal-Mart on a venture called Price 1. It was an attempt to sell cars at select Wal-Mart locations.

The Price 1 stores closed after a year.

Asbury will continue to operate the existing Q stores in Florida and does plan on extending the brand to stores in additional states.

COUP OF THE YEAR: ADESA EXPANDS

ADESAgrewatarapidpace this year, adding by acquisition and opening a greenield to serve the Chicago market. The growth started in February, when ADESA bought eight auctions owned by the Brasher family for approximately $283 million in cash.

ADESA then acquired Sanford Auto Dealers Exchange and Ocala Auto Dealers Exchange in Florida. The Ocala

sale merged with ADESA’s existing Ocala auction. In the fall, ADESA oicially opened its new ADESA Chicago auto auction. ADESA invested approximately $40 million to develop the auction, which hosted its irst sale Oct. 28.

ADESA further expanded in the Midwest by acquiring Flint Auto Auction in Flint, Mich.

January 2017

ADESA Boston January 13, 20, 27

508-626-7000

ADESA Brasher’s January 3, 24

916-991-5555

ADESA Charlotte January 5, 19

704-587-7653

ADESA Chicago January 20 847-551-2151

ADESA Cincinnati/Dayton January 17 937-746-4000

ADESA Golden Gate January 3, 17, 31 209-839-8000

ADESA Houston January 4, 18 281-580-1800

ADESA Indianapolis January 3, 17, 31 800-925-1210

ADESA Kansas City January 3, 17, 31 816-525-1100

ADESA Lexington January 26 859-263-5163

ADESA New Jersey January 5 908-725-2200

ADESA Salt Lake January 24 801-322-1234

ADESA Tulsa January 13 918-437-9044

ADESA Washington DC January 11 703-996-1100

Columbus Fair AA January 18, 25 614-497-2000

Manheim Atlanta January 4, 5, 19 404-762-9211

Manheim Dallas January 11, 25 877-860-1651

Manheim Denver January 11 800-822-1177

Manheim Detroit January 5, 19 734-654-7100

Manheim Fredericksburg January 12, 26 540-368-3400

Manheim Milwaukee January 11, 25 262-835-4436

Manheim Minneapolis January 4 763-425-7653

Manheim Nashville January 18, 24, 25 877-386-5004

Manheim New Jersey January 11, 25 609-298-3400

Manheim New Orleans January 25 985-643-2061

Manheim Orlando January 3, 10, 11, 17, 24, 31 800-337-8491

Manheim Pennsylvania January 5, 6, 19, 20 800-777-2053

Manheim Phoenix January 5, 12, 19, 26 623-907-7000

Manheim Pittsburgh January 11

724-452-5555

Manheim Riverside January 10, 12 909-689-6000

Manheim Seattle January 4 206-762-1600

Manheim Southern California January 5, 19

909-822-2261

Manheim Tampa January 5 800-622-7292

Southern AA January 11

860-292-7500

ADESA Boston January 20 508-626-7000

ADESA Golden Gate January 3, 31 209-839-8000

Manheim Atlanta January 4 404-762-9211

Manheim Dallas January 11 877-860-1651

Manheim Milwaukee January 11 262-835-4436

Manheim Nashville January 18 877-386-5004

Manheim Orlando January 11 800-337-8491

Manheim Pennsylvania *January 5, 19 800-777-2053

Mazda Capital Services

ADESA Boston January 13, 27

508-626-7000

ADESA Golden Gate January 17 209-839-8000

ADESA Houston January 4 281-580-1800

Columbus Fair AA January 25 614-497-2000

Manheim Riverside January 12 909-689-6000

Manheim Atlanta January 5 404-762-9211

Manheim Detroit January 19 734-654-7100

Manheim Fredericksburg January 26 540-368-3400

Manheim Milwaukee January 11, 25 262-835-4436

Manheim Nashville January 25 877-386-5004

Manheim New Jersey January 11, 25 609-298-3400

Motors Finance

ADESA Boston January 27 508-626-7000

ADESA Salt Lake January 24 801-322-1234

Columbus Fair AA January 18 614-497-2000

Manheim Dallas January 11, 25 877-860-1651

Manheim Orlando January 17 800-337-8491

Manheim Pennsylvania January 6, 20 800-777-2053

Manheim Pittsburgh January 11 724-452-5555

Manheim Riverside January 10 909-689-6000

Manheim Seattle January 4 206-762-1600

Manheim Detroit January 5 734-654-7100

Manheim Fredericksburg January 12 540-368-3400

Manheim Milwaukee January 11 262-835-4436

Manheim New Jersey January 11 609-298-3400

Manheim Orlando January 10 800-337-8491

Manheim Pennsylvania January 20 800-777-2053

Manheim Pittsburgh January 11 724-452-5555

Manheim Seattle January 4 206-762-1600

Manheim Southern CA January 19 909-822-2261

Southern AA January 11 860-292-7500

/ licensed by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail/ Loan and lease accounts are owned by Chase. *The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail / Loan and lease accounts are owned by Chase. ©2016 JPMorgan Chase Bank, N.A. Member FDIC (16-038) 1/17

Cox Salutes Remarketer

Cox Automotive presented its Community Impact Award to Karlea Marin of J.P. Morgan Chase at the National Auto Auction Association Convention in November.

Presented by Grace Huang, senior vice president of inventory services forManheim,thisawardrecognizes a remarketing industry leader for his/her outstanding contributions to the community and the innovative ways he/she collaborates with community partners to help further their missions.

“Karlea’s year-round dedication to helping others exempliies the spirit of the Cox Automotive Community Impact Award,” Huang said. “We congratulate Karlea for embodying the principles of community service and volunteerism.”

Marin, a remarketing industry veteran, has spent more than 25 years as an auction specialist and a remarketing manager.

In her role, she coordinates and manages all aspects of vehicle remarketing, including reconditioning, inspecting and pricing of certain makes of vehicles.

Marin has a passion for volunteerism,dedicatinghertimetoorganizationslikeGreaterCentralFlorida Area’s Basket Brigade, where she helps provides tailor-made Thanksgiving baskets to needy families; and Arnold Palmer’s Hospital for

Children, where she provides ease of stay items to children who are receiving chemotherapy treatment. Through the J.P. Morgan Chase “Chase Gives Back” initiative, Marin gives basic household necessities to families and children who are served by Family Counseling and Shelter Services of Monroe in Michigan, a non-proit organization that provides programs and servicestosurvivorsofdomesticviolence. She also provides holiday gifts to those who may not otherwise receive a gift through the Head Start Tammany Parish in Louisiana.

She also supports the American Cancer Society, St. Jude Children’s Research Hospital, Salvation Army of Orlando, and serves as Committee Lead on the Festival Finance Board at Good Shepherd Catholic Church.

“This recognition is a tremendous honor and a testament to Cox Automotive’s commitment to community involvement,” Marin said.

For her leadership and commitment to making a diference through community service, Marin will receive $10,000 to donate to the charities of her choice. She has chosen to split the donation among the Histio Cure Foundation; Arnold Palmer Hospital for Children; and Family Counseling and Shelter Services of Monroe County.

AG Shuts Down Car Dealer

A Massachusetts used-car business will cease operations and its owner will pay restitution after they were sued for selling unsafe and unreliable used cars, failing to make repairs that were promised or required under warranties, and operating in unlicensed locations.

The consent judgment resolves allegations that Auto Number One, Inc.anditsownerMarkHannaroutinely made false representations to consumers that cars were in good workingorderorwouldberepaired.

Pursuant to the settlement, Auto Number One will cease all operations in Massachusetts.

The company and Hanna will also pay nearly $25,000 in consumer restitution. An additional $85,000 in civil penalties and attorneys’ fees will be suspended pending the defendants’ compliance with the terms of the consent judgment.

According to Attorney General Maura Healey’s complaint, Auto Number One frequently sold vehicles that failed to pass inspection and refused to provide refunds or make repairs or promised to make repairsbutthendidnotdoso.Additionally, the complaint alleged that AutoNumberOneretainedvehicles during consumers’ seven-day inspection period, so that consumers

would be unable to exercise their rights under the Lemon Aid Law. Consumers reported a variety of issueswiththeirvehiclesfromAuto NumberOne,includinglackofheat, oil and other luid leaks, a broken catalytic converter, and transmission issues.

Auto Number One has operated out of locations in Weymouth, Quincy, and Abington. The AG’s complaint alleged that Auto Number One advertised and sold vehicles from locations where it was not licensed to do so.

PEOPLE IN THE NEWS

Manheim Promotes Managers

Manheim announced four new general manager appointments at locations across the country. Assuming

leadership roles are Trevor Enge at Manheim Georgia, John Duplanty at Manheim Tucson, Gus Jones at Manheim Arizona and Maxine Vega at Manheim New Mexico.

Since 2012, Enge has

as well as performed as interim lead of Manheim Canada. His recent eforts supported both organizations’ client success and, speciically, Cox Automotive’s largest commercial clients. Previously, Enge worked in business development with Ally FinancialSmartAuction, product development and strategy for Chrysler Group, and was a product engineer at Borg Warner

held various roles with increasingresponsibility at Manheim, starting as an intern while attending Arizona State University and rising to become general manager of Manheim Arizona for the past two years. In between, he rounded out his leadership experience serving as assistant leet manager at Manheim Tampa, operations manager for Manheim Tampa and Manheim St. Petersburg, and assistant general manager of Manheim New York.

Jones started his career with Manheim in 2006 as a dealer sales manager and has worked at several locations in Arizona, including Manheim Tucson and Manheim Phoenix. For the last nine years, he has

volunteeringwithHabitat for Humanity, Ronald MacDonald House Charities and the Hispanic Leadership Forum.

During her 14 years with Manheim, Vega has held varied roles, including operations manager for Manheim New Mexico. She also served as a inancial

controller for several years at multiple locations, including Manheim Denver, Manheim New Mexico and Manheim El Paso. She

holds her Bachelor of Business Administration from The College of Santa Fe.

Spireon Hires Hardware VP

Spireon Inc. announced the appointment of Ed Suski as its vice president of hardware engineering. Suski is a former executive at General Electric and United Technologies Corp. Suski studied electrical engineering and physicsatboththeUniversityofMichiganand

California State - Fullerton. Suski is the inventor of 10 U.S.-issued patents over his career.

MetroGistics Names IT Executive

MetroGistics has promoted Craig Clayton to vice president of information technology. In his new role, Clayton will be responsible for the overall leadership of the information technology department. He will also help develop strategic IT recommendations and consult on techfocused mergers and acquisitions.

Clayton joined the irm in 2013 as director of information technology. He has more than 12 years of IT management experience. Clayton graduated fromMurrayStateUniversity with a bachelor’s degree in telecommunications systems management.

RETAIL MARKETS

CALIFORNIA

Ronald Browns, president, Larry’s Auto Sales, Fresno,Calif.:

“I’ve been in business for 34 years. I have just one location. We have four employees. One guy has been with us for 22 years.

“Wehaveabout70carsfor sale. That’s the same as this time last year. Most of the cars are coming from CarMax and wholesale dealers who come by with them.

“Right now, we’re selling about 25 a month.

“Everythingwesellisbuyhere, pay-here.

“The average down payment is about $1,000. It used to be $400 or $500.

“(Term lengths) are usually 15 months. That’s just an average. Sometimes they go two years.

“WejuststartedusingGPS devices on the cars about ninemonthsago.It’sjustfor repossessions, so I haven’t needed to use one yet. We don’t turn the car of.

“Most of the stuf we sell ismodelyears2002to2005.

“Average mileage is 150,000. That’s about the same as last year. Average retail price is $3,995.

“We carry about 70 percent cars, 25 percent SUVs and 5 percent trucks. The reason is out here we can’t get any trucks. Last year we probably had six trucks and this year we have two. It’s supply and price point. The supply went down and the price went nuts. We just can’t aford to buy them anymore.

“We carry 70 percent imports and 30 percent domestic.

“We recondition cars before they go out. We do all that right here. We have a mechanic and a lot boy.

“The average cost is $1,500. We don’t do outside work – just strictly the cars we’re prepping.

“My son’s been working on the (Internet) stuf. That’s working out really well. It’s doing a lot better than I thought it would. It’s good to have a son who knows what he’s doing.

“We use CarGurus, Autotrader, Cars.com – you name it. No Craigslist and no Facebook. We have a website and we’re getting a positive response. That’s what we’re looking for.

“The cars that sell best here are little, automatic Toyota Camrys, like the 2002s.

“I recently sold a 2000 Acura MDX. It sold for $4,995.Ithad144,000miles.

“I think the Internet advertising has really helped us. We had nothing on there last year. It creates quite a bit of business.

“We’re motivated and up for 2017. We’re positive. We’re getting inventory and we’re stacking cars. We rented more space to park cars. We’re expecting a good season.

“The regulations in California are just terrible. I’m a delegate for the Independent Automobile Dealers Association of California.

“We need more members. I really try to promote IADAC.”

VIRGINIA

Jef Gibson, sales manager, John’s Auto Sales, WeberCity,Va.:

“We’ve been in business since 1975 and I’ve been here since 1988.

“We have one location.

“Right now we keep about 130 vehicles. It’s up from this time last year. There’s no reason. We just have more cars this year.

“We sell 20 a month on average, I would guess.

“We just sell straight retail. (No subprime or buyhere, pay-here).

“We get our vehicles from local auto auctions. We use ADESA East Tennessee and Abingdon Auto Auction.

“We don’t really have an average model year. We carry everything from a 1970 to a 2016. I would say our best selling model year would be a 2010 – in that area.

“For mileage, most of our stuf is around 100,000.

“Mostly, we carry trucks. It makes up about 40 percent of what we carry. The rest are cars and we carry a

Compiled by Jeffrey Bellant

few SUVs.

“We carry about an equal amount of domestic and imports.

“We do not have our own service shop. We send out our cars for service. Average reconditioning costs are around $100. We’re basically just cleaning them up.

“We have a website for (marketing). We also advertise in the Tri-City Trading Post (which runs car ads). We also use the Kingsport Times-News, which is the local newspaper.

“I’d say overall we’re up a little from last year. I’d say 10percentorsomethinglike that compared to last year.

“I attribute that to carrying a larger inventory this year.

“One recent sale was a 2005 Chevy Silverado 4x4. Of course, that kind of truck is big in this area. It had 124,000 miles. We got $8,800. That’s a pretty good buy.

“I’m optimistic about 2017. I believe everything is looking pretty good.”

WHOLESALE MARKETS

COLORADO

Matt Read, general manager, Loveland Auto Auction, Johnstown, Colo.:

“We’ve been in business 28 years. We run four lanes.

“It’s been good. Volumes have been over 400 every week. It’s above last year as far as consignment.

“A lot of that is just being in northern Colorado where business has been good. If you Googled top places to raise a family, Ft. Collins,Colo.,willcomeup.

It seems like everybody’s moving here.

“Sales percentages have been in the mid-60s.

“The number of dealers in the lanes varies from week to week. On average, I would say 250 to 300.

“I think the independent used-car lots have had a good year. In the past couple of weeks I’ve heard that it’s slowed down, but it always does this time of the year.

“We’re 90-percent dealer cars. It’s the same as this

time last year. The rest are mostly repos. We sell a lot of vehicles from an oil and gas company called Ensign Energy Services.

“We also own a company called Specialty Auto Auctions, It’s kind of a smallscale Barrett-Jackson. We have a classic car sale four times a year. We hold them at diferent fairground locations in northern Colorado. I think this year we ran an average of about 125 cars at each sale. We had a couple of sales that went over 50 percent, so if we do that we’re pretty happy. We bought that company two years ago. It’s been good.

“We have online simulcast through Auction Edge. Until this year, we never had an Internet sale. We’ve had some infrastructure and network issues (as we built it). Slowly but surely it’s growing.

“The average price throughtheblockis$3,800. I believe that’s up a little bit.

“We always do well with

trucks and SUVs.

“I feel good about 2017. Surprisingly, 2016 was one of our better years ever and we didn’t think that would happen going into the year.

“I think it’s going to be good next year.”

GEORGIA

Danny Acord, president,SouthGeorgiaAuto Auction,Albany,Ga.:

“We’ve been in business 21 years. We run two lanes.

“Volumes have been of recently, but percentages havebeenup.Volumeshave been around 200. This past year has been pretty strong.

“Lately, we’ve been running about 60 percent.

“We usually get between 75 and 100 bidders.

“(Dealers’ moods) are all over the place. You’ll have one guy come in telling us how good business has been. Then you’ll have another guy come in and say (the opposite).

“I think the general consensus is that the new-car store business has been of lately for this area.

“I can’t get a read on the independent side. (Responses) have been so scattered. Some say it’s been good, some say it’s been bad. It depends on who you ask.

“Most of our inventory is new-car trades and repossessions.

“We’re probably 40 percent new-car trades, 30 percent repos and 30 percent independent trades.

“Repos have been very strong this fall. My people have been working a lot harder in 2016 at getting that business.

“We’ve put a lot more emphasis on building that business and we’ve been successful at it so far.

“The average price is between $3,000 and $3,500.

“We have select dealers that run on OVE.com. That business hasn’t been real good, but that’s no one’s fault but our own. We’ve gone more to the repo side. OVE is a really good tool, but it’s just not cost-efective for a sale like mine.

Compiled by Jeffrey Bellant

“I wish I had the manpower to do what needed to be done, because I think it could be a big part of our business. It’s just something that takes a lot of time.

“Trucks always do super here.Wehavepeopletellus that trucks bring more here than any place in the world.

“The 150,000- to 145,000mile vehicle is big for us, too. It’s because of the secondary inance market here. That’s a sure sale when it comes here if it’s priced accordingly.

“I think our revenue (in late November) is up about 12 percent over last year.

“We’ve seen some increase for tax season. But there were announcements that the earned income credit money won’t be here until mid-February.

“There’s a lot of discussion on that. We’re not seeing a lot of strong buying. I think people are waiting until January. Tax season seems to keep getting further out and shorter.”

Over 100,000 vehicles

DECEMBER

2014 2012MODELS MODELS

Tosaythat2016wasayear of surprises smacks of gross understatement. And if you look at almost any commentary on the Internet you’d have to conclude that most people are glad it’s over and done with.

and religious intolerance, in general seem to have expanded to cavernous chasms and are likely to carry on splitting opinions and political positions all over the world.

Mother Nature has thrown

Tony Moorby

• 50-year veteran of the industry

• President from 1997–2000 of ADT Automotive

• Served as ADESA’s executive vice president of sales and marketing

• Moorby & Associates 2006–present

• Awarded the Ring of Honor by NIADA

• NAAA Hall of Famer

At my age I’m grateful to get another year under my (loosening) belt and relish the time to spend with family and friends as the year comes to an all-too-soon close.

However it would be naïve not to acknowledge some disappointments and worrisome trends that have loomed or grown worse this year. Crises in the Middle East and notably, Syria, ISIS

awobblythisyearwithdeadly earthquakes, hurricanes, loods, droughts, wildires and record snowfalls in the Northeastatthebeginningof theyear.

Politics have been turned upside down; Trump’s win was as shocking as the test to the electoral system and Brexithastakenthewindout of European political sails – I personally still believe that willallworkoutforthebest.

Without much help from Russia, the Olympics went ofreasonablywell,certainly in medal count for the USA but it broke the economy of the host, Brazil. Imagine Michael Phelps, an old geezer by any athletic measurement, is the most decorated Olympian in history. Nice one!

Bloody marvelous, eh? I gave up smoking years ago and now you can smoke all the Cuban cigars you want. Now that Castro’s passed there’ll be some fairly heavy pressure for social change, probably ironically paid for by capitalist tourists.

Violence in every manifestation has spread to all corners of the globe. Chicago is now as much of a war zone as anywhere in the world. Orlando, a center for family fun, now bears the scar of hatred along with another, hitherto haven of peace and quiet, in Nice.

Prince, David Bowie and Leonard Cohen have slipped the bonds of this mortal coil along with Alan Rickman,

with whom, by the way, I shared some of my school days.

Occasionally some good news spiked one’s attention; Mother Teresa was canonized, the Zika virus seems to be under some control after threateningapandemic.The Juno spacecraft reached Jupiter and continues to send some mind-boggling pictures.

Bob Dylan received the Nobel Prize for Literature but had “other obligations” when it came to attending the ceremony for its collection. He’s always been a bit strange but, really?

Forme,oneofthebrightest spots in the 2016 calendar is the fact that it spells the end of the Obama era. When history looks closely at what he calls progress, it’ll be one of the shortest entries in the annals of American achievement. Granted, he came in

toarecessionbuthasexpensively kicked the can down the road for others to pick upandpaytheprice.Theessence of socialism!

Washington is in dire need of change and now the principle players are quaking in their boots at some of Trump’s outsider nominees. The conirmation hearings will provide George Stephanopoulos plentiful opportunitiestogetitrightthistime! He epitomizes the rest of the mainstream media who, until Trump’s election, believed that they could steer the outcome of the polls. All they do now is snipe and sneer.

Casting political correctness to the wind, I wish all our readers a Merry Christmas and a Happy and Prosperous New Year.

To see past columns from Tony Moorby, visit www.usedcarnews.com/columnists/tony-moorby

Hyundai sedan

United

Cadillac 4 door

Start-up car rental service for ride sharing drivers

13. Tata motors location

15. Ford crossover

18. Added more years

19. Honda compact

21. Skill

23. Honda subcompact

25. Car giant with shares in Mercedes

27. Type of internet address

29. Believer suix

31. Non-starter, 2 words

32. 70s Dodge model 33. Raises 35. Ready to use on delivery 36. Mercury model 38. Tire maker 41. British sports car 43. 16th US President 44. Brit’s trunk 45. Forte or Focus, 2 words

1. Sandwich bread 2. Type of battery 3. Lamborghini sports car

4. Journey maker

5. Compass direction, for short

7. Large auto dot com

8. Solar is one form of it

9. Wheel print

13. Nissan luxury brand

14. Characterized by, suix

16. Mitsubishi midsize car

17. Earlier for a poet

20. Scion ___

22. Interior decor for a car

24. Sunbeam ____, designed by Shelby

26. Home for Ferrari

28. Rider that’s never in the driver’s seat

30. Supercharger

34. Long-standing Czech auto company

36. Chevy subcompact

37. Rod sign at intersections

39. Kia sedan

40. Kind of trip

41. Business degree

42. Radio type

43. Temperature control

contract buying opportunity. Specialize in 4x4 trucks and diesels, but experienced in every make/model. References available. Kevin (817)876-9617

AROUND THE BLOCK

AUCTION HAS LAST SALE BEFORE MOVE

Maryland-based Bel Air Auto Auction welcomed dealers to its 43rd Annual Harvest Sale this fall. Dealers gathered in the lanes and online to buy cars, trucks and SUVs and to participate in the traditional festivities that included a “pumpkin smash for cash,” along with apple pies, pumpkin pies and cider.

“It was an unusually warm, fall day for the dealers to view the spectacular and unique classics offered for sale,” said R. Charles Nichols, president of BSC America.

“This sale is always a dealer favorite. Although there was a bittersweet feeling as we acknowl-

edged that this is the last sale at 803 Bel Air Road - we are already looking forward to our 44th Harvest Sale being bigger and better than ever at our new location.”

More than 900 new and used car dealers attended the sale, which included over 2,000 vehicles running in seven lanes. Consignors at the event included Ally, Mile One, Santander Consumer USA, Chrysler Capital, GM Financial, United Auto Credit, PHH, ARI, Bank of America and many more.

Owned by the Nichols family, Bel Air Auto Auction handles consignments from new and used car dealers and private business fleets, as well as those from public service and government agencies.

Bel Air Auto Auction sells every Thursday, including the damaged vehicle sale, and holds a closed sale for GM Financial every other Wednesday.

Compiled by Jeffrey Bellant

Anniversary Sale Supports Charity

DAA Northwest’s 24th anniversary brought dealers to the lanes and to the table last month. DAA began the celebration with an 860-unit afternoon sale that featured consignment from Hyundai Finance, Kia Finance, Ford Motor Company, Ford Credit, Toyota Financial Services, Avis Budget Group and Ally Auto Remarketing.

Following the sale, DAA’s customers and their guests gathered in Northern Quest Resort’s Pend OreilleBallroomfordinnerandfundraiserauctiontobenefittheVanessaBehanCrisisNursery,YoungLife, UnionGospelMissionandSpringof Hope International. DAA matched all funds, bringing the evening’s total to $123,400. Since its inception, the annual anniversary fundraiser has raised over $1.2 million for its local non-profit partners. The twoday, 54-percent sale topped all previous anniversary results.

We invite news items and top-quality photos from our readers to be considered for “Around the Block.” Please include the name of a contact person and a telephone number. Send items and photos to: Jeffrey Bellant. Mail: Used Car News, 24114 Harper Ave., St. Clair Shores, MI 48080. Fax: (586) 772-9400 e-mail: jeff@usedcarnews.com

When you’re searching for a wide variety of the right vehicles for your customers, look to a nationwide industry leader. Look to Chase.

Chase is your source for:

•฀ A broad range of vehicle makes and models — from economy to luxury — upstream and through preferred auctions nationwide. Convenient online and in-lane vehicle availability with on-site Chase remarketers.

Put Chase to work for you. Visit ADESA.com and Manheim.com.

Your Source. Chase.

Subaru, the Subaru logo, and Subaru Motors Finance are trademarks of Subaru of America, Inc. (“Subaru”) and any use by Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”) is under license. Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase. Jaguar and Land Rover, their respective logos, and the financial group names (Jaguar Financial Group and Land Rover Financial Group) are trademarks of Jaguar and/or Land Rover and any use by Chase is under license. Retail/Loan and lease accounts are owned by Chase. 3The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail/Loan and lease accounts are owned by Chase.

(14-221) 06/14