Used Car News 2/20/17 by General Media LLC

Manheim Takes Auctions to Dealers’ Lots

ANYWHERE:

By Ted Craig

Manheim sees a big opportunity in the cars dealers don’t bring to auction. And they’re meeting this opportunity by bring the auctions to them.

The Cox Automotive subsidiary has been growing its mobile auction service the past few years. It now serves more than 70 locations.

Many of these are dealer’s own lots, but sales have been run at all kinds of locations, including a baseball park.

Manheim brings a truck loaded with equipment and staf to run a sale that replicates what bidders

experience at a traditional auction.

“We can bring the truck literally anywhere,” said Grace Huang, Manheim’s senior vice president of inventory services.

The trucks spend their of time parked at Manheim auctions around the country.

It’s these auctions that provide the staf for the trucks. They can serve dealers up to 200 miles away.

Janet Barnard, president of Cox Automotive Inventory Solutions, said Manheim could set up a sale for a dealer the next day, but local regulations usually require a longer lead-time.

Dealers have been running their

own auctions for years. The mobile auctions take this process up a step, addingloorplanningandManheim Simulcast bidders.

The mobile auction sales bring plenty of motivated buyers, with retention rates above 70 percent.

Scott Cahill, used-car manager at East Coast Honda Volkswagen in Myrtle Beach, S.C., has been using the Manheim mobile auctions for several years. The dealership runs sales of 175 to 250 units every 60 days.

The inventory consists of aged units and trades that don’t it into the store’s used-car model.

Prior to Manheim, the dealership

used a smaller auction company to run sales at its store.

Cahill said the other company offered far fewer services.

The most important feature for Cahill is Manheim Simulcast. The East Coast sales usually draw 50 to 60 online bidders from as far as Michigan.

This helps bring higher prices.

“It’s not how many cars you sell online,” Cahill said. “It’s how many bids you get online.”

Another advantage for the hosting dealer is that since the vehicles stay on the lot until sale time, they can retail them up until the day of the auction.

Photo by Ted Craig

Staff from Manheim New Orleans auction off BMWs on a city street to demonstrate the company’s mobile auction offerings. The sale drew dealers attending the National Automobile Dealers Association’s annual convention, many of whom bought cars while standing on the sidewalk.

Wholesale Prices Slip to Start Year as Pressure Builds

By Ted Craig

Whenlookingatwholesale price performance last year, most industry experts say it could have been worse. And when they look at this year, they say it will be worse.

All measures of used-car prices started declining last fall.

Kelley Blue Book reports that auction values fell 6.8 percent, or $1,146 per unit, in the fourth quarter.

And values are following thatdownwardtrendtostart the year.

The Manheim Used Vehicle Value Index came in at 124.8 in January, a 0.3-percent decline from January 2016.

The index adjusts wholesale prices for mix, mileage and seasonality.

“The theme that played throughout 2016 continued into the start of 2017 as wholesale pricing remained stable despite sharply rising supplies,” said Manheim chief economist Tom Webb. “Give credit to a retail used vehicle market that enabled

dealers to quickly and profitably sell their auction purchases.”

Retail demand remains strong. Edmunds.com reports that 3.1 million used vehicles were sold in January, up from 2.6 million in December. But of-lease volumes continue to climb, with another 3 million units set to return this year.

The divide between trucks and cars remains strong, as well.

Webb said that on a yearover-year basis, 2017 started the same as all of 2016, with trucksandcrossoversupand cars down.

The one risk to truck prices comes from fuel costs.

“Historically, fuel prices and pickup truck segments have maintained an inverse relationship,” said Sean Foyil, analyst for Kelley Blue Book. “As fuel prices increase, demand for trucks tends to decline.”

Jonathan Banks, executive analyst at J.D. Power, is among the most bearish on wholesale prices. Banks did add, however, that he’s bear-

ish from a historic high for used-car prices.

“There are more headwinds that could make things a lot worse, but some ofthosearecontrollable,like incentives,” he said.

Incentives are the biggest challenge.J.D.Powerreports that the December incentive spending per unit was 7 percent above December 2008’s all-time record.

Banks said a better alternative for the manufacturers

would be to reduce prices overall rather than ofering incentives.

But if they can’t do that, they should at least look at maintaining residuals rather than chase share.

“Taper of your spending, igure out where you need to be without deteriorating yourbrandtoomuch,”Banks said.

“Know what you want for retention.”

The companies that do

take this approach were on display recently when Kelley Blue Book handed out its 2017 Resale Value Award.

“These companies work to protect their residual values,” said Eric Ibara, the director of residual consulting for Kelley Blue Book.

If incentives can stay around 10 percent of MSRP like they did in 2016, then used-car values should outperform J.D. Power’s forecast, Banks said.

NEWS BRIEFS

GM Financial Joins vAuto’s Stockwave

VAuto’s Stockwave now integrates inventory from GM Financial’s DealerSource to its wholesale sourcing platform.

Stockwave clients can now use the tool’s heads-up display to access the condition and valuation information they prefer to determine if a vehicle from DealerSource meets their inventory, proﬁt and purchase objectives.

With the GM Financial integration, Stockwave’s vehicle stream includes nearly300,000auctionvehiclesfrom leading wholesale outlets, including ADESA, Edge Pipeline, Manheim and SmartAuction. The Stockwave team is currently working to integratewholesaleinventoryfromother OEM-related sources.

CarMax Expands in Los Angeles Market

CarMax Inc. celebrated the grand opening of its new store in Palmdale, Calif.

Thestoreislocatedat405W.Technology Drive. The Palmdale CarMax has the capacity to stock approximately 200 used vehicles and has brought more than 60 new jobs to the area.

The Palmdale store is one of two

newstoresopeningthismonthinthe Los Angeles area. CarMax is opening the company’s largest multi-purpose facilityontheWestCoastinMurrieta later this month.

IncelebrationofthePalmdalestore opening, CarMax donated $5,000 to the Antelope Valley Boys & Girls ClubinLancaster.CarMaxassociates recentlyvolunteeredwiththeBoys& GirlsClubandnominatedtheorganization to receive the donation.

The CarMax Foundation is also providing a $10,000 grant to the YMCA of Metro Los Angeles, Antelope Valley. Funding from the grant will provide art and STEM supplies, healthy snacks and aquatic programing for area youth.

Support for the YMCA also came at the recommendation of the Palmdaleassociates,whoenjoyvolunteering with this organization as well.

Copart Expands Operations

Copart Inc. is adding sales and expanding existing facilities. Thesalvageauctionchainhasadded OrlandoNorthlocationinApopka,Fla. This marks Copart’s 13th location in the state. Copart has announced the opening of locations in Casper, Wyo., and Denver this year, along with the ex-

pansion of existing locations in Chicago, San Diego and Springﬁeld, Mo.

WhenCopartﬁrstjoinedtheApopka, Fla., community, it made a commitment to assist local Boy Scout troop member, Christian Lamphere, in completing the construction of a monument to honor the ﬁrst responders lost in the Sept. 11 terrorist attacks.

Copart Inc. is expanding its San Jose, Calif., location. This move is the latest expansion of California operations throughout the past four months. Copart opened a new location in the Los Angeles area inNovember,expandeditsSanDiego location in January, and now is expanding its San Jose location.

Credit Acceptance Reports Higher Net Income

Credit Acceptance Corp. announced consolidated net income of $87.6 million for the three months ended Dec. 31. This is compared to consolidated net income of $80 million for the same period in 2015.

FortheyearendedDec.31,consolidated net income was $332.8 million, compared to consolidated net income of $299.7 million, for the same period in 2015.

Kroll Rates Auto ABS

Kroll Bond Rating Agency assigned ﬁnal ratings to ﬁve classes of notes issued by OneMain Direct Auto Receivables Trust.

The collateral in the deal includes approximately $299.93 million of loans at closing. The ratings reﬂect theinitialcreditenhancementlevels rangingfrom31percentfortheClass A notes to 1 percent for the Class E notes, which build to 39 percent and 9 percent for the Class A and Class E notes, respectively, over time.

Credit enhancement is comprised of overcollateralization, subordination of junior note classes, a cash reserve account and excess spread. Class D and Class E notes are anticipated to be retained by the depositor, OneMain Direct Auto Funding, LLC.

This transaction represents the secondautoloantermsecuritization for Springleaf Finance Corp.

By General Media LLC

NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080 Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com

Charles M. Thomas - Founder (1947-2002) Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager

Editorial: Ted Craig, Managing Editor 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 ﬁrst and third Monday of each month.

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

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.

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.

TradeRev Aims at U.S.

By Ted Craig

TradeRev is now operating on the East Coast and expects to expand into Texas and Oklahoma.

TradeRev is an online automotive remarketing system where dealers can launch and participate in real-time vehicle auctions at any time from their mobile devices or desktop. It allows dealers to obtain instant bids while the retail customer is sitting in the showroom by providing a private, customized network for buyers and sellers.

It started in Canada and began moving into the U.S. three years ago. KAR Auction Services Inc. owns 50 percent of the company.

The company moves into markets based on customer demand.

For example, the company recently moved into Pittsburgh. The original expansion plan called for adding that market at a later date, but a pair of large dealers wanted them there now.

“That drove us to hire and change our plans,” said Keith Crerar, TradeRev’s senior executive vice president.

TradeRev recently opened a building dedicated to its U.S. operations in Carmel, Ind., KAR’s headquarters. The building houses 12 em-

ployees, with room for 12 more, and their equipment.

TradeRev’s goal is creating an eficient experience for dealers.

“The new-car business and the used-car business are changing dramatically, driven by the consumers, and you see that in dealers’ margins,” said Mark Endures, president and founder of TradeRev. “That’s why they’re looking for eiciencies through all their processes.”

The TradeRev technology allows them to inspect a trade-in faster with photos and videos. It captures the information better and creates a more transparent experience for the customer.

The biggest hurdle is dealership culture.

“It’s changing a process that has worked for years,” Endras said. “The owner is usually easy to convince. It’s the people who actually do the work that ask why they have to change.”

Founder understands this challenge and the needs for dealers since he is one himself back in Canada.

“I built the product because I had a pain point I wanted to solve,” he said.

Founder put his degree in computer science at work to solve this problem and came up with TradeRev.

Photo by Ted Craig

STAR APPEAL: TradeRev displays a piece of movie memorabilia, the DeLorean from “Back to the Future,” to draw dealers to its booth at the National Automobile Dealers Association convention.

LANE POWER AT YOUR FINGERTIPS.

With BMW Group Direct, the auction comes to you. This easy-to-use online auction provides convenient and eficient access to premium off-lease BMW Group vehicles. You can perform research, enter proxy bids, purchase, and even arrange unit transportation without ever having to leave the comfort of your ofice. With all this convenience and a lat $250 buy fee on open sales, there is no better way to ill your lot. Be among the irst to shop premium BMW and MINI inventory at BMWGroupDirect.com.

Floor Fraud Brings Punishment

Two recent court cases left dealers who failed to pay back their ﬂoor planners headed to prison.

An Oklahoma used-car dealer and his finance manager were sentenced to prison for fraud that they committed against the store’s floor planner and other financial institutions.

The men were also ordered to pay restitution of $1,260,725.43 to their victims.

Timothy Jay Williams was the owner of Lindsey Street Motors, a used-car store in Norman, Okla., and Stephen L. Butz was his ﬁnance manager. According to court documents, Williams entered into a commercial security agreement with The Bank of Union on behalf ofLindseyStreetMotorsthatgranted the bank a secured interest in all used motor vehicles, proceeds, and productsofthestore.Inreturn,The Bank of Union extended to Williams and Butz a line of credit to ﬂoor plan their vehicles.

After obtaining the loan proceeds, Williams and Butz sold collateralized vehicles out of trust, without the knowledge or permission of the bank and did not use the sales proceeds to repay the ﬂoor plan. In addition, after purchasing vehicles, Williams and Butz obtained duplicate vehicle titles from the Oklahoma Tax Commission, which they provided to buyers, without notifying the Bank of Union of the vehicle sales or repaying Lindsey Street Motors’ line of credit.

Both Williams and Butz pleaded guiltyinAugust.Eachadmittedthat their conduct caused a loss in an

amount between $550,000 and $1.5 million.

At their recent sentencing hearings, Williams was sentenced to 41 months in prison, to be followed by 3 years of supervised release. Butz was sentenced to 31 months in prison, also to be followed by 3 years of supervised release. In addition, Judge Miles-LaGrange orderedbothmentopay$1,260,725.43 in restitution to the victims of their conduct, for which they are jointly and severally liable.

In related news, an Iowa used-car dealer was sentenced to 13 months in federal prison for two counts of making a false statement to a ﬁnancial institution.

The 13-month sentences are to be served concurrently. Gretter was also ordered to serve ﬁve years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $1,185,704.77 in restitution to Hills Bank & Trust Co.

Gretter pleaded guilty to these charges on Sept. 20.

According to the plea agreement, between Dec. 18, 2013, and Oct. 6, 2014, Gretter obtained loans from Hills Bank.

Assecurityforeachoftheseloans, Gretter pledged multiple items of collateral that he knew included false statements, and were unavailable to Hills Bank as security. Speciﬁcally, Gretter forged the signatures of multiple people on items of pledged collateral and provided those documents to Hills Bank in order to inﬂuence Hills Bank to make the loans.

Late Owner’s Misdeeds Cost Store

A Washington state car dealership admitted to allegations of a pattern of sexual harassment by its former owner, Monte L. Masingale.

In a consent decree ﬁled in Spokane County Superior Court, two companies that jointly do business as Greenacres Motors agreed to accept ﬁnes and penalties totaling $280,000. The businesses will also adopt a non-discrimination policy, reporting and recordkeeping requirements, and give all their employees antidiscrimination training.

The decree includes monetary relief, including $130,000 for Masingale’s victims, $30,000 in civil penalties and $120,000 in costs and attorneys’ fees.

The dealerships’ current owner is in bankruptcy, so the actual amount victims and the state will receive is uncertain. The consent decree includes a requirement that the debtors prioritize payments to the victims, if allowed by the Bankruptcy Court.

Masingalehimselfwasalsonamed

as a defendant in the lawsuit but died in July 2016.

Masingale frequently posted help-wanted ads for a secretary in newspapers and on websites like Craigslist.Masingalerefusedtohire males for the position, and sexually harassed young women who applied.

Victims’ reports show a distinct pattern. Masingale made unwelcome sexual comments and advances, touched and groped female employees without their permission and asked female employees to agree to a sexual relationship as a condition of continued employment. Many women quit rather than continue to be subjected to Masingale’s harassment, and some reported it to the police.

Greenacres operates dealerships in Spokane, Spokane Valley and PostFalls,Wash.InNovember2016, the companies admitted they knew or should have known about Masingale’s harassment and are responsible for his conduct.

John Yang » Operations Manager / First National Fleet & Lease » Seattle, WA

COX AUTOMOTIVE HONORS FORD EXEC NAAA/CAR

Cox Automotive presented the 12th annual Barbara Cox Automotive Woman of the Year Award to Linda Silverstein, general manager of remarketing and rental operations for Ford Motor Co.

This honor is awarded to women who demonstrate business leadership and community advocacy, as well as a commitment to advancing the automotive industry. Cox Automotive President Sandy Schwartz presented the award during the Northwood University Dealer Education Award annual breakfast on Jan. 28 at the National Automobile Dealers Association Convention and Expo.

“Linda is exactly the type of professional the automotive industry needs more of,” Schwartz said. “By sharing her experiences through mentoring, she is helping

by giving back. I am honored to present this award to Linda on behalf of Cox Automotive.”

Silverstein has been responsible for Ford’s vehicle remarketing since 2002; certiied pre-owned since 2005 and rental operations since 2007.

Silverstein joined Ford in 1982 as an analyst in Ford Division’s Detroit District Sales Oice and held various positions in the Detroit oice over six years. After that, she held a variety of marketing and sales positions at Ford Division and Lincoln Mercury Division in Atlanta, Detroit and San Francisco.

Silverstein was inducted into the National Auto Auction Association Hall of Fame in 2009. She was also honored as a Warren Young Fellow.

develop future leaders. This award is named after the late Barbara Cox, one of our owners and the mother of Jim Kennedy, our chairman. Linda shares many of the same qualities and all of the values that we admire in Mrs. Cox, including showing her appreciation for the positiveinluencesinherlife

“To be recognized for my participation in an industry that I love is quite an honor,” Silverstein said. “I often tell people that are just starting their careers that if they are passionate about what they do, they will never work a day in their life! I am passionate about the auto industry – its fast pace and

the ever-changing nature of the business – coupled with great people – make it a fun and rewarding industry to be a part of.

“Cox Automotive’s genuine commitment to supporting woman in a traditionally male-dominated industry –bothinsidethecompanyand in the industry at large – is very powerful. I am honored to be the recipient of The Barbara Cox Automotive Women of the Year award. I am thankful for all of my mentors along the way that gave me the advice and support to succeed in this great industry.”

Silverstein participated for many years in the Manheim Mentor Program that pairs female employees with mentors in the automotive industry. In addition to her dedicationtotheautomotive industry, she is also a strong supporter of Ford’s fund raising eforts for JDRF, the leading global organization funding type 1 diabetes research.

Cox Automotive also presented a $10,000 Barbara Cox scholarship to AlesandraD’Agostino,aNorthwood University junior studying automotive retail management and automotive aftermarket management.

D’Agostino is a stellar student, vice president of philanthropy for Delta Zeta and active in her community.

ADESA RAISES FUNDS FOR CANINE COMPANIONS

An ADESA auction at the National Automobile Dealers Association’s recent convention raised $94,423 for the NADA Foundation, which supports Canine Companions for Independence.

Retired Army Sgt. Steve Blackman and his service dog, Gottlieb, attended the auction to represent Canine Companions.

“My life has completely changed,” Blackman said. “No longer do I wake every morning wondering what the day is going to bring and if I can make it through it because I have [Gottlieb].”

Blackman sufered a traumatic brain injury while in the service.

“I know my family doesn’t havetoworryaboutmeanymore. I can go out and do things and leave the house because I have him. Canine Companions has made this possible for veterans and so many other people with disabilities. It gives us our independence back.”

Robert Bassam, founder of Easterns Automotive Group in Sterling, Va., placed the irst winning bid

of $39,000 for a 2015 Polaris Utility Task Vehicle (UTV). He then donated the UTV back to ADESA to be reauctioned.

Joe Verde, president of JoeVerdeGroupinSanJuan Capistrano, Calif., and longtime supporter of Canine Companions, made the second winning bid of $26,000. He also donated the vehicle back for re-auction.

Bassam’s son, Joel Bassam, director of marketing for Easterns Automotive Group, placed the inal winning bid of $28,000.

Attendees gathered at the ADESA booth during the auction made $1,423 in cash donations to bring the inal contribution to $94,423.

“We asked dealers and attendees to bid high in honor of the 100th anniversary of NADA,” said ADESA CEO Stéphane St-Hilaire. “They responded by generously opening their hearts and wallets to help support two amazing organizations.”

ADESA auctions over the past six NADA conventions have raised more than $334,400 for the NADA Foundation.

HONOREE: Above, Cox Automotive executive Janet Barnard shares a moment with Ford’s Linda Silverstein as Silverstein is honored as the Barbara Cox Automotive Woman of the Year. Below, Cox Automotive CEO Sandy Schwartz presents Silverstein with her award.

VW Settles Cheating Suit

FRANKFURT, Germany (AP) –Volkswagen has agreed to pay at least $1.2 billion in buybacks and compensation to settle claims from U.S. owners of cars with larger diesel engines that the company rigged to cheat on emissions tests.

And the German automaker could pay even more – as much as $4 billion – if it can’t repair many of the cars in a way that satisies regulators.

The settlement covers owners of some 78,000 Audi, Volkswagen and Porsche cars with 3.0-liter diesel engines.

Volkswagen has already agreed on a $15 billion settlement for some 500,000 smaller, 2.0-liter diesel engines.

With the settlements for both small and large engines, “all of our customers with afected vehicles in the United States will have a resolution available to them,” said Hinrich J. Woebcken, head of Volkswagen Group of America, in a statement. “We will continue to work to earn back the trust of all our stakeholders.”

Under the class action settlement, owners of 20,000 older models dating back to 2009-12, which cannot be ixed to meet pollution standards, will be ofered buybacks or trade-ins. In addition, they will be paid compensation ranging from $7,755 to $13,880, according to a statement from owners’ attorneys.

People who bought 58,000 newer cars from model years 2013-16, which can be ixed, will get compensation of $7,039 to $16,114. Volkswagen says those cars can be made to comply with pollution limits, while older models cannot.

VW’s proposed repair must win approval from U.S. environmental authorities by an agreed deadline. If not, buybacks could push the cost as high as the $4.04 billion laid out in court documents.

The deal must still get court approval to take efect. Volkswagen said inal approval would take at

least until May.

Also, parts supplier Robert Bosch GmbH agreed to pay $327.5 million to settle claims from consumers and dealers of used vehicles regarding 2.0-liter and 3.0-liter engines, while not accepting it was at fault. Civil plaintifs say Bosch made the socalled “defeat device” that enabled the cheating.

CEO Volkmar Denner said the company settled so it could focus on its business activities. “We wish to devote our attention and our resources to the transition in mobility and in other areas of activity,” Denner said in a statement.

Wolfsburg-based Volkswagen has admitted it equipped diesel engines with software that detected when the vehicle was being tested and turned the emissions controls of during every day driving. The result wascarsthatemittedsome40times the U.S. limits of nitrogen oxides, a pollutant that can harm people’s health. Some 11 million cars worldwide have the deceptive software.

The proposed civil diesel settlements help put the scandal behind the company, after it agreed to plead guilty and pay $4.3 billion to settle U.S. criminal issues. But legal issues remain for Volkswagen’s former CEO, Martin Winterkorn, and 36 others who are under criminal investigation in Germany. U.S. prosecutors have criminally charged seven former Volkswagen employees.

Investors in Germany are suing the company, saying management didn’t inform them of the problem in a timely way. Volkswagen shares plunged after the scandal broke in September 2015.

The company’s reputation has taken a beating since U.S. authorities revealed the cheating. But that didn’t stop VW from passing Toyota last year to become the world’s largest carmaker by sales. Booming sales in China helped Volkswagen win the sales crown with 10.3 million vehicles sold.

EVs Struggle in Crash Tests

DETROIT (AP) – Two luxury electric vehicles – the Tesla Model S and the BMW i3 – fell short of getting the highest safety ratings in new crash tests.

which replicates what happens when the front corner of the car collides with a tree or telephone pole at 40 miles per hour.

The Tesla’s safety belt allowed the crash dummy to move too far forward and it hit its head on the steering wheel.

The Insurance Institute for Highway Safety tested 2017 models of both vehicles. IIHS is a nonproit organization funded by auto insurers, that works to reduce the number of motor vehicle crashes, and the rate of injuries and amount of property damage.

The institute said Tesla made a production change this month to address the problem, so the car will be tested again.

Neither earned the institute’s “Top Safety Pick” award, which is given to vehicles that get the highestratinginivediferentcrashtests and ofer a crash-prevention system with automatic braking.

To get a highest “Top Safety PickPlus” designation, vehicles must meet all of those criteria and have good headlights.

In the 2017 model year, 38 vehicles have won the “Top Safety PickPlus” designation, including two plug-in hybrids: the Toyota Prius Prime and the Chevrolet Volt.

But no all-electric vehicles are on

The institute hasn’t yet tested the all-electric Chevrolet Bolt. which went on sale at the end of 2016.

Tesla’s Model S, an all-electric luxury sedan that starts at $72,500, earned good ratings in four of the institute’s ive tests, including a side impacttestandaheadrestrainttest.

But it earned a lower rating in a small overlap frontal crash test,

The Model S has earned the highest ratings on U.S. government crash tests, but IIHS performs different tests.

Tesla also earned a “poor” rating for its headlights.

And a high-performance version of the Model S, the P100D, got a lower ranking on the roof strength testbecauseitslargerbatterymakes it much heavier, so the roof might not hold up as well in a rollover crash.

Thegovernmenthasn’tperformed a roof-strength test on the P100D.

The BMW i3, a small electric car that starts at $42,400, also earned good ratings in four out of ive tests.

The BMW i3 fell short in the head restraint test,.

The test measures how well the car protects against neck injuries in a rear crash.

The i3 earned the second-highest rating of “acceptable” for its headlights.

The government hasn’t yet reported crash-test results for the i3.

Independent. Connected. Committed.

RETAIL MARKETS

GEORGIA

Wayne Daniel, managing partner, Car Loan Direct, Cartersville, Ga.:

“We have one location. We’ve been in business here just under a year. But I’ve been in the car business for 16 years. I have another dealership under a diferent name.

“We keep 50 to 60 cars in inventory. Between 20 and 30 is the average sold per month.

“We get our vehicles mostly from auction. We also have a good bit of trade business, so we’ll get a lot of trade-ins that we’ll resell. I have a buyer in Florida whowillbuyforusfromthe Manheim and ADESA auctions there. I kind of work the Georgia market.

“Wearenotbuy-here,payhere. We are strictly pointof-sale. We have 27 lenders that we work with. So we’ll work with (prime) banks all the way down to subprime lenders. We’ve got 1.5 percent rates all the way to 28 percent, depending on your credit.

“About 40 percent of the business is subprime. We started mainly subprime – that’s kind of my background. But we’ve kind of transformed into a little nicer, more expensive car and captured that prime business. Now we’ve got a couple of good lenders that help us with that. So we’ve done better with that market.

“Average retail price is right at $15,000.

“Our average year is 2010, with about 43,000 miles.

“We do well with both cars and trucks. With cars, it’s Challengers, Chargers and Mustangs – more of a sporty type car.

“It’s a truck market for sure in Cartersville. We’re in a rural area, so we do really well with trucks.

“I’d like to have 50-50 trucks and cars, but trucks are hard to get. So I’m a little below that. When you can’t buy a truck back of NADA ‘clean trade,’ there’s just no way to sell it and

make a proit.

“We carry mostly domestics. It’s in the 80 to 90 percent range, for sure.

“Average reconditioning costs are about $480 a car. We have our own service department, so that’s a cheaper labor rate. We also do some warranty work and customer-pay as well. But 60 percent is reconditioning work.

“We have our website as a big source of marketing. We do a lot of search engine optimization. We use CarGurus, TrueCar and Cars.com. We also buy special inance leads.

“We just sold a 2008 Cadillac Escalade with 53,000 miles.Wesolditfor$22,900.

“January was good and February is looking good, too. I feel good about 2017, but I’m worried a little bit about the of-lease looding the market, driving the prices down. The problem is if you buy a car and hold it for 60 days, then the book dropstwice,that’sadiicult deal.”

PENNSYLVANIA

Danny Limongelli, owner, Jo-Dan Motors, Plains, Pa.

“We’ve been here since 1971. Right now, we have about 85 on the ground.

“To ind cars, I use everything. I use auctions. I buy of the street. I visit franchise dealers.

“We sell between 30 and 35 per month, but it depends. We mostly sell retail. We also do subprime.

“The average retail price varies.Rightnow,trucksare very strong in the market here. Trucks are averaging $15,000 to $20,000. On the other end, cars are around $10,000.

“We carry about a third cars, a third trucks and a third SUVs. That hasn’t been typical, though. We had been known for cars and SUVs.

“We started by focusing mostly on cars, and then, about ive years ago, we changed with the times and started going more to SUVs. We didn’t have as many

Compiled by Jeffrey Bellant

trucks, just because of the price and the demand.

“The trucks we get now –even though we pay a lot for them – we sell them. We’re doing well with them.

“Our average model year is 2012, 2013 to 2014. They arealllowmiles,one-owner vehicles, and non-smokers with clean Carfax reports.

“I don’t buy just to buy. I buy the best of the best, even if I pay a little more money for it.

“Average reconditioning costs is between $150 to $200.

“I have a tremendous amount of repeat business. I am the third generation of my family in the car business. My grandfather used to sell Studebakers back in the 1940s.

“We use a couple of sources on the Web, we use the paper, radio and we do community sponsorships.

“We just sold a 2013 Chevrolet Silverado extended cab with 40,000 miles. We got a little over $25,000.”

WHOLESALE MARKETS

ARKANSAS

Shane Wood, general manager, 71B Auto Auction,Springdale,Ark.:

“January ended up pretty decent,thoughitstartedout pretty slow. No tax money out yet (early February). Not like it usually is in the irstweekofFebruary,that’s for sure.

“We’ve been in business since October 2010, so we justcelebratedsixyears.We have ive lanes.

“We were up in 2016 over the previous ive years. Compared to last year, I would say volumes are down from this time last year.

“We’re running about 800 to 850 per week on average and we’re selling 55 to 60 percent.

“We usually get between 300to350dealersperweek. Obviously, a lot are coming from Arkansas, but also from Missouri, Oklahoma, Texas and Indiana. We also have guys lying in from Minnesota.

“Everybody is crying

(over retail business). For instance, one recent week, one of our new-car stores that runs an average of 80 to 100 a week, only ran 47. So they didn’t trade for nearly as many as they normally do. Tax season is just a couple weeks behind this year.

“(In terms of mix) at a recent sale, we had 700 cars and only six of those were repos. I would say we’re 65 to 70 percent franchise consignment.

“The second Tuesday of each month we run an in-op sale. We were scheduled to have one this month for 30 to 40, which is a big one for us. Normally, we have 15 to 20 a month.

“But we have franchise stores that pull through their in-ops weekly. So in total we’ll run 65 to 70 inops a month.

“The average price overall for 2016 was $5,500.

“In 2016, we did have two on-site boat sales at a lake. We averaged 100 boats and Sea-Doos. We have a mobile auction trailer that we built.

We plan to have a couple more this year.

“The last sale of every month is our front-line sale. It’s nothing we planned or decided to do. It just kind of happened. Everyone knows that’s when franchise dealers will bring their aged front-line cars. We still have front-line stuf – about 50units–inourregularsale though.”

FLORIDA

Billie Jo Graham, general manager, Orlando Auto Auction,Orlando,Fla.:

“We’re right in the heart of the city of Orlando. This auction was established in 1976, originally opened by the Berry family. The current owner (Joe Barron) took over in 2013. I’ve been here a year.

“We run two lanes every Monday night and sometimes during tax season, we’ll run three if we need it. We have four lanes, so we can grow.

“Throughout the year, we’ll run on average 275 to

300 per week. We’re small but we’re an eicient sale. We’ll get it done in a short time.

“We’re a 40-percent (conversion) rate sale. When I camelastJanuarytheywere averaging about a 30 percent sale. It’s just a new perspective and new ideas.

“(Our volume) is 75-percent new-car trades and the rest independent consignment.

“We also just got the U.S. Marshals account for the area. We’re set to run 15 of them in February, These are seized vehicles, so when the cases get cleared, that’s when we get the OK to run any vehicles that are afected. Since they have to be offered up to the public, we’ll runthemontheregularsale day, just at 4 p.m., two hours before our regular sale.

“At the moment, we bring in a mobile detailing guy. But most of the cars that come in from our new-car stores are prepped and ready.

“We average about 120 to

Compiled by Jeffrey Bellant

150 bidders on any given Monday. They are mostly local, though we do have a few out of Alabama and Kentucky. We have a dealer out of North Carolina. We also have a guy from Indiana who lives here but buys cars to ship them up north.

“I don’t think the retail market has broken yet. I think everyone is just waiting around for tax season.

“Our average selling price is around $4,000. I’d say it went up a little bit. I think it used to be around $3,200 to $3,500. We really cleaned up the sale as far as getting rid of some junk that we were just running week after week. Now we’re getting all salable cars and we’re selling them.

“That high-mileage, 10-year-old car is our market.

“I have two saleswomen. I’m anticipating even higher growth and expect to be at a 50-percent rate. The U.S. Marshals sale is huge for us. I’m looking forward to a great 2017.”

RETAIL MARKETS

GEORGIA

Wayne Daniel, managing partner, Car Loan Direct, Cartersville, Ga.:

“We have one location. We’ve been in business here just under a year. But I’ve been in the car business for 16 years. I have another dealership under a diferent name.

“We keep 50 to 60 cars in inventory. Between 20 and 30 is the average sold per month.

“Average retail price is right at $15,000.

“Our average year is 2010, with about 43,000 miles.

“We do well with both cars and trucks. With cars, it’s Challengers, Chargers and Mustangs – more of a sporty type car.

“It’s a truck market for sure in Cartersville. We’re in a rural area, so we do really well with trucks.

make a proit.

“We carry mostly domestics. It’s in the 80 to 90 percent range, for sure.

“We have our website as a big source of marketing. We do a lot of search engine optimization. We use CarGurus, TrueCar and Cars.com. We also buy special inance leads.

“We just sold a 2008 Cadillac Escalade with 53,000 miles.Wesolditfor$22,900.

PENNSYLVANIA

Danny Limongelli, owner, Jo-Dan Motors, Plains, Pa.

“We’ve been here since 1971. Right now, we have about 85 on the ground.

“To ind cars, I use everything. I use auctions. I buy of the street. I visit franchise dealers.

“We sell between 30 and 35 per month, but it depends. We mostly sell retail. We also do subprime.

“The average retail price varies.Rightnow,trucksare very strong in the market here. Trucks are averaging $15,000 to $20,000. On the other end, cars are around $10,000.

“We carry about a third cars, a third trucks and a third SUVs. That hasn’t been typical, though. We had been known for cars and SUVs.

“We started by focusing mostly on cars, and then, about ive years ago, we changed with the times and started going more to SUVs. We didn’t have as many

Compiled by Jeffrey Bellant

trucks, just because of the price and the demand.

“The trucks we get now –even though we pay a lot for them – we sell them. We’re doing well with them.

“Our average model year is 2012, 2013 to 2014. They arealllowmiles,one-owner vehicles, and non-smokers with clean Carfax reports.

“I don’t buy just to buy. I buy the best of the best, even if I pay a little more money for it.

“Average reconditioning costs is between $150 to $200.

“I have a tremendous amount of repeat business. I am the third generation of my family in the car business. My grandfather used to sell Studebakers back in the 1940s.

“We use a couple of sources on the Web, we use the paper, radio and we do community sponsorships.

“We just sold a 2013 Chevrolet Silverado extended cab with 40,000 miles. We got a little over $25,000.”

Valentine’s Day has just passed, and while the cards and lowers are always nice, my heart belongs to the boxes of chocolates.

sections that allow a more subtle access like gently tugging a garter down a stocking.

The whispering rustle of

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

As an avowed chocoholic, I ind something mildly erotic in the discoveries to be made on the inside of a box of chocolates. Starting with the packaging; that smart, elegant tautness of tightly wrapped cellophane harnessing all those goodies within begging to be rent asunder either by ripping it of with all the gusto of a Latin lover or peeled gently toonesidetorevealtheedge of the box. Some boxes have one of those pull and peel

paperpromisesatendermoment as you lift the lid and sense that irst aroma, captivated and held prisoner sincethedayitwaswrapped, now free to assault the olfactory nerves and increase the expectations to come. Finally, the reveal; lifting back the lid and that irst layer of petticoat-like, thin, corrugated paper corseting the beautiful matte, smooth shapes below. Brown can be so intoxicating a color, accentuated by

the nubile shapes sitting so pertly in their very own compartments beckoning to be picked one before the other. Milk chocolates sitting suavely persuasive with raised lines to improve the textured look in circles or squares. Or dark chocolates sitting by their side, shinier and bolder-looking, boisterously boasting what might be secreted within.

Where do you start? Put away that little pirate’s map of where the treasures are – that’s cheating. Let the shapes and suggestive bulges lead you into temptation and tease.

A Russian caramel to get the juices lowing, dark and square with a teardrop swooped over the top prodding you to despoil the perfect layout. As the outer coat meltssmoothlyawaythereis an initial protest against the bite but soon gives way to an unctuous, oozing, sweet, almost cloying embrace with your tongue. You can make

thisirstcaresslastaslongas you can or move right along to make the next selection. Something a little more solidonthetooth,perhaps.A Rubinesquealmondenrobed in cofee cream – surely the best of both worlds. The nut slithers out of its robe to be nibbled, gently at irst but then with more urgency in a satisfying grind of munching molars. The cofee cream lubricating the experience as chocolate’s favorite bedfellow.

On to French nougat, that naughty nutty chew that taunts the taste buds, three slashes across the top of the oblong confection show no real evidence of the fruitful lavors locked inside to be swirled around till it dissipates into your mouth coquettishly leaving little reminders of its presence as

you chase the crumbled nuts around.

The dark round bosom of a strawberry crème beckons to be popped right on top of the tongue and rudely crushed against the roof of your mouth, squishing the luscious contents everywhere. What a delightful delectation full of spring like promise, sweet and tart all at once – pure decadence. So goes the seduction till all appetite is sated and spent. Empty paper wrappers strewn around as the onlyevidenceoftheencounter. The box now pushed to one side, a once willing accomplice now broodingly waiting till a sweet tooth returns.

One last question remains. A tall glass of cold milk or a snifter of double oaked bourbon?

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

Across

1. Detroit’s founder

5. Technology being used in self-driving vehicles

9. Nissan auto

12. Chrysler Paciica and Honda Odyssey

14. On a convertible, it’s retractable

15. Screw connector

17. Inner-city, for instance

19. What air-fresheners cover up

20. Aluent periods

22. Brand emblems such as the Jaguar and the connected circles on Audis

24. Last word of a Hyundai model

26. Racket

27. Cap on a wheel

29. “Wheels”

30. Compact sports car produced up to 2011

33. Goals

35. Operating

36. Porsche SUV

37. Car referred to

40. Sales ___

41. Shelby ____

43. Very quick

45. Brouhaha

46. Traction

48. Auto sales area

50. ___ one’s own horn

51. Mercury model

Down

1. Snow driving equipment

2. Govt. transport department, for short

3. It might be a “stretch”

4. __ Cobra

6. Isuzu model name

7. Toyota sedan

8. Toyota minivan

10. Geek crew, for short

11. Letters on a car ad

13. Transmission, suspension, etc.

16. Toyota truck

18. Posh ride

21. Radial’s pressure measure, for short

23. Motif

25. iA or iM

28. hrough

31. ____ LMP-1 roadster

32. Envy, for one

34. “Eureka!”

36. What an SUV carries

37. Fashion

38. Wy of the road

39. Brit’s trunk

Song holder 42. Display on the wall 44. ___ Beta Kappa (honor society)

47. Aternoon time

49. Either’s partner

Yoursourceforquality, selectionandvalue: Chase.

ADESA Boston

March 10, 17, 24

508-626-7000

ADESA Brasher’s March 20 916-991-5555

ADESA Charlotte March 2, 16, 30 704-587-7653

ADESA Chicago March 10

847-551-2151

ADESA Cincinnati/Dayton March 14 937-746-4000

ADESA Golden Gate March 14, 28 209-839-8000

ADESA Houston

March 1, 15, 29 281-580-1800

ADESA Indianapolis March 14, 28 800-925-1210

ADESA Kansas City March 14, 28 816-525-1100

ADESA Lexington March 23

859-263-5163

ADESA New Jersey March 2, 30 908-725-2200

ADESA Salt Lake March 21

801-322-1234

ADESA Tulsa March 10 918-437-9044

ADESA Washington DC March 8 703-996-1100

Columbus Fair AA March 15, 22 614-497-2000

Manheim Atlanta March 1, 2, 16, 29, 30 404-762-9211

Manheim Dallas March 8, 22 877-860-1651

Manheim Denver March 8 800-822-1177

Manheim Detroit March 2, 16, 30

734-654-7100

Manheim Fredericksburg March 9, 23 540-368-3400

Manheim Milwaukee March 8, 22 262-835-4436

Manheim Minneapolis March 1, 29 763-425-7653

Manheim Nashville March 15, 21, 22 877-386-5004

Manheim New Jersey March 8, 22

609-298-3400

Manheim New Orleans March 22 985-643-2061

Manheim Orlando March 7, 8, 14, 21, 28 800-337-8491

Manheim Palm Beach March 22 561-790-1200

Manheim Pennsylvania March 2, 3, 16, 17, 30, 31 800-777-2053

Manheim Phoenix March 2, 9, 16, 23, 30 623-907-7000

Manheim Pittsburgh March 8 724-452-5555

Manheim Riverside March 7, 9, 23 909-689-6000

Manheim Seattle March 1, 29 206-762-1600

Manheim Southern California March 2, 16, 30 909-822-2261

Manheim Tampa March 2, 30 800-622-7292

Southern AA March 8 860-292-7500

ADESA Boston March 17

508-626-7000

ADESA Golden Gate March 28 209-839-8000

Manheim Atlanta March 1, 29 404-762-9211

Manheim Dallas March 8, 22 877-860-1651

Manheim Milwaukee March 8 262-835-4436

Manheim Nashville March 15 877-386-5004

Manheim Orlando March 8 800-337-8491

Manheim Palm Beach March 22 561-790-1200

Mazda Capital Services

ADESA Boston March 10, 24 508-626-7000

ADESA Golden Gate March 14 209-839-8000

ADESA Houston March 1, 29 281-580-1800

Columbus Fair AA March 22 614-497-2000

Manheim Pennsylvania March 2, 16, 30 800-777-2053

Manheim Riverside March 9, 23 909-689-6000

Manheim Atlanta March 2, 30 404-762-9211

Manheim Detroit March 16 734-654-7100

Manheim Fredericksburg March 23 540-368-3400

Manheim Milwaukee March 22 262-835-4436

Manheim Nashville March 22 877-386-5004

Manheim New Jersey March 8, 22 609-298-3400

Manheim Orlando March 14

800-337-8491

Manheim Pennsylvania March 3, 17, 31 800-777-2053

Manheim Pittsburgh March 8 724-452-5555

Manheim Riverside March 7 909-689-6000

Manheim Seattle March 1, 29 206-762-1600

ADESA Boston March 24

508-626-7000

ADESA Salt Lake March 21 801-322-1234

Columbus Fair AA March 15 614-497-2000

Manheim Dallas March 22 877-860-1651

Manheim Detroit March 2, 30 734-654-7100

Manheim Fredericksburg March 9 540-368-3400

Manheim Milwaukee March 8 262-835-4436

Manheim New Jersey March 22 609-298-3400

Manheim Orlando March 7 800-337-8491

Manheim Pennsylvania March 17 800-777-2053

Manheim Pittsburgh March 8

724-452-5555

Manheim Seattle March 1, 29 206-762-1600

Manheim Southern CA March 16 909-822-2261

Southern AA March 8 860-292-7500

/ 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

AROUND THE BLOCK

DEALERS PONY UP FOR CHARITY

ADESA Phoenix raised $24,500 for JDRF during a charity auction of a 2014 Ford Mustang GT Convertible.

The event was part of the auction’s annual Legendary Sales Week, which includes special events for customers.

JDRF is an organization focused

on curing type-1 diabetes.

Legendary Sales Week coincided with Barrett-Jackson, the collector car auction held in nearby Scottsdale, Ariz. These two events generated a good crowd for the annual charity auction.

Before the sale of the Mustang GT began, 9-year-old Davis

Schapler, a JDRF junior ambassador, shared his experience living with type-1 diabetes. His story motivated the crowd to bid on the convertible.

Jason Frey, sales manager at Express Auto Spot in Phoenix, posted the winning bid for the car.

“Legendary Sales Week and Barrett-Jackson are highlight events for us here at ADESA Phoenix, and the charity auction is part of the thrill,” said ADESA Phoenix General Manager Ryan Edwards.

“We’re honored to again support the mission of JDRF by giving car lovers and dealers from around the country the opportunity to bid on a beautiful vehicle like this Mustang convertible, and to benefit an important cause at the same time.”

The annual auction is a partnership between ADESA and Ford and kicks off a six-month-long fundraising campaign.

Compiled by Jeffrey Bellant

New Recon Center Opens at Auction

Charleston Auto Auction’s ReconditioningCentergrandopeningwas held on Jan. 20.

The celebration event kicked of with a full Southern style breakfast provided to all in attendance.

A ribbon cutting for the 6,500-square-foot detail and reconditioning center continued the day’s activities. Over 1,000 vehicles of all types crossed the block in six action-packed lanes including new clients US Bank and Southeast Toyota Finance.

“We are excited to have our new detail and reconditioning facility open,” said general manager Laura Taylor. “Our added resources will support our institutional clients including our newest clients – Westlake, US Bank and Southeast Toyota.”

Following the sale, the day’s events concluded with a $10,000 late bird drawing.

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

GIDDY UP!: This 2014 Ford Mustang GT Convertible was part of a big fundraising effort at ADESA Phoenix to support JDRF, which funds research for type-1 diabetes.