Used Car News 5/2/16

Congress, Courts Question CFPB’s Reach

By Ted Craig

The Consumer Financial Protection Bureau faces increased scrutiny from both the courts and Congress over its reach and structure.

The U.S. District Court for the District of Columbia recently denied a request by the CFPB for an order requiring a group that accredits for-profit schools to comply with a civil investigative demand.

The court rejected the argument that the group falls under its jurisdiction even though it isn’t involved in financial aid decisions at the schools it accredits.

The court is also considering a

case in which mortgage lender PHH Corp. contends the CFPB exceeded its authority when it levied a fine that was 17 times larger than what its own administrative judge had decreed.

The PHH case is bringing up questions about the CFPB’s structure, especially how it’s funded and that its director is appointed for a five-year term.

Attorney Michael Thurman said these are issues about the CFPB that were present when it was created.

It just took time for a case to reach the federal courts.

It also took a respondent willing

to fight the CFPB at this level, in part because it faces a penalty greater than its legal costs.

The CFPB seeks $109 million from PHH.

Thurman said that if the CFPB loses this case, it faces two unfavorable options.

One is to let the decision stand, but this would create a precedent others could use as a defense.

The CFPB’s other option is to take the case to the U.S. Supreme Court. If the court rules against the CFPB, however, it could cause the regulator to overhaul its structure.

All this could benefit the auto finance industry.

What would definitely help, however, is a bill working its way through Congress that directly affects the CFPB’s authority.

Last year, the U.S. House of Representatives passed the Reforming CFPB Indirect Auto Financing Guidance Act.

Sen. Jerry Moran (R-Kan.) recently introduced a version of the bill in the Senate.

“The CFPB is under intense scrutiny for the documented way it has manipulated and ignored data in its attempt to regulate through enforcement action,” said Jef Carlson, chairman of the National Automobile Dealers Association.

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.

Continued on page 5

NEWS BRIEFS

AutoIMS Offers Content Data

AutoIMS announced a new data partnership with Chrome Data to offer sellers more accurate, standardized vehicle content data directly through the AutoIMS platform.

The new connection aims to meet the evolving needs of the remarketing industry, and the call for a centralized vehicle data repository by the International Automotive Remarketers Alliance Standards Committee.

More specifically, the solution addresses remarketer concerns related to increasing vehicle volumes in physical and online auction venues and the ongoing challenge to fully account for the equipment, options, and other information needed to maximize the value of a vehicle through better descriptions and pricing.

The data connection itself will allow participating AutoIMS consignors to access accurate, VIN-level, as-built vehicle descriptions, recall notices, MSRP, invoice prices and warranty information as compiled from numerous OEMs by Chrome Data.

The data is available to AutoIMS consignor clients, and is discounted for IARA members.

Carfax Gets Grant for New HQ

Virginia’s Fairfax County Economic Development Authority has presented Carfax with a $150,000 grant from the Commonwealth’s Opportunity Fund towards the expansion of Carfax headquarters.

Fairfax County EDA ofcial Rodney Lusk met with Carfax President Dick Raines on April 14 to deliver a check and tour the construction of 25,000 square feet of new ofce space currently underway.

Announced in December, the office expansion is part of a $15 million investment by Carfax into Fairfax and Loudoun counties. Once the office expansion project is completed, Carfax will begin hiring 120 new employees for positions at its Centreville headquarters.

Developers, programmers and marketing experts are among the jobs becoming available in the coming months. Carfax expects the ofce expansion to be completed in May.

GPS Firm Helps Police

Police safely found two missing North Carolina children March 30, thanks in part to collaboration from Stars GPS vehicle tracking technology.

The boys, ages two and five, had

TUESDAY, MAY 17th

been taken by their mother, who did not have legal custody and fled the state. Because her car had a Stars GPS tracking unit, police were able to locate her and the boys quickly and safely.

Stars GPS worked with the boys’ father and police to follow the mother’s trail from North Carolina to California. Using real-time tracking data, the team discovered the vehicle had come to a stop in Bakersfield, Calif.

Using the real-time GPS data, police were able to locate the boys and their mother. They apprehended the mother and the boys were returned to their father without incident.

GM Financial Breaks Ground on Servicing Center

General Motors Financial Company Inc. broke ground on a new financial servicing center in San Antonio.

City ofcials and Gov. Greg Abbott attended the event.

GM Financial’s 100,000-squarefoot facility is planned for construction on 13.8 acres of land of of Raymond E. Stotzer Freeway at the intersection of Westover Link and North Ellison Drive. Construction is targeted to begin this spring and the company plans to begin occupying

the building in spring 2017.

IAA Makes Deal to Provide Data

Insurance Auto Auctions Inc. has entered into a memorandum of understanding with the New York State Department of Motor Vehicles.

The memorandum provides the New York State DMV with daily electronic file transfers of information associated to each salvage certificate for every vehicle IAA acquires by its insurance company clients in settlement of claims for damage or theft.

IAA is the first salvage auto auction company actively sharing files with the DMV.

In addition to delivering an electronic file transfer of the necessary data elements, the scanned images associated with each salvage certificate will also be provided by IAA. All documents will be stored and maintained by IAA for one year.

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

Subscribers: We print advertisements as sent to us by auctions and other advertisers. It is not possible to verify the correctness of listed vehicles in auction ads. Most lists are partial and all lists are subject to last minute changes by auto auctions, so before travelling a long distance for a particular auto auction event, contact the auction by telephone for a fax of vehicles in the sale. Used Car News assumes no guarantees or liabilities concerning the accuracy of any advertisements. All Rights Reserved.

Reproduction in any form is prohibited without the written consent of the publisher. OUR ADVERTISING APPROVAL POLICY Payments from frst time advertisers must accompany the insertion order. Distribution is guaranteed by the USPS. Te advertising reservation deadline is 12:00 noon 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. Join the Conversation! Visit Used Car News online at www.usedcarnews.com or scan this QR code with your smartphone to be

Manheim Becomes Integral Part of Supply Chain

Manheim continues to pursue a business plan of touching as many cars as possible in all remarketing channels.

The company spotlighted some of its initiatives during the recent National Automobile Dealers Association convention.

Janet Barnard, Manheim’s president of North America, said the goal is to get vehicles from the auction to the lots, ready to sell.

“Efciency is the new currency,” Barnard said.

One way Manheim is growing is through its online sales oferings.

Attendance on the company’s OVE.com platform reached 50 percent of all bidders last year. Online bidders still only make up about a third of buyers, however.

Manheim is investing in providing more information to push those levels even higher.

The company remains committed to physical sales as well. For example, the company grew its mobile auction sales, which now includes 30 established mobile units and 39 more under development.

Manheim’s mobile units bring technology – such as Simulcast –along with stafng to host an auction on a dealer’s lot, as well as in conference centers, warehouses and open fields.

“At our larger national sites, dealers don’t always feel like they get the love and care that they deserve,” Barnard said.

Manheim announced it is expanding its Retail Solutions operations. Retail Solutions services include acquisitions, inspections, reconditioning, marshaling, title services, merchandising and transportation.

The company is investing $5 million to add five more locations, including Manheim Orlando, Manheim Houston, Manheim St. Louis, Manheim Detroit and Manheim Darlington, S.C. These join the Manheim Denver and Manheim Chicago sites that launched in 2015.

The Retail Solutions product started as way to better serve clients like Sonic Automotive and DriveTime.

“We have become an integral part of their supply chains,” said Grace Huang, Manheim’s senior vice president of inventory services.

Wholesale Prices – Continued from page 3

Westlake Financial director of risk management Ian Anderson said he expects the pressure on wholesale prices to get worse than anticipated in the third and fourth quarters. Anderson said this is due to a

large amount of rental car defleeting scheduled for the fourth quarter and an uptick in repossessions coming six months after tax season.

So far, all this is good news for dealers.

Goyal said the increase in supply allows dealers to buy more selectively.

And the vehicles they sell are holding up the best at auction, Kontos reports.

City Sets Standards for Used Car Stores

By Sheila McGrath

The city of Rock Hill, S.C., struggled for months to come up with new rules to regulate the city’s growing number of used-car businesses.

But after six months of talks, the city council didn’t make any big changes to its rules for existing businesses, and backed of on some of its earlier proposed restrictions on new stores.

Council member Kevin Sutton said he hoped the owners of problem lots would recognize themselves and take action on their own.

The city proposed sharply curtailing the number of places where new used-car businesses could open, limiting them to just two zoning designations.

But after a series of meetings and public hearings, they ultimately settled on five, still “one of the more generous jurisdictions that regulates car lots in the state,” Youngblood said.

Also, new lots opening in Rock Hill will now have to be paved and striped into 8-by-18-foot spaces.

But the council dropped a 1.5-acre minimum size for new lots, something that had been approved in a pending ordinance last fall.

“It’s not good for government to come in and be the heavy hand, but it would be nice if some of these people would realize their places look really junky and have some personal responsibility and do something about it,” said Sutton. “I would issue a call to that industry… to step up to the plate and do what was right vs. forcing us to do that in the future.”

Rock Hill, a city of about 70,000 residents, has a higher-than-average number of used-car dealers –about one for every 1,800 residents. The national average in similar cities is one for every 2,400 residents, according to senior city planner Leah Youngblood.

Youngblood said her ofce gets a couple inquiries a week from people considering opening a lot in Rock Hill.

Part of the reason might be that until recently, Rock Hill allowed used-car lots to operate either by right or with zoning board approval in seven diferent zoning designations, “far more than any comparable jurisdiction in the state,” Youngblood said.

On March 29, the council took up two diferent proposed ordinances, one for new dealerships, and the other for existing ones.

After approving those changes for new businesses, the council turned its attention to existing lots.

The problem with what ofcials called “junky” lots had arisen because people were opening new stores on small parcels and not making any significant changes to the building. Since changes to the property are what trigger the city to require upgrades, city ofcials said they didn’t have a good way to regulate the appearance of those businesses.

One proposal they looked at would have required existing dealers to make substantial improvements to their lots, bringing them up to new standards in regard to curb cuts, parking and landscaping.

But they decided to let the existing businesses remain as they were. If a business closes for six months, it will have to comply with the newer codes.

“For a business that’s been there for a long time, to force them to make these changes in a certain amount of time, that’s pretty heavyhanded, pretty hard on them,” said council member Jack A. Black.

Black suggested that some of the problems could probably be addressed by enforcing other codes.

Black Book Digital delivers the industry’s most trusted vehicle values right to your phone. With the latest technology to gather data, and over 60 years of experience analyzing it, this is the faster, easier way to do business. Put yourself in the driver’s seat like never before, with the insight to make your decisions more profitable. Take a 7-day test drive and see how these fully loaded features – like VIN scanning, run lists, and history report integration – can turn your dealership into a profit-driving machine. Subscribe at blackbook.com or call 800-554-1026.

DEALER’S LOVE OF CARS STARTED AT DRAG STRIP DEALER LIFE

By Jeffrey Bellant

Drag racing, like the usedcar business, is a fast, competitive world.

So it’s no surprise that Texas dealer Jerry Smith likes to go from his car lot to the quarter-mile racetrack from time to time

Smith is a partner in H.J. Smith Automobiles in Hurst, Texas.

“My dad and I own this together,” Smith said. “We’ve been here in Hurst since 1971.

The buy-here, pay-here store carries between 85 and 100 units and sells about 300 a year, Smith said. Vehicles retail at $10,000 or less, with more trucks and SUVs selling of the lot.

Although he’s been in the car business for a while, Smith’s interest in drag racing began early.

“I guess everybody starts when they’re 12 or 13,” he said. “I went to Green Valley Raceway with a neighbor when I was about 10 or 12. The race track has been closed since 1986.”

The track opened in North Richland Hills during the 1960s, but had a modest beginning.

“It was a dairy back then,” Smith said. “The guy would just drive the cows of the track and they’d have the AHRA (American Hot Rod Association) Nationals there.”

Smith would race the traditional quarter-mile tracks as well as well several 1/8th mile tracks.

“Back then, we’d race for peanuts,” Smith said. “It was like seven bucks to get in and I think you won $27 in Super Pro or Pro (categories). It wasn’t a big money deal.”

The track struggled to make money, he said.

“Bill Hielscher, known as Mr. Bardahl, was an early Pro Stock guy. When he bought Green Valley in 1970-1971, he would sell season tickets for $99,” Smith said.

The move helped the track stay afloat during the lean winter months, he said.

“It didn’t matter if it was a rock concert or Evel Knievel jumping buses. If the gates were open, you got in,” Smith said.

As soon as Smith got his driver’s license, he started racing.

“At the time, I raced my ’63 Impala,” he said. “I’ve got a ’56 Bel Air that I drove to school and I’ve raced it ever since, too.”

Smith raced three nights a week.

In the mid-80s, when Green Valley was about to close, the owner told him that it was time stretch his legs.

“He said, ‘You guys need to go to national events. You need to get out, make some laps,’” Smith said. “So we

started running Super Comp (class) Super Gas in national races.

“Then when Billy Myers built the track out here in Ennis, Texas (Texas Motorplex) in 1986, we ran the inaugural race there,” Smith said. “It was the first all-concrete track. I had a ’57 topless Corvette there in Super Gas.”

Smith would race every week in so-called bracket races, in which cars are handicapped to make for fair racing between a faster and slower car.

“Bracket racing is what saved racing in the late 1960s and 1970s,” Smith said.

The reason is that at the time, there was no handicapping races to make cars even. So the person with the most money who could pay to trick

out a motor was the guy who won every week, Smith said.

“So if you were just a high school kid or worked at the grocery store and you wanted to race your car, you didn’t have a chance,” Smith said. “It was just heads up racing. So it wasn’t competitive.”

One thing they did was set the “Christmas tree” lights at the start to allow a slower car to start early, making the race equitable. Then the winner is based on reaction time and driver ability.

Smith traveled to places like Baton Rouge, Memphis and Tulsa to race.

His favorite race?

“I think the first race at the Motorplex was a great race,” Smith said, “even though I didn’t win. Up until then, I had no success in the Corvette. I had gone to Denver, Indy and the state capital and had no success.

“But at the Motorplex race, where there were more than 220 to 250 per class, I made it down to the (last) four cars.”

Smith has never had an accident on the racetrack, but he’s broken a lot of parts, including throwing a driveshaft during a Super Chevy race that he won.

The funny part was that his five-year-old son, driving a golf cart, pulled his dad in the racecar back to the trailer. On the way back, a photographer for Super Chevy magazine took a shot of the car with Smith’s son and it made the cover.

Smith’s wife, DeDe, also races.

“Oh yeah,” he said. “She’s got a competition license, too.”

Smith said she races in a suspended dragster with a 632-cubic-inch motor.

“It will go 4.8 seconds in the 1/8th mile,” he said. “It’s probably going about 160 mph in the 1/8th. In the quarter mile it will probably go in the 175 to 178 mph range.”

Smith said it was a wrecked car that he helped rebuild.

That part is what Smith likes best about racing.

“What I always like the most about it is building my own stuf and going out and racing guys who buy their stuf,” Smith said.

For example, the 632-cubic-inch motor might cost $25,000 if you went out to buy it turnkey.

“I like going out there with my homemade stuf and beating them,” Smith said. Now 62, Smith still owns the 1956 Bel Air that he used to drive to school.

He also has a ’34 Left Steer roadster built for Super Gas, a ‘69 Nova and other cars.

Although he cut back on his racing last year because of the car business, he plans to add a few more starts to his career this year.

“This year we plan on racing 10 or 12 times,” he said. “We run from (April) through November.”

State Says No Taxes Paid Rev Up Your Dealership Website Today!

The manager of a New York usedcar dealership faces charges of failing to pay nearly $160,000 of sales tax collected between 2010 and 2013.

Evans Raphael, the manager of Uniondale Auto Mall Inc., was arraigned on charges of grand larceny in the second degree, four counts of criminal tax fraud in the third degree and three counts of criminal tax fraud in the fifth degree. The dealership itself was arraigned on the same charges.

“Businesses that pocket sales tax are stealing from our county and our state,” said Nassau County District Attorney Madeline Singas. If convicted of the top charge, Raphael faces up to 15 years in prison and a fine of up to $5,000 or double the gain from the alleged crime, for a total of $318,126.76 in this case. The dealership and the defendant are both liable for the money and any disposition will include full restitution to the New York State Department of Taxation and Finance.

The Nassau County district attorney said that customers of Uniondale Auto Mall were charged sales tax on their vehicle purchases between Jan. 1, 2010 and Dec. 31, 2013. That money, calculated to be $159,063.38, was allegedly kept by the corporation rather than remitted to New York State.

Half of the sales tax collected belongs to Nassau County and lesser percentages of the sales tax collected belong to Sufolk County and New York City.

Sales tax on automobiles in New York State is payable to the county where that automobile is to be registered; Uniondale Auto Mall serviced primarily Nassau residents, but had Sufolk and New York City customers as well.

As the individual who ran the daily operations of Uniondale Auto Mall, Raphael allegedly collected but failed to file any quarterly New York State sales tax returns for each of the 16 quarters from Jan. 1, 2010 through Nov. 30, 2013.

The state reviewed records of the company and discovered that although there were significant sales totaling nearly $2 million during this four-year period and sales tax collected on those sales, zero sales were reported to the IRS.

Floor Planning Still Strong

The auto dealer floor plan ABS sector will remain stable despite Fitch Ratings’ expectation of an approaching auto sales plateau following historic growth observed over the past five years.

However, U.S. dealership groups remain in strong financial health, contributing to stable expected performance metrics for the DFP ABS sector.

Solid dealer financials, built on strong revenue and decreasing costs, have led to positive migration to stronger credit tiers within DFP trusts. Dealer defaults have been minimal and net losses for most trusts remain at or near zero. Monthly payment rates, as measured by Fitch’s Auto DFP MPR Index, averaged 41.3 percent for 2015 collection periods, marginally below the previous peak of 41.7 percent in 2013, but well above any other year for the index, which dates back to 2004.

Fitch expects MPRs and other performance metrics to normalize in 2016 as production and incentive levels continue to increase for nearly every auto manufacturer, as of-lease vehicle supply due back at dealer lots is expected to reach high levels. Fitch has observed the negative efect of these two factors on MPRs for certain trusts, but expects

MPRs to remain above early amortization triggers.

Other performance metrics are also expected to remain solid. Fitch believes dealers are better positioned today to weather the storm any headwinds may bring.

Average dealer profits rose to $1.17 million in 2015, up 7.4 percent over 2014, driving average ROE for dealerships to 29.5 percent. This is up marginally from 29.2 percent in 2014, but well above all levels observed over the last decade.

Rising dealership blue sky values have driven M&A activity into high gear, highlighted by Berkshire Hathaway Inc.’s recent purchase of the Van Tuyl Group, one of the largest U.S. dealership groups. While new vehicle sales in the U.S. rapidly increased to historic highs in recent years, the number of dealerships has remained relatively flat.

Sales increased 5.8 percent year over year in 2015, but the number of dealers increased by only 0.3 percent, according to the National Automobile Dealers Association.

Dealers have also benefited from lower costs due to low benchmark rates and heightened lending competition compressing spreads. The result is low dealer financing costs to floor plan vehicles from the manufacturers.

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

Chase is your source for:

A broad range of vehicle makes and models — from economy to luxury — upstream and through preferred auctions nationwide.

Convenient online and in-lane vehicle availability with on-site Chase remarketers.

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

Your Source. Chase.

1Subaru, the Subaru logo, and Subaru Motors Finance are trademarks of Subaru of America, Inc. (“Subaru”) and any use by Chase Bank USA, N.A. (“Chase USA”) and JPMorgan Chase Bank, N.A. (“Chase”) is under license. Retail / Loan accounts are owned by either Chase or Chase USA and lease accounts are owned by Chase.

2Jaguar and Land Rover, their respective logos, and the financial group names (Jaguar Financial Group and Land Rover Financial Group) are trademarks of Jaguar and/or Land Rover and any use by Chase is under license. Retail/Loan and lease accounts are owned by Chase.

3The tradename “Mazda Capital Services” as well as the Mazda and Mazda Capital Services logos are owned by Mazda Motor Corporation or its affiliates and are licensed to Chase. Retail/Loan and lease accounts are owned by Chase.

© 2014 JPMorgan Chase Bank, N.A. Member FDIC. All rights reserved. (14-221) 06/14

Prosecutors Say Officer

Faked Pay Stub for Loan

A suburban Chicago police ofcer has been charged with falsifying her pay stub in order to obtain a used-car loan.

Cheron Gee, an ofcer with the Robbins, Ill., Police Department, has been charged with loan fraud and forgery following an investigation by the State’s Attorney’s Professional Standards Unit.

Both the charges are felonies.

Gee is a 31-year-old resident of Dolton, Ill.

According to prosecutors, Gee went to the Tinley Park CarMax in March 2015 to buy a 2012 Chevrolet Equinox.

As part of the loan application process, Gee submitted a paystub from the police department that represented she was being paid $23.25 an hour.

Gee also indicated on the loan application that her gross monthly wages exceeded $4,000.

As part of the transaction, Gee traded in her old vehicle and obtained a loan through the dealership that exceeded $22,000 for the purchase of the car.

She signed paperwork indicating

that all information was complete and accurate.

Approximately one week later, the finance company for the car dealership returned the contracts due to verified fraud.

After contacting the Robbins Police Department to verify employment and salary, it was determined that the paystub submitted by Gee did not match the actual paystubs issued by the Robbins Police Department.

Further comparison revealed several discrepancies including dates, the amount of hours worked, as well as Gee’s hourly rate of pay and yearto-date pay.

The paystub submitted by Gee was also formatted diferently and did not bear the printed watermark of the Village of Robbins.

After being notified to return the vehicle due to the fraud, Gee surrendered the car, but refused to repay the outstanding loan balance that the dealership had made on the original car that she had traded in.

Gee was released on a $25,000 personal recognizance bond.

Gee’s next court date is scheduled for May 19.

PEOPLE IN THE NEWS

ADESA Promotes Execs

ADESA has promoted Paul Lips from executive vice president of operations and finance to chief operating ofcer of ADESA U.S.

Lips will lead the entire U.S. auction operations group, which is being realigned from two regional groups to four regional groups.

Lips has held a variety of management roles since joining ADESA in 1996, including corporate controller for ADESA’s finance depart-

ment, vice president of investor relations and planning, and senior vice president of operations and finance. Most recently, he served as the executive vice president of operations and finance.

As part of this realignment, two ADESA general managers have also been promoted to lead the new auction regions as regional vice presidents.

Jay Hinchman, previously general manager of ADESA Las Vegas, will now serve as the vice president of U.S. auction operations in the new Midwest region. Hinchman has more than 20 years of experience in the auto remarketing industry, including various management and executive positions at Bank of America/Oxford Resources Corp. and the JM Family Enterprises. Hinchman joined

ADESA in 2008.

Geof Parker, previously general manager of ADESA CincinnatiDayton, will now serve as regional vice president of U.S. auction operations in the new

Mideast region. Parker started his ADESA career in 2003 as the national accounts manager for ADESA Dallas. He was then promoted to fleet-lease manager in 2005 and again to assistant general manager in 2007. In 2008, he was named general

manager at ADESA Cincinnati-Dayton.

Along with the new Midwest and Mideast regions, Pat Stevens and Mike Caggiano will continue as executive vice presidents of U.S. auction operations in the West and East regions, respectively. Stevens joined ADESA in 2000 and brings more than 20 years of remarketing experience to his role.

Caggiano has also served in the industry for more than 20 years and joined ADESA in 1996.

To further support this new auction operation structure, Doug Shore, previously vice president of business operations, will serve as senior vice president of auction operations and will oversee new auction integration and capital allocation. Also, Jane Morgan, president of specialty auc-

tion divisions, will expand her role to include mobile auction oferings and assist with geographic expansions.

J.D. Byrider Taps Two Consultants

J.D. Byrider announced the appointment of Tim Bullock and Lewis Scott as franchise consultants for J.D. Byrider Systems Inc.

Scott and Bullock, both currently employed in other roles within the company, will now be responsible for supporting franchisees and advising for operational and financial improvement using their in-depth understanding of the business and its customers.

Bullock has spent 11 years at J.D. Byrider, holding the positions of branch sales representative, finance manager, managing partner,

regional credit analyst, credit manager, and currently as general manager of the Beechmont branch in Cincinnati.

Scott has had a sixyear career at J.D. Byrider holding the positions of consumer credit analyst, branch underwriter, branch team lead and currently as general manager of the Greenwood, Ind., branch.

Lewis has 13 years of progressive automotive, sales and training leadership with Chrysler Financial, Wells Fargo Financial and AccuQuote.

Lewis is a State of Illinois Ethics certified teacher.

With the addition of Scott and Bullock, J.D. Byrider can now devote one consultant to every seven franchisees, representing a network that spans 171 locations across the U.S.

RETAIL MARKETS

INDIANA

John Klisurich, owner, Main Street Motors, Valparaiso, Ind.:

“I’ve been in business for 30 years. I have one location.

“I keep about 85 vehicles in inventory. That’s typical for this time of year.

“We normally sell right around 40 vehicles a month.

“We typically buy our vehicles at auction.

“We do prime, subprime and deep subprime. Our subprime customer is typically around a 550-620 credit score.

“The deep subprime we finance through Credit Acceptance. We finance some cars for $40,000 through them.

“I don’t do any buy-here, pay-here financing.

“Our average price depends on the customer’s credit.

“For a prime deal, it would be $15,000-$20,000. Subprime would be $10,000$15,000.

Compiled by Jeffrey Bellant

“We carry more cars than trucks. It depends on the market.

“We like a certain price point for trucks, so it’s a little harder for us to get them right now.

“We stock about 80 percent domestics. The imports are mostly Nissans.

“Right now, we’re not buying much older than 2012. Most of our vehicles are 2013s.

“The average mileage is 40,000.

“Our average recon cost is about $600.

“The cost mainly depends on the tires. If I have to put tires on a truck, that’s $600 right there.

“Every one of our vehicles gets an oil change and new brakes. Most of them get new rotors.

“Every car gets detailed. I don’t care how clean it is when it comes in.

“We don’t specify it. We tell the customers they can buy whatever they want. It depends on what they can get financed for and the down payment.

“I have a mechanic and he does all our work, but we farm out the brakes and the oil changes.

“The car comes in and we inspect it.

“Then we send it out for an oil change and another inspection.

“I want to know what I have. It’s nice to have that second opinion.

“We only do work for ourselves and our customers. They don’t have to wait for repairs.

“Radio works best for us for advertising and the Internet. We’re getting really savvy on digital advertising.

“We have a banner on our website that checks credit for free. That’s a good lead generator.

“We advertise on the local country music station and a lot of people dial into that. If we were in Chicago and there was more radio competition, I probably wouldn’t be a big player.

“We usually get what we ask. Customers don’t seem to want to haggle. They

want to go on the Internet, find a good price and good service.

“We just sold a 2013 Ford Edge. That had about 33,000 miles on it.”

TENNESSEE

David Stancil, owner, D&B Auto Sales, Crossvile, Tenn.:

“I’ve been in business since 1997.

“We keep 15-20 vehicles on the lot.

“That’s a little bit more than last year.

“We average 8-12 vehicles a month. Summer is usually a little slower, but we’re hoping it will be a little better this year.

“Tax season was steady. Last year, we had snow and ice storms, so it was a lot better than last year.

“We don’t do buy-here, pay-here.

“I figure that if the bank doesn’t trust them, I shouldn’t trust them.

“Our average price is $3,500-$4,000.

“Our average model year is 2005. The mileage is more than 150,000.

“We’d love to get more trucks, but you have to spend money to get them. So we’re 75 percent cars.

“We’re 65 percent domestics.

“Again, I’d like to do more imports, but there aren’t a lot of import dealerships around here.

“Our average recon cost is more than $600.

“I do a lot of it myself and some I farm out to a mechanic.

“Our advertising is mostly online. We belong to a lot of Facebook groups and we use a local website called GoLSN.

“I don’t do any print, radio or television advertising.

“About 35 percent to 50 percent is repeat and referral business.

“I probably sell more Neons than anybody else. I’ve found them to be very dependable.

“I’m hoping sales pick up this summer.”

WHOLESALE MARKETS

INDIANA

Chris Walsh, general manager, Fort Wayne Auto & Truck Auction Inc., Fort Wayne, Ind.:

“We have six lanes. It’s a dealer auction and we sell heavy-duty trucks twice a month.

“We run between 600 and 700 normally. But we recently had our anniversary sale and we ran upwards of 900. We were very happy with it.

“At the anniversary sale, we sold 54 percent. It was a good day. We had about 500 dealers. But dealers had the opportunity to win cash or a pick-up truck, so the whole promotional thing helped.

“Normally, we have 400plus dealers (in the lanes) –in that range. On an of day there might be 300.

“You know how the market is by the number of dealers who show up. You know what their week has been like.

“(From what I’ve heard), everybody’s had a nice spring. It hasn’t been an

exceptional spring, but it’s been a good spring. It’s been steady. New-car sales seem to be of, but used-car sales kind of ofset the new.

“It appeared to be a pretty short tax season. Usually you see everybody rush to buy. That didn’t happen. We had a couple of weeks when the market was really red hot.

“Of course, as we are into May, it will get tougher.

“Our regular sale is 90 percent dealer consignment. We do run Wheels and (Element) of-lease. But we’re really big on dealer consignment.

“All of our lanes are on Auction Pipeline/Edge.

“The average sale price (on the block) is about $7,000.

“We also have a heavy duty truck sale every other week that includes Class A, B and C. We’ll sell a lot of Class As – the semis with sleepers. We’ll have the big 53-foot trailers and box trucks. We usually classify anything over a 550 (the

next step up from a regular pickup) as eligible for the heavy-duty truck sale. We run approximately 250 to 300 every week.

“Our sales percentage is in the 40 to 45 percent range.

“For our heavy-duty trucks, we use two venues: Auction Pipeline and Equipmentfacts.com. We’ll sell 30 percent online for heavy-duty trucks, versus 2 percent on regular car sales.”

TENNESSEE

Tim Sherk, general manager, Music City Auto Auction of Nashville, Spring Hill, Tenn.:

“We opened in March 2015. We are a 40-acre paved facility with six lanes. It was a greenfield.

“We run in the neighborhood of 750 to 850 a week through four lanes.

“We’ve basically doubled since we began. We were running 350 to 400 when we started. I’m blessed with good (employees) for sure. We’re selling 60 to 65 percent per week.

“When we opened up, we were 100 percent dealer consignment.

“Now we run 50 to 75 per week of fleet-lease, with Ally being our No. 1 customer. We were Ally’s southeast auction of the year last year.

“We also have Gate Financial Services and Nicholas Financial. So we’re running 20 to 25 percent fleet-lease.

“Our average attendance is between 350 and 450 a week. They’re coming from Middle Tennessee, Kentucky and Alabama.

“From what I’m hearing in the lanes, retail is still strong and used cars are picking up. That’s a good sign.

“Average price is $8,500. It’s probably up $1,500 from last year.

“Trucks are still hot, along with Suburbans, Tahoes and Yukons.

Compiled by Jeffrey Bellant

“We wanted to create a sale where the staf really puts their arms around the customer base. We looked for the right people to fit our culture.

“Our culture is one that’s all about the dealer.

“A lot of people say this, but as a smaller sale we live it and breathe it.

“For example, we look at a guy who buys one car and know that to buy that car, he probably had to bid on 12. So every chance we get to interact with our customer, we look at it as an opportunity to build a long-term relationship.

“We have all lanes simulcast on AWG. We have full recon facilities as well. All of our consignors use the recon facilities.

“When we started, we sold nothing online. Now we’re selling 40 or 50 (a week).

“Our first few months we were an unknown. (The growth) has everything to do with the people that surround me. I couldn’t be more proud.

“I think we’ll be in for an adjustment this year, but I think the used-car side of the business will remain strong in 2016.”

• 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

MONTHLY DEALER CONSIGNMENT AVERAGES

COMPACT CAR

Feb 2016 $5,055 102,218

Mar 2016 $5,261 101,402

Apr 2015 $5,851 100,410

May 2015 $5,680 101,407

Jun 2015 $5,418 102,032

Jul 2015 $5,372 101,084

Aug 2015 $5,147 102,741

Sep 2015 $4,932 104,230

Oct 2015 $4,933 103,050

Nov 2015 $4,923 103,246

Dec 2015 $5,017 101,933

Jan 2016 $5,092 101,968 YTD AVG: $5,391 101,751

FULLSIZE CAR

Feb 2016 $3,578 117,219

Mar 2015 $3,528 117,021

Apr 2015 $3,982 115,393

May 2015 $4,103 112,477

Jun 2015 $3,879 113,940

Jul 2015 $3,753 115,209

Aug 2015 $3,866 114,420

Sep 2015 $3,809 113,866

Oct 2015 $3,862 112,994

Nov 2015 $3,733 114,003

Dec 2015 $3,753 114,282

Jan 2016 $3,954 112,752 YTD AVG: $3,949 113,716

PICKUP

Feb

Jul

Aug

Feb

Jun

Jul

Aug

SPORTS CAR

MIDSIZE CAR

TRUE COST OF INCENTIVES (TCI)

Car

Crossover SUV

Edmunds.com’s monthly True Cost of Incentives (TCI) report takes into account all of the manufacturers’ various United States incentives programs, including subvented interest rates and lease programs as well as cash rebates to consumers and dealers. To ensure the greatest possible accuracy, Edmunds.com bases its calculations on sales volume, including the mix of vehicle makes and models for each month, as well as on the proportion of vehicles for which each type of incentive was used. TCI data (and other Edmunds.com data products) can be viewed industrywide, import vs. domestic, by country of origin, by make, by model and by segment. True Market Value (TMV) is the transaction price for vehicles.

DISCONNECTED JOTTINGS FROM TONY MOORBY

Being a Brit dictates, to some extent, that I should have a green thumb. My mother could stick anything in the ground and it would

backdrop to set a fresh scene each year.

Physical impairments preclude me, these days, from digging and humping great

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

grow without question, lest it should have her invective to deal with.

So at this time of year my mind turns to creating a new atmosphere for the yard to be enjoyed till the first frost comes in the fall. I have a reasonably blank canvas – the back yard at my relatively newly acquired house is laid mainly as a shallow walled patio. The rest of the surroundings are established flowerbeds and ornamental trees. They provide an ideal

barrow loads of dirt around and the patio allows a more gentle approach of displaying pots, hanging plants, troughs and various other ornamentation to please the eye.

Early morning watering chores become an almost Zen event, quietly listening to the world waking up alongside the birds’ persuasive songs. Later, in the evening, nestling in a rocker with an adult beverage is equally soporific, still warmed from the heat radiating from the stone pavers.

A quick retreat is then commanded to avoid the marauding mosquitos that seem to have developed an addiction to my blood type.

I know I’m weird, to the extent that I don’t mind shopping, with the exception of looking for clothes, which I abhor with passionate disdain. As a cook I enjoy buying food – either at the grocery store or the farmers’ market. As a homeowner, I could spend untold hours at Home Depot, Lowes or the Ace Hardware Store. As a retiree I dare not apply for a job there, as I would end up owing them money!

Car dealers could well take a lesson from these emporia for the quality of their customer service. Ask an employee anywhere in the store where you could lay your hands on a thingamajig to hang pictures upside down and they won’t just tell you, “Aisle 9 – hardware”, they’ll walk you there and ask you if you need a hammer to affix your thingamajig. They also become acquainted on

By Miles Mellor

System to assist in planning a route 19. Compass direction, abbr.

Final step

Brazilian Grand Prix location

Chevy van

America

Wheel center

Chevy SUV

Pressure

Banking machine

Roll Royce model

the trip, getting to know your name, telling you theirs and if you ever need any advice, just drop by and see them.

In the last few days, I’ve learned more about perennials, annuals, insect sprays, weed killers and the like – all in the pursuit of separating me from my money – successfully! And I did it willingly because I was dealing with people who knew what the heck they were talking about.

A bargain is recognized as money well spent. I recently searched for a decent used car for one of my daughters – I have connections from Ocean City to Oceanside but prefer to deal locally, purely from a standpoint of convenience for me and, more importantly, my daughter. I would rather have had a root canal or my fingernails peeled back with a pair of pliers. Trust me – customer service does not increase with

the price of goods being acquired. While $350 at Home Depot gets you bowing and scraping to an excruciating degree, 50 times that at your average dealership doesn’t qualify you for a raised eyebrow. If you do get someone’s attention, it’s likely going to be expressed in something akin to a rugby tackle – blunt, rude and sudden.

Maybe car dealers on a recruitment drive might look to others who serve the public on a daily basis to get something approaching quality customer service. Age discrimination is illegal but look at the average guy or gal at the DIY stores.

Online is the new front end but face to face can have a lasting impression on the floor.

A new customer today is an opportunity to blossom into a lifetime of valuable relationships.

Anchorage’s state

It goes from wheel to wheel

AROUND THE BLOCK

CHICAGO COMES TO NORTHWEST

Chicago will be the featured headliner at DAA Northwest’s 21st annual Rock & Roll Sale this summer.

“Every year, DAA’s customers, employees and vendors wait for this announcement with anticipation,” says Bob McConkey, president of the McConkey Group.

“There was a lot of enthusiasm and energy in the lanes when we let them know about this one.”

The band will play for DAA’s customers and guests July 20.

Chicago will bring its signature sound of horns, iconic vocalists and classic songs to DAA Northwest’s 90-acre campus following

the auction’s 1,000-unit fleet/ lease and motorsports sale. On July 21 dealers will select from over 3,500 cars and trucks, and the event will conclude with $50,000 in post-sale prizes.

Hailed as one of the most important bands in music since the dawn of the rock and roll era, Chicago ranked in the Top 10 out of 200 bands in Billboard Magazine’s recent “Hot 200 All-Time Top Artists” feature.

The group was recently inducted into the Rock and Roll Hall of Fame, and its first album, “Chicago Transit Authority”, was inducted into the Grammy Hall of Fame in 2014.

Their new documentary film, “Now More Than Ever: The History of Chicago,” premiered at the Sedona International Film Festival in February and won the Festival’s Best of Fest Audience Choice Award.

Compiled by Jeffrey Bellant

Auction Features Dancing, Selling

Dealers Auto Auction of Oklahoma City set the stage for the spring market with a two-day event that combined music, food and dancing with one of the strongest sales of the year.

Customers and the auction staf celebrated in a big way at the first DAA/OKC Twister Two Step Party and Sale April 13 and 14.

“This was an Oklahoma-style celebration that raised the roof at the auction,” said Gary Smith, owner of DAA/OKC. “We had a great evening with our customers at the party on Wednesday night, and met up on Thursday for a barn-burner of a sale, with 1,500 vehicles, gifts in the lanes, and $10,000 in prizes to wrap it all up.

“We had a great time with our customers at the biggest sale of the season, and gave everyone something to talk about for a long while to come.”

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

Missed Payments: When GPS Is Not Enough

While GPS is the newest, sexiest technology, it is not foolproof. Unfortunately, you can still lose cars with it. So what’s a dealer to do?

as agreed.

First, understand that GPS is a “reactive” answer to the problem after things are already out of control. Now you have to say, “We’ve had enough. Go get the car.” Obviously, most dealers would rather get paid than go through a repo.

Second, consider using a twopronged approach that adds a proactive component to the reactive GPS component. Add our PT2000 as a proactive behavior-modification device that encourages your customers to pay

Trump or Clinton?

Yes – it looks like that’s the choice you’re going to have to make in our presidential race....

As a buy-here, pay-here dealer you also have many choices. One of the principle choices is choosing a capital source.

Obtaining capital without negatively afecting your customer base is crucial to the successful growth of any buy-here, pay-here dealership.

Small Dealers Assistance (SDA) has been a smart capital choice for dealers nationwide since 1990.

Many of SDA’s dealers have never sold accounts before – but have taken advantage of SDA’s programs because

The PT2000 can be used as an “active decoy” (ask us). Mounted right there on the dashboard, it is a visible daily reminder to your customers that they must make their payment by the due date. Having a PT2000 is like having your own proactive collector in each and every car so that you can modify bad behavior before an account becomes delinquent. Contact PayTeck at 1-800-880-3081 or www.payteck.com

the dealership maintains control over their customer base.

SDA firmly believes that a wellrun dealership can collect from their customers better than any finance company.

SDA recognizes that every dealership is diferent and will pattern a custom program to fit your specific needs. SDA can be contacted at 800467-5172 or at www.sdainc.net.

Just Add Cars!

Since 1990, Northland Auto Enterprises, Inc. has been in the business of “Helping Dealers Succeed”.

Being the home of the Northland Independent Auto Dealers Association, Northland Auto Enterprises, Inc. has had a unique opportunity to learn what’s happening in the automotive business and what dealers need.

Everything Northland ofers is focused on providing solutions for the obstacles that dealers face.

Best of all, the solutions are made simple – just add cars!

Are you taking a hit on taxes each year?

Lease’T’Own© won in a head to head profit comparison against buy-here, pay-here because of its tax advantages.

Are you losing cars to your customers’ bankruptcies? Try Ren’T’Own©! Want to ofer short term rentals? Northland’s daily rental program and insurance can make that happen!

Concerned about customers running of with your car? Add a GPS! Are transmission repairs too costly for your customers? Check out a KAP Warranty! Is full coverage insurance too expensive for your sub-prime customers? Ofer

them the Deal Protector – a pointof-sale physical damage policy.

The list of Turn-Key solutions goes on and on!

A hidden gem in Northland’s collection of oferings is the online dealer supply store.

You’ll find everything from GPS devices, to detailing supplies, to window stickers and everything in between!

You can stop making costly trips to diferent stores and dealing with multiple suppliers.

Whether you need ofce forms, supplies for your service area, or promotional items for your sales lot – you can find it with Northland. The prices are very competitive and shipping is free with qualifying orders

Check out the store and all the other oferings at www.northlanddealers.com or by calling 800-879-3433.

BHPH Becomes Buy Here Pay ANYWHERE

the clerk simply enters the PayCode “item” number as with any purchase or transaction, accepts the customer’s payment and completes a virtually instant payment transfer. After processing, payments go directly into the lender’s bank account.

Get Funded Quick

panies reduce their risk and losses on auto loans, GPS tracking leader Skypatrol now ofers a solution that speeds cash flow and simplifies collections by letting customers make payments through online banking or in cash at tens of thousands of retail locations across the U.S.

Easy to set-up and included at no extra charge in Skypatrol’s Defender software platform, Remote Auto Payment works with the existing eMessage Payment Reminder feature that automatically notifies borrowers by text or email before their next payment is due. With Remote Auto Payment, those eMessages can now include both a link and PayCode that give borrowers more ways to pay:

• They can click the link and pay with a credit or debit card right from their smart phone or PC.

• Or, if they’d rather pay in cash, they can take the PayCode included in the message to any 7-Eleven, ACE Cash Express or other authorized retail store in the U.S. There,

Remote Auto Payment also includes a PCI compliant recurring billing system through a secure, cloud-based payment platform that lets consumers make regularly scheduled payments by credit or debit card.

Skypatrol is the only GPS tracking solution provider ofering this Remote Auto Payment capability.

“Giving our customers the ability to make cash payments from thousands of retail locations or via online accounts from anywhere has obvious value,” said Jimmy Lee, Franchise Operations Director at J. D. Byrider, a buy-here, pay-here dealer in Old Bridge Township, New Jersey. “We see the potential for improved cash flow and fewer customer interaction issues by removing barriers to payments.”

If you are a buy-here, payhere dealer and you’re tired of waiting months and months to recover the capital you have on the streets to help finance your customers, United Acceptance, Inc. (UAI) has a program that is right for you.

UAI allows buy-here, pay-here dealers like yourself to recover hard earned cash faster.

Many dealers are switching to the Payment Strip Program because it only takes 24-48 hours to get funded. It’s a great way to get cash back quickly instead of waiting six months or longer.

There is no seasoning require -

ment on the Payment Strip. It can run 3 to 15 months depending on what your needs are.

Dealers who have taken advantage of this program have found it is a great way to build back their inventory, allowing them to sell more cars.

Another great benefit for the dealer is the convenience of being able to convert Strip agreements into bulk sales easily.

To get a free quote or for more information call United Acceptance, Inc. today at 887.281.2360 or you can e-mail your contact info at sales@ unitedacceptance.com

Leading GPS Provider Serves BHPH and Subprime Industry with 3.5G Technology, No Renewal Fees

At IMETRIK we have one mission: simplify our customers’ asset management. How? By providing powerful and efficient tools to help increase loan payment continuity, diminish delinquencies and reduce asset recovery costs.

Simply put, we are dedicated to your success and want to help you maximize your profit margins. With functionalities such as geolocation, payment reminder, starter interrupt and DMS integration, IMETRIK’s Locate and Recover 3.5G devices ofer the most robust, reliable and technologically advanced GPS solution on the market today. Here’s why:

IMETRIK is an integrated GPS solutions provider, a claim that not many companies can make. Unlike our competitors, we control every step of the chain: from product R&D and manufacturing of our own premium quality devices here in North America, to the mobile network infrastructure and the

user-friendly web application our customers use to manage their assets. The result? A superior 3.5G GPS solution, with access to networks all over the world, allowing you to benefit from significantly enhanced coverage and availability.

Three main reasons set us apart from the rest: our product, our value proposition and our customer support.

Our product: highly reliable 3.5G GPS tracking devices that are almost indestructible.

Engineered only with premium quality industrial grade components for maximum reliability and performance, IMETRIK 3.5G GPS tracking devices are tough. Built to last for years, they are designed to be used in even in the most extreme weather conditions. All IMETRIK components are specifically selected and configured for GPS devices and optimized for rugged GPS use. IMETRIK devices are durable and robust, regardless of the climate and the wear and tear.

To ensure long term durability, IMETRIK devices use only silicon SIM chips which won’t melt, warp or otherwise get damaged in the heat like plastic SIM cards commonly used in phones and in some other GPS devices.

Our custom-designed antennas are another key point of diferentiation. IMETRIK antennas are far superior. They are not random components also used in radios or phones. In contrast, they are specifically designed, configured and calibrated for GPS under-dash usage in harsh environments. They are so sensitive that they can pick up weak signals, yet they filter out static and interference.

Another feature worth highlighting is IMETRIK’s enhanced GPS receiver, allowing for a quicker fix and even greater geolocation precision, usually to within 12 feet of its location, not merely within 1 or 2 city blocks.

In addition, IMETRIK devices

have optimized power supply circuitry protecting them against power surges and overloading from even the highest power spikes from commercial trucks.

Moreover, when the device is in sleep mode, this special circuitry minimizes power consumption from your asset’s battery.

Our value proposition: competitive prices and no renewal fees.

With IMETRIK you only pay once. There is no set-up fee and no additional fee to access your customer portal. There is no minimum quantity to order, no activation or reactivation fee, no airtime fee and no renewal fees to pay to keep your devices activated.

You only have to make a onetime payment for the device, which can then be re-used on

multiple loans over its lifetime.

Our Customer Support: outstanding service you can count on every time you call.

At IMETRIK we believe in customer support excellence. We have a dedicated in-house team of highly knowledgeable individuals working east and west coast hours with a combined 18 years of experience at IMETRIK.

Their goal: to provide you with quick and efcient answers every time you call and with all the technical support you need to perform your payment collection and asset recovery activities, so that you can continue focusing on your business.

IMETRIK: your partner for reliable asset management. To find out more, call today. 1.866.276.5382

§ Longer terms

§ Broader funding policies

§ Newer vehicles

§ Higher advances

§ Compliance checking

§ Contract printing

§ Fast funding

§ Quick approvals

“I opened my business in 1998 with about 15 diferent lenders and selling around 30 cars a month. In 2004 most of the lenders dried up and so did my volume and cash fow. My frst Portfolio Proft Express check was $47,000. Credit Acceptance not only saved my dealership, it’s allowed me to increase my sales. The program has been life-changing for me and my customers.”

ONE STOP SHOP WE BUY BHPH NOTES A

Product Flexibility, Finance Company Relationships are Keys to Financial Success

There is not a “one size fits all” solution in the buy-here, pay-here industry.

Each dealer has diferent needs based on a variety of variables that include: their own capital resources, the amount of trafc at their location, local competition, the availability of external funding resources, and their collection rates.

The buy-here, pay-here industry has a historical bad rate of approximately 30%. Therefore, it is likely that many originated accounts will return as uncollectable.

of product oferings to help dealers succeed, no matter their needs.

These products include:

• Bulk Purchasing of both retail and lease receivables

• Purchasing of payment streams to meet short term cash needs

• Servicing of portfolios for dealers and finance companies

• Payment Sharing Purchasing that provides capital and ongoing cash flow

• Floor plans for the buy-here, pay-here industry with NO AUDIT FEES!

• Local Point of Se

• Bulk Purchase Program with NO hassles

• Stream of Advances (6-15 months)

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

• Floorplan for select BHPH Dealers for BHPH Vehi NO audit fees

With wholesale prices beginning to come down from historical highs, proceeds from the sale of repossessions are likely to be lower. How do the product oferings from lenders help dealers ofset these risks?

• Ser vicing for all types of Auto Recei

oint Ser vice in OUR Market Payment ances ehicles with ables

First, dealers should ensure that the lenders are dedicated to their success and have the tools and knowledge to help make the business flourish.

Dealers today must have flexibility in product oferings to lower their risk while maximizing their returns and cash flow.

Further, dealers must focus on the long term collectability of their portfolio and underwriting while using the right mix of products to properly maximize operations.

CAR Financial has the flexibility

CAR Financial has a proven track record of over 25 years in the auto finance industry and can help you in all economic times by customizing a purchase or service program to meet your specific needs while providing you the quality service through a single point of contact dedicated to your business.

Interested in more information on CAR Financial Services’ programs and services?

Go to www.carfinancial.com or call 877-570-8857.

Ser vicer and

• Backup Se Custodian for Banks and Finance Companies

Easier, Faster, More Profitable

Since 1972, Credit Acceptance has ofered automobile dealers financing programs to help them sell vehicles to consumers, regardless of their credit history.

These programs are ofered through a nationwide network of automobile dealers who benefit from selling vehicles to consumers who otherwise could not obtain financing.

Credit Acceptance is unique in that enrolled dealers using the Portfolio program share in the cash flows from the contract, which creates an alignment of interests and is a critical element of its success.

One misconception of the Credit Acceptance program is that it only works for older model vehicles.

In fact, it works well with nearly any vehicle; many low-mileage, late-model vehicles (as new as 2015) yield the greatest advances.

And, its Credit Approval Processing System (CAPS®) enables dealers to easily structure profitable deals with payments customers can aford.

As Credit Acceptance reports to the three national credit reporting agencies, an added benefit of the program is that consumers

can improve their credit with ontime payments and move on to traditional financing sources.

It is now easier, faster and more profitable than ever to do business with Credit Acceptance.

A significant benefit is eContracting, which enables customers to sign contract documents electronically.

This eliminates the need to send contract packages via courier, saving dealers money and considerably reducing funding times.

Many deals are funded the same day. Additionally, CAPS® interfaces with multiple vendors (including Dealertrack®) to help dealers easily get applications and leads into the system without duplicate entry.

Credit Acceptance has also made enhancements to approval stipulations to streamline the funding process.

A proven leader, Credit Acceptance paid dealers over $2,065,409,992 in advances and $202,678,019 in portfolio profit in 2015 alone.

Visit CreditAcceptance.com to find out how you can sell more cars and make more money.

Your GPS Device: Is it 2G... no, 3G..., no, 4G?

By Jeff Karg, Director of Corporate Communication, Passtime

Those in the special finance or buyhere, pay-here industry often use GPS devices as a way to mitigate risk of financing consumers with subprime credit. GPS devices rely on cellular technology forcing you to face confusing references like 2G, 3G, and 4G.

Why should you care about all the “G’s” and what does it have to do with your GPS device?

GPS tracking devices have very modest requirements when it comes to cellular technology; usually it is just reporting back its current location. The technology in your smart phone is not needed in your GPS device – and you wouldn’t want to pay that price either.

So, why all the talk about the “G’s”?

The “G” in 2G, 3G, 4G stands for “generation” (of cellular technology). 2G is the 2nd generation of wireless network technology utilized; 3G is the third, etc. But because of various types of cellular technology, one carrier’s 4G isn’t necessary the same as another’s 4G.

It sounds confusing because it is. There is hope though – at least a little. Another way to identify this technology and narrow the focus of 4G is: LTE, (Long Term Evolution), what many consider to be “true 4G”. Many carriers refer to the network as 4G LTE as a way to differentiate them from the broader, overall term 4G.

The bottom line is that because the term 4G is used so broadly, buying something labeled as 4G might not be what you think it is.

A better term to look for is LTE or 4G LTE when discussing your provider’s solutions.

LTE or 4G LTE will be a big splash so if you haven’t heard announcements that your provider has launched 4G LTE technology, the device you are buying today probably doesn’t have it.

Beware – some providers use the term 4G rather loosely in an efort to gain your business.

If the cost is in the $100 range or less, the chance of that device actually being 4G LTE is slim to none. For more information about 4G or PassTime, visit www.passtimegps. com or call 877-727-7846.

The Distinction of Floorplanning with NextGear Capital

Every dealership is unique, with its own needs, priorities and goals. So when it comes time to seek inventory financing, you need a floor plan provider that understands your dealership’s goals and can create a flexible plan right for you. Being able to procure vehicles from multiple sources, at your convenience, is crucial to a dealer’s success.

NextGear Capital floor plans are accepted at over 1,000 live and online auctions, in addition to inventory sources such as trade-ins, off-street purchases and loan payoffs.

To make sure you have the buying power you need right at your fingertips, NextGear Capital offers 24/7 account access, through its mobile platform myNextGear.

With myNextGear, dealers can floor units, make payments and view titles all from their hand-held device.

Flexible Terms to Help Increase Your Buying Power

Inventory Financing, often referred to as floor planning, provides you with the neces -

sary cash flow to run your business without stretching to cover operational expenses.

NextGear Capital gives you the buying power you need for added inventory on your lot, increasing revenue while keeping cash on hand for other business expenses.

NextGear Capital is equipped to offer flexible terms and competitive pricing along with solutions tailored to your unique business needs.

While the avenue in which you source your vehicles may change, your inventory finance company should be your rock.

Not only should your inventory finance provider understand the nature of your business and the flexibility you need, but it should mirror that flexibility in its relationship with you. This includes providing insight on potential market opportunities for your business, improving income opportunities and counseling you on the latest and greatest industry tools.

NextGear Capital’s local representatives are in the field every day doing just that.

Industry Expertise that Benefits Your Business

NextGear Capital’s leadership team, boasting over 100 combined years of auto financing experience, has positioned the floor plan company as one of the foremost thought leaders in the industry. NextGear Capital offers flexible finance solutions backed by local representatives and a knowledgeable support staff, all dedicated to your dealership’s growth and success.

NextGear Capital is committed to going above and beyond what you would expect from a financial provider. Darren Vivolo, Owner of Bayshore Automotive, put it best, saying, “NextGear Capital is like having another staff of employees.”

The support team at NextGear Capital makes time to understand what matters most to you.

Cutting-edge Technology to Simplify Buying and Selling Inventory

NextGear Capital’s unparalleled speed of service and

real-time technology offers dealer account access from virtually anywhere – online, on the go and on the phone.

Advances in technology – such as the use of mobile devices – have made floor planning an easier and more powerful tool by simplifying the process of buying and selling inventory.

With this rise in technology, you now have the ability to browse and purchase inventory from your desk or home, letting you conduct business on your terms.

Technology advancements have also allowed for cross-platform functionality, meaning it’s more important than ever that you have a floor plan provider who is integrated with evaluation tools such as MMR, Black Book or Kelley Blue Book. These tools provide insight on potential market opportunities to develop your business.

The Industry’s Leading Network of Brands

As a Cox Automotive brand, NextGear Capital is part of the strongest portfolio in the

3 Keys to Long-Term Dealer Health

The automotive industry is seeing record sales while research shows leads, dealer visits and margins are declining. Both dealers and consumers are frustrated. Only 17 out of 4,002 respondents prefer the current car buying process, according to the Autotrader® Car Buyer of the Future study. What if there was a way to buy and sell vehicles that brought dealers and shoppers together in a mutually beneficial relationship – one that puts the fun and enjoyment back into the car shopping experience?

Here are three keys to longterm health for dealers that are willing to evolve:

1. Build the brand.

Using an integrated approach to build the dealership brand is essential to earning a place on the shopper’s short list. Brand building has to be done long before the consumer ever visits the lot. The 2016 Autotrader Car Buyer Journey study shows that 71 percent of buyers purchased the make/ model they intended to once

they got to the dealership.

Buyers visited on average 2.7 dealerships and 38 percent only visited the dealership where they purchased their vehicle.

Today’s consumers are not just looking for the lowest price. In the Autotrader survey, 54 percent said that they would buy from a dealership with their preferred experience over the lowest price and 73 percent said that they are willing to drive farther for a great salesperson. That makes it critical for dealerships to advertise what makes them special in the places that consumers are doing their research and making their decisions on where to purchase and what they should pay. For instance, based on the local market and competition, dealers might differentiate themselves by offering extended warranties, buy-back guarantees, extended

test drives or ship-to-home vehicle deliveries.

2. Create consumer trust. Here is the winning formula for dealership success: Transparency minus Friction plus Consistency equals Trust. In order to create trust, dealers need to take a holistic view of the car buying journey. It is important to communicate with the consumer consistently and transparently all along the way – regardless of platform or device. Through the power of Autotrader and Kelley Blue Book®, Cox Automotive™ brands, a dealer can educate buyers through a full suite of integrated solutions across its business platform – on the Autotrader and Kelley Blue Book websites, on the dealer’s website and in the dealer showroom and operations. Dealers can present inventory

information, provide Kelley Blue Book® Price Advisor and Instant Cash Offer along with ratings, reviews and awards content consistently across all platforms. Then, when shoppers visit the showroom and see and hear the same information, they are confident that they are receiving a fair price, a competitive trade-in value and are motivated to make their purchase from a dealer that they trust.

3. Improve the dealership experience. Car buyers expect a fast, transparent and frictionless experience because they get it everywhere else they shop. According to the Car Buyer Journey study, if the process was improved, 72 percent of shoppers would visit dealerships more often and 53 percent said that they would buy a vehicle more often. The main

industry, with 20 brands that together provide end-to-end solutions for dealers like you.

Cox Automotive is a leading provider of products and services spanning the automotive ecosystem worldwide. With more than 40,000 clients, Cox Automotive strives to better understand clients’ needs in order to create efficiencies and alleviate challenges, providing a wealth of resources.

When you floor with NextGear Capital, you gain access to the industry’s leading network of brands, a power backing which can give your dealership a valuable, unique advantage.

In Conclusion

NextGear Capital is the industry’s leading comprehensive provider of lending products for vehicle dealers and auctions. Through innovative solutions, best-in-class customer service, and tools and technology that make managing your inventory convenient and hassle free, NextGear Capital is revolutionizing the automotive finance industry.

frustrations for consumers at the dealership are filling out paperwork and contracts followed by negotiating the vehicle purchase or lease price. Combined, these two steps take 55 percent of the time spent at the dealership. Dealership satisfaction declines as more people get involved; the more people consumers have to interact with at the dealership, the less satisfied they become. The time-to-enjoyment ratio of car shopping is upside down. Even though consumers enjoy the test drive more than any other aspect of car shopping, they spend the least amount of time test driving cars. They spend the most time on the least enjoyable aspect of car buying. Dealers need to find innovative ways to shorten the purchase process that will increase customer satisfaction and improve loyalty and retention rates.

To learn more about how Autotrader, Kelley Blue Book and other Cox Automotive brands can help dealers succeed, visit www.dealerlearningcenter.com.

GoldStarGPS by Spireon has the industry’s only 99.9% performance guarantee , backed by round-the-clock customer support & fail-proof CDMA technology. So we’re here for you whenever you need us.

Sleep well at night, knowing you’re partnered with the most reliable GPS vehicle tracking device.

- 24/7/365 customer support

- Over 3M active subscribers

- America’s largest BHPH GPS provider