Used Car News 7/18/16

Recalls Keep Cars Out of Wholesale Market

By Ted Craig

The Takata airbag recall became even worse as Honda recalled more than 300,000 vehicles, all more than a decade old.

New test data on a particular subset of defective Takata air bag inflators in certain 2001-2003 Honda and Acura vehicles show a far higher risk of ruptures during air bag deployment.

This has prompted an urgent call from the National Highway Trafc Safety Administration to ensure that unrepaired vehicles are found and fixed before they cause further injuries or fatalities.

Ruptures are far more likely in inflators in vehicles that have spent significant periods of time in areas of high absolute humidity—particularly Florida, Texas, other parts of the Gulf Coast, and Southern California.

Testing of the inflators from these vehicles shows rupture rates as high as 50 percent in a laboratory setting.

The vehicles in question were recalled between 2008 and 2011. Honda has reported that more than 70 percent of this higher-risk population of vehicles has already been repaired, but approximately 313,000 vehicles with this very dangerous defect remain unrepaired.

The urgent warning adds to the growing backlog of vehicles that are out of the market. Manheim economist Tom Webb said there were a “significant number of vehicles that can’t be sold” at auction due to recalls.

These delays are costing consignors the chance to sell at a fairly high price.

Wholesale prices as measured by the Manheim Used Vehicle Value Index are at their highest level in more than four years, and of less than 2 percent from the record high reached in May 2011.

“I know everybody would rather have these vehicles fixed and avail-

able, but that’s just not possible,” Webb said.

Anil Goyal, senior vice president of automotive valuation and analytics for Black Book, said the Takata recalls won’t afect any one brand’s value. However, rate of repair could afect the overall market.

“The airbag recall is widespread across many diferent brands, which means any material efect on depreciation will be impacted more by the volume of recalled vehicles coming back into market at any one time, as well as the demand for those vehicles, and it’s difcult to predict this cadence and appetite at this time,” Goyal said.

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NIADA Members Seek Advertising Alternatives

By Jeffrey Bellant

Independent dealers saw loan terms and amounts financed creep up in 2015, while certified vehicles showed an uptick in awareness and perception by used-car buyers.

These were some of the results of the 2016 National Independent Automobile Dealer Association’s Used Car Industry report.

NIADA compiled information from more than 11,000 dealer member records along with other industry sources, including credit reporting companies, value guides and product providers.

Most NIADA members operate one location with a store of less than 25,000 square feet and employ fewer than 5 people.

The report included information from Experian, which showed the average credit score for used-car buyers was 649 in 2015, just one point higher than the prior year, while new-car buyer credit scores dropped one point to 711.

The average loan term for used buyers was 63 months in the fourth quarter of 2015, while the average amount financed in a used-car deal was $18,850 in that quarter.

Monthly payments on used-car deals rose slightly to $359 in the fourth quarter of 2015, from $354 in the prior year’s fourth quarter.

In terms of high-risk buyers (less than 600 credit score), credit unions and buy-here, pay-here dealers are doing less business, while captive finance companies have done 7.3 percent more business with this segment. Banks have also seen a jump (1.5 percent) in loans to high-risk borrowers.

NIADA members did more wholesale business last year.

The group reported that 38.5 percent of members did wholesale business, compared to less than 19 percent in 2014.

Nearly 30 percent of members spent between $21,000 and $50,000 in online advertising in 2015, an increase of 2.2 percent from 2014.

What is the Nature of Your Business?

NIADA reported that 73 percent advertised online in 2015, which is a dip from 2014 when more than 82 percent advertised online.

The study shows that advertising dipped across many channels, including newspaper, radio, specialty publications, magazines and mobile.

Slightly more dealers used television but the biggest increase was in the “other” category, which jumped to 20.2 percent of respondents in 2015 from 6.4 percent of respondents in 2014.

More NIADA members in the study received bank financing in 2015 at 35.2 percent, an increase from 30

percent in 2014.

Only 60 percent bought their inventory with cash in 2015, down from 65 percent in 2014.

There was a big drop in the percentage of dealers who ofer credit union financing through their dealerships –from 54 percent in 2014 to less than 28 percent in 2015.

NEWS BRIEFS

IAS Buys AWG, AuctionMaster

Integrated Auction Solutions LLC (IAS) has acquired the assets of AWG Simulcast (AWG) and AuctionMaster Technology (AMT).

Greg Levi will serve as a managing member of IAS. Levi brings experience to IAS’ software development eforts through his background with Digital Motorworks, vAuto, and Finance Express.

AWG Remarketing is a provider of live simulcast for independent auctions.

AuctionMaster is an auction management system consisting of numerous modules that can manage inventory, dealers and accounts, fees, sales, operations, arbitration, accounting and other auction functions.

IAS is owned by Alexis Jacobs, the owner of Columbus Fair Auto Auction.

Firm Sells Autotrader Canada

Apax Partners has entered into a definitive agreement to sell Trader Corp. to private equity firm Thoma Bravo for approximately $1.575 billion Canadian.

The transaction, which is subject to customary closing conditions, is expected to close by the fourth

quarter of 2016.

Trader is Canada’s largest digital automotive marketplace. Its online properties include Autotrader.ca, Autohebdo.net and Autos.ca. In addition, the company provides software solutions to dealer customers to make business, inventory, and marketing decisions.

Apax Funds acquired Trader in July 2011.

XLerate Adds El Paso Auction

Huron Capital Partners LLC announced that its auto auction company, the XLerate Group, acquired EPI-El Paso.

The deal marks the third add-on acquisition for XLerate in partnership with Huron Capital, and its second add-on in 2016.

EPI commenced operations in 2011 as part of the McConkey Auction Group. EPI holds financial institution, fleet/lease and dealer consignment sales every Wednesday at its El Paso, Texas facility.

The auction operates a four-lane arena, reconditioning facility and mechanical shop, and is situated on approximately 16 acres.

With the addition of EPI, XLerate now has auto auction sites across the state in Dallas, Austin and El

Paso, plus locations in California, Florida, South Carolina, Michigan and Wisconsin.

CarMax Opens Store in Massachusetts

CarMax Inc. ofcially opened its store in Westborough, Mass.

The store is located at 170 Turnpike Road. The new store will stock more than 300 used vehicles.

In celebration of the Westborough store opening, CarMax donated $5,000 to the Worcester County Food Bank.

Westborough CarMax associates selected this nonprofit for its mission to distribute approximately 5.8 million pounds of food to more than 130 partner agencies in Worcester County.

The CarMax Foundation is also providing a $10,000 grant to Community Harvest Project to support educational programs that engage youth at risk for hunger. This grant will serve more than 1,000 youth through the Community Harvest Project’s nutrition education programs – Sprouting Minds, Farm Camp and Kindergarten Initiative.

This grant also came at the recommendation of Westborough CarMax associates.

Add-on Products Draw Fines

Recent actions by the Consumer Financial Protection Bureau resulted in restitution of about $24.5 million to more than 257,000 consumers for auto finance and payments issues.

CFPB examiners determined that one or more auto creditors deceived consumers into thinking their addon product would fully cover the balance of a consumer’s loan in the event of the loss of their car or truck. In fact, the product covered less than the vehicle’s value.

Bureau examiners also found one or more auto creditors deceived consumers about terms of a deferral, saying the only efect would be to extend the life of the contract and to accrue interest during the deferral. They didn’t tell consumers that subsequent payments would be applied to cover the interest earned on the unpaid amount from the date of the consumer’s last payment.

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

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Columnist: Tony Moorby

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Repos Create Complaints

Auto finance makes up a majority of the consumer loan complaints submitted to the Consumer Financial Protection Bureau.

The consumer loans category includes vehicle loans and leases, installment loans, pawn loans, title loans, and personal lines of credit.

Auto finance makes up 52 percent of the 38,500 complaints filed for this category since July 2011, according to the latest CFPB snapshot.

The second most common type of consumer loan complaints was installment loans – 31 percent.

Many consumers described having to voluntarily surrender their vehicle because they could no longer aford their payments. In many of these complaints, consumers ended up owing more than the value of the car. This leaves them with large deficiency balances that they did not anticipate.

Many consumers complained of repossessions that occurred without any notification. In some of these complaints, the repossessions occurred while the consumer was under the impression that they had successfully negotiated a repayment plan.

Consumers also indicated that they were subject to high reinstatement fees.

Some consumers complained

that warranties they believed were required did not cover basic repairs.

In these complaints, consumers purchased older cars and they were under the impression that the warranty would cover the repairs often associated with cars that have high mileage. Since these repairs were not covered, consumers incurred high costs to fix their cars or in some instances were unable to make further use of the vehicle.

Consumers complained about misleading advertisements at buyhere, pay-here dealerships. Consumers explained that dealerships checked their credit even though advertisements stated that their credit would not be considered.

Consumers also complained that although advertisements stated that making timely payments on their loans would help build their credit up, dealerships would not furnish good standing credit information.

Consumers with vehicle leases complained about having to pay what they felt were high wear and tear fees at the end of the lease term.

These consumers disagreed with the wear and tear determinations and believed the process was unfair. Because there is a subjective element to this determination, consumers indicated they should be present for the inspection.

Driverless Concerns Rise

A Michigan man in a Tesla Model S became the first person to die while riding in a semi-autonomous car when his vehicle struck a tractor trailer on July 1.

The man was riding in the car on a Pennsylvania highway with Autopilot engaged when a tractor-trailer drove across the highway perpendicular to the Model S. Neither Autopilot nor the driver noticed the white side of the tractor trailer against a brightly lit sky, so the brake was not applied.

year, the researchers found that people generally would prefer driverless cars to minimize casualties in situations of extreme danger. That would mean, say, having a car with one rider swerve of the road and crash to avoid a crowd of 10 pedestrians.

At the same time, the survey’s respondents said, they would be much less likely to use a vehicle programmed that way.

Essentially, people want driverless cars that are as pedestrianfriendly as possible – except for the vehicles they would be riding in.

The accident has again raised concerns about the safety of riders in driverless cars. And a new study shows people are more concerned about their own safety in these vehicles rather than others.

Driverless cars are programmed with a set of safety rules, and it is not hard to construct a scenario in which those rules come into conflict with each other. For example, a driverless car could find itself deciding whether to hit a pedestrian or swerve in such a way that it crashes and harms its passengers.

“Most people want to live in in a world where cars will minimize casualties,” said Iyad Rahwan, an associate professor in the MIT Media Lab. “But everybody wants their own car to protect them at all costs.”

A new study shows that the public is conflicted over such scenarios, taking a notably inconsistent approach to the safety of driverless cars, should they become a reality on the roads.

In a series of surveys taken last

One question asked respondents to rate the morality of an autonomous vehicle programmed to crash and kill its own passenger to save 10 pedestrians. The rating dropped by a third when respondents considered the possibility of riding in such a car.

Similarly, respondents said they were only one-third as likely to purchase a vehicle regulated this way, as opposed to an unregulated vehicle, which could presumably be programmed in any fashion.

CLASSIC CARS

EVENT BRINGS OUT COLORFUL CARS, CHARACTERS

My buddy, Doug Walton, and I were recently guests of another dear friend, Ron Hope, at The Holley National Hot Rod Reunion at Beech Bend Raceway in Bowling Green, Ky. It’s an annual gathering of drag racing and a massive car show with all the attendant paraphernalia, with shops selling everything from T-shirts to transmissions and tools to trailers.

The whole area becomes a small town for the duration, boasting accommodations ranging from million-dollar Prevosts to pop-up campers. The usual array of gutbusting food attracts with aromas like fried catfish, burgers and dogs, smoked pork, tacos and funnel cakes. The fresh-squeezed lemonade, served in monster cups, provided a cool respite from the sunny weather – it was hotter than the door handle to hell!

The atmosphere is amazing. If you have the slightest interest in cars, there’s something that’s sure to attract you. A backdrop of noise from the raceway quickens your pulse as you wander around the car show, gawking at rat rods, antiques, muscle cars and trucks. We roughly calculated about 2,000 cars providing a kaleidoscopic vision of color and movement. It’s astonishing. The owners, stashed away in the shade sitting under pole tents, are as friendly a bunch as you can imagine and could talk your ears of describing their prized cars. It’s not surprising because the dedication and imagination that goes into creating or restoring these cars is

impressive, indeed. The ladies are as involved as anyone in this family afair sitting around and chatting as though they were at a quilting bee, but swapping stories about four-barrel carburetors and 400 transmissions instead.

Tony Moorby

these things get to and how

to retain your hearing for the

and burning rubber all combine to thrill at the speed these things get to and how quickly they get there. Earplugs are a must if you want to retain your hearing for the rest of your life.

There are many of the sport’s celebrities on hand

• 40-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

The gathering also provides a great people-watching opportunity. There is every caste of humanity adorned in any form of dress imaginable – or nearly not! And although Kentucky is famous for being ‘horse country’ there were more ponytails on men than there were on horses in the whole state.

Then there’s the drag racing. Although I’ve been to several of these meets, I’ve never really made a study of all the diferent classes and qualifiers – it’s like an alphabet soup! For me, it’s sufcient to be in the middle of the atmosphere whether watching the top fuel dragsters or the funny cars. The noise and the smell of fuel

for autographs and chats and are as approachable as your next-door neighbor.

Ron Hope and I have been working colleagues for more years than I care to say and he’s been involved in racing for longer than that. He still pilots the A/A Fuel Altered Rat Trap in events all over the world and he and his granddaughter hold land speed records at the Bonneville Salt Flats. His spot in the pits at Bowling Green was like Piccadilly Circus at rush hour with visitors coming and going, friends and family members (of which there are many) all in full support of his eforts. His son, Brian, leads the crew calmly and quietly in spite of all the Continued on page 10

AUCTIONS RAISE MONEY FOR JDRF

A pair of ADESA auctions recently hosted classic car events to raise money for JDRF, a leading advocacy group for people with type 1 diabetes.

ADESA Boston hosted its 16th Annual Classic Car and Motorcycle Show in May. This event raised more than $38,000 through a live auction, show entry fees and sponsorships.

More than 50 motorcycles and 180 cars were on display. First-, second- and third-place trophies were awarded by a panel of judg-

es in both the car and the motorcycle categories. Everyone was eligible to vote for the People’s Choice trophy, which went to auctioneer Mike Chambers’ 1975 Volkswagen camper van.

ADESA Indianapolis hosted its 7th annual car show, which attracted 71 cars and motorcycles.

New to this year’s event was a petting zoo, face painting and the addition of Salsa Verde restaurant. The event brought in more than $18,000.

Auto Auction Is Now Offering Vehicles From:

Industry Vets Merge Firms

EVERY WEEK: All Float/Free Breakfast

Two industry veterans have combined their companies to create a new service organization. Tom Stewart of Stewart Enterprises Inc., and Richard Curtis of RW Curtis Consulting LLC have partnered to create Auction Management Solutions Inc. AMS provides consulting services to the automotive industry, including independent auto auctions, service providers and vendors.

Stewart has over 20 years of industry experience. He started his automotive career working for Anglo American Auto Auctions and later went on to become the director of remarketing for KeyBank.

Stewart spent the last 15 years working on various consulting projects as a partner with TPC Management Company, and held the position of executive vice president of sales for the ServNet

Auction Group. Curtis, who has over 40 years of industry experience, has spent 18 years as general manager of auto auctions located in Washington, Louisiana, and Texas, and six years as general manager of franchise auto dealerships. Curtis has spent the last 16 years consulting as a partner with TPC Management Company.

The firm’s first announcement after merging is the formation of a partnership with Dealers Auto Auction Group LLC for business development consulting.

Dealers Auto Auction Group has five auctions in the Southeast including Dealers Auto Auction of Memphis, Dealers Auto Auction of Murfreesboro, Dealers Auto Auction of Chattanooga, Dealers Auto Auction of Huntsville and Dealers Auto Auction of Mobile.

Classics - from page 8

attention, providing the brains and the brawn all the way to the start line and the lights.

It’s a bit like the way they run their company; orchestrating others to provide success for everyone all across the country with an unremit-

ting passion for the best.

Doug and I appreciated the VIP treatment and came away with the warm glow of sun-tanned skin and fine hospitality.

If Ron will have us back we look forward to another visit next year.

ADESA Boston August 5, 12, 26

508-626-7000

ADESA Charlotte August 4, 18

704-587-7653

ADESA Cincinnati/Dayton August 2, 30

937-746-4000

ADESA Golden Gate August 2, 16, 30 209-839-8000

ADESA Houston August 3, 17, 31

281-580-1800

ADESA Indianapolis August 2, 16, 30

800-925-1210

ADESA Kansas City August 2, 16, 30 816-525-1100

ADESA Lexington August 11

859-263-5163

ADESA New Jersey August 18

908-725-2200

ADESA Salt Lake August 9

801-322-1234

ADESA Tulsa August 12 918-437-9044

ADESA Washington DC August 24

703-996-1100

Columbus Fair AA August 3, 10, 31 614-497-2000

Manheim Atlanta August 4, 17, 18, 24

404-762-9211

Manheim Dallas August 10, 24

877-860-1651

Manheim Denver August 24

800-822-1177

Manheim Detroit August 4, 18 734-654-7100

Manheim Fredericksburg August 11, 18, 25 540-368-3400

Manheim Milwaukee August 10, 24 262-835-4436

Manheim Minneapolis August 17 763-425-7653

Manheim Nashville August 3, 9, 10, 31 877-386-5004

Manheim Nevada August 5 702-361-1000

Manheim New Jersey August 10, 24

609-298-3400

Manheim New Orleans August 10

985-643-2061

Manheim Orlando August 2 , 9, 16, 23, 24, 30 800-337-8491

Manheim Pennsylvania August 4, 5, 18, 19 800-777-2053

Manheim Phoenix August 4, 11, 18, 25

623-907-7000

Manheim Pittsburgh August 24

724-452-5555

Manheim Riverside August 23, 25

909-689-6000

Manheim Seattle August 17 206-762-1600

Manheim Southern California August 4, 18

909-822-2261

Manheim Tampa August 18

800-622-7292

Southern AA August 24

860-292-7500

ADESA Boston August 5

508-626-7000

ADESA Golden Gate August 16 209-839-8000

Manheim Atlanta August 17, 24 404-762-9211

Manheim Dallas August 10 877-860-1651

Manheim Milwaukee August 24

262-835-4436

Manheim Nashville August 3, 31 877-386-5004

Manheim Orlando August 24 800-337-8491

Manheim Pennsylvania *August 4, 18 800-777-2053

Mazda Capital Services

ADESA Boston August 12, 26

508-626-7000

Manheim Riverside August 25 909-689-6000

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

ADESA Golden Gate August 2, 30 209-839-8000

ADESA Houston August 17 281-580-1800

Columbus Fair AA August 10 614-497-2000

Manheim Detroit August 4

734-654-7100

Manheim Fredericksburg August 11, 18 540-368-3400

Manheim Milwaukee August 10 262-835-4436

Manheim Nashville August 10 877-386-5004

Manheim Atlanta August 18 404-762-9211

ADESA Boston August 12 508-626-7000

ADESA Salt Lake August 9 801-322-1234

Columbus Fair AA August 3, 31 614-497-2000

Manheim Dallas August 10 877-860-1651

Manheim Orlando August 2, 30

800-337-8491

Manheim New Jersey August 10, 24 609-298-3400

Manheim Pittsburgh August 24 724-452-5555

Manheim Riverside August 23 909-689-6000

Manheim Seattle August 17 206-762-1600

Manheim Detroit August 18 734-654-7100

Manheim Fredericksburg August 25 540-368-3400

Manheim Milwaukee August 24 262-835-4436

Manheim New Jersey August 10 609-298-3400

Manheim Orlando August 23 800-337-8491

Manheim Pennsylvania August 5, 19 800-777-2053

Manheim Pittsburgh August 24 724-452-5555

Manheim Seattle August 17 206-762-1600

Manheim Southern CA August 4 909-822-2261

Southern AA August 24 860-292-7500

Manheim Pennsylvania August 5 800-777-2053

by Subaru of America, Inc. and are licensed to JPMorgan Chase Bank, N.A. (“Chase”). Retail/ Loan and lease accounts are owned by Chase.

*The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is

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 a nd lease accounts are owned by Chase. *The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logo s are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail / Loan and lease accounts are owned by Chase. ©2016 JPMorgan Chase Bank, N.A. Member FDIC (16-034) 08/16

RETAIL MARKETS

MICHIGAN

Brian Havelka, owner, A&B Automotive, Menominee, Mich.:

“We’re carrying about 42 units. We’re carrying about eight to 10 cars a month more than last year. We made a decision to increase inventory. We felt we needed a wider selection in the price categories. We try to cover a wide spectrum from about $5,000 on the lower end, up to $20,000 for SUVs and pickups.

“We normally sell (at a rate of) half of our inventory every month, about 18 to 22.

“The last two months of sales have been equal to last year, but our first quarter this year was the best I ever had. It’s been a good year.

“We get 60 percent of our inventory from auction. Fox Valley Auto Auction in De Pere, Wis., is my main source. The rest come from of the street or new-car dealers that I’ve developed relationships with. I used to get all of it from new-

car dealers. But it’s getting harder.

“We’re primarily straight retail. But I do some deals with Credit Acceptance Corp. and a little buy-here, pay-here.

“Average retail price is $10,000 to $11,000. That’s increased about 6 percent from this time last year. It seems like the cars are just taking more reconditioning.

“Average model year depends on the vehicle. There’s a big spread between the cars and trucks. It ranges from 2007s to 2012s. The trucks would be older and the cars or minivans would be newer.

“Mileage is averaging about 80,000. Trucks would be higher.

“Trucks and SUVs would be 70 percent of our sales.

We sell mostly domestic.

UCN-9x6-July.pdf 1 7/11/16 2:56 PM

“We’re averaging $800 to $900 in recon. That’s up a lot. It used to be, probably, $500. We do everything in-house. Tires are so much more than they used to be. But we do a full inspection

on the cars.

“We do outside work .We have four full-time guys in the garage. We have four hoists and six bays. That business is going well. We don’t even advertise for it. It’s 50 percent of my profits.

“Our website is our primary advertising. We use a little bit of the Internet advertising and we still run an ad in our local paper.

“We recently sold a 2012 Grand Caravan. It had 91,000 miles. We sold that for $9,995.”

MONTANA

Chad Randash, president, Randash Auto Center Inc., Bozeman, Mont.:

“I own this location and my father sold our other location in Billings to my brother.

“I’ve got about 90 cars (in total) that are either on the lot or going through recon. We carry about 50 to 60 vehicles (that are ready for sale).

“We sell around 40 to 50

cars a month. That’s pretty steady.

“My dad had a very good network of dealers that he set up on the western part of the state. Most of our vehicles come from that. We also have a separate website called WeBuyYourCarMontana.com.

“We’re buy-here, payhere. I’m financing 30 to 35 units. The rest are outside deals. We do outside financing through Credit Acceptance Corp.

“Our average down payment this year is about $657. For term length, we’re sitting right under 3½ years, or between 88 and 91 biweekly payments.

“We’ve used the Passtime system since I started. We give full disclosure.

“For us, the 2G system (had an early sunset) in Montana, so I had a major problem. We worked around the clock for several weeks to replace old units.

“But Passtime really helped us out, doing everything they could to get us

Compiled by Jeffrey Bellant

units so we could get them replaced.

“Our amount financed out the door is $10,995.

“Our average recon is $1,600 to $1,700 per car, which is high. But what we’re trying to do is to make sure that car will go the distance.

“The last report I looked at showed that out of 800 accounts, we had 15 that were past due.

“I’m running an average of 2005 to 2006 model years. We have some later models on the lot as well. I’m still one of those guys that will still carry the 100,000mile car. We’ll even go up to 150,000, but it’s got to be a nice one- or two-owner car with good records.

“A lot of people in Bozeman love their Subarus and love their Toyotas. It’s that type of town. It’s just a higher-priced car that doesn’t always fit in our model.

“We just sold a 2001 Chevy Cavalier. It had 111,000 miles. The selling price was $6,995.”

WHOLESALE MARKETS

CALIFORNIA

Tony Callaway, vice president of fleet-lease, South Bay Auto Auction of Gardena, Gardena, Calif.:

“We have another auction in Stockton, a remarketing service and a satellite ofce in Bowie, Md.

“In Gardena, we have seven lanes. In Stockton, we have six lanes.

“In Stockton, we run anywhere from 300 to 500 a week. Right now, Gardena’s been pretty well stocked and our remarketing service business is just booming.

“We’re selling about 72 percent.

“Our sales are up in Gardena. We have one heck of a remarketing team that consists of people that have a combined 150 years of experience. We have people that were former district or regional managers. People know them and we know the people.

Compiled by Jeffrey Bellant

“Credit unions have been our biggest niche (as consignors). They sell them at a high percentage.

“About 67 percent of our (volume) are fleet-lease and 33 percent are dealer (vehicles).

“We work with what we have. When we find out what our clients are selling, then we market that as it comes. We’re good at selling regular cars to box trucks or RVs.

“We have a specialty sale on the last Monday of the month. We try to get a good number of those vehicles for a sale to make it worth the while for (out-of-town) buyers looking for those items.

“We also have a phone center and we make about

“(The number of bidders) fluctuates, because when dealers run out of money, they don’t come. But we probably are looking at 300 to 350 in the lanes on average. Being in the Los Angeles area, we have 1,000 dealers within 50 miles. We also have a lot of out-ofstate dealers because we sell some specialty items.

1,500 to 2,000 calls a week to talk with dealers (and consignors) and Internet buyers. We use Auction Pipeline for online (sales).

“But we keep in contact with our customers. We’re independent, so we work a little harder to help the small guy.

“Average price in the lanes fluctuates from $8,000 to $12,000.”

NEBRASKA

Ryan Durst, vice president, Lincoln Auto Auction, Waverly, Neb.:

“This will be our 24th year. We’ve got four lanes and we’re running four.

“Our volumes were on par with last year during the first quarter. Then it seems in April and May it took a little bit of a dip. Not a huge one.

“Our volumes are just a tick down from last year.

“I think our new-car stores are trading for stuf that they’re trying to keep and retail. Eventually, I think we’ll get some of those.

“Our volumes are anywhere from 250 to 300 every week. It’s been right around 275.

“But we’ve increased our (sales percentages). Last year at this time we were averaging right at 69 percent and this year we’re north of 73 percent. So what we’re doing is getting more efcient, bringing cars in to sell and selling them. We’ve even had three sales in the low 80s. We’re kind of in uncharted waters.

“Last year was a record year across the board. So we’ve just been trying to stay on pace with that and we’re right there. I don’t anticipate going backwards any year.

“We draw between 200 and 225 (bidders) to every sale. We have such a strong buyer base that it doesn’t really tail of at any time of the year. It’s strong all year round. During our GSA sales, we’ll have up to 300.

“Every dealer I’ve talked to has been in a good mood.

“We’re about 90 percent dealer consignment.

“This year, we’ve had a GSA sale every three or four weeks. Volumes have been around 120 every time we run. We’ve been hammered with GSA vehicles. Those are everything from SUVs to utility bodies to sedans. There’s a lot of Malibus, Focuses, Tahoes and Avalanches. They’ll have cargo vans, and passenger vans.

“Average price is $4,285 this year. Last year was $4,069.

“If there’s anything struggling, I don’t know what it is. Now, the mid- to latemodel trucks are hard to get rid of. They have a big book. They are a tougher piece to retail around here. It’s because of what they are asking for them.

“We‘re really optimistic about the rest of the year.”

A Chevy store in Lincoln that we’ve done business with the last 25 years is going to have a record month. It’s the best month they ever had and they’ve been in business for 82 years.

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PEOPLE IN THE NEWS

Manheim Promotes General Managers

Manheim has named Emily Decker as general manager of Manheim Indianapolis and David Aguilar as gen-

eral manager of Manheim El Paso.

A 20-year veteran of Manheim, Decker started as a dealer registration administrator and took on various roles with increasing responsibility at Manheim’s Tampa, St. Petersburg and Lakeland locations.

Most recently she served as assistant general manager at Manheim Statesville.

Decker is engaged in company leadership programs including Manheim’s Guiding Coalition, the Cox mentor program, Women with Drive and the prestigious Cox Lead-

er’s Edge program.

Aguilar joined Manheim in 2013 as a human resources manager and swiftly transitioned to reconditioning manager for the Manheim

By Miles Mellor

San Antonio and Dallas locations. Aguilar served in the U.S. Marine Corps for eight years and working in operations for the City of Austin, Texas for 12 years before joining Manheim.

TrueCar Taps Market Researcher

TrueCar Inc. has appointed automotive market research veteran Art Oleszczuk as vice president of market research.

Oleszczuk comes to TrueCar with 15 years of automotive research, marketing, product development and sales experience, having held senior roles with Cox Automotive, focused on their portfolio of brands, including AutoTrader. com, Kelley Blue Book, Haystak and others.

Most recently, Oleszczuk served as the senior director of

marketing at Equifax, where he was instrumental in growing the company’s automotive revenue and expanded a portfolio of solutions for auto dealers, lenders and business development partners.

He will report to chief marketing ofcer Neeraj Gunsagar

“I’m excited about the opportunity to boost TrueCar’s research eforts and develop actionable insights that will help steer the company’s new direction,” Oleszczuk said.

MetroGistics Hires Development Director

MetroGistics has hired Terrance Evans as director of business development.

Evans has five-plus years of experience in a variety of industries, including manufacturing and automotive logistics.

His employment history includes working as a sales representative for Pleasant Prairie Logistics in the finished-vehicle-logistics spectrum.

Evans was also the sales manager for Jack Cooper Logistics, LLC.

Evans received his bachelor of arts degree in marketing from Radford University.

Cox Automotive Salutes Honda Store Employee

Cox Automotive awarded its inaugural Breakthrough Leader of the Year Award to Susan Cafiero, a sales representative for Avalon Honda, in recognition of her outstanding contributions to the automotive industry.

Avalon Honda, part of the Burns-Kull Automotive Group, has been serving south New Jersey since 1970. Cafiero was selected from nominees that

met criteria including being a woman with less than five years of automotive experience and one who has made significant and measureable contributions to help advance the automotive industry.

Nominated by her manager, Cafiero was selected based on her stellar performance as a sales representative.

After joining Avalon Honda in January 2014, she became one of the leading sales representatives of Avalon and earned the Honda Council of Sales Excellence Silver Award for customer and sales satisfaction.

In 2015, she earned recognition as Avalon’s Sales Person of the Year, winning by more than 100 sales, and received the Honda Council of Sales Excellence Gold Award for customer and sales satisfaction.

Trafc jam

Car Lamborghini built to celebrate its 50th birthday

AROUND THE BLOCK

DEALER, AUCTION PARTNER FOR CHARITY

Manheim Tucson and Volvo of Tucson hosted a dealer-only charity car auction benefitting Youth on Their Own, a dropout prevention program that helps homeless youth graduate from high school and pursue opportunities for selfsufficiency.

Manheim Tucson received 35

vehicle donations from local dealers who supported the event.

More than 250 dealers attended the auction, both in-lane and online. All funds from the sales of the vehicles, including buy fees, were donated to Youth on Their Own, adding up to more than $30,000.

The Tucson operation has

donated over $110,000 to the non-profit in the past three years.

Since 1986, Youth on their Own has empowered more than 16,000 homeless and compromised students to stay in school.

Compiled by Jeffrey Bellant

KAR Earns Honor For IT Efforts

KAR Auction Services Inc. has received the CIO 100 Award for driving business value through IT innovation.

The CIO 100 Award honors 100 organizations that are driving business results through IT innovation.

KAR was recognized for its focus on developing and implementing technology initiatives that enable the company to unite its diferent entities and their systems, to strengthen and improve operati.

“Developing and implementing technology to better serve our clients, as well as our organization, plays a critical role in the business decisions and company innovation throughout our entire group of companies,” said Gary Watkins, chief information ofcer of IT Shared Services for KAR. “KAR has worked tirelessly to build and support a multifaceted team of top tech talent to accomplish this

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