August 2012

NADA UCG: Large Pickup Segment Continues to Ride Depreciation ‘Roller Coaster’

McLEAN, Va. - 

Though NADA Used Car Guide is predicting used-vehicle depreciation rates will see only a modest uptick in the next few years, a few segments it tracks are set up to buck the trend.

In fact, a few of these segments, mostly truck-related, are expected to experience changes “well above the market as a whole,” explained Jonathan Banks, senior analyst with NADA Used Car Guide.

Going against what is expected to be a  “a period of used-price stability that hasn’t been seen in over a decade,” NADA Used Car Guide is estimating that large pickup depreciation will rise to an average of 15.6 percent per year, or nearly seven points more than the 8.9 percent average witnessed from 2009 through 2011.

Giving this number some context, NADA UCG said in its report — titled “Volatility in Used Vehicle Depreciation: Historical Trends & Future Outlook” — that it anticipates the depreciation on a $12,000 used vehicle in 2012 will be 15.7 percent, or $1,884, on average. This would be fairly static (up 0.6 percent or $72) from 2011.

In dollars, NADA UCG is predicting the price of a used, $20,000 large pickup will fall by $3,200 over the course of 2014 — $720 more than 2011’s loss of $2,480.

This marks the second-largest depreciation increase expected over this period of time, falling between estimated depreciation growth for midsize pickups and large SUVs.

Though speaking in percentages, the depreciation rate for large pickup trucks doesn’t seem that far off from the national average, looking at this segment’s history the past few years may be cause for concern.

This segment has been on what Banks calls a “near-unmatched depreciation roller coaster ride over the past few years.”

After 2008, when demand for large pickups “dried up” upon gasoline prices soaring above $4 per gallon, 2009 and 2010 saw consumer interest rebound strongly.

But as consumers began to search for used trucks once again, NADA UCG officials noted the supply of late-model units began to fall.

“For example, by 2010 NADA estimates that supply had fallen by 18 percent relative to 2008. This compares to a decline of 11 percent for the market as a whole,” Banks shared.

“This combination of low gasoline prices and contracting supply translated into a massive swing in depreciation from 2008 to the period of 2009-10, as depreciation plummeted from 26.7 percent to an average of just 7.1 percent. This means a used, $20,000 large pickup went from losing $5,340 of its value in 2008, to an average of only $1,420 per year over the next two years,” Banks explained further.

But even though 2011 gas prices of nearly $4 per gallon increased large pickup depreciation, the 12.4-percent loss rate was still better than the 15.1 percent rate for the overall vehicle market, he noted.

“Looking ahead, however, persistently high gasoline prices, especially in 2014 due to the anticipated acceleration of global economic expansion, will be primarily responsible for the passing of this unusually strong era of depreciation,” Banks concluded.

And though the large-pickup segment is well off from 2008’s rate of 26.7 percent depreciation, it has risen consistently every year from 2009, and it looks like the Roller Coaster may not have come to a stop quite yet.


Reputation Management, Ad Strategies on Tap for CPO Forum

CARY, N.C. - 

When the CPO Forum gets rolling later this fall, not only will the industry’s leading certified pre-owned event feature some of the top automakers in the business, the conference will include reputation management and advertising strategies specifically tailored to the CPO market.

For example, on the first day of the CPO Forum — which is scheduled for Nov. 12–14 as part of the Used Car Week series of conferences — Vickie Gibbs of Albright Digital will offer a workshop on “Reputation Management/Lead Generation & Optimization.”

What’s more, the event will feature a panel on “CPO Best Practices: Integral digital, social, video. Live and new media strategies to attract and keep more CPO customer.” This will feature Clayton Stanfield of eBay Motors; Skip Dowd of ContactAtOnce; and Jacob Solotaroff of MAX Systems. It will be moderated by Paul Potratz of Potratz Advertising.

These are just some of the industry experts providing their insight at the CPO Forum. The event will feature a combination of expertise throughout both workshops and panel discussions, including experts from:

—Mudd Advertising
—Digital Air Strike

Among the automakers scheduled to attend the CPO Forum are Toyota, Mazda, Ford, Nissan, Infiniti, General Motors, Volkswagen, Mercedes-Benz and Audi.

For more information on the CPO Forum, visit To learn more about Used Car Week — which will be held Nov. 12–16 at The Phoenician resort in Scottsdale, Ariz. — visit

NADA Maintains Concern as Obama Reveals Finalized CAFE Standards


When the Obama administration released finalized standards that will increase corporate average fuel economy to the equivalent of 54.5 miles per gallon for cars and light-duty trucks by model-year 2025, a dealer body leader and industry analysts again questioned the ramifications of what federal regulators want.

Bill Underriner, chairman of the National Automobile Dealers Association, reiterated the organization’s concerns moments after White House officials released the finalized plan Tuesday afternoon.

“America’s new-car dealers support continuous fuel-economy increases,” Underriner began. “NADA remains concerned that model-year 2017–2025 mandates, coupled with previous Obama administration fuel economy regulations, will hike the average price of a new vehicle by nearly $3,000 when fully implemented.

“This increase shuts almost 7 million people out of the new-car market entirely and prevents many millions more from being able to afford new vehicles that meet their needs,” the chairman projected. “If this rule suppresses new-vehicle sales, achieving the nation’s greenhouse gas and energy security goals will be needlessly delayed.

“Auto dealers will continue the important work of helping consumers meet their transportation needs despite being shackled by the cost increases under this rule,” Underriner pledged. “As this rule ignores the essential role that consumers play, Congress needs to continue to review these regulations to ensure that affordable vehicles are available to all Americans.”

Nevertheless, President  Barack Obama continued to tout the benefits of his CAFE plan, a strategy he believes will nearly double the fuel efficiency of future vehicles compared to new models currently on the road.

In total, White House officials estimate this national program to improve fuel economy and reduce greenhouse gas emissions will save consumers more than $1.7 trillion at the gas pump and reduce U.S. oil consumption by 12 billion barrels.

“These fuel standards represent the single most important step we’ve ever taken to reduce our dependence on foreign oil,” Pres. Obama stated. “This historic agreement builds on the progress we’ve already made to save families money at the pump and cut our oil consumption.

“By the middle of the next decade our cars will get nearly 55 miles per gallon, almost double what they get today,” he continued. “It’ll strengthen our nation's energy security, it’s good for middle class families and it will help create an economy built to last.”

The standards issued Tuesday by the U.S. Department of Transportation and the U.S. Environmental Protection Agency build on the administration’s standards for cars and light trucks for model-years 2011–2016. Those standards raised average fuel efficiency by 2016 to the equivalent of 35.5 mpg.

NADA isn’t the only place where skepticism about Obama’s plan arose. Jeremy Anwyl is vice chairman of

“The CAFE standards that have been approved starting in 2017 risk pushing technological demands beyond the automakers’ ability to deliver,” Anwyl cautioned. “The smarter way to approach it is to let the market guide vehicle fuel-efficiency standards. Consumers have shown a willingness to buy fuel-efficient cars, but not at the expense of other features on their checklists like comfort, space and performance. 

“CAFE risks requiring automakers to build vehicles and adopt technologies that consumers may not want to buy,” Anwyl cautioned. green car analyst John O’Dell also chimed in on the issue, adding, “The 54.5 mpg standard is far higher than the number that the vast majority of new-car buyers will see on window stickers in the 2025 model year. That's because CAFE is a government measuring stick that has not changed over the past 33 years, and does not reflect the EPA window sticker number that consumers have come to expect from their vehicles.

“So, the ‘real’ average fuel economy figure for the 2025 model-year will be an EPA window sticker number that’s closer to 36 mpg,” O’Dell calculated.

Despites those assessments, leaders from the Consumer Federation of America cheered Tuesday’s CAFE announcement. Mark Cooper serves as director of research.

“This is not only a big win for consumers, it is vital to the U.S. auto industry and the single most important thing we can do to end America’s addiction to oil — something President George W. Bush called ‘a serious problem’ — and to improve our national energy security,” Cooper insisted.

“The many benefits of this policy are so clear that is has garnered widespread support from the public, automakers, auto workers, national security experts, public health advocates and environmentalists,” Cooper continued.

Jack Gillis, the CFA’s director of public policy also reacted to the announcement, stating, “Having spent a record $2,850 on gasoline last year, the average American household today simply cannot afford to invest in a gas-guzzler. The best way to insulate American families from volatile gasoline prices is to create a passenger vehicle fleet that gets more miles to the gallon. The new 54.5-mpg standard will deliver the cars, trucks and SUVs that consumers can afford and will love to drive.

“The number of passenger cars and trucks getting over 30 mpg has more than quadrupled in the past five years, increasing from 12 models to 52,” Gillis continued. “It is no coincidence that we have just started to see vast improvements in fuel economy after years of stagnation. Automakers knew that these higher standards were coming and they have responded by putting out a better, more efficient, more cost-effective product.

“The 54.5-mpg standard is a win for both consumers and automakers because it creates a clear pathway for automakers to meet the needs of consumers today and in the coming years,” he went on to say.

Finally, the Association of Global Automakers said on Tuesday that its members are working hard and will continue to take the steps needed to meet the administration’s CAFE standard of 54.5 mpg by 2025.

“The new standard is aggressive and sets a high bar for automakers,” said Mike Stanton, president and chief executive officer of Global Automakers, which represents all of the major domestic and foreign OEMs.  “This program is important to our country and our members have accepted the challenge.

“The new rule extends very far into the future,” Stanton pointed out.  “No one knows exactly where the industry or marketplace will be by 2025.  Consequently, we are pleased that the final rule includes a mid-term review process to evaluate how the program is working and to more closely examine the reality of reaching the 54.5 mpg goal.”

Stanton went on to say Global Automakers’ members are aggressively pursuing innovative ways to reduce carbon-dioxide emissions and lessen the nation’s reliance on fossil fuels. Member companies are investing in advanced technology vehicles powered by hydrogen fuel cells, clean diesel, electricity, sustainable biofuels and natural gas.

“The one national fuel economy program streamlines the regulatory processes and allows automakers to efficiently work toward meeting the nation’s environmental and energy objectives,” Stanton said.  “The program also provides our members with the needed flexibility and lead-time to design and build a full range of advanced technology vehicles that consumers will want to buy.”

DealerSocket CRM Integrates with RouteOne Application Network


Dealership CRM DealerSocket announced Tuesday it has integrated with RouteOne, so now customer and vehicle information can be pushed from DealerSocket to the RouteOne credit application network.

DealerSocket highlighted that it has similar third-party relationships with several companies, including DealerTrack, vAuto, Kelly Blue Book, ADP and Reynolds and Reynolds.

“DealerSocket is excited to integrate with RouteOne. We are confident it will help our customers,” said DealerSocket director of product management Nathan Usher, who added, “DealerSocket is dedicated to reducing the time-consuming entry and extraction of data, allowing dealers to increase efficiency and decrease wasted efforts.”

RouteOne chief executive officer Mike Jurecki noted, “We are pleased to provide integration with DealerSocket. Its industry-leading CRM solution will enable dealers to expedite the F&I process.

“DealerSocket’s commitment to service, support and quality make it a great complement to the RouteOne platform,” Jurecki went on to say.

For more information about DealerSocket’s dealer CRM tools, call (877) 888-8048.

Dealer's Auto Auction Holds Inaugural GSA Sales; 2 More Next Month

MURFREESBORO, Tenn., and MOBILE, Ala.  - 

The Dealer’s Auto Auction family of auctions recently hosted its first-ever Government Services Administration sales earlier this month, and has two on tap for September.

The company’s Murfreesboro, Tenn., facility held a GSA sale on Aug. 15, and the Mobile, Ala., facility then held the second GSA sale on Thursday.

Both sales were open to public buyers as well as dealers.

The Murfreesboro auction will hold another GSA sale on Sept. 19, while the Mobile location will host one the following day.

“I expected a large turnout of buyers, but was still surprised at how strong the showing was for our first public sale venture at both Murfreesboro and Mobile,” stated DAA owner David Andrews, who attended both sale events.

“Our dealers showed in force, and it was really good to see the new faces from our communities coming to our auctions for the first time,” he continued.

Tom Holton, the general manager of Dealer’s Auto Auctions — Mobile, added: “We are proud that Dealer’s Auto Auctions  —  Mobile was able to bring the GSA sale to our area, providing a needed influx of late-model, well-equipped fleet vehicles for our dealerships. We were able to register and run almost 100 more vehicles than we originally planned on, and that made our sale even more satisfying.”

Stephanie Baker, GM for Dealer’s Auto Auctions  — Murfreesboro, said the sale “provided a way to strengthen our relationship with our own community as we opened our doors to the general public.”

She added: “I am so proud of how our team managed to pull together a GSA sale on a tight timeline, and even prouder that we had such a successful turnout and mix of dealers and public buyers.”

Toyota Announces Final Set of 'Cars for Good' Winners

TORRANCE, Calif.  - 

The public votes are in and the winners haved been determined.

Toyota on Tuesday released the names of the final 25 winners in its 100 Cars for Good program, a national philanthropic effort awarding 100 cars to 100 U.S. nonprofits, over the course of 100 consecutive days.

The winners were selected each day through public Facebook voting. With five nonprofits profiled on the site daily, the organization with the most public votes each day won a new Toyota vehicle, while each of the four daily runners-up received a $1,000 cash grant from Toyota, the company explained.

The total offerings of the project are 100 new Toyota vehicles and $400,000 in cash grants, awarded to non-profits across the country offering a variety of services including education, safety, animal welfare, food banks and human services for children and adults.

“It is rewarding and inspiring to see the response Toyota’s 100 Cars for Good program has received from the public,” said Jim Lentz, president and chief executive officer of Toyota Motor Sales, USA.

“Over the course of two years, this program has awarded more than $7 million in vehicles and cash grants to local nonprofit organizations across the country, as well as helping to raise awareness to hundreds more. We are very pleased to have the opportunity to help these worthwhile organizations broaden their impact in communities all across the nation, and we thank the public for their support in determining the winners," he continued.

Winning organizations are offered their choice of a Camry Hybrid, Highlander SUV, Prius v Hybrid, Sienna minivan, Sienna Mobility or Tundra full-sized pickup. Each vehicle also comes with a six-year, 100,000-mile powertrain warranty via Toyota Financial Services.

The 500 finalists, from which the 100 winners were ultimately selected, were certified by an independent panel of judges who Toyota said are experts in the fields of philanthropy and corporate social responsibility.

The final set of 25 winners in the 100 Cars for Good program are:

SPCA Cincinnati, Cincinnati
Cumberland Valley Animal Shelter, Chambersburg, Pa.
Nikkei Concerns, Seattle
McDowell County Commission on Aging, Welch, W.Va.
Grahamtastic Connection, Springvale, Maine
Golden Ears Hearing Dogs, University Place, Wash.
C.U.R.E. Foundation, Rensselaer, N.Y.
Teach for America-Delta, Oxford, Miss.
Keystone Paralyzed Veterans, Pittsburgh
Wolf Conservation Center, South Salem, N.Y.
Putnam County SPCA, Brewster, N.Y.
PTSD Foundation of America, Houston
Intervention Services-Village, Maitland, Fla.
Scott County Humane Society, Georgetown, Ky.
Northwoods Habitat for Humanity, Bemidji, Minn.
Animal Rescue Foundation, Terryville, Conn.
Emergency Shelter Program, Hayward, Calif.
Abused Women’s Aid in Crisis, Anchorage, Alaska
The Domestic Violence Shelter Inc., Mansfield, Ohio
Mississippi Gulf Coast YMCA, Ocean Springs, Miss.
Victory Reins, Peotone, Ill.
American Children’s Society Inc., Marlboro, N.J.
Edwards Center Inc., Aloha, Ore.
Family Promise of Grand Rapids, Grand Rapids, Mich.
The Albany Damien Center in Albany, N.Y.
Sanctuary, Inc. in Hopkinsville, Ky.