Used Car News 3/20/17

Industry Icon Sells Auction Broadcasting Co.

By Jeffrey Bellant

Auction veteran Mike Hockett Sr. was honored for his more than a half-century of service to the auto auction industry just as the sale of Auction Broadcasting Co. was finalized.

America’s Auto Auction acquired ABC, creating one of the largest privately held wholesale auto auction chains in the U.S., with 19 locations.

“This acquisition further establishes us as a leading automobile auction company in the country,” said Ben Lange, CEO of America’s Auto Auction.

“This consolidation will allow

greater potential for dealers, fleet and lease, and institutional customers, and the culture of both companies is built around providing quality service to our customers and employees.”

Hockett founded ABC in 2000.

The family-owned company has locations in Baton Rouge, La.; Birmingham, Ala.; Bowling Green, Ky.; Toledo, Ohio; Lancaster, Pa.; St. Louis; and Virginia Beach, Va.

Hockett also founded ADESA.

Hockett received the Ed Bobit Industry Icon Award during the recent Conference of Automotive Remarketers convention.

Theawardsalutesmembersofthe

automotive business community who most exemplify leadership, dedication, service, and devotion to the ideal of excellence.

Numerous industry veterans were honored with awards during the event.

Tim Meta, national remarketing manager for Fifth Third Bancorp, was named Consignor of the Year.

The winner of the award is selected by peers through online voting.

Criteria to be nominated includes: someone who has implemented and encouraged the use of best practices; someone who has created, embraced and implemented industry innovation; someone who

has moved the industry forward through professionalism and high standards; and someone who has willingly participated in industry associations/groups and served as a mentor and role model to the next generation of remarketers.

Meta said he was humbled when he learned he was receiving the award.

“There are so many great consignors who I learned so much from over the years,” he said.

“I appreciate it very much. I’ve really admired a lot of you out there and I wouldn’t be up here if it weren’t for you.”

Continued on page 10

Regulators Raise Issues About Automotive Buying

Several regulators took aim at automotive inance and retailing during National Consumer Protection Weekintheirstfullweekof March.

The biggest display came from the New York City Department of Consumer Afairs, which unveiled the Used Car Buyers’ Bill of Rights.

The bill is really a collection of existing rules governing the sale of used cars in the city, such as price and contract disclosures.

DCA Commissioner Lorelei Salas said she introduced the bill “in response to the growing national subprime auto lending crisis.”

Salas made the announcement at a press conference with federal, state, and city consumer protection agencies, including the U.S. Postal Inspection Service, the Better Business Bureau serving Metropolitan New York, and the Federal Trade Commission.

Virginia Attorney General Mark R. Herring encouraged residents of his state to

familiarize themselves with the risks associated with small-dollar loans including auto title, and to understand their rights when taking out oneofthesepotentiallyrisky loans.

“The laws to protect Virginians against this kind of predatory and abusive lending are not nearly as strong as they need to be,” Herring said.

“That’s why it’s so important for Virginians to understand the risks associated withtheseproducts,tocarefully review any terms and understand your own ability torepaytheloan,andtoconsider any alternatives that may be available.”

Herring recently reorganized the Consumer Protection Section of his oice to include the irst dedicated Predatory Lending Unit to investigate and prosecute suspected violations of state and federal consumer lending statutes, including laws concerning title loans. The unitalsofocusesonconsumer education so Virginians are aware of the potential

risks of these loans, as well as alternatives.

Arkansas Attorney General Leslie Rutledge used National Consumer Protection Week to unveil an updated guide to the Arkansas Lemon Law.

The good news for dealers is the purchase cost of the guide will be reduced by 20 percent.

Your customer wrecks the car and disappears. The insurance company denies the claim because they can’t get cooperation from the customer. YOU LOSE!

The customer stops paying the insurance company but keeps driving the car. When you locate the car, you find it’s been badly damaged. You can’t get the customer to cooperate because you took the car. The insurance company denies the claim. YOU LOSE! The

TocomplywiththeArkansas Lemon Law, dealers may purchase boxes, which include 400 booklets, for $100 each. Costs cover printing, taxes and shipping.

Dealerships can complete the order form online to request copies of the new guidebook, which includes sample letters to manufacturers and contact informa-

tion for manufacturers.

“The Arkansas Lemon Law provides a safety net for Arkansans who have purchased a vehicle that is having recurring problems,” Rutledge said. “My goal is for Arkansans to better understand their protections and rights under the law in this easy-to-read, more-condensed guidebook.”

NEWS BRIEFS

Copart Expands Facilities

Copart Inc. announced the opening of its ifth location in Illinois. The southern Illinois auction will createmorecapacityfortheSt.Louis market.

Copart also announced the addition of its Okeechobee, Fla. location. This facility is located between Orlando, Tampa and Miami, and it will serve as a standby location speciically for catastrophic events. ThisstandbylocationinOkeechobee followsCopartopeningits13thFlorida full-service facility in January.

Westlake Offers Pre-Qualiication

Westlake Financial Services announced the launch of an online indirect auto loan pre-qualiication platform for new and returning customers.

Westlake only ofers online prequaliication in the state of California, but plans to expand to other states throughout 2017. Customers outside of California are not yet able to obtain a pre-qualiication or view inventory, but can still go through the inancing process online and will be directed to nearby dealers participating in Westlake’s network of over 50,000 dealerships.

Auction Offers Digital Badges

Dealers Auto Auction of the Southwest has announced the release of its digital bidder badges. The digital badges are available from the Apple and Google stores. They recognize a bidder upon entrance into the auction and automatically assign a badge. The concept was developed at DAASW and made possible by Peter Levy and his IAS company. The badge includes a QR code that can be scanned with invoices sent by text or email.

Dent Wizard Techs Win Contest

Technicians from Dent Wizard International earned irst and second place honors in the annual PDR (Paintless Dent Removal) Dent Olympics competition at the 2017 International Mobile Tech Expo, held Jan. 19-21 in Orlando. Taking home irst place in the 2017 PDR Dent Olympics was Billy Martin, who works in Dent Wizard’s Northeast Region. Second place went to Kyle Violette from the Midwest Region, and Jody Stewart from the Southeast Region earned twelfthplace. Onlythetop13inishers in the competition earn awards. Approximately 60 PDR techs

participated in this year’s PDR Dent Olympics, including techs from Italy, Germany, Japan, Russia, Brazil and across the U.S. Competitors in the PDR Olympics are given 45 minutes to ix one very challenging dent in a car door panel. Competitors’ work is judged on repair quality and speed. Martin, the irst-place inisher, earned a trophy plus $3,000 in tools and gift cards for his accomplishment. Second-place inisher Violette earned a trophy plus $1,000 in toolsandgiftcards. Martin,Violette and Stewart also earned tool credit rewards from Dent Wizard.

Black Book Introduces Used Vehicle Retention Index

BlackBookhasunveiledtheBlack Book Used Vehicle Retention Index. The index is designed to ofer an unbiased, accurate view of the strength of used wholesale market values.

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on two- to six-yearold used vehicles, as a percent of the original typically equipped MSRP. The index is weighted based on used vehicle registration volume

and adjusted for seasonality, vehicle age, mileage, condition, segment mix and inlation.

Aggregated from daily vehicle value updates, and captured throughout hundreds of wholesale physical and online auto auctions across the country, the Black Book Used Vehicle Retention Index represents data across all regions of the U.S. The index is based on a list of vehicles included in the Black Book wholesale database, and includes no bias towardanybrand,auctionorregion, ensuring a more accurate reporting of the used vehicle market.

XLerate Adds Auction

The XLerate Group announced the addition of a new member to its auction group with the acquisition of Corry Auto Dealers Exchange (CADE).

CADE is the XLerate Group’s irst Pennsylvania auction.

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

General Manager

Columnist: Tony Moorby

Circulation: Helen Thomas

Production: Tom Savage, Production Manager Cee Lippens, Web Master & Graphic Designer Used Car News is published the irst and third Monday

Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale.

Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved.

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

Wholesale Prices Hit Plateau

Wholesale prices declined slightly in February, but industry observers say the market remains fairly healthy.

Wholesale used vehicle prices, as measured by Manheim, fell by 0.2 percent in February.

However, due to a sharp decline in pricing in February 2016, the Manheim Index now shows a yearover-year gain of 1.1 percent. The Manheim Used Vehicle Value Index stood at 124.6 for February.

Manheim adjusts wholesale prices for mix, mileage and seasonality.

Wholesale prices rose in only one month out of the last seven, Manheim reports.

Still, Manheim chief economist Tom Webb sees February as a good performance for the market.

“In the face of heavy new vehicle inventory and incentives, the stability of used vehicle values is a credit to the retail market that continues

to provide dealers the ability to quickly retail wholesale acquisitions at reasonable grosses,” Webb said.

Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics, agrees that the relatively slight decline is a good sign.

“Vehicle retention values have held relatively strong for the second month in a row this year, except for some luxury segments,” Goyal said. “Consumer confidence scored above the expected rate for February, and this coupled with the tax rebate season could be having a positive influence on the retention of vehicle values since there are more sales of smaller vehicles taking place.”

Black Book reports that the averagepriceofausedvehicleformodel years 2011-2015 depreciated by 0.8 percent in February.

Cars overall saw depreciation of 0.8 percent and trucks saw depreciation of 0.7 percent, Black Book reported.

All vehicles are averaging a 12-month depreciation change of 17.9 percent, according to Black Book.

In February, small pickups performed the best.

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 BMW and MINI inventory at BMWGroupDirect.com.

New Vehicle Sales Fall

DETROIT (AP) – U.S. buyers snapped up pickups and SUVs in February, lured by Presidents Day sales, brightening what is usually a lackluster month for the auto industry.

Overall sales of new vehicles fell 1 percent from last February to 1.3 million, according to Autodata Corp. But automakers made up the diference with strong sales of more proitable SUV and trucks. Sales of the Chevrolet Silverado pickup jumped 17 percent to more than50,500trucks.Fordsoldnearly 69,000 SUVs — a February record. Nissan said sales of its Rogue SUV were up 54 percent.

General Motors and Nissan both saw 4 percent sales gains over last February. Volkswagen’s sales were up 13 percent and Honda’s sales were up 2 percent.

But those gains were ofset by declines at other automakers.

Good deals reeled in buyers. Incentives per vehicle rose an estimated 13.5 percent to $3,443 last month, according to automotive forecasting irm ALG.

GM was the biggest spender, at $4,547 per vehicle. Subaru spent the least, at $896 per vehicle, but Subaru’s spending was up 61 percent over last February.

There were several reasons for

the lurry of deals. After a sevenyearstretchofsalesincreases—and record U.S. sales in 2016 — demand isstartingtoslow.Automakerswant toholdontotheirshareofthatmarket and avoid expensive cutbacks in auto production.

“It is taking more efort and more money to move the metal this year than last,” said Michelle Krebs, a senior analyst with Autotrader.

Automakers are also spending more because vehicles cost more. Consumers are rapidly shifting out of cars and into SUVs and trucks, which cost more money. Kelley Blue Book said the price paid for a vehicle last month was up 2 percent from last February to an average of $34,352.

Ford’s U.S. sales chief Mark LaNeve said cars made up 53 percent of new vehicle sales in 2010. In February, they were around 35 percent.

“It is structural and in some ways breathtaking,” LaNeve said. “There’s going to be a car market, but where it eventually gets to, we don’t know.”

The deals will likely continue in the coming months, says Alec Gutierrez, a senior market analyst with Kelley Blue Book. The industry has an 80-day supply of vehicles to sell, which is about 20 days more than the level considered ideal.

HABITS OF SUCCESSUL DEALERS

SUCCESSFUL DEALERS AVOID PROBLEMS, PLAN FOR SUCCESS

By Ted Craig

There are plenty of ways to succeed in the used-car business. But a close look at some of the best operators shows they share several habits.

One of these is coming up with a plan.

“All successful dealers have a business plan for the year,” said Joe Lescota, with the National Independent Automobile Dealers Association.

This plan must be realistic, which means including a projection of net proit along with gross and revenue.

Successful dealers review that plan on a weekly basis.

Dealers must know how each employee its in this plan.

That means having a job

description for everybody and training them on how to do those jobs.

One of the most important habits is consistency, said

Anthony Underwood, the owner of Underwood Motors in Bessemer, Ala.

Underwoodsaidpeopleoftenwanttochangethescript just to maintain their own interest, regardless of how well a business operates.

“Success is boring,” he said.

Dealers need to remember to do what is best for all rather than themselves.

Consistency is diferent than not changing. In fact, another habit of successful dealers is accepting change, especially when it comes to technology.

Ken Shilson, founder of theNationalAllianceofBuy-

Here, Pay-Here Dealers, said itwasenoughafewyearsago foradealertohaveawebsite and maybe use AutoTrader to attract customers.

Itwasaquestionofputting himself out there and having the customers come to him.

“What works today is proactively connecting with the customer before they go somewhere else,” Shilson said. “You have to take their hand and being them to your lot.”

Successful dealers embrace other technologies to solve their problems.

Forexample,thekindofinventory typical of buy-here, pay-here lots proves hard to ind these days. Successful dealers use technology to broaden their search for the right units with which to stock their lots.

They also use tools such as GPS devices to control their costs and make their operations more eicient.

Another habit that helps dealers on several fronts is making their customers happy.

“Do whatever you can to keep the customer happy and that goes a long way,” said William Denius, an attorney who specializes in auto inance.

Denius said many disputes

between dealers and their inancecompaniesarisewhen a customer starts griping and as a result stops paying.

“Of course, there will be times when you do all you can and it’s not enough,” Denius said.

“But trying is crucial.”

So successful dealers are in the habit of keeping their customers happy, keeping up with change, having a plan and being consistent.

Yoursourceforquality, selectionandvalue: Chase.

ADESA Boston April 7, 14, 21

508-626-7000

ADESA Brasher’s April 18

916-991-5555

ADESA Charlotte April 13, 27

704-587-7653

ADESA Chicago April 7

847-551-2151

ADESA Cincinnati/Dayton April 11

937-746-4000

ADESA Golden Gate April 11, 25 209-839-8000

ADESA Houston April 12, 26

281-580-1800

ADESA Indianapolis April 11, 25

800-925-1210

ADESA Kansas City April 11, 25

816-525-1100

ADESA Lexington April 20

859-263-5163

ADESA New Jersey April 13, 27

908-725-2200

ADESA Salt Lake April 18

801-322-1234

ADESA Tulsa April 14

918-437-9044

ADESA Washington DC April 5

703-996-1100

Columbus Fair AA April 12, 19

614-497-2000

Manheim Atlanta April 13, 26, 27

404-762-9211

Manheim Dallas April 5, 19

877-860-1651

Manheim Denver April 5

800-822-1177

Manheim Detroit April 13, 27

734-654-7100

Manheim Fredericksburg April 6, 20 540-368-3400

Manheim Milwaukee April 5, 19

262-835-4436

Manheim Minneapolis April 26

763-425-7653

Manheim Nashville April 12, 18, 19

877-386-5004

Manheim New Jersey April 5, 19

609-298-3400

Manheim New Orleans April 19

985-643-2061

Manheim Orlando April 4, 5, 11, 18, 25

800-337-8491

Manheim Palm Beach April 19

561-790-1200

Manheim Pennsylvania April 13, 14, 27, 28 800-777-2053

Manheim Phoenix April 6, 13, 20, 27

623-907-7000

Manheim Pittsburgh April 5

724-452-5555

Manheim Riverside April 4, 6, 20

909-689-6000

Manheim Seattle April 26 206-762-1600

Manheim Southern California April 13, 27 909-822-2261

Manheim Tampa April 27 800-622-7292

Southern AA April 5 860-292-7500

Choose Chase on ADESA.com and OVE.com for quality bank-sourced vehicles. Contact auctions directly for current

ADESA Boston April 14

508-626-7000

Manheim Atlanta April 26 404-762-9211

Manheim Dallas April 5 877-860-1651

Manheim Milwaukee April 5 262-835-4436

Manheim Nashville April 12 877-386-5004

Manheim Orlando April 5 800-337-8491

Manheim Palm Beach April 19 561-790-1200

Manheim Pennsylvania April 13, 27 800-777-2053

Mazda Capital Services

ADESA Boston April 7, 21 508-626-7000

ADESA Houston April 26 281-580-1800

Columbus Fair AA April 19 614-497-2000

Manheim Atlanta April 27 404-762-9211

accounts are owned by Chase.

Manheim Riverside April 6, 20

909-689-6000

Manheim Tampa April 27

800-622-7292

Manheim Detroit April 13 734-654-7100

Manheim Fredericksburg April 20 540-368-3400

Manheim Milwaukee April 19 262-835-4436

Manheim Nashville April 19 877-386-5004

Manheim New Jersey April 5, 19 609-298-3400

Manheim Orlando April 11 800-337-8491

Manheim Pennsylvania April 14, 28

800-777-2053

Manheim Pittsburgh April 5

724-452-5555

Manheim Riverside April 4

909-689-6000

Manheim Seattle April 26

206-762-1600

Manheim Tampa April 27

800-622-7292

ADESA Boston April 21

508-626-7000

ADESA Salt Lake April 18 801-322-1234

Columbus Fair AA April 12 614-497-2000

Manheim Dallas April 19 877-860-1651

Manheim Detroit April 27 734-654-7100

Manheim Fredericksburg April 6 540-368-3400

Manheim Milwaukee April 5 262-835-4436

Manheim New Jersey April 5 609-298-3400

Manheim Orlando April 4 800-337-8491

Manheim Pennsylvania April 14 800-777-2053

Manheim Pittsburgh April 5 724-452-5555

Manheim Seattle April 26 206-762-1600

Manheim Southern CA April 13 909-822-2261

Southern AA April 5 860-292-7500

*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. ©2017 JPMorgan Chase Bank, N.A. Member FDIC (17-004) 4/17

Awards

– Continued from page 1

Meta said the best thing about being a consignor is that it’s not so much about competitiont between consignors.

“When we sell a car for a highprice,ithelpsallofus,”hesaid.

Sharing ideas, advice and friendships has been a big part of his success,Metasaid.

Meta is the incoming president of theInternationalAutomotiveRemarketersAlliance.

The 2017 Remarketer of the Year winner also meets the same criteria as the Consignor of the Year, in that the person must use and promote best practices is an innovator and mentor who has moved the industry forward while being involved in industryorganizations.

CAR Chairman Mike Antich said many companies in the remarketing industrywerefoundedasfamilybusinesses. In the past, the conference hasalwayshonoredindividuals.

“This year we want to honor a

family,” Antich said. “The 2017 Remarketer of the Year award goes to the Nichols family (of BSC America).”

Charles and Michelle Nichols, president and vice president of BSC America, accepted the award on behalf of the company and their father, BSC America Chairman Ray Nichols, who was unable to attend the event.

“It’s a wonderful event and we are very humbled,” Charles said. “As you know we are truly in a family business. We really appreciate it.

“This industry has done a lot for all of us in this room and we are deeply honored and humbled to be part of it.”

The conference also gave its Lifetime Achievement Award/ Industry Excellence to retiring Dan Kennedy of General Motors for his career in remarketing. Kennedy is a member of the NAAA Hall of Fame and sold 15 million vehicles in his career.

“I’m very honored to accept this prestigious award,” Kennedy said. “Thirty-one years in the industry I’m very fortunate and very blessed to be part of a wonderful team and an outstanding industry. I’m grateful to all of you.”

Auction Pioneer Wins Circle of Excellence Award

By Jeffrey Bellant

The International Automotive Remarketers Alliance honored auction pioneer Tony Moorby with the group’s highest honor – the Circle of Excellence award.

Dave Alfonso, recently retired from Kia Motors, presented the award.

“If the words ‘Tony Moorby’ and ‘excellence’ are not synonymous, then excellence cannot be deined,”

Alfonso said. “He’s made things better for everyone in the industry.

“Above all, he did it while remaining the gentlemen’s gentleman.”

Alfonso said it’s been his “distinct honor and privilege” to have Moorby in his life.

“That’s the most lattering introduction I’ve ever had in my life,” Moorby said, as he accepted the award. “It’s hard to know how to react whenagatheringofindustry peers recognizes that you may have contributed something to an industry that you really love.”

Moorby said he got more out of the industry than he contributed.

“The relationships that I’ve formed over the years have become very meaningful friendships, learning opportunities and given me the ability to grow in myself,”

Moorby said. “It’s been a remarkable journey.

“I really am truly grateful for this acknowledgement. I can’t tell you what it means to me.”

Moorby was born in 1948 in Great Britain. He eventually joined a publicly owned franchise car dealership as a management trainee, said Alfonso.

Moorby became a general manager at a franchise dealership at age 24. In 1978, he joined British Car Auctions as deputy sales director. He partnered with then-managing director Mike Richardson to establish an auto auction company in the United States,

Moorby came to the U.S. in 1982, when Anglo American Auto Auctions was born.

It grew to 28 auctions

across the nation and the company was acquired by ADT in 1997 and later by Tyco International with Moorby as its president.

Tyco later sold the company to Manheim for $1 billion. The government forced Manheim to sell of some of the auctions to prevent a monopoly in certain markets, Alfonso said.

Some of the auctions were purchased by ADESA and ADESA hired Moorby to serve as executive vice president. He eventually moved into another business with other industry partners.

Alfonso said Moorby brought ideas and innovations to the industry. He said Moorby’s company was a key player in the passage of

the Truth in Mileage Act in 1991.Healsoencouragedthe industry to reveal vehicle histories as part of the resale process at every level.

“The passing of this legislation was a landmark turning point in the industry,” Alfonso said. Moorby’s company also pioneered reconditioning, training and other innovations in the industry.

State Settles with Car Dealer

CHARLESTON, W.Va. (AP) –WestVirginiaAttorneyGeneralPatrick Morrisey has reached a court settlement with a Cabell County used-car dealer.

The settlement requires the dealer stand behind warranties, post unalteredbuyer’sguidesandensure each vehicle sold will pass state safety inspection.

It requires owner Shawn Dunfee to pay a $5,000 civil penalty, $2,500 previous penalty and $1,350 restitution to a customer by April 30.

The lawsuit against Dunfee and

his business, Dunfee’s Used Cars, alleged the dealership sold vehicles with mechanical defects, altered warranties illegally and failed to display car buyer’s guides.

According to the attorney general’s oice, Dunfee was irst investigated following complaints in 2010 about defective vehicles and modiied warranties that kept them from getting needed repairs.

He agreed to change practices, followed by a 2015 investigation for similar violations and a second agreement.

State OKs Driverless Cars

LOS ANGELES (AP) – Cars with no steering wheel, no pedals and nobodyatallinsidecouldbedriving themselves on California roads by the end of the year, under proposed state rules that would give a powerful boost to the fast-developing technology.

For the past several years, tech companies and automakers have been testing self-driving cars on the open road in California. But regulators insisted those vehicles have steering wheels, foot controls and human backup drivers who could take over in an emergency.

On March 11, the state Department of Motor Vehicles proposed regulations that would open the way for truly driverless cars.

Under the rules, road-testing of such vehicles could begin by the end of 2017, and a limited number could become available to customers as early as 2018 – provided the federalgovernmentgivesthenecessary permission.

Current federal automobile standards require steering wheels, though the U.S. Transportation Department has encouraged selfdriving technology and could look favorably on such projects.

Whileafewotherstateshavewelcomed such testing, this is a major

California’s size as the most popu lous state, its clout as the nation’s biggest car market and its longtime role as a cultural trendsetter.

The proposed regulations also amount to the most detailed regula tory framework of any state.

“California has taken a big step. This is exciting,” said Bryant Walk er Smith, a law professor at the University of South Carolina who tracks government policy on selfdriving cars.

The rules are subject to a com ment period and a public hearing and could change. Regulators hope to put them in efect by December.

The proposal is more than two years overdue, relecting complex questions of safety and technology. Self-driving systems rely on highly advanced sensors and software.

“We don’t want to race to meet a deadline,” said Bernard Soriano, a leader of the motor vehicle agency’s self-driving program. “We want to get this right.”

Inoneimportantchangefrompri or drafts, once a manufacturer de clares its technology is road-ready, it can put its cars on the market. That self-certiication approach mirrors how federal oicials regulate standard cars, and represents a big victory for such players as

and maintain control of your accounts. You continue the collecting…. You keep the customer… You make more money!

Thief Hits Same Store Twice

FRANKFORD, Del. - Delaware State Police have arrested a man, Jefrey Cannon, they say broke into a used-car dealership twice in as many weeks and stole thousands of dollars worth of tools.

The Used Car Factory in Frankford was burglarized Jan. 23 and Feb. 3.

In the irst incident, the front door was smashed to gain entry. Once inside, Cannon is alleged to have removed more than $250 in cash from a register till along with two diagnostic scan tools valued at $5,000

each. In the second incident the front door was once again smashed open and two separate desks were ransacked, causing damage to a computer.

Cannon then removed various tools valued at more $9,000 from the shop and damaged a car hood that was in for repairs before leeing the business.

Detectives developed a suspect and oicers got a search warrant for his home.

Police say they found items stolen during both burglaries.

RETAIL MARKETS

INDIANA

Kelly Crowl, controller/ secretary, All Star Autos Inc.,LaPorte,Ind.:

“We’ve been in business 41 years. We have one location now. We used to have two.

“We have about 75 cars on the lot. It sometimes goes up a little. We’re typically between 75 and 100 units.

“Mostly we get our vehicles from auctions. We use Manheim and ADESA.

“We’re on a little (sales) uptick.Wegenerallysellbetween 30 and 35 (units) per month. The last few weeks have been going very well.

“We are not buy-here, pay-here. We help arrange inancing and we use Credit Acceptance Corp. About 40 percentofourdealsaresubprime.

“Average retail price is around $13,000 to $15,000.

“We’vebeenkeepingsome nicer late-model stuf with remaining factory warranties on them. But we carry everything.

“Our average unit would

be two to ive years old.

“We try to keep those nice lease units, cherry-picked. I would say average mileage is under 50,000.

“We’re pretty break-even in carrying cars and trucks. We try to carry as many trucks as we can. Those are a constant seller here. We also try to keep both cars and SUVs on the lot. So I would say we’ve got a really good mix.

“Domestics and imports are probably 50/50.

“We’ve been working really hard on reconditioning costs. We’ve dropped that from $1,200 to somewhere close to $900. Tony, our buyer, and my dad – with 41 years experience – working togetherarejustbuyingnicer units. Some of them we’ll get with post-sale inspections. Most of them we’ll buy with high ratings.

“In a small town like La Porte, Ind., our reputation is huge. We want the best cars we can get for the best money.

“We use Facebook and

other social media. In the last few years we’ve really reduced our expenditures on marketing. We don’t do any newspaper or really any radio.

“We do a lot of sponsorships of local teams. We try to keep our marketing local.

“We do some reconditioning work in-house and we farm some out.

“We maintain a website through Carsforsale.com. Then we have our own independent website.

“We recently sold a 2015 Dodge Ram 1500 crew cab, beautiful, loaded up. It had 18,000 miles and sold for $35,900.

“I’m optimistic about 2017. I think we’re all feeling optimistic. We’re solid into our second generation. My dad and mom are still involved and the three of us siblings are partners. My brother Tony is doing the buying and my sister Marti is the best salesman in the state of Indiana. We’re keeping our staf lean and doing things right.”

MARYLAND

Gus Kurtz, president, Sports and Imports Inc., Pasadena,Md.:

“We have one location. We used to have three but I’m getting older and we’ve consolidated. We’ve been in business coming up on 27 years.

“I keep about 120 in inventory. We sell about 50 to 55 a month consistently.

“We’re straight retail. Locally, for the convenience of our customers, we might do two deals a month of inhouse inancing.

“(We get) about 20 percent of our inventory from trades, 10 to 20 percent of the (street) and 70 percent from auctions.

“We use Bel Air Auto Auction and Manheim.

“We’re really excited aboutBelAir’snewlocation. I’ve been going to that auction for 30 to 34 years. It’s a well-run place. Charles and Michelle Nichols are great people. I’ve known them andtheirfatherfor34years.

(The family is a big asset to

Compiled by Jeffrey Bellant

the industry.)

“Our primary market is trucks and SUVs, which is 70 percent to 75 percent of our market. So our average retail price has increased over the years. It’s hovering between $12,000 and $14,000.

“Average mileage is around 75,000 to 80,000. The model year is around 2010 to 2013. (Inventory is) probably 65 percent domestics and 35 percent imports.

“Reconditioning costs were up last year about $200. Our average cost is $750 a vehicle. The vehicles that are coming to auction are of lesser quality and I think that’s industry-wide. You have to spend more to bring them up to par.

“We do our own reconditioning. But we sub our service work out.

“We primarily use Internet-based advertising. But we still do some print and some radio.

“I recently sold a 2013 Chevy Volt. It had 65,000 miles. I got $10,995.”

WHOLESALE MARKETS

CONNECTICUT

PeterSaldamarco,president, Central Auto Auction,Hamden,Conn.:

“It was quiet (in the lanes) inJanuary,but(attheendof February), tax checks must have come out because it just boomed. Hopefully, it’s the spring season.

“Volumes have been down 20 to 30 percent, but sales percentages have been pretty strong. We’re in the mid60s. But it’s 60 percent of less volume.

“We’ve been running 300 and on a good week 370 to 380. But during the slow time, it was down to 270 to 290.

“Most definitely I’m expectingvolumestoincrease.

“We draw 200 dealers in the lanes. We have about 30 buys in simulcast. We use AWG for simulcast and we use Auction Pipeline for how we promote the simulcast sale.

“We run three lanes and we’re getting ready to open a fourth. The fourth lane is coming before the end of this year.

“We added four acres on last year and we bought a salvage yard next door. All the site work, drainage and fencing is done. The final step is to open the lane.

“Part of our expansion is we’re opening up a pretty big service department, which should be open by theendoftheyear.Avehicle evaluation center should be open within a few months.

“We’re probably 60 to 70 percent new-car trades, 30 percent commercial and 10 percent independent dealer consignment.

“We have a GSA sale and we have a lot of smaller fleet companies. We just established a partnership with the Credit Union League of Connecticut. We are now endorsed by it to its membership. I think there are 80 members. Hopefully, that will kick up our repo volumes.

“Our average price overall isabout$4,500.That’satick up from this time last year.

“Repos are going up for

sure.

“We recently got involved withTomStewart(ofAMS). He’s our national sales rep –along with other auctions – and we hope that relationship will help some of the fleet-lease companies to give us a try.

“Our donation car business is up. We run over 100 a week.

“We do our GSA sale once a month, Generally, that runs seven to eight months out of the year. New cars just started arriving, which we also marshal for GSA. The used cars should come in by April.

“A typical sale is 100 cars and they are all reconditioned and that’s open to the public.

“The bulk are passenger vehicles, but we also get light trucks and mid-size trucks. Amtrak is one of GSA’s biggest customers, and Amtrak is our nextdoor neighbor. So a lot of pickup truck and light truck volumes come from them specifically.”

WISCONSIN

Jay Sass, general manager, Mid-State Jeferson Auto Auction, Jeferson, Wis.:

“We’ve been around about 20 years.

“Right now, we’re running four lanes. We had been running three as of two years ago and then we added a fourth. Now we’re thinking of remodeling because we’re getting jampacked.

“Consignment had been down a little bit, but now we’re in tax season. January was down a little bit, just because I think the new-car business had been down a little bit.

“Butjust(March7)weran nearly 500 cars, which is a big sale for us.

“We are one of the auctions that have one of the highest sales percentages. For example, (at our March 7 sale) we ran just shy of 75 percent. The week prior to that, we ran about 83 to 84 percent.

“As a whole we run nor-

Compiled by Jeffrey Bellant

mally around 68 to 70 percent as our average sell rate.

“Our recent sale had 280 bidders and maybe 20 to 30 people online. That’s up a little bit because of tax season.

“Our average is about 206 for bidders.

“New-car dealer sales are starting to pick up a little bit.

“As far as used cars, people have been really having good used-car sales the last couple of months. I think that might be why used-car consignment fell a little bit earlier.

“About 90 percent of our volumes are dealer consignment. The rest are bank repos and we have a little bit of fleet.

“We will probably have more repos this year.

“Our normal average (price on the block) is around $3,800.

“My feeling is, just by the way things look, we’re going to have a 10 to 20 percent increase (in business) for 2017.”

DISCONNECTED JOTTINGS FROM TONY MOORBY

So just when you inished reading the 20,000 pages relating to Obamacare, or the Afordable Health Care Act, you’re going to have to start over.

healthcare, complicated by its very nature, has clouded every issue related to its implementation and how to fairly share its costs.

Some people think the Eu-

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

Actually the real count is 906 pages of the law itself, but still, all that legal gobbledygook never made easy digestion for the man in the streetoronagurney,forthat matter.

No one ever explained it to anyone in words of one syllable and I charge anyone to choose a person in the street for an explanation or interpretation. Not a cellulose cat in hell’s chance.

The whole miasma of

ropean system is best – it’s free. Pile and hogwash! One may not be charged at the point of service and prescriptions incur a co-pay, at least in England, but it’s all pre-paid from taxes – high taxes.

The costs of social services, including health care in Sweden are paid out of a deduction of nearly 60 percent of your paycheck. In fact, in 1996 it reached a peak of 61 percent. They rank as one

of the happiest or the least depressed people on the planet.Theyshouldbewhen the “what me care” attitude is bought and paid for. Run a presidential campaign on those, admittedly socialist, ethics and see how far you get.

Actually pre-payment for health care and education are probably things of the past. It was the way of things in my parents’ day –their schooling, including university, and health care was pre-paid by their parents. Now it’s pay-as-you-go – expensively – and borrow from the future to pay for it. Asasittingpresidentdoesn’t have to be seen to pay for it, the industry throws money around like a drunken lottery winner and the patient has to foot the bill.

I’ve quoted examples of idiotically high costs before and they continue today. I recentlygotbilled$4,600for twoCATscansfromVanderbilt Hospital – seriously! I appreciate that GE charges a fortune for a CAT scanner

– up to $400,000, I believe. My math tells me that 179 patients will have it paid for. On the day of my treatment they were all in line in front of me!

I don’t begrudge anyone a proit but they don’t even keep the place clean – it’s a hospital for Pete’s sake! You want to get a staph infection? Spend time in one of today’s hospitals – it won’t be long – I did.

When I was growing up, hospitals smelled of pine disinfectant, applied by nurses every afternoon. The last time I was in Vanderbilt as a patient, a cleaner came around once in ive days and swabbed the loors, including the bathroom with some brown eluent that smelled of last week.

Then she proceeded to the next room to do the same thing with the same foul luid. No wonder infections

are spread so widely in hospitals.

Even as a Republican, I’ve always maintained that a successful society should be abletotakecareofitspeople soperhapsanevenlyapplied health care tax is the fairest way to go. The government could then tell the drug companies how much they’d pay for drugs. I recently had to pay $320 for a month’s supply for a prescription. I then went to GoodRX on the Internet and got the same thing (not a generic equivalent) for $12.

Having never igured out the last mish-mash of a health care policy, we’re now adding taxes and tax relief to this one. So another ream of pages will be added to the 70,000 plus that already make up the tax code and its regulations. You’ll need prescription glasses at the end of that lot.

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

Across

1. 570GT brand

5. Nissan auto

9. Corporate abbreviation

10. GTR or X-Trail brand

11. Tire maker

13. System, for short

15. Q30 or QX30

18. ___ Mans race

19. Dodge muscle car

21. Shady tree

23. Piece of advice

24. Operated mechanically

26. Wide shoe itting

27. Computer’s info

28. See 20 down

29. ___compact car

31. In place of

32. Word before Rover

34. Galant manufacturers

By Myles Mellor

38. Expression of surprise

39. Computer department

40. Car with a dragon in its logo, 2 words

43. Popular European model, based in the Czech Republic

46. One in German

47. General Motors division, now discontinued

48. Enable to survive

Down

1. Clubman and Countryman

2. Keeps running

3. Sounding like a Lamborghini revving up

4. Bismarck’s state

5. Wheels’ need

6. Lojack helps you recover ater this

7. Used auto concern

8. Start of Isuzu, 2 words

12. ___ Grand Cherokee

14. Cry of disgust

16. Scuderia ____

17. Provided that 18. Stead

19. XT5 and CT6

20. James Bond car, goes with 28 across

22. Some airport shuttles

23. New drivers take them

25. Accounts receivable, for short

28. Soccer ___

30. Lewis Hamilton’s region, generally 33. “CSI” topic, oten

35. Foot digit

36. Expos

37. Concealed

41. Honda model

42. Have title to 44. Do-it-yourselfer’s purchase

45. __ ___ roll (doing well)

AROUND THE BLOCK

AUCTION GROUP CEO RECEIVES HONOR

Cam Hitchcock, CEO of XLerate Group,receivedtheWarrenYoung Fellow honor from National Auto Auction Association President Jerry Hinton during the Conference of Automotive Remarketing in Las Vegas this month.

Hinton said the award was for Hitchcock’s role in expanding the

NAAA’s Safe T. Sam program to all of the employees of the XLerate family.

“The program, based on proven best practices, was designed to promote greater safety awareness in acts of prevention through short educational videos,” Hinton said.

“Today, we recognize Cam Hitchcock, not only for his leadership and training of his organization, but for his desire to share this recognition with everyone from XLerate.”

Hitchcock led the training of nearly 1,000 full- and part-time employees in the auction group.

“We want to thank ADESA and NAAA for making Safe T. Sam available and so easy to use,” Hitchcock said.

“There’s nothing more fundamental than safety.”

He said one of the main goals is to complete sales and get everyone home safely.

Hitchcock encouraged other auctions to implement the program.

The Warren Young Scholastic Foundation since 2001 has helped more than 150 students pursue higher education through annual scholarships.

Compiled by Jeffrey Bellant

Canadian Seller Sets Truck Record

On Feb. 23, Manheim Detroit featured a massive truck sale with The Canadian Super Sellers, one of Canada’slargesttruckexporters,selling more than 500 trucks during the event.

CSS ran 1,073 four-wheel-drive pickups, sold 556 in the lanes with the remaining units made available on OVE and in a future sale, according to a Manheim spokeswoman,

The sale was the largest-ever truck-only sale held at a Manheim location.

“Six of our lanes (ran) models from every manufacturer ranging from$5,000to$60,000-pluswholesale,” said Mandy Savage, Manheim Detroit general manager. “The Canadian Super Sellers is a valuable partner, ofering thousands of vehicles at our location over the past several years.”

In 2016, CSS sold 16,300 vehicles at Manheim Detroit.

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

“Since we’ve enrolled with Credit Acceptance, we’ve seen substantial growth in our business - 25% per year. We’ve also been able to double the size of our dealership.”

DAN REEL Owner, Reel’s Auto Sales

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• The 50% transportation discount will appear on the transaction screen when CarsArrive is selected

• Eligible purchases include upstream, off-site, off-lease and rental vehicles on DealerBlock Prime; excludes at-auction and Certiied Auction Partner (CAP) vehicles

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