Vincentric announced its 2014 Best Fleet Value in American award winners on Monday.
Two domestic manufacturers — General Motors and Ford Motor Co. — led the pack with eight award-winning vehicles each.
Toyota and Nissan also came out in front, with both company bringing home five Vincentric awards.
Rounding out the leaders, Chrysler was presented with four Best Fleet Value in America awards.
"The increased competition in the fleet market is certainly evident this year," said David Wurster, president of Vincentric. "As manufacturers increase their focus on providing vehicles that meet fleet customer needs while at the same time reducing lifecycle costs, we’re seeing that low cost-of-ownership isn’t something that only a few manufacturers can tout. We see our awards and leadership in lifecycle cost measurement as a resource that can help fleet buyers make knowledgeable decisions regarding which fleet vehicle is best aligned with their organizational goals, strategies, and budget," he added.
Vincentric shared the strong performance by both Ford and GM was “spread throughout their product line-ups.”
Ford’s popular F-150 pickup took home an award, as well as the Focus, Taurus and E150 passenger van, showing a broad span of vehicle types.
Over at GM, its success this time around was led by Buick, with four returning winners in the permium vehicle segment. The GMC Sierra took home awards in both Heavy Duty pickup segments, as well.
Moving over to highlight the Japanese automakers wins, Toyota stood out in the hybrid vehicle categories with its popular Prius.
As for Nissan, the manufacturer went from having only two winners in 2013 to taking home five awards this year.
This success was spurred by the NV 200 winning in the min-commercial van segment.
To see the full list of winners and commentary from Vincentric, see here.
Donlen recently announced plans for its 50th anniversary celebration. The company will hold its celebration events in tandem with the NAFA Institute and Expo 2014, scheduled for April 8-11 in Minneapolis.
The company’s main anniversary event will be a 50th birthday celebration planned for April 9, which will include a concert from an undisclosed band.
Donlen shared attendees can claim an invitation by visiting the Donlen booth or watch for details in their NAFA gift bags.
The company will also be hosting product demonstrations at its booth at the NAFA event – number 1511 – and attendees can claim their invitation to the birthday party, as well.
Founded in 1965 by Don Rappeport and Len Vine, Donlen started as a family run business, focusing on customer service and fleet productivity, the company shared, noting that these two principles are still at the forefront of its company philosophy.
“Everyone at Donlen is incredibly proud of achieving this milestone. Over the years, we never lost sight of what’s truly important: our customer relationships,” Donlen presidentTom Callahan said.
Today, Donlen is part of the Hertz family of companies with more than 300 full time employees, and offers full range of personalized fleet management services.
“Our customer-centric focus is in our DNA — and will remain so. Our focus on customer service and innovation is why we’ve experienced incredible organic growth over the years,” Callahan went on to say. “We’ve built deep and lasting relationships with our customers and we’re privileged to have a highly committed and knowledgeable workforce. These core principles will carry us well into the future.”
Fiserv announced this morning that Remarketing Services of America — which is under its Lending Solutions business — is officially rebranding as Fiserv to align with the rest of the company.
The company emphasized that the renamed business will continue to offer services to aid in moving returned vehicles.
“We have more than 20 years of remarketing experience representing many of the leading financial institutions nationwide,” said Kevin Collins, president, Lending Solutions, Fiserv.
“Under the Fiserv brand, we will continue to handle single components of an auto lender’s vehicle remarketing activities or implement an end-to-end vehicle remarketing strategy — from vehicle pickup through the auction process,” he added.
Officials noted in the company’s statement that, “Fiserv will continue to deliver comprehensive vehicle remarketing services focused on moving returned vehicle inventory quickly and increasing the value of auto loan portfolios. As the largest third-party remarketing company in the U.S., Fiserv has sold approximately 700,000 remarketing units for more than 375 clients since 2001.”
A two-company partnership has produced two new programs for addressing the most common challenges of fleet management clients, while saving them money.
LeasePlan USA and American Traffic Solutions Fleet Services are teaming up to implement new toll and violation solutions for clients, namely the TollPlanSM and ViolationsPlanSM programs.
“LeasePlan is pleased to partner with ATS on the implementation of these new programs,” said Jon Toups, senior vice president, chief sales and marketing officer at LeasePlan. “This collaboration will bring new solutions to the many challenges of managing tolls and violations for our clients.”
TollPlan is an electronic toll payment solution that LeasePlan officials say can save clients up to 50 percent on toll management administration costs. The program consolidates multiple toll accounts into one, offering centralized controls, reporting and payment processing.
TollPlan allows drivers increase their mobility via use of high-speed cashless toll lanes, and can reduce or eliminate a fleet’s risk of toll violations, company officials said.
ViolationsPlan, meanwhile, which is LeasePlan’s electronic violation management solution, can reduce the risk of penalties and offer savings of up to 70 percent over most fleets’ current processes, the company reported.
The program holds drivers accountable for their fleet violations and associated fines, and can improve fleet safety with detailed reporting that helps gain visibility into a fleet’s violation activity and driving behavior.
“ATS is excited by the opportunity to offer our proven toll and violation management solutions to LeasePlan’s fleet customers,” said Adam Draizin, president of ATS Fleet Services.
“With TollPlan, fleets can replace their current disconnected network of toll authorities with one centralized national solution, effectively making managing tolls as easy as managing fuel. With ViolationsPlan, fleets can not only save money on their violation management, but also improve fleet safety by incentivizing drivers to be more accountable for their behavior on the road,” Draizin said.
Dealers looking for off-rental vehicles from Hertz will be seeing them coming from a newly created operation. The Hertz board of directors announced on Tuesday that it approved plans to separate into two independent, publicly traded companies.
The two companies will be Hertz, comprised of the Hertz, Dollar, Thrifty and Firefly rental car businesses as well as Donlen, a provider of fleet leasing and management services, and HERC, the Hertz Equipment Rental Corp.
Officials explained the separation is planned to be in the form of a tax-free spin-off to Hertz shareholders, and the company has received a private letter ruling from the Internal Revenue Service that allows Hertz to separate the businesses in a tax-efficient manner.
Hertz expects the separation of HERC to close by early 2015.
Officials indicated Hertz will receive net cash proceeds from a HERC spin-off of approximately $2.5 billion that will be used to pay down Hertz debt and support a newly approved $1 billion share repurchase program.
Under the new share repurchase program, officials explained the majority of the shares are likely to be purchased following the HERC separation, dependent on market conditions. The share repurchases could reach 20 percent of Hertz’s outstanding shares of common stock, which includes the $1 billion already approved. This new program replaces the $300 million share repurchase program that the Company announced in 2013, under which the Company has utilized approximately $87.5 million to repurchase Hertz shares.
Post separation, Hertz expects to maintain a target net corporate leverage ratio of between 2.5 times to 3.5 times net debt / EBITDA.
Given Hertz’s new target net corporate leverage ratio, Hertz Corp. chairman and chief executive officer Mark Frissora said the company may opportunistically look to return additional capital to shareholders on an ongoing basis, subject to market conditions and other factors.
“The actions announced today will create separate companies which we expect to benefit from improved financial profiles that include increased earnings stability and higher returns on capital,” Frissora said.
“Our rental car and equipment rental businesses are leaders in their respective markets with valuable assets and tremendous long-term potential,” Frissora continued. “Through unbundling these undervalued assets, we unleash current and future shareholder value.
“In fact, we believe there is a potential for multiple expansion even if both businesses only trade in line with their peers,” he went on to say. “Additionally, the separation will help each business focus on its strategic and operational performance. With respect to capital allocation, our new leverage ratios may allow for incremental return of capital to our shareholders given the current credit environment."
The Hertz board believes the planned separation of the equipment rental business from the car rental business would, among other things:
— Create a stronger growth profile and more competitive position for each company with enhanced management focus, resources and processes that are more directly aligned with each business's unique strategic priorities.
— Optimize the companies' capital structures based on the objectives of each independent company.
— Allow each business to attract and retain personnel by offering equity-linked compensation.
— Create a more targeted investment opportunity with multiples and trading valuations that more accurately reflect the strengths and opportunities of each business.
Following the separation, Hertz said will remain a rental car company with approximately 11,555 rental locations throughout North America, Europe, Latin America, Asia, Australia, Africa, the Middle East and New Zealand.
The company’s portfolio of brands includes Hertz as well as Dollar, Thrifty and Firefly, which reach other fast growing consumer segments within the leisure and value markets.
Through Donlen, Hertz also offers fleet leasing and management services.
Officials highlighted the rental car and fleet leasing business had annual revenues of $9.23 billion in 2013.
Hertz emphasized it will continue to focus on its key growth drivers following the separation. These include the integration of Dollar Thrifty, expanding its off-airport footprint and driving fleet efficiency, the introduction of new mobility services to meet consumer needs, building on its success with Donlen leasing, the roll-out of new rental technology, and its Lean/Six Sigma cost management programs.
The company expects the separation of HERC to lead to an improved financial profile for Hertz, including less earnings volatility, higher returns on invested capital, and accelerated free cash flow growth. Hertz will target a corporate leverage ratio of 2.5 times to 3.5 times net debt / EBITDA.
“Post separation, the corporate leverage ratio is expected to be at the lower end of this range,” officials said. “This provides strength and flexibility across market cycles as well as a better ability to opportunistically return capital to shareholders.
“These financial strengths, together with the improved operating focus enabled by the separation and the continued operating and financial outperformance of the Hertz business, are expected to support a higher trading multiple for the new Hertz,” officials went on to say.
Following the HERC separation, Frissora will continue to lead Hertz as chairman and chief executive officer. HERC will determine and announce its board of directors and management positions as the separation plans are finalized.
ADESA’s Tom Kontos pointed to two factors as to why February’s wholesale price movement ended up being “atypical.”
According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, used vaules in February averaged $9,839 — down 1.4 percent compared to January, but up 0.9 percent relative to February of last year.
Kontos mentioned in his monthly commentary that compact cars and vans, which are popular rental and fleet vehicles, were the only segments that had both monthly and annual price gains.
“Wholesale prices were down in February versus January, a-typical of their seasonal pattern, but were up modestly on a year-over-year basis, despite continued wholesale supply growth coupled with weaker retail demand limited by severe weather conditions,” Kontos said.
“This unusual pattern would indicate that dealers were fairly aggressive in proactively bidding in-lane and online for the vehicles they need for the budding spring market, especially highly certifiable off-rental program vehicles remarketed by auto manufacturers,” he went on to say.
ADESA indicated prices for used vehicles remarketed by manufacturers moved up 1.3 percent month-over-month and 6.3 percent year-over-year. Kontos reiterated that manufacturers capitalized on strong demand for certifiable units.
Analysts also mentioned prices for fleet/lease consignors softened 0.5 percent sequentially, but climbed 1.1 percent annually.
Furthermore, ADESA noted dealer consignors saw a 1.1-percent average price increase versus January and a 0.9-percent uptick versus February of last year.
Kontos wrapped up his commentary by recapping CNW Research information that indicated retail used-vehicle sales dropped 15.6 percent month-over-month “as severe weather again negatively impacted auto shopping.”
Meanwhile, Kontos mentioned Autodata Corp. information that showed sales of certified pre-owned vehicles in February rose 7.7 percent above the prior month and 14.1 percent above the prior year
“The strong certified sales may have been a factor in strong pricing for off-rental program units sold by the manufacturers,” he said.
ADESA's Wholesale Used-Vehicle Price Trends
| |
Average Prices ($/Unit) |
Latest Month Versus: |
| |
Feb-14 |
Jan-14 |
Feb-13 |
Prior Month |
Prior Year |
| |
|
|
|
|
|
| Total All Vehicles |
$9,839 |
$9,983 |
$9,747 |
-1.4% |
0.9% |
| |
|
|
|
|
|
| Total Cars |
$8,776 |
$8,869 |
$8,854 |
-1.1% |
-0.9% |
| Compact Car |
$7,130 |
$7,010 |
$6,910 |
1.7% |
3.2% |
| Midsize Car |
$8,140 |
$8,258 |
$8,262 |
-1.4% |
-1.5% |
| Fullsize Car |
$6,889 |
$6,771 |
$7,413 |
1.7% |
-7.1% |
| Luxury Car |
$11,999 |
$12,209 |
$11,963 |
-1.7% |
0.3% |
| Sporty Car |
$12,002 |
$12,343 |
$12,144 |
-2.8% |
-1.2% |
| |
|
|
|
|
|
| Total Trucks |
$10,239 |
$10,438 |
$9,531 |
-1.9% |
7.4% |
| Mini Van |
$7,609 |
$7,448 |
$6,910 |
2.2% |
10.1% |
| Fullsize Van |
$10,907 |
$10,341 |
$9,952 |
5.5% |
9.6% |
| Mini SUV |
$11,988 |
$11,987 |
$10,993 |
0.0% |
9.1% |
| Midsize SUV |
$7,324 |
$7,503 |
$6,560 |
-2.4% |
11.6% |
| Fullsize SUV |
$10,652 |
$10,981 |
$10,130 |
-3.0% |
5.2% |
| Luxury SUV |
$18,210 |
$18,941 |
$18,583 |
-3.9% |
-2.0% |
| Compact Pickup |
$7,260 |
$7,362 |
$7,459 |
-1.4% |
-2.7% |
| Fullsize Pickup |
$12,460 |
$12,632 |
$11,532 |
-1.4% |
8.0% |
| |
|
|
|
|
|
| Total Crossovers |
$12,615 |
$12,768 |
$13,398 |
-1.2% |
-5.8% |
| Compact CUV |
$11,480 |
$11,553 |
$11,873 |
-0.6% |
-3.3% |
| Mid/Fullsize CUV |
$13,791 |
$13,999 |
$14,916 |
-1.5% |
-7.5% |
KAR Auction Services Amends and Restates Credit Agreement
In other company news, ADESA parent KAR Auction Services announced Tuesday that it amended and restated its credit agreement dated as of May 19, 2011.
Officials explained the term loans under the original credit agreement have been repaid in full and terminated, and refinanced with a $650 million three-year senior secured term loan B-1 facility and a $1.120 billion seven-year senior secured term loan B-2 facility.
In addition, KAR noted the amended and restated credit agreement also established a five-year $250 million revolving credit facility in place of the previous revolving commitments. The interest rate of term loan B-1 was reduced to LIBOR plus 2.50 percent.
The company computed the interest rate of term loan B-2 remains at LIBOR plus 2.75 percent but the LIBOR floor was reduced to 0.75 percent.
“The reduction in pricing is expected to save the company an annualized amount of approximately $9 million in cash interest,” KAR said. “The revolving commitments may be used for ongoing working capital needs and general corporate purposes for the company and its subsidiaries. The company has not drawn any amounts under the revolver.”
As Dealers Auto Auction of Idaho gears up to celebrate its 13th anniversary with a major giveaway, the National Auto Auction Association and Black Book have teamed up to present the inaugural Black Book Pedal Car Auction.
The association announced the charity event will be held at the 2014 NAAA Annual Convention this September in Boston with the goal of raising $50,000 for its nonprofit Warren Young Scholastic Foundation.
The four NAAA chapters each selected three pedal car sponsors to be the dozen finalists in the fall show and auction. A lottery choosing the order of the auction’s run list will be held at the National Independent Automobile Dealers Association Convention in June.
To get a leg up on the competition, the rules allow the sponsors to modify new or pre-owned pedal-powered vehicles — whether trains, planes or automobiles (but no carts) — as much as their imagination and skill would permit. That includes paint, decals, graphics, exhausts, lights, sirens and other parts or accessories.
The pedal car bringing the most money wins the Best in Show title, along with being featured on both the cover of NAAA’s On the Block magazine and 2015 Directory.
Awards will also be given for Most Creative, Best Custom, Best Accessories and Most Unusual Paint Job categories as determined by the four NAAA Chapter presidents. An article about all the pedal cars and the event will appear in an issue of On the Block.
“We thought this offered our members a great way to demonstrate their creativity and abilities in a friendly competition while raising money to support our scholarship fund, which helps deserving students achieve their dreams of higher education,” NAAA president Jack Neshe said.
Neshe noted that since its creation in 2004, the Warren Young Scholastic Foundation has raised more than $1.5 million and awards a total of $40,000 in merit scholarships annually for full-time study at an accredited institution. It was named in honor of Warren Young, Sr., a pioneer of the auto auction industry who retired after 35 years of devoted service to his profession and the NAAA.
“We are big supporters of the Warren Young Scholastic Foundation and believe in giving back and supporting this terrific cause,” Black Book President Tom Cross said. “We also believe in the NAAA and will do whatever we can to lend a hand.
Dealers Auto Auction of Idaho Anniversary Plans
Dealers Auto Auction of Idaho, a member of the Founders Auto Auction Network, is celebrating 13 years in business in a big way by giving away a 2014 Nissan Versa.
“We wanted to come up with something we have never done before to make this anniversary stand out from all the rest,” said Russ Smith, owner of Dealers Auto Auction of Idaho and NAAA Western Zone vice president.
DAA of Idaho fleet/lease manager Britney Smith wants to make sure the auction’s customers know how grateful the operation is for support during the past 13 years.
“Our customers are very important to us. We want to make sure they know how much we appreciate them. The fact that they take time out of their busy schedules to visit us each week means a lot, so what better way to show that appreciation than by giving them a chance to win a new car,” Smith said.
Every Wednesday in March, five dealers will be drawn and given a key. Then on March 26, each dealer will try their key, and the key that starts the vehicle will be the winner.
The DAA of Idaho anniversary sale will take place next Wednesday (March 19) and feature vehicles from Westlake Financial, ARI, SRG, Emkay, United Auto Credit, Lobel Financial and many more. Franchised stores and independent dealers will also be participating with Dennis Dillon Nissan, Team Mazda Subaru, Edmark Superstore, Bronco Motors, Lithia Chevrolet and more on the docket.
Smith indicated there will be four lanes with more than 600 vehicles.
All of the Wednesday Sales will be available to bid online through Auction Pipeline under Nampa, ID.
For more details, contact Dealers Auto Auction of Idaho at (208) 463-8250 or visit www.daaofidaho.com.
