Used Car News 5/16/16 by General Media LLC

Even Trucks Feel Pressure from Supply Surge

By Ted Craig

In today’s wholesale markets, the good news isn’t great and the strongest segments are growing weaker.

Manheim announced that auction prices as it measures them rose in April, causing the Manheim Used Vehicle Value Index to move up for the ﬁrst time this year.

The index now stands at 122.8.

Manheim chief economist Tom Webb said the upward movement was “temporary.” The inﬂux of of-lease vehicles and new-car trades continues to place pressure on wholesale prices.

Webb does not expect “a near-

term collapse in pricing.”

Part of the reason for April’s higher prices was a large quantity of nearly new units.

The average mileage on all auction sales in April was the lowest since January 2011. In the rental car segment, the average mileage at 41,137 miles was the lowest since September 2014.

Strong truck demand has helped keep wholesale prices from declining at an even faster rate. But even this segment is starting to show some strain.

Anil Goyal, senior vice president of operations at Black Book, reports that trucks depreciated

by 13 percent year-over-year in the ﬁrst quarter, compared with 20 percent for cars.

In 2015, trucks depreciated by 9 percent for the entire year, while cars depreciated by 18 percent.

“There’s still a pretty healthy spread,” Goyal said.

“But there’s more truck depreciation.”

There are a number of factors in play here, he said.

One is a return to the mean.

Truck prices were so high they drove away bidders, lowering the price.

Gas prices are still very low, but are higher than at the start of

the year.

Finally, there is a substation efect. Goyal said consumers shop a much wider range of vehicles than many assume.

They will often opt for a compact car if a compact crossover proves too expensive.

While consignors might worry about getting less at auction, dealers welcome the decline. This is especially true of in-demand inventory like trucks.

“A modest easing in wholesale pricing would be welcomed by dealers, and it would not be overly painful for commercial consignors,” Webb said.

KEEP ON TRUCKING: Full-size pickups, like this Toyota Tundra, are the lone strong performers in the wholesale market these days. The overall truck segment remains strong compared to cars, but is starting to come down to more normal levels.

Wholesale Prices’ Spring Boost Less Than Usual

The spring market has lifted wholesale prices, but less than it usually does.

Manheim chief economist Tom Webb said wholesale prices rose through the ﬁrst half of April and he said there was a good chance they would ﬁnish up for the month.

But the increase was less than it should be this time of year. March and April are usually the strongest months.

“We didn’t have a spring bounce,” Webb said.

The NADA Used Car Guide reports that average wholesale used vehicle prices rose by one percent in March. That’s down from the average increase of 2.7 percent between 2009 and 2015.

The weaker-than-usual March prices caused a decline in NADA’s seasonally adjusted used vehicle index.

This follows the ﬁrst February decrease for the NADA index in 20 years. The Index for the quarter was down, the ﬁrst year-over-year quarterly decline since 2009.

The cause of the decline is

basic economics: supply is exceeding demand.

There will be an additional 800,000 of-lease units coming into the market this year.

Retail demand remains strong, but Anil Goyal, Black Book’s vice president of operations, called the market “maturing.”

“Demand is growing, but supply is growing faster than demand,” Goyal said. “We’ve had such a good run that we expect some softening.”

The pent-up demand is spent. And while credit remains available, consumers will wait to make a purchase.

Tom Kontos, ADESA’s executive vice president of analytical services, said the industry has put of much of this price decline by utilizing alternative channels, including upstream sales into certiﬁed pre-owned programs.

There is only so much inventory these channels can take in, however.

“At some point, all the buckets ﬁll up,” Kontos said. Now the question becomes how far do prices fall.

NEWS BRIEFS

CPS Closes Securitization

Consumer Portfolio Services Inc. announced the closing of its second term securitization in 2016.

The transaction is CPS’s 20th senior subordinate securitization since the beginning of 2011 and the third consecutive securitization to receive a triple “A” rating on the senior class of notes from two rating agencies.

In the transaction, qualiﬁed institutional buyers purchased $332.7 million of asset-backed notes secured by $340 million in automobile receivables purchased by CPS.

The sold notes, issued by CPS Auto Receivables Trust 2016-B, consist of ﬁve classes.

Ratings of the notes were provided by Standard & Poor’s and DBRS and were based on the structure of

the transaction, the historical performance of similar receivables and CPS’s experience as a servicer. The weighted average coupon on the notes is approximately 4.65 percent.

Black Book Teams With Marketers

Black Book recently announced a pair of partnerships.

One is a distribution agreement with HP360 that enables the marketing company to ofer Bullseye Prospecting, a turnkey solution for its dealer clients looking to launch more efcient marketing campaigns.

Powered by data from Black Book, Bullseye Prospecting is designed to reduce and consolidate the many diferent touch points involved in the development and execution of a customer campaign.

MILESTONES

Sam Gelt

Sam Gelt, founder of two auctions, died. He was 94.

Sam Gelt, along with Harry Gelt, started the Central States Auto Auction in Mason City, Iowa, in 1948. They opened Northstar Auto Auction in Shakopee, Minn., on

March 14, 1971. Manheim now owns the Minnesota auction.

Sam Gelt served as president of the National Auto Auction Association in 1979.

Contributions in his memory may be made to the National Multiple Sclerosis Society, Hadassah or the Minneapolis Jewish Federation.

Dealers and their marketing partners often work with several diferent vendors, who all add to the overall cost of production after markups are taken into account.

Black Book also announced an agreement to be a valuation data provider for Digital PowerSports and its Trade Cycle lead-gen resource for recreational vehicle and powersports manufacturers, brokers and dealers.

Ally Sets Used Originations Record

Ally Financial Inc. reports that used vehicle originations grew to 45 percent of total originations in the ﬁrst quarter, the highest in the company’s history.

Overall, consumer auto originations were $9 billion for the quarter, down from $9.8 billion in the prior year period. Ally received a record number of applications in the quarter.

Firm Buys J.D. Power For $1.1 Billion

XIO Group, a Chinese global alternative investments ﬁrm headquartered in London, announced that it would acquire J.D. Power from McGraw Hill Financial Inc. for a purchase price of $1.1 billion.

The parties have entered into a deﬁnitive agreement and anticipate that the transaction will close during the third quarter of 2016, subject to customary closing conditions.

Upon closing, XIO Group will support J.D. Power’s existing management team and employees in expanding the company’s market share, particularly in fast-growing Asian markets.

The transaction is XIO Group’s ﬁrst acquisition of a company headquartered in the United States, following previous acquisitions of industry-leading companies located in Germany and Israel in 2015.

Finance Firm Marks Anniversary

Exeter Finance Corp. is celebrating its 10th year in business.

Exeter was founded in 2006 by a group of veteran auto ﬁnance executives. In 2008, the company received a $20 million equity investment from Navigation Capital Partners. In 2011, The Blackstone Group, one of the world’s largest private equity and investment banking ﬁrms, acquired Exeter.

Exeter ended 2015 with more than $1.5 billion in originations and $3.1 billion in receivables.

Published By General Media LLC

USED CAR NEWS (ISSN 1555-7413) is published at 24114 Harper, St. Clair Shores, MI 48080

Phone: 586-772-5200 or 800-794-0760 Fax: 586-772-9400 www.usedcarnews.com

Charles M. Thomas - Founder (1947-2002)

Lynda R. Thomas, Publisher Colleen Fitzgerald, General Manager

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: Josie Godlewski, Media Manager Cee Lippens, Web Master & Graphic Designer

by the

is 12:00

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

Tursday, 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 specifcations please email colleen@usedcarnews.com.

NHTSA Steps up Pace of Takata Airbag Recall

The National Highway Trafc Safety Administration is expanding and accelerating the recall of Takata air bag inﬂators.

The decision follows the agency’s confirmation of the root cause behind the inflators’ propensity to rupture. Ruptures of the Takata inflators have been tied to 10 deaths and more than 100 injuries in the United States.

Under the Amended Consent Order issued to Takata, the company is required to make a series of safety defect decisions that will support vehicle manufacturer recall campaigns of an additional estimated 35-40 million inﬂators, adding to the already 28.8 million inﬂators previously recalled.

These expansions are planned to take place in phases between May 2016 and December 2019.

The expansions mean that all Takata ammonium nitrate-based propellant driver and passenger frontal air bag inﬂators without a chemical drying agent, also known as a desiccant, will be recalled.

The five recall phases are based on prioritization of risk, determined by the age of the inflators and exposure to high humidity and fluctuating high temperatures that accelerate the degradation of the chemical propellant.

NHTSA and its independent expert reviewed the findings of three independent investigations into the Takata air bag ruptures and confirmed the findings on the root cause of inflator ruptures.

A combination of time, environmental moisture and ﬂuctuating high temperatures contribute to the degradation of the ammonium nitrate propellant in the inﬂators.

Such degradation can cause the propellant to burn too quickly, rupturing the inﬂator module and sending shrapnel through the air bag and into the vehicle occupants.

“The science clearly shows that these inﬂators become unsafe over time, faster when exposed to humidity and variations of temperature,” said NHTSA Administrator Mark Rosekind.

“This recall schedule ensures the inﬂators will be recalled and replaced before they become dangerous, giving vehicle owners sufﬁcient time to have them replaced before they pose a danger to vehicle occupants. NHTSA will continue to evaluate all available research and will act quickly to protect safety.”

NHTSA will also consult with affected vehicle manufacturers before revising the Coordinated Remedy Order that governs the accelerated program to obtain and install re-

placement inﬂators.

The recall expansion does not include inﬂators that include a chemical desiccant that absorbs moisture. There have been no reported ruptures of the desiccated inﬂators due to propellant degradation.

Under the Amended Consent Order, Takata is required to redirect its research toward the safety of the

desiccated inﬂators.

Absent proof that the desiccated inﬂators are safe, Takata will be required to recall them under the November 2015 Consent Order.

In 2015, NHTSA imposed the largest civil penalty in its history for Takata’s violations and for the ﬁrst time used its authority to accelerate recall repairs.

Photo by The Associated Press

RUPTURE: Takata has a long history of safety recalls. The company’s seatbelts were recalled in the 1990s, one of the largest recalls up to that time.

Auto ABS Shows Strain

The pressure on auto ﬁnance asset-backed securities continues to build.

California Republic Bancorp recently reported a $3.2 million loss on the sale of $440 million in auto loans during the ﬁrst quarter.

California Republic Bancorp CEO Jon Wilcox said the bank continues to experience signiﬁcantly wider credit spreads on auto-backed securities issued, as well as lower residual interest valuations.

Wilcox expects the situation to improve, as demand for auto ABS is growing.

However, California Bancorp took steps to reduce its dependence on the securitization market by merging with Mechanics Bank of Northern California.

Mechanics provides a retail franchise with over $2.9 billion in low-cost, core deposits.

The situation for California Republic seems set to become the norm.

Fitch Ratings forecasts that increased non-prime lending, weakening underwriting standards and a moderate reduction in used-car values will cause a gradual decline in auto asset performance for auto ﬁnance companies through 2016 and beyond.

“Subprime lenders and non-tradi-

tional auto lenders will experience the greatest performance variability due to their higher risk nature,” said Michael Taiano, director of Fitch Ratings.

Credit quality remains strong despite the headwinds, Fitch reports. That is due mostly to the stable economy.

There are signs of improvement in the auto ABS market, as Wilcox noted.

Since the start of the year, both prime and subprime ABS have seen some marginal improvement in performance with delinquencies and net losses falling slightly, Fitch reports.

The diference in loss rates between the prime and subprime sectors continues to widen into 2016.

Fitch expects credit losses and delinquencies will continue to increase over time.

This is largely due to the uptick in subprime lending and easing underwriting standards due to increased competition that are producing weaker new vintages.

Falling used-car values will also impact loss severity.

Still, Fitch expects the auto creditors it rates will have sufcient capital and liquidity relative to their asset quality to support the uptick in losses.

NABD CONVENTION

NABD PREPARES TO SHOW INDUSTRY ROAD TO SUCCESS

This year’s National Alliance of Buy-Here, Pay-Here Dealers conference promises to show attendees the best methods for “Navigating the Road to Buy-Here, Pay-Here Success.”

That’s the theme for this year’s event, taking place May 24 to May 26 at the Wynn hotel in Las Vegas.

A new feature for 2016 is a capital hour in which deal-

tions is a speech from Malini Mithal, an assistant director with the Federal Trade Commission.

“I’ve heard her speak before,” Shilson said. “She’s a tremendous speaker.”

Shilson said the FTC is much more forthcoming than other regulators about what it wants from dealers.

Another addition to the compliance roster this year

ers can hear from 12 providers about what they are looking for in business partners.

NABD founder Ken Shilson said this panel is essential for buy-here, pay-here dealers today as they face increased competition from subprime ﬁnance companies.

Shilson expects a pullback in subprime ﬁnance in coming years, so dealers need to get positioned for capturing the customers returning to buy-here, pay-here.

Compliance is another major challenge for dealers and the NABD ofers a number of the industry’s top attorneys speaking on various panels. But the highlight of this year’s compliance presenta-

is attorney Harry Tipping of Ohio-based law ﬁrm Stark & Knoll. Tipping is an expert in cases concerning claims of hidden charges.

Another focus of this year’s conference is improving efﬁciency to lower overhead pressures.

Shilson said overhead expenses are rising due to a combination of increased compliance costs and overall inﬂation.

“If your sales keep shrinking and expenses keep rising, that’s a squeeze play,” Shilson said.

Another feature being introduced this year is a session on succession planning.

Shilson said retirement is an area where buy-here, pay-

here dealers traditionally have been weak.

“The portfolio is sold at a discount, you lease the lot out and go ﬁshing,” Shilson said.

Buy-here, pay-here dealers need to start creating the kind of “blue sky” value that franchise dealers have.

Shilson usually invites other trade groups from related industries to present at NABD.

This year it will be DBA International.

This group will show dealers how to get cash for their charge-ofs.

DBA will also describe what makes its Certiﬁed

Professional Receivables Companies diferent from other debt buyers.

One of the highlights of the conference every year is Shilson’s presentation of his buy-here, pay-here benchmarks.

“We carefully scrutinized the policies and practices used to generate the data to assure that all the information is credible,” Shilson said.

“Although different accounting and operating practices are used in the industry, this report considers and adjusts for the major differences.”

This year he looked at the

business models for six of the most successful operations and found many similarities between them.

He’ll provide an in-depth look at these traits during the benchmarks presentation.

Much of the best education comes outside the presentations, with dealer networking and an exhibit hall featuring a wide range of service providers.

The NABD will also induct another industry pioneer into its Hall of Fame.

Last year’s inductee was Don Foss, founder of Credit Acceptance Corp. and CARite.

Chains Add More Stores

Used-car chains continue to grow.

Sonic Automotive Inc. reported that its EchoPark used-car stores retailed 941 units in the ﬁrst quarter. Sonic anticipates opening two additional stores in the second quarter and another by the end of the year.

The company also announced it will be introducing the EchoPark brand to the Texas and Carolinas markets in 2017.

Sonic has been actively accumulating property in preparation for that expansion.

CarMax Inc., the biggest player in the used-car superstore segment, is keeping up with the competition by adding more stores.

CarMax ofcially opened its ﬁrst store in Springﬁeld, Ill., located at 2531 Chuckwagon Drive.

The store is approximately 8,000 square feet, occupies more than three acres and stocks more than 140 used vehicles.

In celebration of the Springﬁeld store opening, CarMax donated $2,500 to the Central Illinois Food Bank.

Springﬁeld CarMax associates selected this nonproﬁt for its mission to distribute approximately 8.5 million pounds of food to more than 150 food pantries, soup kitchens, residential programs and afterschool programs in the region.

The CarMax Foundation also is providing a $5,000 grant to the Boys and Girls Clubs of Central Illinois. This grant will support the “Reading Partners” program to help improve reading proﬁciency for camp participants.

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

In other chain news, a J.D. Byrider dealership recently opened at 3301 South Zero St., Fort Smith, Ark.

The new location is the third J.D. Byrider dealership in Arkansas, and it is the second dealership for franchisee Matt Enderlin.

“Matt is an exceptional operator and will serve our customers well with his expansion in Fort Smith,” said Tom Welter, vice president of franchising for J.D. Byrider. “He understands the value of our business model and operational support, both of which are driving the unprecedented unit growth we are experiencing.”

The 9,000-square-foot location will ofer used-car sales, six service bays and a 36–month/36,000mile service agreement on all cars purchased.

The dealership will also create approximately 15 new jobs.

This is the third J.D. Byrider dealership to open in 2016.

THE DATA IS YOURS. THE TECHNOLOGY IS HERE. YOUR OPPORTUNITY IS NOW.

CRM + DMS + Websites + Inventory + Equity Mining and so much more… TOGETHER IN ONE PLATFORM .

Experience the future of Independent. STOP BY BOOTH #405 FOR A DEMO . NABD MAY 24–26, 2016 | LAS VEGAS

WEDNESDAY,

Fiat Partners with Google

DETROIT (AP) – Fiat Chrysler and Google will work together to more than double the size of Google’s self-driving vehicle ﬂeet by adding 100 Chrysler Paciﬁca minivans.

The companies announced the agreement on May 3, saying that Chrysler engineers would work with Google to install sensors and software so the vans can drive themselves.

Google says it will own the gaselectric hybrid vans, and it’s not currently licensing autonomous car technology to Fiat Chrysler or anyone else. Both companies are free to work with others as well.

in a statement. Both companies will have engineers at a site near Detroit to work on the vans.

“The opportunity to work closely with FCA engineers will accelerate our eforts to develop a fully selfdriving car that will make our roads safer,” said John Krafcik, CEO of Google’s project.

The agreement could give FCA an inside track to manufacturing vehicles for Google because its engineers would become experienced with what Google needs. But neither company would comment on possible future deals.

The added vehicles are needed as Google increases real-world testing in four cities including Mountain View, Calif.; Austin, Texas; Kirkland, Wash.; and the Phoenix area.

Financial terms of the deal were not disclosed.

Google will test the vans on its private test track in California, but eventually they’ll make their way to public roads.

It’s the ﬁrst time Google has worked directly with an auto company on installing self-driving sensors and computers. The 100 newly redesigned minivans would be “uniquely built” for Google’s self-driving technology, FCA said

Currently, Google’s 7-year-old autonomous car project, which is now part of the so-called X lab at Alphabet Inc., Google’s Mountain View-based parent company, has 21 Lexus SUVs modiﬁed to drive autonomously, plus another 33 podlike small cars.

Fiat Chrysler – which has lagged bigger, richer rivals like Volkswagen AG and General Motors Co. in the development of self-driving cars – will welcome the chance to test Google’s technology. The ItalianAmerican automaker also has manufacturing expertise and factories that Google lacks.

Google has set a goal of having self-driving cars in the public’s hands by 2020.

All the right cars. Right on the money.

Wholesale buying is no longer a burden. Now, the right cars for the right money show up automatically. You make better bids every time, never sacriﬁcing gross. The no-gos are gone from your view. The proﬁts you’ve always wanted are in your sights. Because now, you have a sourcing solution so simple, you only have to do one thing:

See how Stockwave has changed sourcing forever: stockwave.com

AG Cracks Down on After-Sale Products

The New York attorney general announced four separate settlements with auto dealers that return nearly $2 million in restitution to some 5,000 consumers and $174,000 in penalties and costs to the state for selling “after-sale” products. The dealerships, Koeppel Auto Group, Plaza Dealerships, Manfredi Auto Group and Huntington Honda have locations in Staten Island, Brooklyn, Queens, Long Is-

land and Westchester.

The dealerships were charged with unlawfully selling “after-sale” products and services, including credit repair and identity theft protection services, which often added thousands of dollars to the purchase price of the vehicle.

“Consumers deserve to be treated honestly by car dealerships, and shouldn’t be hit with hidden fees that inﬂate the price of the vehi-

cle,” said Attorney General Eric T. Schneiderman. “My ofce will continue to make it a priority to crackdown on these deceptive business practices that target unsuspecting consumers.”

These settlements are part of the wider initiative to end the practice engaged in by many dealers of “jamming,” or unlawfully charging consumers without their consent or knowledge for purchases.

Last year, as part of the wider investigation, a consent order was obtained that shut down Credit Forget Inc., a New York company that sold the unlawful credit repair and identity theft protection services to these and other car dealerships.

It is a violation of state and federal law to charge upfront fees for services that promise to help consumers restore or improve their credit, and contracts that violate the law are void.

The attorney general’s investigation found that, between 2010 and 2015, these dealers used fraudulent, deceptive, and illegal methods to sell CFI contracts to approximately 5,000 consumers.

guage in which the terms were negotiated before the consumer signs these documents.

In June 2015, the attorney general reached a similar agreement with the Paragon dealerships, located in New York City and Westchester, that required Paragon to pay $6 million into a restitution fund administered by a thirdparty administrator that was distributed to 13,582 Paragon consumers who received the CFI contracts. Paragon also paid $325,000 in penalties, costs and fees. In addition, previous settlements were reached with four other dealer groups providing for $233,000 in restitution to 1,238 consumers and $36,000 in penalties and costs.

The dealer groups included among the settlements are:

Typically, after working with a salesperson to choose a car, the consumer met with a ﬁnance and insurance manager who would try to sell the consumer additional after-sale products such as extended service contracts, key replacement services, a security system, credit repair services and identity theft protection services.

Plaza Oldsmobile, Ltd. d/b/a Plaza Toyota-Plaza Scion

Plaza Hyundai, Ltd.

Plaza Motors of Brooklyn, Inc. d/b/a Plaza Honda Crystal Bay Imports, Ltd. d/b/a Acura of Brooklyn, Inc.

Often, these after-sale items added hundreds or thousands of dollars in hidden charges to the sale or lease price of a vehicle.

Manfredi Auto Group LLC d/b/a Manfredi Fiat and Fiat of SI Manfredi Auto LLC d/b/a Manfredi Mitsubishi Manfredi Auto Mall, Inc. d/b/a Manfredi Kia Manfredi Cadillac, Inc. d/b/a Manfredi Hyundai Manfredi Chevrolet, L.L.C., d/b/a Manfredi Cadillac

The costs of these items were often bundled into the vehicle sale price and not separately itemized. The investigation showed that, for some dealers, consumers were totally unaware that they had received these services. In many other cases, consumers thought that the services were free.

Manfredi Chrysler Jeep & Dodge of Staten Island LLC

Manfredi Chrysler, Jeep & Dodge, L.L.C. Manfredi Fiat Inc.

As a result, the price of the car stated on purchase and lease documents was inﬂated by the amount of these after-sale items.

Manfredi Motors Inc. d/b/a S.I. Toyota, Manfredi Toyota and Manfredi Scion Manfredi Subaru, LLC.

SI Safe Auto, LLC d/b/a Manfredi Mazda

The dealerships failed to provide required disclosures such as consumers’ rights to cancel the credit repair services contract.

In addition, when the negotiations were conducted in a language other than English, the Koeppel dealerships provided sales documents only in English and not in the language in which the negotiations were conducted.

As part of the settlement, Koeppel must provide a translation of certain material documents in the lan-

Staten Island Motors, Inc., d/b/a Staten Island Subaru Koeppel Nissan, Inc.

LK Automotive Enterprises, LLC. d/b/a Koeppel Subaru

KL Auto Enterprises LLC. d/b/a Koeppel Mazda, Koeppel Volkswagen, Inc.

Huntington Honda Inc.

Westchester Autoplex, Inc. d/b/a Honda of New Rochelle Automotive, Inc. d/b/a New Rochelle Toyota

Timothy Lattimore » Wholesale Manager / Medlin Buick, GMC, Mazda » Wilson, NC

AG Cracks Down on After-Sale Products

land and Westchester.

“Consumers deserve to be treated honestly by car dealerships, and shouldn’t be hit with hidden fees that inﬂate the price of the vehi-

cle,” said Attorney General Eric T. Schneiderman. “My ofce will continue to make it a priority to crackdown on these deceptive business practices that target unsuspecting consumers.”

These settlements are part of the wider initiative to end the practice engaged in by many dealers of “jamming,” or unlawfully charging consumers without their consent or knowledge for purchases.

It is a violation of state and federal law to charge upfront fees for services that promise to help consumers restore or improve their credit, and contracts that violate the law are void.

The attorney general’s investigation found that, between 2010 and 2015, these dealers used fraudulent, deceptive, and illegal methods to sell CFI contracts to approximately 5,000 consumers.

guage in which the terms were negotiated before the consumer signs these documents.

The dealer groups included among the settlements are:

Plaza Oldsmobile, Ltd. d/b/a Plaza Toyota-Plaza Scion

Plaza Hyundai, Ltd.

Plaza Motors of Brooklyn, Inc. d/b/a Plaza Honda Crystal Bay Imports, Ltd. d/b/a Acura of Brooklyn, Inc.

Often, these after-sale items added hundreds or thousands of dollars in hidden charges to the sale or lease price of a vehicle.

Manfredi Chrysler Jeep & Dodge of Staten Island LLC

Manfredi Chrysler, Jeep & Dodge, L.L.C. Manfredi Fiat Inc.

As a result, the price of the car stated on purchase and lease documents was inﬂated by the amount of these after-sale items.

Manfredi Motors Inc. d/b/a S.I. Toyota, Manfredi Toyota and Manfredi Scion Manfredi Subaru, LLC.

SI Safe Auto, LLC d/b/a Manfredi Mazda

The dealerships failed to provide required disclosures such as consumers’ rights to cancel the credit repair services contract.

As part of the settlement, Koeppel must provide a translation of certain material documents in the lan-

Staten Island Motors, Inc., d/b/a Staten Island Subaru Koeppel Nissan, Inc.

LK Automotive Enterprises, LLC. d/b/a Koeppel Subaru

KL Auto Enterprises LLC. d/b/a Koeppel Mazda, Koeppel Volkswagen, Inc.

Huntington Honda Inc.

Westchester Autoplex, Inc. d/b/a Honda of New Rochelle Automotive, Inc. d/b/a New Rochelle Toyota

Timothy Lattimore » Wholesale Manager / Medlin Buick, GMC, Mazda » Wilson, NC

CFPB Moves to Ban Mandatory Arbitration

The Consumer Financial Protection Bureau is seeking comments on proposed rules that would prohibit mandatory arbitration clauses.

The proposal would open up the legal system to consumers so they could ﬁle a class action or join a class action when someone else ﬁles it.

“Many banks and ﬁnancial companies avoid accountability by putting arbitration clauses in their contracts that block groups of their customers from suing

them,” said CFPB Director Richard Cordray.

“Our proposal seeks comment on whether to ban this contract gotcha that efectively denies groups of consumers the right to seek justice and relief for wrongdoing.”

Many buy-here, pay-here dealers use arbitration clauses in their retail installment sales contracts.

Under the proposal, companies would still be able to include arbitration clauses in their contracts.

However, for contracts subject to the proposal, the clauses would have to say explicitly that they couldn’t be used to stop consumers from being part of a class action in court.

The proposal would provide the speciﬁc language

Police Say Ex-Employee Killed Store Owner

FAYETTEVILLE, N.C.

(AP) – Police in Fayetteville say a man has been arrested and charged with killing his former employer, the owner of a used-car dealership.

Police told local media outlets that 48-year-old Ambrose Dumone Murray of Fayetteville was arrested April 30 and charged with ﬁrst-degree murder, armed robbery and motor vehicle theft.

Ofcers found 72-year-old

Joseph Carl Wallace dead in his used-car dealership, Quality Automotive, April 26.

Court documents said Wallace had last been seen April 22.

The documents say Wallace appeared to have been struck in the head and cut on his neck.

Police say the investigation revealed that two cars had been taken from Wallace’s business.

Feds Make Raid on Ford Store, Investigate Staff

RENO, Nev. (AP) – Reports say the son of a Reno auto dealer was arrested and federal agents searched a dealership and home in what the U.S. attorney’s ofﬁce is calling an ongoing investigation.

Records show that 38-year-old Richard Winston West II was being held at the Washoe County Jail on an unspeciﬁed federal charge following raids April 28 at his home and at the Jones-West Ford dealership.

that companies must use.

The proposal would also require companies with arbitration clauses to submit to the CFPB claims, awards and certain related materials that are ﬁled in arbitration cases.

This would allow the bureau to monitor consumer ﬁnance arbitrations.

The bureau is also considering publishing information it would collect in some form so the public can mon-

itor the arbitration process as well.

The proposed rules that the CFPB is seeking comment on would apply to most consumer ﬁnancial products and services that the CFPB oversees.

Congress already prohibited arbitration agreements in the residential mortgage market.

In October 2015, the Bureau published an outline of the proposals under con-

sideration and convened a Small Business Review Panel to gather feedback from small companies.

In addition to consulting with small business representatives, the bureau sought input from the public, consumer groups, industry, and other stakeholders before continuing with the rulemaking. The public is invited to comment on these proposed regulations when they are published.

Jones West Ford usedcar manager Jay Costet tells KOLO-TV on behalf of company owner Richard West that the investigation focuses on employees, not the dealership itself.

KOLO says several arrests were made.

The investigation was a joint operation involving agents from the Federal Bureau of Investigation, Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

A spokeswoman for U.S. Attorney Daniel Bogden says the case is currently sealed.

Dori Martinez » Concierge » Manheim Pennsylvania

Richard Cordray

Ex-Mogul Gets Early Release

MINNEAPOLIS (AP) – Former Minnesota auto dealer Denny Hecker is now scheduled to get out of prison one year earlier than he was previously. Reports say the Federal Bureau of Prisons confirmed in April that Hecker is expected to be released July 4, 2018, instead of the previously scheduled July 4, 2019.

Hacker owned several auto dealerships in Minnesota and California. He also founded the Greater

Group, an auction chain that he sold to Manheim.

Hecker was sentenced to 10 years in prison in 2011 in a high-proﬁle fraud case.

By that time, Hecker had sold of all his dealerships and had declared bankruptcy. He had also been involved in an auto accident and his wife had ﬁled for divorce.

Hecker was sued by the captive ﬁnance arms of Ford and Chrysler in 2009. He was also sued by a pair of banks in Fargo, N.D.

Bureau spokesman Justin Long said in an email that the reason for an inmate’s sentence reduction “is not always public information, such as in this case.”

Dealer Shoots Man over Check

SAN ANTONIO (AP) – A San Antonio used-car dealer has been arrested in the fatal shooting of a customer who allegedly paid for a vehicle using a bogus check.

Ofcer Doug Greene says Munir Ayyoub Ammari was calling San Antonio police on April 25 to report that a driver bought a car using a fraudulent check – when the pur-

chaser drove by.

Police say Ammari got into a vehicle and chased the buyer, forcing a confrontation in a store parking lot. The men argued and the victim was shot.

Witnesses ﬂagged down nearby ofcers.

The victim’s name wasn’t immediately released.

Denny Hecker

“The level of trust is directly linked to the level of interest in a new technology among automobile buyers,” Kolodge said. “Acceptance can be increased with exposure over time and experience with automated technologies. But trust is fragile and can be broken if there is an excessive number of incidents with automated vehicles.”

For example, she cited a February accident in California where Google’s self-driving Lexus SUV drove into the side of a bus at low speed.

The Tech Choice Study, now in

its second year, was conducted in February through March of this year and was based on an online survey of more than 7,900 consumers who purchased or leased a new vehicle in the past ﬁve years.

The study examined consumer awareness, interest and price elasticity of various future and emerging technologies by vehicle make and consumer demographic. The major technology categories analyzed in the study included entertainment and connectivity, comfort and convenience and driving assistance.

ADESA Atlanta June 1, 29

770-357-2277

ADESA Boston June 3, 10, 17

508-626-7000

ADESA Charlotte June 9, 23

704-587-7653

ADESA Cincinnati/Dayton June 7 937-746-4000

ADESA Golden Gate June 7, 21 209-839-8000

ADESA Houston June 8, 22 281-580-1800

ADESA Indianapolis June 7, 21

800-925-1210

ADESA Kansas City June 7, 21 816-525-1100

ADESA Lexington June 16

859-263-5163

ADESA New Jersey

June 23

908-725-2200

ADESA Tulsa June 10 918-437-9044

ADESA Washington DC June 1, 29

703-996-1100

Brasher’s Salt Lake June 14

801-322-1234

Columbus Fair AA

June 8, 15

614-497-2000

Manheim Atlanta

June 9, 22, 23

404-762-9211

Manheim Dallas June 1, 15, 29

877-860-1651

Manheim Denver June 1, 29

800-822-1177

Manheim Detroit June 16, 23

734-654-7100

Manheim Fredericksburg

June 2, 16, 30

540-368-3400

Manheim Milwaukee June 1, 15, 29

262-835-4436

Manheim Minneapolis June 22

763-425-7653

Manheim Nashville June 8, 14, 15

877-386-5004

Manheim Nevada June 10

702-361-1000

Manheim New Jersey June 1, 15, 29

609-298-3400

Manheim New Orleans June 15

985-643-2061

Manheim Orlando June 1, 7, 14, 21, 28, 29

800-337-8491

Manheim Pennsylvania

June 9, 10, 23, 24

800-777-2053

Manheim Phoenix

June 2, 9, 16, 23, 30

623-907-7000

Manheim Pittsburgh June 1, 29

724-452-5555

Manheim Riverside June 2, 28, 30

909-689-6000

Manheim Seattle June 22

206-762-1600

Manheim Southern CA June 9, 23

909-822-2261

Manheim Tampa June 23

800-622-7292

Southern AA June 1, 29

860-292-7500

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

ADESA Boston June 10 508-626-7000

ADESA Golden Gate June 21 209-839-8000

Manheim Atlanta June 22 404-762-9211

Manheim Dallas June 1 877-860-1651

Manheim Milwaukee June 1, 29 262-835-4436

Manheim Nashville June 8 877-386-5004

Manheim Orlando June 1, 29 800-337-8491

Manheim Pennsylvania *June 9, 23 800-777-2053

Mazda Capital Services

ADESA Boston June 3, 17 508-626-7000

Manheim Riverside June 2, 30 909-689-6000

ADESA Golden Gate June 7 209-839-8000

ADESA Houston June 22 281-580-1800

Columbus Fair AA June 15 614-497-2000

Manheim Detroit June 16, 23 734-654-7100

Manheim Fredericksburg June 16 540-368-3400

Manheim Milwaukee June 15 262-835-4436

Manheim Nashville June 15 877-386-5004

Manheim Atlanta June 23 404-762-9211

Manheim New Jersey June 1, 15, 29 609-298-3400

Manheim Orlando June 7 800-337-8491

Manheim Pennsylvania June 10, 24 800-777-2053

Manheim Pittsburgh June 1, 29 724-452-5555

Manheim Riverside June 28 909-689-6000

Manheim Seattle June 22 206-762-1600

ADESA Boston June 17

508-626-7000

Brasher’s Salt Lake June 14 801-322-1234

Columbus Fair AA June 8 614-497-2000

Manheim Dallas June 15 877-860-1651

Manheim Detroit June 16, 23 734-654-7100

Manheim Fredericksburg June 2, 30 540-368-3400

Manheim Milwaukee June 1, 29 262-835-4436

Manheim New Jersey June 15 609-298-3400

Manheim Orlando June 28 800-337-8491

Manheim Pittsburgh June 1, 29 724-452-5555

Manheim Seattle June 22 206-762-1600

Manheim Southern CA June 9 909-822-2261

Southern AA June 1, 29 860-292-7500

Manheim Pennsylvania June 10 800-777-2053

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

*The Jaguar word mark, the Jaguar logo, and Jaguar Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. The Land Rover word mark, the Land Rover and Oval logo, and Land Rover Financial Group are trademarks of Jaguar Land Rover Limited and any use by Chase is under license. Retail / Loan and lease accounts are owned by Chase. *The tradename "Mazda Capital Services" as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corpora tion 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 (16-032) 06/16

PEOPLE IN THE NEWS

KAR Announces New Unit, Promotions

KAR Auction Services Inc. announced that Mike Eliason has been named vice president of investor rela-

tions and treasurer.

Eliason, who most recently served as vice president of ﬁnancial planning and analysis, will report directly to Eric Loughmiller, executive vice president and chief ﬁnancial ofcer of KAR.

In this new role, Eliason will be responsible for directing the organization’s investor relations, budgeting, forecasting, investment of funds, and cash management activities. He will also continue to lead the company’s ﬁnancial planning and analysis initiatives.

KAR also announced the formation of a new Data Science Solutions Group (KAR DataSci).

Eliason joined the KAR group of companies in 2003 as a controller for ADESA Impact, and later was promoted to vice president of ﬁnancial planning and analysis for KAR Auction Services. Prior to his time with KAR, Eliason served in a variety of business development and ﬁnance roles with ALLETE, ADESA’s former parent company, Enbridge and KPMG. Eliason earned his bachelor’s degree in accounting from Saint John’s University, and his Master of Business Administration from the University of Alberta.

Dr. Huey Antley will serve as vice president and chief data scientist of the new group. Antley, who most recently held the role of vice president of marketing analytics for KAR subsidiary Automotive Finance Corp., will report directly to KAR chief operating ofcer Don Gottwald.

Antley joined the KAR group in 2014 from Mitchell International, a provider of software solutions for the property and casualty insurance industry, where he served as director of analytics for Mitchell’s ClaimsLab. Prior to Mitchell, he was chief data scientist for The Walt Disney Co.’s Customer Data Environment.

Antley has more than 30 years of experience

in applying data science, including roles at GMAC Financial Services (now Ally), HSBC Auto Finance and Alltel Information Services.

KAR’s wholesale auction subsidiary,

ADESA, has named Jason Ferreri as executive vice president of online services for ADESA U.S. Ferreri will report to Stéphane St-Hilaire, president and CEO of ADESA, and Peter Kelly, president of the KAR Digital Services Group.

In this role, Ferreri will oversee the strategy, adoption and execution of the company’s online initiatives.

This includes online auction platforms such as ADESA.com, ADESA DealerBlock and ADESA LiveBlock as well the OPENLANE private-label online sales platform the company builds and manages for many major vehicle manufacturers.

Ferreri has been with ADESA since 2004, and has held a number of management roles, including vice president of e-business sales and operations, executive director of sales for national accounts and senior vice president of commercial accounts. Most recently, he served as ADESA’s senior vice president of commercial sales.

Transporter Fills Positions

MetroGistics has announced staf promotions for Brittany Twist, Alisha Bray and Alycia Lamartina Twist is now claims manager, and Bray and Lamartina are both operations managers. Along with this promotion, Twist is on track to receive her Certiﬁed Insurance Counselor designation from the National Alliance for Insurance Education & Research.

Bray’s career with MetroGistics began after her 2011 graduation from Missouri State University.

Lamartina is a thirdgeneration logistics dispatcher, following her father and grandfather.

Previously he held vehicle-remarketing positions at companies such as MBF, Chrysler Financial and Chase Auto Finance.

Mike Eliason

Jason Ferreri

RETAIL MARKETS

CALIFORNIA

Rey Guluarte, owner, Autos Guluarte Inc., El Centro, Calif.:

“I’ve been in the same location for 30 years. Before that, I was in Santa Cruz, Calif., for ﬁve years.

“We have one location. (Our family) used to have four, but all my brothers retired. I’m waiting to do that, too.

“Normally, I keep 48 to 50 units. Now I’ve dropped it to 30.

“El Centro is a fairly small farming community close to the border of Mexico.

“If I can sell 10 a month, I’m happy. The economy changed in 2009 and 2010. That dropped everything.

“We’re about 70 percent buy-here, pay-here.

“We only ﬁnance for a year. (We’re phasing out buy-here, pay-here) as I look to retire.

Compiled by Jeffrey Bellant

“The average car is $6,000 (retail).

“We don’t really have bad customers. The bigger down payment means the customer doesn’t want to lose (that down payment).

“I get my vehicles from ADESA Sacramento, Brasher’s Sacramento, Manheim (San Francisco) and other auctions.

“We carry 70 percent automobiles and 30 percent trucks.

“We are not going to be cheap with (reconditioning). We average about $350. We sell the car with a 30-day, 1,000-mile warranty. But even if the car is out of warranty – and something serious happens – we’ll see how we can help the customer.

“We carry model years 2000 to 2010. Mileage is all over, depending on what the customer wants. We’ve got some cars from 50,000 to 70,000 miles, but not too

“To (ﬁnance a car through us) we ask for 50 percent down and 50 percent in the next year. But the last couple of years, the economy has been bad. The people are using tax returns to pay (other) bills.

many of those. I don’t care about the mileage, as long as the car is clean.

“We recently sold a 2003 Toyota Matrix. It had 190,000 miles. We sold it for $4,895.”

IOWA

Tab Miller, owner, Preowned Solutions, Urbandale, Iowa:

“We’ve been in business 10 years. We have one location.

“Currently, we probably have 50 to 60 (in stock). I’d say we have about 10 more than we did last year at this time.

“On average, I would say we sell about 30 per month. We’re ahead of where we were last year at this time. Last year we were probably more in the 20 to 25 range.

“The economy is helping. We’ve ﬁnally settled in here, since we’ve been at this location for ﬁve years. We’ve just found a good mix. Just like anything else, it’s not what you thought it (would be) to begin with, but we’ve

kind of adapted our inventory to what seems to be selling here. Hard work has a way of paying of

“Our inventory comes from pretty varied (sources). We’re probably buying less than we ever have from physical auctions. But we are doing a lot of online auctions.

“We’re reaching quite a (distance). It’s surprising the number of cars we ship in from out of state to make the right ﬁt for us. We also do some direct buying from corporations and some lease companies. We do buy from some individuals as well.

“We sell straight retail. No subprime or buy-here, payhere.

“I think our average retail price is up from what it was before. I’m guessing it’s in the mid- to upper teens.

“The average mileage of (our cars and trucks) is probably 50,000 to 60,000. The average model year is probably ’10 or ’11.

“Part of our success has been catering to truck (buyers). We’ve got the clean, late-model trucks and vans that seem to be (used) in the service industry. They are very popular right now for the up-and-coming smallbusiness people that aren’t buying new. We’ve kind of tapped into that market.

“Our truck and van market is driven very strongly by domestics. I want to say 70 percent of our inventory is domestic and 30 percent is import.

“Our average reconditioning costs are probably higher than most. I’m a ﬁrm believer in full reconditioning. That ﬁrst impression cannot be recreated.

“The last one we sold was a 2014 Toyota Camry. It had 16,000 miles and sold for $17,900.

“Our biggest struggle right now is ﬁnding employees. Iowa is boasting a very low unemployment rate, so it makes it hard.”

“Cars are probably 35 percent of what we see. Trucks are probably 40 to 45 percent. The balance is SUVs.

DEALER CASH SO LU TIO NS

TE D ACCEP TANCE , I NC. En ter in g ou r 2 5th year assistn g au to d ealer s

• CA SH f or y our auto notes – Bulk P urchase

• P ay ment Strip P rogram ( 3 to 15 months) Dealer collects.

• Reduce administratv e burden of collecton calls and taking cash.

• Build y our inv entory to sell more.

• We are y our source f or capital and serv icing solutons.

• Quick , simple and consistent f unding process

WHOLESALE MARKETS

GEORGIA

Donnie Bazemore, general manager, Southeastern Auto Auction of Savannah, Savannah, Ga.:

“We’ve been in business for 20 years. This is our 20th anniversary. We’ll celebrate that in August.

“We have four lanes and run all four during our dealer sale on Wednesday. We also have a public sale on Thursdays where we’ll run two lanes.

“Right now, we’re running about 650 cars on Wednesday. We’ll run 250 on Thursdays.

“The (dealer sale) volume is about a 7-percent increase compared to last year.

“It was a fast tax season. But during November and December, we had a 15-percent increase.

“Conversion rates have been in the high 50s (percent). That’s about the same as this time last year.

“We’re (drawing) about 300 dealers in the lanes for sales. That’s about the same as last year.

“Our dealers say they are doing well. It seems like we have a lot of people that are all looking for the same cars, you know?

“It’s that $4,000 to $8,000 stuf. That’s what everyone seems to be looking for.

“Everybody’s doing pretty well. Franchise guys are doing great. We have more franchise dealers than ever buying from here.

“Our ﬂeet-lease department has seen our biggest increase. It’s probably 25 percent of our business.

Katie Rushing (national remarketing manager) said the department is up 60 percent from last year. Some of our big consignors are Navy Federal, Consolidated Asset, Enterprise and U.S. Auto Cash.

“One reason for the increase is that we put a big efort into it. We also got more involved in the National Auto Auction Association. You get more connections.

“Plus we’re advertising with your publication. It’s

helped out a bunch.

“We do a power sports sale every week (Wednesday) at 9:30 a.m. It’s smaller since it’s every week. So we’ll average 10 a week. Mainly, we’re selling motorcycles and campers. Those are doing really well. We also sell golf cars.

“We run an in-op sale, too. We run 35 a week.

“Our average price in the dealer sale is $7,500 to $8,000. That’s gone up.

“We’re having a lot of luck with imports, specially Mercedes and BMW. They’re kind of crazy.

“We’ve got a lot of those (import) dealers sending their trades out here and they’re selling almost everything they bring in.

“Naturally trucks are doing well.

“I feel good. We’ve got a new salesperson and she’s working the southern part of Georgia and she’s getting good results.

“We’re in a big growth period. She’s got a lot of new dealers signed up.”

MONTANA

Terry Scheetz, general sales manager, Auto Auction of Montana, Billings, Mont.:

“We’re going on our 13th year. We had a tremendous year in 2015. One of the best years we’ve had since we’ve been here.

“We’re running four lanes. Recently, we’ve been running 700 to 800 cars on two of the four weeks. On the other two weeks, it’s 600 –give or take.

“Volumes, I think, are up 1,300 (compared to this time last year). Our sales percentages will be 50 percent, give or take.

“It’s because of Canadian trades. We have one guy who runs 200 a week with us. We’ve got several (others) who each run 60 to 80. We’ve got one lane just for the Canadian trades. The dollar has changed a little bit, so you’re going to see that slow down.

“The Bakken (oil business) slowed down. We’re still doing a lot of business

Compiled by Jeffrey Bellant

out of there, but not like it was. Now the Canadian business has kicked in.

“We’re just kind of fortunate to be where we are.

“We get 150 to 200 dealers in the lanes. But we’re doing a lot more on the Internet. We use Ringman and Pipeline. We’re probably doing a third of our business on the Internet.

“Dealer consignment is 60 to 70-percent (of volume). Dealers said they’re slow, but we’re selling. The newcar stores are doing ﬁne.

“Our ﬂeet-lease is steady,

“We have a GSA sale. We’ll have 80-plus running at the end of this month. That sale is back up to once a month. Generally it’s 60 to 80 (units).

“Those units can be anything from big trucks that come of the Air Force base, to buses. It’s a little bit of everything, from passenger cars to heavy-duty trucks. Everything is 2009 and up, with 50,00 to 60,000 miles.

“Average sale price on the block is about $12,600.”

DISCONNECTED JOTTINGS FROM TONY MOORBY

When I was at school I used to love art. The subject took up a “double period” or the time for two normal lessons. I used to view it as an opportunity to avoid the

caning from the headmaster. Although it was an all-boys school, the art teacher was a lady named Miss Mather and her jaw dropped at the site of my colleague as she came

Tony Moorby

• 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

rigors of the more mundane lessons on math, English and so forth – a form of escapism, if you will.

It was held in one of the largest classrooms, designed for the purpose, housing tables rather than desks and there was a huge shallow sink in one corner for cleaning brushes and other equipment. I remember one occasion when one of my school friends used it to cool down his rear end after a severe

in to class. She sent him back to the headmaster for indecent exposure. I can’t imagine what would happen today – he would probably be sent away for psychological assessment, they would hold therapy for other students to overcome their discomfort of the scene and the authorities would ﬁre the teachers for running an uncontrolled bawdy house. Not that a caning would take place today in the ﬁrst place.

Raw materials were very basic in those days. We used to mix powdered poster paints with water and apply that mire to thick paper or draw with charcoal. A substance called ‘plastercine’ was used for modeling and it stuck to your ﬁngers like poop to a blanket and smelled almost as bad. By the end of the lesson we likely had as much of the materials attached to us as to any paper or else.

As time went by and proﬁciency improved we were given better materials to work with and we graduated to making lino cuts for reverse printing. Some surprisingly talented people created fabulous works for exhibition at various school events, fêtes and fairs.

At the age of 16, future studies were dictated by exam results which pointed you to one of three disciplines; arts, economics or sciences.

My twin brother and I were good at languages and art so our direction was ob-

By Miles Mellor

35. A green fag at the start of a race

36. Honda compact SUV

38. Allow 40. Jaguar competitor

43. It tells the state of the tire

47. Put together again

49. It’s paid on every legal car sale

Ferrari and Fiat nationality

___ record! 2 words

21. Camry ___

23. Newport’s state, for short

25. Green, 2 words changeable, like some buyers

30. Erratically 31. Pontiac _____, 2 words 34. Wheel____

50. Tire pressure measurement, abbr.

51. Time to arrive

52. Scionx xb & Nissan Cube description

53. Event where concept cars are ofen shown

54. Watch!

1. Lincoln being revived

2. Aka Grandeur

3. Moving cars of the lot

4. For this reason

5. Looks for bargains

6. Oil measuring equipment

7. Sweet!

8. Service activity

10. Halloween month, for short

12. Overtime, abbr.

15. Exclamation of mockery

16. Tin symbol

20. Kane of ‘’All My Children’’

22. Not running

24. First letter in Z4

26. Hyundai compact

27. Auto sales datum

28. Carbon ___ parts

29. French for island

32. Mercedes Series, 2 words

33. Superbowl player award, abbr.

vious and future subjects included German, French, English, social studies and of course, art.

By now, art classes were fairly serious and were elevated to art appreciation – a very broad look at the whole world of art and some art history.

The fascination was set and continues to this day.

My brother and I still like to visit art galleries wherever we go and whenever opportunities present themselves.

Now we’re both retired we’ve even considered going on an art holiday, perhaps in France – with food and wine thrown in. Could it get any better?

Robin still lives in England and has a studio at the bottom of his garden – very English! I’ve converted an upstairs room for the same

purpose and disappear for hours painting acrylics or watercolors. I now have a storage facility that’s bursting at the seams with all my daubings.

I suppose it’s surprising that I did well in business with no formal economics training (though I did throw myself at every training course ofered during my career), but I take more interest today in things that didn’t particularly excite me at school – history, geography, politics and economics – now ﬁll my curiosity.

I even recently inquired about Vanderbilt University’s Advanced Liberal Arts and Science program, a part-time study course for late students like me. Unfortunately I didn’t qualify as I don’t have a bachelor’s degree. Maybe that’s next.

37. Beetle relatives 39. French for summer 41. Christmas tree decor

42. Computer programming creation 44. Observe 45. Hymn word 46. Car shaf 47. Bring a shine to

Once around Indy

AROUND THE BLOCK

SALE BENEFITS CHILDREN’S CHARITY

The Texas Lone Star Auto Auction, an XLerate Group auction, asked dealers to open their hearts and checkbooks recently for a fundraising sale beneﬁtting the Make A Wish Foundation. This

special April sale event yielded over $15,800 for the organization that dedicates these funds to granting the wishes of children with life-threatening illnesses.

“We hosted this special event

sale to give back to a very deserving charity that ofers support within our community,” said Jef Dunning, general manager of Texas Lone Star Auto Auction. “Because of our dealers’ overwhelming generosity and support, the lives of the children in the Make A Wish community will beneﬁt.”

The event sale featured vehicles from TLSAA’s local dealerships, with post-sale giveaways that included a 65-inch Sony 4K Ultra HD television, two $500 cash drawings and rafe tickets were sold for a 2016 Toyota Tacoma truck was drawn at the Make A Wish gala.

“Our dealers were out in full force for this sale, and I am proud to say that our employees put many hours of their own time to make this a successful event,” said TLSAA sales manager Paula McKinney.

Compiled by Jeffrey Bellant

Auction Features High End Exotics

KCI Kansas City’s lanes hosted a U.S. Marshals Service (USMS) sale on April 29 that featured 25 highend, exotic vehicles.

Flynn Jensen Co. partners with KCI to service this USMS contract. Both registered dealers and the general public attended the sale onsite and online via Edge Simulcast. Bidders selected from an array of vehicles that included a Ford Mustang Cobra Jet, a Ferrari 430 Scuderia, a Ford GT, a Mosler MT900S, a McLaren 12C and 12 Ducati motorcycles.

“Our KCI team worked tirelessly to conduct one of the best auction events I have ever been involved with,” said Doug Doll, KCI Kansas City’s general manager. “I am so proud to be a part of this team.”

KCI’s USMS sale concluded with 22 of 25 vehicles sold; the highest sale price came with a 2006 Ford GT that sold for $285,000.

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

MAKE A WISH: Jeff Dunning, (right), general manager of Texas Lone Star Auto Auction, accepts a check from a dealer on behalf of the Make A Wish Foundation during an event.