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Wednesday, November 23, 2011

Transcontinental execs get 5 years in service contract scam

Jim Henry
Automotive News -- November 23, 2011 - 12:01 am ET

Two former executives of Transcontinental Warranty Inc., a Florida company that sold extended-service contracts directly to consumers, were each sentenced to five years in jail for fraud and misleading sales practices.

Christopher D. Cowart, 50, president of Transcontinental, and Cris D. Sagnelli, 46, vice president, were sentenced on Oct. 31. In addition to the jail terms, they were sentenced to another five years of post-release supervision and fined $15,000 each.

The pair pleaded guilty in December 2010. The company is effectively out of business and stopped writing new contracts since 2009, a prosecutor said.

Direct-to-consumer sales potentially take business away from dealerships that sell extended-service contracts, according to the Service Contract Industry Council, a trade group based in Tallahassee, Fla.

Fraud cases also may hurt the reputation of extended-service contracts in general, the group said. There have been several other cases, including the high-profile bankruptcy last year of another direct marketer, U.S. Fidelis in Wentzville, Mo. A couple of former U.S. Fidelis executives also have been indicted on criminal charges.

According to court documents, automated "robo calls" from Transcontinental reached the attorney general of Indiana, a U.S. senator (on his personal cell phone), consumers who had registered on the "Do Not Call" list, and thousands of consumers and businesses who didn't even own cars.

Transcontinental often misled consumers into thinking they were dealing with the manufacturer that made their car, a prosecutor said.

Many consumers believed they were somehow "reinstating" or extending the original-equipment warranty, when in fact they were buying an extended-service contract from an unrelated third party, court documents said.

Prosecutors said millions of consumers received phone calls from Transcontinental, and "tens of thousands" of customers bought contracts as a result of the deceptive sales pitch, from a generic-sounding "Warranty Service Center."

You can reach Jim Henry at autonews@crain.com. Readers are solely responsible for the content of the comments they post here. Comments are subject to the site's terms and conditions of use and do not necessarily reflect the opinion or approval of Automotive News. Readers whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification.

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General Motors has announced a recall of almost 5,700 midsize pickups

General Motors has announced a recall of almost 5,700 midsize pickups to correct an issue with the seat-belt warning function in these models.
Models involved include the early-model 2012 Chevrolet Colorado and GMC Canyon, all of which were built between Aug. 27 and Oct. 21.

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Tuesday, July 26, 2011

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Sunday, July 10, 2011

Experts See No Bubble In Used Car Prices

Experts say there is no used-car bubble, even as wholesale prices hit a record high last month. the Manheim UVVI index increased 5.6 percent over last year.

Read more at http://usedcarnews.com

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Thursday, June 09, 2011

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Sunday, April 24, 2011

Automakers have been launching more fuel-efficient models

Automakers have been launching more fuel-efficient models this week at the New York International Auto Show – the idea being luring more budget-minded consumers into showrooms as gas prices continue to climb. Several of the launches are compact and subcompact models getting 20% to 30% more fuel efficiency than previous versions, and large vehicle entries with emphasis on fuel economy.


The Detroit News, April 21, 2011

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Friday, September 10, 2010

Report: Car accidents cost America nearly $100B a year

Report: Car accidents cost America nearly $100B a yearVehicle accidents cost the U.S. about $99 billion a year, according to federal statistics. That is the equivalent of $500 per driver. Male drivers are responsible for about three-quarters of that expense and represent about 70% of the 40,000 or so Americans killed annually in such accidents. The New York Times

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U.S. auto sales plunge 21%

U.S. auto sales plunge 21%, triggering talk of more stimulus
Plunging sales led auto industry executives to start talking about a need for additional stimulus, but most doubt a measure to help automakers would get through Congress before the November midterm election. Auto sales across the U.S. fell 21% in August compared with the same month last year. Analysts said the drop reflects the sluggish pace of economic recovery and the expiration of the "Cash for Clunkers" rebate. Detroit Free Press

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Wednesday, June 23, 2010

Wholesale prices are moving downward at last

Wholesale prices are moving downward at last.
Value guide Black Book the largest number of average daily adjustments since the week ending March 19, when the count was 2237 per day. At 1826 average per day the week of June 21, this was 169 percent greater than the prior week of 1083.The changes in value were evenly split between decliners and advancers. The half that advanced rose by an average of $106. The downward changes were greater, so the overall change in the adjustments came in at just less than $10 lower. This is an improvement over the previous week decline of $29.All 10 car segments

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Tuesday, June 22, 2010

CPI Rises for Used Cars

CPI Rises for Used Cars
The Consumer Price Index for All Urban Consumers declined 0.2 percent in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the index increased 2.0 percent before seasonal adjustment.

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Friday, June 04, 2010

How Will Mercury Discontinuation Impact Used Values?

Ford's decision to stop producing Mercury vehicles and wind down the 71-year-old brand marks the end of an era for the automaker, but don't expect too much change on the used-vehicle value front for the Mercury brand.


Read the rest here Story

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Wednesday, April 21, 2010

The Years Top Ten Green Cars

IRVINE, Calif. — With Earth Day 2010 coming on Thursday, the editors from Kelley Blue Book decided to reveal their selections of this year's Top 10 Green Cars. The newest version includes a mix of domestic and foreign brands with some vehicles using either hybrid or clean-diesel technology.

Find out the top ten cars at http://kbb.com

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Monday, April 05, 2010

Polk Finds Fewer Cars on the Road

The number of cars and light trucks scrapped in the past 15 months substantially outnumbers new vehicle registrations in the U.S. during the same period, according to a recent analysis by R. L. Polk & Co. More than 14.8 million cars and light trucks were retired from the fleet between July 1, 2008 and Sept. 30, 2009, compared to new registrations of slightly more than 13.6 million, resulting in an overall scrap rate of 6.1 percent. This includes thousands of units scrapped during last year's CARS program, known as 'Cash for Clunkers,' and follows a trend seen by Polk over the past five years.

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Tuesday, April 07, 2009

New FICO Scores Could Predict Up to 15% More in Auto Loan Delinquencies

MINNEAPOLIS — FICO recently announced the release of its newest scores, which are targeted specifically for the auto lending and bankcard industries. Credit reporting agency TransUnion is making the scores available to lenders and issuers under the names FICO Risk Score, Classic Auto 08 and FICO Risk Score, Classic Bankcard 08.

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Tuesday, February 24, 2009

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Wednesday, June 25, 2008

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Tuesday, August 14, 2007

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Thursday, April 19, 2007

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FORD VEHICLES COMPARABLE TO TOYOTA, NISSAN IN QUALITY, STUDY SAYS:

Consumers might not believe it yet, but the quality of Ford, Lincoln and Mercury vehicles is about the same as that of Toyota and Nissan, according to the first- quarter 2007 model-year Global Quality Research System report by the RDA Group, a market research firm based in Bloomfield Hills. Ford, Lincoln, Mercury brand vehicles had 1,456 problems per 1,000 vehicles, compared with Nissan, which had 1,457 and Toyota, which had 1,453.

Detroit Free Press, April 18, 2007

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Tuesday, February 27, 2007

BHPH

BHPH Consultant Says Confusion over IRS Document Threatens Note Deals
Situation

Creditors could have problems w/ debt discharges on IRS 1099-C form
Says Ken Shilson, founder of National Buy-Here, Pay-Here Dealers

2006 rules raises questions if recovery activity can continue if form is filed

Significant Points

BHPH dealers who don't sell paper not affected

Only concerns creditors who purchased dealer paper

When creditor writes off bad debt, consumer must report amount as income

Sometimes IRS completely eliminates debt, prohibits further recovery action

Suggests dealers consult tax attorney to determine if they must report 1099-C

Also whether or not collection rights are surrendered

Read Quotes Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=21584

Sourced From: Used Car News, February 19, 2007

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Saturday, February 17, 2007

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Finance Companies Still Wary of Independent Dealers

Situation

Finance companies, independent dealers discussed state of relations at National Automotive Finance Association conference

Credit companies still favor franchise dealers over independents

Independents seeking credit advised to tighten applicant screening

Focus more on financing vehicles than selling vehicles

Make sure they send right applicants to right finance companies

Significant Points

Drop in bankruptcies has reduced finance company losses

Companies reaching out to independent dealers in quest for business

But still worry about stability of independents

Say it's too easy for independents to just close up shop

Independents need to improve/streamline application process

Finance companies avoid dealers who waste their time

Read Quotes

Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=21464

Sourced From: Used Car News, February 5, 2007

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Saturday, February 10, 2007

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LATE BREAKING NEWS TOYOTA, GM TOP LIST FOR BEST OVERALL VALUE: Toyota Motor Corp. offers consumers the best selection of vehicles that retain their value over time and feature other ownership cost benefits, according to awards that will be announced today at the Chicago Auto Show. Toyota received 11 "Best Overall Value of the Year" awards, handed out by IntelliChoice.com, a car-shopping Web site. Lexus, Toyota's luxury brand, grabbed seven awards. General Motors Corp.'s Chevrolet brand came in a close second, with 10 awards, led by its new Silverado truck. Wall Street Journal

CHANGING THE FIVE HUNDRED TO TAURUS SHOWS MULALLY GETS FORD: If Alan Mulally hadn't stepped out of a Boeing jetliner, I'd be tempted to say he came down from the mount, sent to lead Ford from the wasteland with one simple command: "Tell me why." As in this question: "Why did we squander two decades of name recognition and millions of customers' loyalty by killing the Taurus name?" Detroit Free Press

TOP EXEC SAYS GM WILL STAY THE COURSE: General Motors Corp. won't budge from its strategy of reducing rebates and other incentives just because it saw a steep sales drop in January, a top executive said Saturday. GM's sales were off 16.6 percent compared with January 2006, but the company will continue its efforts to raise transaction prices and car resale values, Troy Clarke, GM's North American president, said in an interview. LA Times

ECONOMIC SLOWDOWN IMPACTING RETAIL DEMAND, WHOLESALE PRICES: A slowing economy and weak retail demand combined late last year to cause a year-over-year decline in wholesale vehicle prices in the last two months of 2006 according to the latest issue of Pulse released today by ADESA Analytical Services. The report, which provides a periodic review of economic indicators in the vehicle remarketing industry, also notes that the employee discounts widely available in 2005, also impacted the current vehicle marketplace in several ways. ADESA

MANHEIM CONSULTING RELEASES '07 USED CAR MARKET REPORT: Despite a modest decline in retail used vehicle sales volume in 2006, activity in the wholesale market was at its strongest level in years, Tom Webb, Manheim's chief economist explained this weekend as he unveiled Manheim's 2007 Used Car Market Report at the National Auto Dealers Association's convention. Auto Remarketing

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Saturday, February 03, 2007

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2007 Vehicle Finance Conference and Exposition
Henderson, NV
January 31 - February 2, 2007
J.D. Power and Associates Automotive Roundtable
Las Vegas,NV
February 1-2, 2007 9th
Annual Michigan International Auto
ShowGrand Rapids, MI
February 1-4, 2007
12th Annual Spirit of Leadership Awards
Las Vegas, NV
February 3 - February 3, 2007
NADA Convention and Exposition
Las Vegas, NV
February 3-6, 2007
Visit Calendar of Industry Events for More Information on These Events http://www.automotivedigest.com/calendar.asp?mod=calendar
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Friday, January 12, 2007

Tax Refunds Key To Extra Sales

Tax Refunds Key To Extra Sales

New year has just begun, and 2007 tax season may be almost over

Retailers competing for consumers' tax refund money

Dealers begin stocking lots for tax season in early fall; consumers start shopping in Oct

Busiest day for Tax Refund Services Tax Max the day after Thanksgiving for processing promissory contracts

Tax Max expected to process 100+ applications each day in Dec

Did 3.5K deals by Nov 30, 2006, compared to 3K by Nov 30, 2005

Significant Points :

Dealers need to get in as quickly as possible

End-of-year activity expected to impact 1st quarter sales

Dealers advertising ability to sell cars using promissory contracts

Selling cars on consumer promise to pay when refund received can be risky

Less than 10% of consumers fail to return; still significant loss to small dealers

More interest from franchise dealers who can take gamble for extra sales

Read QuotesClick Here for Full Digest and Source Article:

http://www.automotivedigest.com/view_art.asp?articlesID=21179

Sourced From: Used Car News, January 1, 2007

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Wednesday, November 15, 2006

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Ford Credit Affiliate Pays $2.5M Discrimination Case Settlement


Primus Financial Services, a Ford Motor Credit affiliate, to pay almost $2.5M settlement in car loan discrimination case

Company accused of discriminating against minorities in lending practices
Specifically of "marking up" loan interest rates to discriminate against black consumers

Company admits no wrongdoing, says suit settled due to mounting costs

Significant Points

Primus to pay $1.9M in fees to plaintiffs' attorneys, $550K in court-related expenses

3 named plaintiffs to get individual payments between $10K - $20K

Lawyers for both sides negotiated directly, and w/ federal mediator

Primus will limit difference between buy rate and APR on contracts purchased from dealers as part of settlement Read Quotes

Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=20725

Associated Press via Detroit News, November 9, 2006

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Thursday, October 19, 2006

Auto News

FED OFFICIAL SEES EASING INFLATION, BUT CONCERNS ABOUT PRICES REMAIN: Federal Reserve Bank of San Francisco President Janet Yellen said Monday that while she remains concerned about the current level of inflation, she believes the present stance of monetary policy appears well suited to bring those pressures back in line over time. "I do want to see inflation move down, but I believe policy may now be well-positioned to foster exactly such an outcome while also giving due consideration to the risks to economic activity," Ms. Yellen said in comments prepared for delivery before the California Independent Bankers 16th Annual Convention in Laguna Beach, Calif. Wall Street Journal

GM CERTIFIED USED VEHICLES OFFERS FINANCING INCENTIVE: GM Certified Used Vehicles has kicked off a nationwide fall rate-incentive program for select GM vehicles. The new rate incentive went into effect last week and will last until Jan. 2, 2007. It provides well-qualified buyers with GMAC 3.9 percent or 5.9 percent APR financing for up to 60 months on select GM Certified Used Vehicles purchased from participating dealers. Auto Remarketing

NATIONALEASE, AMERIQUEST TO MERGE: One of largest leasing networks in North America has signed an agreement to merge with AmeriQuest Transportation and Logistics Resources Corp.Under the agreement with NationaLease Purchasing, AmeriQuest will be the provider of purchasing and value-added services and will have annual revenues in excess of $500 million...Upon completion of the merger, the leasing members of both AmeriQuest and NationaLease will unite to form one of the largest full-service leasing systems in North America. Today's Trucking

GM: THINGS ARE ABOUT TO GET NASTY: So it begins. Billionaire Kirk Kerkorian, who owns 9.9% of General Motors' (GM) stock, may be drawing up battle lines for a proxy fight with the troubled automaker.Just a few days after GM's board unanimously voted down Kerkorian's proposal to get the carmaker in an alliance with Renault-Nissan (NSANY), the billionaire's liaison to the board, Jerome York, abruptly quit. Business Week

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Wednesday, October 18, 2006

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TOTING THE NOTE CARRIES HEAVY BURDEN: The reason for getting into the buy-here, pay-here business is simple: the chance to make a lot of money. And the reason for avoiding it is simple too: the chance to lose a lot of money. Used Car News

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Friday, September 15, 2006

AmeriCredit to Offer $500 Million Convertible Senior Notes

AmeriCredit to Offer $500 Million Convertible Senior Notes
September 12, 2006

AmeriCredit Corp. announced today its intention to offer, subject to market and other conditions, $250 million principal amount of Convertible Senior Notes due 2011 and $250 million principal amount of Convertible Senior Notes due 2013 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities of 1933, as amended. In certain circumstances, the notes may be converted into cash up to their principal amount, and into shares of AmeriCredit common stock for the conversion value above the principal amount, if any.

The interest rate, conversion rate and other terms of the notes will be determined by negotiations between AmeriCredit and the initial purchasers of the notes. AmeriCredit expects to grant the initial purchasers a 15-day option to purchase up to $25 million principal amount of additional 2011 notes and up to $25 million principal amount of additional 2013 notes, in each case, solely to cover over-allotments.
AmeriCredit plans to use the net proceeds from the offering of the notes for:

  • The purchase, from affiliates of one or more of the initial purchasers, of convertible note hedges with respect to AmeriCredit's common stock, which are expected to reduce the potential dilution upon conversion of the notes. Concurrently with entering into the convertible note hedges, AmeriCredit will issue warrants to purchase its common stock. In connection with establishing their initial hedges of the convertible note hedge and warrant transactions, AmeriCredit has been advised that the counterparties to such transactions or their respective affiliates expect to enter into various derivative transactions with respect to AmeriCredit's common stock and/or purchase AmeriCredit's common stock in secondary market transactions concurrently with, or shortly after, the pricing of the notes, and may enter into various derivative transactions with respect to AmeriCredit's common stock and/or purchase or sell AmeriCredit's common stock in secondary market transactions following pricing of the notes. If the initial purchasers exercise their option to purchase additional notes, AmeriCredit expects to use a portion of the net proceeds from the sale of the additional notes to enter into additional convertible note hedge transactions. AmeriCredit may also enter into additional warrant transactions, if the over-allotment is exercised.
  • The repurchase of approximately $200 million of its common stock in privately negotiated transactions concurrently with the offering of the notes.
  • General corporate purposes, including repurchasing shares of AmeriCredit common stock in the open market or in privately negotiated transactions from time to time.

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Tuesday, August 22, 2006

A Mid-Year Report On the Buy Here, Pay Here Industry

My CPA firm recently completed an informal survey of several Buy Here, Pay Here dealer clients nationwide to determine how the first six months of 2006 compare with the same period in 2005. Based upon responses from our sample, most dealers indicated that sales revenues were either flat or down slightly from the preceding year. Although our survey is not purported to be a true statistical sampling of the estimated 30,000 Buy Here, Pay Here dealer marketplace, it does provide a reasonable indicator of 2006 industry performance.

We also discussed the possible causes for the apparent market decline, and dealers offered the following explanations:

1) Gasoline prices have hovered around $3.00 per gallon for most of 2006. These higher fuel prices have reduced the disposable cash flow of their credit impaired customers which has impaired their ability to make large purchases.

2) Higher energy and utility bills have also reduced customer’s disposable cash flow. A particularly warm summer throughout the US made utility bills particularly expensive.

3) Immigration reform has left considerable unrest among many Buy Here, Pay Here customers. Fears of job loss and possible deportation have made these customers more reluctant to make large purchases. The loss of or reduction in Hispanic customer traffic has been particularly noticeable. Immigrants are an important part of the Buy Here, Pay Here customer base.

4) New car franchise sales have been softer during 2006. This seems to have a corresponding effect on the Buy Here, Pay Here market. Buy Here, Pay Here customer traffic has apparently been lighter this year compared to last, according to most dealers we talked to.

It is difficult to pinpoint which of the factors above have had the single biggest effect. In addition, consumer prices for virtually all daily living expenses have continued to rise more rapidly than subprime customer income. In my opinion, all of these factors have combined to make the Buy Here, Pay Here marketplace more challenging.

Fortunately for the industry, it provides transportation to customers who have limited transportation alternatives. Therefore, it is my belief that these customers will eventually adapt to the factors above and find ways to purchase vehicles which are vital to their employment. Unfortunately, these adjustments take time and therefore, in the short term, softer market conditions may continue.

Although most Buy Here, Pay Here operators can withstand short-term fluctuations in sales, collections are a different matter. Collections are the fuel which drives the Buy Here, Pay Here engine, particularly during softer sales periods. Most of the dealers I surveyed reported that collections have remained strong even while sales have softened.

It is my belief that dealers with good underwriting and collection procedures always fare better whether in good or bad economic times. In periods like 2006, where customer cash flow is tighter, dealers must compete for every dollar. This really requires that dealers be on “top of their game” in the underwriting and collection areas. Technology such as starter interrupt and GPS tracking devices facilitate the collection process. These devices discipline customers to make timely payments and enable dealers to recover vehicles quicker when customers don’t pay. In addition, collection costs are reduced by improved efficiencies caused by the use of these devices.

In addition to electronic payment devices, techniques for skip-tracing and for locating customers who have defaulted have improved. The Internet and other new technology have increased recoveries for those dealers who use them.

On another positive note, most dealers reported that vehicle acquisition costs (which spiked sharply during the first quarter of 2006) have now declined. Some argue that these costs have really reached a level where they should have been all along! Although the industry no longer sees sharp declines in vehicle cost during the summer months that it did a few years ago, a more moderate leveling of costs seems to have occurred. Vehicle cost reductions will enable dealers to manage portfolio risk more easily in the months ahead while staying competitive in the marketplace. This occurs because payment terms and the length of customer contracts don’t have to be increased to absorb vehicle cost increases.

Unfortunately, some uncertainties are still ahead. Will gas go to $4.00 per gallon or drop to $2.00? Will utility prices decline? How will immigration laws change? All of these factors could impact Buy Here, Pay Here sales during the rest of 2006 and beyond. However, in the past, successful operators have solved these challenges, made the necessary adjustments, and have prospered. Collections should be your focus during these challenging economic times. Good luck!

Kenneth B. Shilson, CPA, is Managing Partner of Shilson, Goldberg, Cheung & Associates, LLP, a Houston based CPA firm which serves the used car industry. He is President of Subprime Analytics, which performs electronic portfolio analysis. Mr. Shilson is also the founder of the National Alliance of Buy Here Pay Here Dealers (NABD) which will host a BHPH Collection Academy near Atlanta, Georgia, at the Manheim DRIVE Center, January 9 – 11, 2007. For further information, visit the NABD website at www.bhphinfo.com or call 713-290-8171.

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Wednesday, July 19, 2006

Rising Oil Prices Could Trigger Worst Vehicle Sales Downturn in Decade

Situation:

  • Oil prices surged to all-time high of $78.40/bbl
  • Fears that conflict in Middle East could widen
  • Some energy market analysts have said oil could reach $100/bbl
  • Implies future US gasoline prices of $4/gal, up from just under $3 now
  • US automakers already reeling from consumer flight from SUVs, trucks
    Now face risk that higher oil prices will trigger worst sales downturn in more than decade

Significant Points :

  • High energy prices, weakening housing market, rising interest rates threaten economic growth, consumer confidence
  • Economic growth less than 2% could tip auto sales into cyclical downturn
  • Every $10 increase in crude oil drops US annual vehicle sales 200-400 units
  • Aggressive sales incentives, discounts last 5 years have pulled demand forward
  • Read QuotesRead Background
  • Click Here for Full Digest and Source Article:
    http://www.automotivedigest.com/view_art.asp?articlesID=19634

Sourced From: Reuters via Automotive News, June 14, 2006
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Monday, July 10, 2006

CON ARTISTS RUN SCAM FROM COAST TO COAST:

The targeting of used-car dealerships in financing scams nationwide continues to expand. Several dealerships in Wisconsin have been approached by a Washington company called Instant Funding Systems. This companys methods are almost identical to Auto Credit Solutions, which is now being investigated by the FBI for taking nearly $130,000 from dealerships in Arizona, Michigan, Georgia, Wyoming and Oklahoma.
Read full story here Used Car News

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Tuesday, July 04, 2006

As Online Automotive Retailing Evolves, Diversification is Key to Survival

Situation:

1. Fewer consumers using 3rd-party web sites for vehicle price quotes
2. Automakers, dealers generating more leads through own web sites
3. Analysts say only large operators likely to survive market shakeout
4. Autobytel, Dealix Corp, AutoUSA have large, established dealer networks
5. Investing in technology to improve lead quality, consumer/dealership interactions
6. Are diversifying into businesses other than lead generation

Significant Points:


1. Consumers want more info than price alone, faster response from dealers
2. Dealer web sites becoming more sophisticated, interactive
3. Rising search marketing prices squeeze marginal lead generation operations
4. Dean Evans, Dealix VP of marketing: "Ping" technology reduces lead duplication
5. Says marginal players can't afford such software
6. Major players providing content on web sites to attract leads w/o paid searches

Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=19512
Sourced From: Automotive News, June 26, 2006

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Tuesday, May 16, 2006

ADESA Income Up 3.7% in 1st Q; Revenue up 17.7%

1. ADESA reports 1st Q results
2. Income of $36.3M up 3.7% over 1st Q 2005
3. Revenue of $285.6M up 17.7% over same time 2005
4. ADESA notes company strengthened senior management during quarter
5. Named A R Sales as president/COO; Ron Beaver as EVP/chief information officer
6. Also acquired NE Penn salvage, Sarasota used vehicle auctions

1. Officials say favorable Canadian currency exchange impacted revenue by $3.3M
2. Auction and Related Services (ARS) revenue up 17.2%
3. Revenue per vehicle sold in ARS segment at $471, up from $415 in 1st Q 2005
4. More institutional vehicles drove revenue; require more ancillary services
5. Dealer financing (AFC) revenue up 21.4%; revenue per loan transaction up 20%
6. AFC operating profit up 25.9%


"I am particularly pleased with the growth of AFC and with the signs of improving volumes that we are seeing in our ARS operations and across the industry." -- David Gartzke, chairman and
CEO, ADESA

"In addition, during the quarter we have taken significant actions to strengthen our management team by adding A. R. Sales and Ron Beaver, which will enable us to more effectively implement our key strategic initiatives." -- Gartzke

"These actions, together with numerous other actions that are being implemented across the company, position us well to take advantage of the improving industry trends." -- Gartzke

Sourced From: ADESA.com, May 1, 2006

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Tuesday, May 02, 2006

Upside Down Deals Tougher To Complete

Situation
1. JD Power says 1/3 of US car buyers were upside w/ trade-ins in 2005
2. Mitsubishi, Isuzu, Suzuki, Kia see about 1/2 of buyers w/ negative equity trade-ins
3. Upside-down buyers lean toward those brands; looking for inexpensive vehicles
4. Suzuki had lowest average transaction price of any company at $16,390
5. Low residuals also hurt; Kia, Isuzu, Suzuki hold 34% or less of value after 3 years
6. Typical value of all brands in 2005 was 44%

Significant Points

1. Reasons for negative equity include no money down, trade-ins w/ poor resale value
2. Customers w/ highest negative equity generally own most expensive vehicles
3. Negative equity doesn't necessarily reflect customer's credit worthiness
4. Dealers, finance companies also suffer when customers are upside down
5. Dealers see customers applying rebates to reduce negative equity

Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=18935
Sourced From: Automotive News, April 17, 2006

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RUSSELL CROSBY
615-414-6708

Wednesday, March 29, 2006

J.D. Byrider founder dies in plane crash

J.D. Byrider founder dies in plane crash
Son-in-law and pilot also killed; James DeVoe started chain in 1989
By Jeff Swiatek
jeff.swiatek@indystar.com
March 24, 2006
J.D. Byrider Systems vowed Thursday to carry on with the used-car franchising formula developed by its founder and head, James F. DeVoe, 62, who died in a fiery plane crash in Florida.
The crash, which also killed DeVoe's son-in-law Steele Gudal and a pilot, leaves the Carmel firm without the man who turned J.D. Byrider into the nation's largest used-car chain.
Sheriff's investigators in Brevard County, Fla., said autopsies will be needed to positively identify the three badly burned bodies on the twin-engine private plane that crashed Thursday on the outskirts of the coastal city of Melbourne. But J.D. Byrider officials confirmed they were DeVoe, Gudal and an unnamed pilot.
DeVoe had been visiting with Gudal's family in Jacksonville, Fla., and apparently was flying to Melbourne to check out a possible location for a franchise that Gudal wanted to open there, said Bill Ackermann, vice president of franchise operations.
"It's a real tragic loss," Ackermann said.
Gudal, who owned six Byrider franchises, had earned a pilot's license in the past year and may have been piloting the plane, which crashed in a wooded area, miles short of the runway to Melbourne Airport.
"My guess is he was flying it," Ackermann said of Gudal.
The crash was "pretty devastating," setting off brush fires, said Lt. Andrew Walters, a spokesman for the Brevard County Sheriff's Office.
On Tuesday, DeVoe and other company officials had wrapped up a meeting with franchise operators and owners in Atlanta, Ackermann said.
The company "will go on" without its chairman, president and chief executive, he said. "It's not going to cripple the business. We have a very solid management team."
The company is "very privately held," with DeVoe the primary shareholder, Ackermann said.
In 1989, DeVoe, then a Marion car dealer, founded J.D. Byrider and built it into a chain of 123 dealerships in 28 states. They generated revenue in 2004 of $523 million.
DeVoe's idea was to standardize the used-car sales concept and offer financing to buyers whose credit wasn't good enough to get them conventional bank loans. He sometimes was called the Colonel Sanders of the used-car business. He gave the company his own initials and took the name Byrider from an early electric car.
Carmel Mayor James Brainard said DeVoe was a good corporate citizen and a quiet man who helped others without making a big splash. "I particularly admire his business experience and his contributions to the community," Brainard said.
DeVoe was a contributor to a school for autistic children, Ackermann said. The school was founded by Gudal and his wife, Amy.
DeVoe lived in Fishers with his wife, Andrea L. DeVoe. They have six children. One, James Jr., is president of the 13 company-owned

By Jeff Swiatekjeff.swiatek@indystar.com


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Tuesday, March 14, 2006

Cars Really Are Lasting Longer

Seen as good news/bad news, columnist says factories compelled to build cars that last
Latest survey finds 50% cars lasting 13 years, drivers can get about 152K miles
In 1977, only 1/2 cars built lasted 10.5 years, expectation of 107K miles
Honda, Toyota have 22% fewer breakdowns than industry average, challenge to automakers


Consumers hanging onto cars longer, creates challenges for automakers/dealers
Today, people buying cars for same reason buying dishwashers, want them to last
Car dealers forced to accept "skinnier margins," says Mark Rikess, consultant
Longevity results in growing number of coffee bars, kiddie play rooms in service areas

Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=18459
Sourced From: Wall Street Journal, February 27, 2006

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Tuesday, March 07, 2006

NATIONAL BUY HERE PAY HERE CONFRENCE
MAY 8-10TH2006
LAS VEGAS HILTON
Exclusively Buy Here, Pay Here!Expanded Exhibit Hall!Newly Renovated Hotel!
REGISTER TODAY!

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Monday, March 06, 2006

American Preference for Imports Poses Problem for Used-Car Market


American consumer increasingly favors non-American vehicles
Creates challenge for used-vehicle industry
US vehicles make up greater share of used-vehicle market
But more Americans complain about poor quality, fuel economy of Big-3 vehicles
Significant Points
Even when prices better for US cars, many consumers choose import
Perception of quality, better resale value influence choices
Experts find flaws in some consumer surveys ranking imports higher in quality
Say domestics can be cheaper to repair than imports, balancing out equation
Imports tend to update vehicles more often; domestics tend to change names

Read Quotes

Click Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=18406 Sourced From: Used Car News, February 20, 2006

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Tuesday, February 28, 2006

Warning Concerning Instant Funding Systems

The Division of Finance and Corporate Securities warns consumers and businesses about doing business with a consumer finance company purporting to operate out of Portland, Oregon.
Instant Funding Systems is not licensed with the Division, although their business may require that the company be licensed as a consumer finance business.. Information has come to the attention of the Division that Instant Funding Systems may be offering consumer financing for automobile purchases. Under Oregon law, Oregon Revised Statutes Chapter 725, a person or entity making consumer finance loans under $50,000.00 is generally required to be licensed with the Division. Anyone who has been in contact with this company should contact the Division of Finance and Corporate Securities, (503) 378-4140, and ask to speak to Rob Brunner or Charles Donald.
Consumers and businesses can check to see if a business they are planning on doing business with is licensed with the Division, as well as find other useful information, on the Internet at http://www.dfcs.oregon.gov.
Sourced from: Division of Finance & Corporate Securities

According to the United States Secret Service, Instant Funding is running a fraudulent scheme across the country. If you are an NIADA member and have been a victim of this scheme please contact Executive Vice President and CEO Michael R. Linn at mike@niada.com or by phone at (817) 640-3838. He will then forward the information to the Secret Service. Information has been received that IFS is also operating as Sub Prime Dealer Services.
Sourced from:WFI Infopoint

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This information is, to the best of our knowledge, current and correct. However we caution you not to use this information as the final authority.

Thursday, February 16, 2006

Manufacturers’ Woes Impact Auto Sales

Manufacturers’ Woes Impact Auto Sales
By Ted Craig

U.S. auto manufacturers and their suppliers are announcing major job cuts daily and that’s bad news for many used-car dealers.Ford Motor Co. announced a restructuring Jan. 23 that will slash up to 30,000 jobs and close 14 plants over the next few years.A few days later, General Motors Corp. announced an $8.6 billion loss for 2005. Part of its difficulties stem from problems at Delphi Corp., the largest and latest parts supplier to declare bankruptcy.More bad news will come. There are 700 to 800 parts suppliers on the brink of insolvency, according to the Center for Automotive Research (CAR).All this is problematic for used-car dealers because of the impact on used-car buyers.Automotive jobs pay more than any other manufacturing sector. The average auto plant worker makes $63,825, while the average manufacturing worker makes $33,075, according to CAR.Auto workers may not be typical used-car buyers because they receive employee or supplier discounts and they are highly paid. But the money they generate in their communities is crucial to used-car sales.Every worker that builds a car in the U.S. creates 6.5 jobs in the national economy, said Kim Hill, director of CAR’s automotive communities project.The disposable income of auto workers attracts retail development to an area. When a town becomes home to a new Toyota plant, it also becomes home to a new Wal-Mart, a new Home Depot and numerous other big box retailers.When a plant closes, those stores stay away, Hill said. Real estate values plummet.People may stay in town, but they likely won’t be auto workers any more and their salaries will reflect that, Hill said.There’s no better example than Flint, Mich., whose woes from auto cutbacks were the basis for the 1989 movie “Roger & Me.”The town has never recovered from the plant closings of the 1980s, said dealer Don Hall, owner of Cars R Us.He estimates 60 percent of the area’s residents make significant commutes for work.Most of the local jobs don’t pay more than $7 or $8 an hour.All this is actually helping Hall, a buy-here, pay-here dealer with multiple locations.“The used-car market is great,” he said. “The worse the economy does, the better I do.”Even when a plant stays open, a town can suffer. DaimlerChrysler AG sold its New Castle, Ind., parts plant to Metaldyne Corp. in 2003, which eliminated 1,000 jobs and cut the wages of the 220 employees who remained.This has had a major impact on the local economy and what people can afford.“They buy a little less because they make a little less,” said Roy Denney, owner of Cardinal Sales in New Castle.Dealers who depended on local buyers for their sales suffered, he said.Denney’s family has been in the car business since 1946, but he worked in other fields before opening his store in 1996.“It didn’t scare me to advertise,” Denney said.He runs ads in all the automotive publications.He had somebody teach him how to build his own Web site, and it now accounts for about 80 percent of his sales. A year and a half ago, Denney started selling cars on eBay Motors.He recently sold a 1997 cargo van to a customer in San Jose, Calif.It helps that Denney also sells RVs, but he moves plenty of average cars, such as Toyota Camrys.He said other dealers who have been unwilling to look beyond New Castle have suffered.Not every town is affected the same when a plant closes.“If a community is fairly diverse in its employment, they can absorb it,” Hill said.An example is Hazelwood, Mo., one of the sites Ford is closing.The St. Louis area where the plant is located has a fairly vibrant economy that is home to a variety of companies from brewers to retailers.“We’re definitely concerned, but we’re hopeful,” said Tom Dean, general manager of GMT Auto Sales in nearby Florissant.While the domestic manufacturers are making massive cuts, the number of auto workers nationally has remained fairly stable as foreign manufacturers open plants in the U.S.Nissan Corp. recently opened a plant in Canton, Miss., for example.Because of the hurricanes that have battered the Gulf States, it’s been hard to judge the plant’s impact on the local used-car market, said John Rea, general manager of Rea Brother’s Mid-South Auto Auction in nearby Pearl.But there has been a definite impact on buying patterns, with more Nissans on the road.“Mississippians are going to buy Mississippi products,” Rea said.Because of the major impact of auto factories have on their local communities, Hill said it is in the best interests of used-car dealers, like all small business owners, to do what they can to keep and attract these plants.

Sourced from Used Car news

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Saturday, February 04, 2006

Automotive Sales to Individuals with Discharged Bankruptcies to Reach Record High

From PR Newswire

Automotive Sales to Individuals with Discharged Bankruptcies to Reach Record High
Phoenix, AZ- Feb 2, 2006-- Due to record filings the 2nd half of 2005, the Federal Bankruptcy Courts are publishing discharges at record rates.

According to the Administrative office of the U.S. Courts, 3rd and 4th quarters of 2005 set bankruptcy filing records at triple digit increases. Filings were up to 542,002 for the 3rd quarter and 672,320 for the 4th quarter.

"We are beginning to see the 1.2 million BK filings from the end of 2005 mature into discharges", explained Robert Davies, President of Direct Marketing Associates, Corp. "Our OnlineBKmanager.com marketing system is delivering weekly discharges at record volume levels. We anticipate this influx of discharges to completely enter the market during the next 5 to 10 months. We know that nearly 450,000 of these individuals will purchase a vehicle within thirty (30) days of their discharge."

Other Related News –

Due to pressure from federal regulators, credit grantors have announced they are increasing minimum monthly payments on credit card balances from 2% to 4%.

"Some card holders could be devastated by the change," said Davies. "Those consumers hanging on by a thread will not be able to handle this monthly increase. If a consumer is living paycheck to paycheck and their minimum monthly payments go from $350 to $700 per month, this extra money may not be available in an already stretched household budget." Bank of America has anticipated this scenario and has set aside an extra $130 million to cover projected losses from defaulting cardholders.

"In short, Bankruptcies will not be a thing of the past anytime soon," concluded Davies. "Consumers will continue to over extend themselves and require the protection of the BK courts."
Direct Marketing Associates, Corp.

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Friday, January 27, 2006

Disappointing Response to Bankruptcy Counseling Law

Situation
New bankruptcy law requires credit counseling to determine repayment ability
In 1st 3 months of new law, most applicants can't qualify for debt management
Overwhelming majority filing for bankruptcy instead of using repayment plans
Credit counselors say they are seeing people "with true hardships"
Many debtors in such financial distress say they can't afford counseling fee
Financial industry says not ready to give up on steering consumers into repayment plans
Significant Points
Banks, credit card issuers hoped counseling provision would keep consumers out of bankruptcy court
Say too early to tell how well new requirement working because so many consumers filed under old, less-restrictive law
Critics of old law suggested bankruptcy protection used by spendthrifts who might be able to repay debts
But counselors say not seeing that type of debtor
American Bankers Association's Philip Corwin says consumers filing now not representative sample
Credit counselors expect bankruptcy filings to rise in next few months Read QuotesClick Here for Full Digest and Source Article:
http://www.automotivedigest.com/view_art.asp?articlesID=18099

Sourced From: Washington Post, January 17, 2006

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Russell Crosby 615-414-6708
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Tuesday, January 17, 2006

Sell your auto notes, auto paper, auto recivables,bulk auto paper

It won't be long and Tax season will be in full swing. How's your inventory are you a little lite? Maybe you should consider selling some of your older auto notes for cash now, use the money to buy more inventory without borrowing money or paying high interest on a floor plan. We can turn your two month plus accounts into cash. Fast pricing and quick closing, in the buy here pay here business cash flow is important, make sure you make the most of what you have. We can give you a quote in 48 hrs and could close the deal in seven days or less. Use your notes to generate even more cashflow for your business. Call us today and let make you some money!!

Russell Crosby
615-414-6708

www.auto-bulk.com

Friday, January 06, 2006

Used-Car Dealers May be Out in the Cold This Winter

1. Consumers feeling high energy costs, layoffs, weaker housing market, rising interest rates
2. Putting chill on consumer spending
3. Big drop in demand for auto loans in Oct as consumers keep cars longer
4. New federal guidelines will require higher minimum credit payments, stretch more budgets
5. Buy-here, pay-here dealers will have to put more money out on street
6. Strong wholesale prices will cut into gross

Points
1. Housing market weakness reducing refinancing as source of consumer spending cash
2. Consumers paying more when borrowing money for car
3. More consumers seeking to refinance credit card debt
4. Creditors will benefit from higher rates, can afford more risk
5. Positive side for dealers--many consumers will see buying used as smart economic decision


Background
1. Consumer borrowing down by record amount in dollar terms in Oct
2. Decline of 4.9% in category that includes auto loans
Sourced From: Used Car News, December 5, 2005; Detroit News, December 8, 2005

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Thursday, December 22, 2005

Repo Rates UP

REPO RATES UP AS EASY MONEY HARDER TO FIND: As the easy money that’sbeen pumped into the economy the past few years decreases, repossessionsare starting to increase. Low interest rates and tax cuts have generatedextra money for consumers in the past four years, and automotivecreditors have enjoyed better performance for their paper. But that’sstarting to change.
Sourced from:
Used Car News<http://www.usedcarnews.com/news/2005/12/19/headlines.html#story1>

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Russell Crosby
615-414-6708
www.auto-bulk.com

Tuesday, December 20, 2005

CHINA'S AUTO SHOW DEBUT: A $10,000 CAR:???

CHINA'S AUTO SHOW DEBUT: A $10,000 CAR: Amid all the hoopla at nextmonth's Detroit auto show, a simple silver midsize sedan might generatethe most buzz. It's from Geely Motors, which will become the firstChinese automaker in the nearly 100-year history of the auto show todisplay a made-in-China car intended for sale in the United States. Thesilver sedan, called the Geely 7151 CK, will be priced below $10,000when it goes on sale in 2008, making it the lowest-priced model in themidsize segment, said John Harmer, vice president and chief operatingofficer of Geely U.S.A.
Sourced From Detroit Free Press<http://www.freep.com/apps/pbcs.dll/article?AID=/20051217/BUSINESS01/512170304/1014>

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Friday, December 16, 2005

Consumers Looking for Smaller SUVs:

What Industry Leaders are Saying Consumers Looking for Smaller SUVs:

* "We have a fair amount of statistics that show the big gasguzzlers aren't doing so well right now. At the same time, the smallerSUVs are doing OK." -- Chip Perry,CEO,AutoTrader.com

* "What we found, when looking at truck and SUV listings, was adecrease in shoppers for heavy vehicles and an increase in offerings.Big SUV listings were up 12.3 percent. Truck listings were up 14.3percent." -- Louise Barr, media relations manager, AutoTrader.com

* "Give me a small SUV, a truck with four or six cylinders and astick shift, like the F-150, I'll be able to sell that all day long." --Doug Rodriguez, GM, Auto City Vehicle Auction

* "We still have families around here with four or five children,so the demand is there.
What they are not doing now that they were doingbefore is buying these vehicles new." -- Shannon Roesch, owner, CometEnterprises

Sourced From: Used Car News, December 5, 2005

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Tuesday, December 06, 2005

We buy Auto paper, Auto Notes, Buy here pay here paper

GMAC is selling some of their auto paper, maybe you should consider it to. We are getting top dollar for your buy here pay here auto paper. Currently .74 to .90 on the dollar.
You could might be able to save some money on taxes by selling some auto notes before the end of the year.

NEW YORK, Dec 5 (Reuters) - General Motors Acceptance Corp. (GMAC) said on Monday it agreed to sell up to $20 billion in U.S. retail automotive assets to Scotia Capital, the investment banking unit of Bank of Nova Scotia (BNS.TO: Quote, Profile, Research) (BNS.N: Quote, Profile, Research).
GMAC, the financial services unit of General Motors Corp. (GM.N: Quote, Profile, Research), said the agreement calls for purchases by Scotiabank under a $6 billion revolving facility.
This facility represents funding for up to $20 billion of GMAC U.S. retail automotive contracts during a five-year period from Nov. 2005 to Oct. 2010. Scotiabank will make an initial purchase of $3 billion in Dec. 2005.

Sourced from: www.today.reuters.com

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Thursday, December 01, 2005

Get Top Dollar for your Auto Paper, Auto Notes

The year will soon be over, if you are looking to sell your auto notes, bulk auto paper before the end of the year you'd better hurry. We are currently getting top dollar for auto paper.

Requirements

1. Contracts written at 18% or higher
2. Contracts with up to 36 months remaining term
3. All types seasoning considered
4. Weekly, bi-weekly, semi-monthly and monthly contracts excepted.

Lower rates may be considered.
Salvage titles accepted

Currently pricing from .77 to .90 on the dollar

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Wednesday, November 02, 2005

We buy auto paper, buy here pay here notes. Sell your buy here pay here auto notes, buy here pay here auto paper wanted

Are you thinking about selling some of your auto paper, buy here pay here notes? But you think you'll wait till next year. If you sell your notes at a discount, the IRS allows you to book a loss for the difference between the full contract and the discounted contract. So rather than pay taxes on money you haven't collected yet and won't for several months to come. Consider selling your notes and getting cash you can use today, to buy inventory for income tax season and get a potential write off.

When the vehicle is sold, and it is determined that the customer needs special credit assistance, the dealership writes the note at term (high interest rate) with recourse to the RFC. The note is sold at a significant discount to the RFC substantiating the discount by citing high risk. The dealership books a current and deducted loss for the difference between the full contract and the discounted contract. The RFC accrues income as it becomes earned, subject to IRC section 162 deductions. RFC= Related Finance Company

You can read the article here:http://auto-bulk.com/html/new_vehicle_dealership_audit_t.html
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Friday, October 28, 2005

Experian Offers Consumers Free Online Service to Identify Storm-Damaged

Experian Offers Consumers Free Online Service to Identify Storm-Damaged
Vehicles

AutoCheck Storm Scan Offers Consumers Access to Clearinghouse of Hurricane Damage Information, including Dealer-Reported Data

Schaumburg, Ill. -- October 25, 2005 -- Experian Automotive, a division of
global business solutions company Experian®, today began offering free
storm damage vehicle information to consumers through a new AutoCheck Storm Scan feature at www.autocheck.com/storm .

AutoCheck Storm Scan provides consumers with information regarding
storm-damaged vehicles in the wake of Hurricanes Katrina and Rita. Using
this Web site, consumers can enter a vehicle identification number to
determine if a vehicle was reported titled or registered within the last 12
months in Louisiana, Mississippi, Alabama or Texas, reported as storm
damaged by a dealer or manufacturer, or branded as salvage or flood damaged
in a state affected by the hurricanes.

"Our data tells us that storm-related damage to vehicles isn’t limited to
just flooding. We have found that states brand up to ten times as many cars
"salvage" as they do "water damage" after a hurricane," said Scott Waldron,
president of Experian Automotive. "Potential used car buyers need to
safeguard themselves from purchasing storm-damaged vehicles from
unscrupulous sellers and should be sure that their check includes salvage
vehicles."

In addition to this precaution, Experian Automotive recommends a thorough
vehicle inspection. The National Automobile Dealers Association (NADA) and
Experian Automotive offer consumers ten inspection tips to help detect
significant water damage:

· Check the vehicle's title history, it may state whether it has sustained flood damage;
· Examine the interior and the engine compartment for evidence of water and grit from suspected submersion;
· Check for recently shampooed carpet;
· Check under the floorboard carpet for water residue or stain marks from evaporated water not related to air-conditioning pan leaks;
· Look for rust on the inside of the car and under interior carpeting and visually inspect all interior upholstery and door panels for any evidence of fading;
· Check under the dashboard for dried mud and residue, and note any evidence of mold or a musty odor in the upholstery, carpet or trunk;
· Check for rust on screws in the console or other areas where the water would normally not reach unless submerged;
· Check for mud or grit in alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays;
· Complete a detailed inspection of the electrical wiring system, looking for rusted components, water residue or suspicious corrosion;
· Inspect the undercarriage of other components for evidence of rust and flaking metal that would not normally be associated with late model vehicles.
While it’s too early to know exact numbers, some experts estimate more than
500,000 cars were significantly damaged by Hurricanes Katrina and Rita.
Consumers can access the AutoCheck Storm Scan feature by visiting
www.autocheck.com/storm .

About Experian Automotive
Experian Automotive delivers information solutions to manufacturers,
dealers, finance and insurance companies, and consumers. Experian helps
automotive clients increase customer loyalty, target and win new business,
and make better lending and vehicle purchase decisions. Its National
Vehicle Database, housing more than 450 million vehicles, along with
Experian’s credit, consumer and business information assets, meets the
industry’s growing demand for an integrated information source. Experian’s
advanced decision support services help clients turn this information into
improved business results. Experian technology supports several top
automotive web sites including eBay Motors, CarsDirect.com and
NADAguides.com. For more information on Experian Automotive and its suite
of solutions, visit our web site at www.experianautomotive.com .

About Experian
Experian is the global leader in providing value-added information
solutions to organizations and consumers. It has an unrivaled understanding
of individuals, markets and economies around the world.

Experian provides information, analytics, decision-making solutions and
processing services. It assists organizations in understanding their
markets and customers and helps them find, develop and manage profitable
customer relationships to make their businesses more profitable. Experian
promotes greater financial health among consumers by enabling them to
understand, manage and protect their personal information and helping them
control financial aspects of key life events.

Experian works with more than 50,000 clients across diverse industries,
including financial services, telecommunications, health care, insurance,
retail and catalog, automotive, manufacturing, leisure, utilities,
e-commerce, property and government. A subsidiary of GUS plc with
headquarters in Nottingham, UK, and Costa Mesa, Calif., Experian’s 12,000
people in 28 countries support clients in more than 60 countries. Annual
sales exceed $2.5 billion.

For more information, visit the company's Web site at www.experian.com .

The word "Experian" is a registered trademark in the EU and other countries
and is owned by Experian Ltd. and/or its associated companies.

Sourced from http://www.automotivedigest.com/PressReleases.asp

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Monday, October 24, 2005

Sell your buy here pay here auto notes for cash, we buy auto paper

Five simple steps to help you save gas

1. Shop aggressively for the lowest prices without going to far out of your way.

2. Carpool

3. Ceckyour tire pressure. Under-inflated ties can cut fuel economy by up to 2 percent per pound of pressure below the recomended level.

4. go easy on the gas peddal and brake. Jerky driving can decrease fuel efficiency by up to 15 percent.

5. Clean out your trunk. People carry uneccessary, heavy items in the trunk. The more weight in the car the more you will spend.

WE buy auto paper, buy here pay here auto notes.

Monday, October 10, 2005

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IRS New Vehicle Dealership Audit Technique Guide 2004 - Chapter 11 - Related Finance Companies (12-2004)
NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.
A "Related Finance Company" or RFC, is a financing company owned by an automobile dealership. It provides financing for customers that cannot obtain financing through normal channels. The customer is required to make payments usually at the dealership's location. This type of arrangement is usually advertised by the dealership as a "buy here pay here" plan. The "buy here pay here" plan is common with stand alone used car dealerships, but many new car dealerships utilize this type of plan for their used car sales.
How does it work?Dealerships involved in this practice establish a financing entity (herein referred to as a "Related Finance Company" or RFC), typically an S Corporation, which acts as the lender in the dealership's financing arrangement. The same shareholders that own the dealership usually own the S Corporation.
When the vehicle is sold, and it is determined that the customer needs special credit assistance, the dealership writes the note at term (high interest rate) with recourse to the RFC. The note is sold at a significant discount to the RFC substantiating the discount by citing high risk. The dealership books a current and deducted loss for the difference between the full contract and the discounted contract. The RFC accrues income as it becomes earned, subject to IRC section 162 deductions.
Legitimate Uses of a Related Finance CompanyThere are several valid business purposes for establishing an RFC. An effective RFC removes the collection burden from the dealership; allowing dealership personnel to operate the dealership.
Some RFCs are so well managed that their discount rates can be lower than those offered by a third party. The RFC may be more familiar with the contracts it purchases due to its close relationship with the dealership, allowing the dealership to be more selective when it offers credit. An RFC may allow a dealership relief from regulatory restrictions, and to distance itself from adverse publicity resulting from collection activity.
back to the top
A valid RFC should have the following characteristics:
When the finance contract is sold to the RFC, title has been transferred to the RFC in accordance with title and lien holder laws
The discounting of the car dealer's receivables are sold to the RFC at their fair market value
There is a written arms-length contract between the dealership and the RFC
The finance contracts are normally sold without recourse between the two related parties
The RFC is responsible for repossessions
The RFC is operated as a separate entity from the dealership and has the following characteristics:
Adequate capital to pay for the contracts
Meets all state and local licensing requirements
Maintains its own bank accounts
Has its own address and phone number and operates as a separate entity from the dealership
Maintains its own books
Has its own employees and they are compensated directly by the RFC
Pays its own expenses
The customers are making payments to the RFC, not to the dealership
Sourced from the IRS Web Site read the entire article here: http://www.irs.gov/businesses/article/0,,id=137739,00.html
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Friday, October 07, 2005

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Thursday, October 06, 2005
LATE BREAKING NEWS
BIG S.U.V.'S LAG IN SALES, HINDERED BY GAS COST:
The heyday of the giantsport utility vehicle keeps moving farther away as gasoline prices loomlarger. In September, industrywide sales of large S.U.V.'s were down 43percent from a year earlier, according to Ward's AutoInfoBank. That isparticularly bad news for General Motors and the Ford Motor Company,which are dependent on truck-based S.U.V.'s. Last month, G.M.'s overallsales fell 24.2 percent and Ford's declined 20.3 percent, compared withthe same month a year earlier.
NY Times http://www.nytimes.com/2005/10/04/automobiles/04auto.html

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Friday, September 30, 2005

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HIGH GASOLINE PRICES PRESSURING USED SUV VALUES:

High gasoline prices have not only been unkind to consumers' wallets, but may also take a bite out of automakers' profits as the value of used large SUVs suffers. The value of used large SUVs has been falling the last few years and the decline has picked up speed as gasoline prices have spiked, analysts said. More worrisome, however, are the vehicles coming off lease and the potential losses for automakers, especially General Motors and Ford Motor Co.

Saturday, September 24, 2005

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Hurricane Katrina Aftermath: NADA Offers 10 Tips for Spotting a Flood-Damaged Vehicle
The devastating aftermath of Hurricane Katrina has left a large population of flood-damaged vehicles. The National Automobile Dealers Association (NADA) urges consumers, even in unaffected areas, to remain alert to the possibility that some individuals may attempt to sell or trade flood-damaged used vehicles in the months to come. “Dealers are very concerned that these affected vehicles could enter the used car market,” said NADA Chairman Jack Kain. “Fortunately, there are steps that car-shoppers can take to detect water damage and protect themselves,” he added. While there is no sure way to detect vehicle flood damage, NADA offers 10 inspection tips that may be used to detect significant water damage. At a minimum, a prospective buyer should:
  1. Check the vehicle's title history, it may state whether it has sustained flood damage;
  2. Examine the interior and the engine compartment for evidence of water and grit from suspected submersion;
  3. Check for recently shampooed carpet;
  4. Look under the floorboard carpet for water residue or stain marks from evaporated water not related to air-conditioning pan leaks;
  5. Inspect for rusting on the inside of the car and under interior carpeting and visually inspect all interior upholstery and door panels for any evidence of fading;
  6. Check under the dashboard for dried mud and residue, and note any evidence of mold or a musty odor in the upholstery, carpet or trunk;
  7. Check for rust on screws in the console or other areas where the water would normally not reach unless submerged;
  8. Look for mud or grit in alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays;
  9. Complete a detailed inspection of the electrical wiring system looking for rusted components, water residue or suspicious corrosion; and
  10. Inspect the undercarriage of other components for evidence of rust and flaking metal that would not normally be associated with late model vehicles.

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Hurricane Katrina Aftermath: NADA Offers 10 Tips for Spotting a Flood-Damaged Vehicle

  1. The devastating aftermath of Hurricane Katrina has left a large population of flood-damaged vehicles. The National Automobile Dealers Association (NADA) urges consumers, even in unaffected areas, to remain alert to the possibility that some individuals may attempt to sell or trade flood-damaged used vehicles in the months to come. “Dealers are very concerned that these affected vehicles could enter the used car market,” said NADA Chairman Jack Kain. “Fortunately, there are steps that car-shoppers can take to detect water damage and protect themselves,” he added. While there is no sure way to detect vehicle flood damage, NADA offers 10 inspection tips that may be used to detect significant water damage. At a minimum, a prospective buyer should:
  2. Check the vehicle's title history, it may state whether it has sustained flood damage;
  3. Examine the interior and the engine compartment for evidence of water and grit from suspected submersion;
  4. Check for recently shampooed carpet;
  5. Look under the floorboard carpet for water residue or stain marks from evaporated water not related to air-conditioning pan leaks;
  6. Inspect for rusting on the inside of the car and under interior carpeting and visually inspect all interior upholstery and door panels for any evidence of fading;
  7. Check under the dashboard for dried mud and residue, and note any evidence of mold or a musty odor in the upholstery, carpet or trunk;
  8. Check for rust on screws in the console or other areas where the water would normally not reach unless submerged;
  9. Look for mud or grit in alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays;
  10. Complete a detailed inspection of the electrical wiring system looking for rusted components, water residue or suspicious corrosion; and
  11. Inspect the undercarriage of other components for evidence of rust and flaking metal that would not normally be associated with late model vehicles.

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Monday, September 19, 2005

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Daimler Chrysler AG's Chrysler Group is recalling 101,925 of its 2005 Jeep Grand Cherokee SUVs to fix a leak in the transmission that could cause a fire.

Read about it here http://www.auto-bulk.com/html/chrysler_recalls_jeeps.html

Thursday, September 15, 2005

Auto bulk buy here pay here notes wanted

Sourced From: New York Times, September 5, 2005
Fifth-Largest Recall Affects 3.8M Ford Pickups and SUVs Situation * Engine fires caused by brake fluid leak into cruise controlswitch prompts Ford recall* 3.8M fullsize SUVs and pickups being called back--5th largestrecall in history* NHTSA says 1,170 complaints of fires received, but Ford says nodeaths have resulted* At least 10M Ford vehicles use same Texas Instruments switch butrate of fires varies among models affected* Dealers to install fused wiring harness; acts as circuitbreaker, evens out electricity flow through cruise control Significant Points * NHTSA continuing inquiry into switch 'failure rate' saysspokeswoman Rae Tyson, even though Ford dropped Texas Instruments'switch in 2002 model year* Publicity could cause sales problem for Ford, since recalledvehicles involve popular F-150 pickups and Navigator/Expedition SUVsfrom 1997 to 2002* In added complication, Ford has installed similar cruise controldeactivation switches on 12.2M vehicles, but says fires haven't occurredon any of those models except 3.8M being recalled* Safety advocates say all 16M vehicles should be recalled andrepaired* Ford has changed stance toward recall w/ continued reports ofengine fires, which Ford now agrees do result from defective switches

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Wednesday, September 14, 2005

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Associated Press
Updated: 9:10 a.m. ET Sept. 14, 2005

Drop in auto sector slams August retail sales
Total sales fell by 2.1 percent, double the decline analysts had expected

WASHINGTON - Retail sales plunged in August by the largest amount in nearly four years, evidence that the economy was weakening even before Hurricane Katrina struck.
The Commerce Department reported Wednesday that total sales fell by 2.1 percent last month, double the decline that analysts had been expecting. The weakness came from a big 12 percent drop in sales of autos. Excluding autos, retail sales rose 1 percent, but much of that strength reflected a rise in gasoline prices.
Economists believe that Katrina, the worst natural disaster to hit the United States, could trim economic growth by a full percentage point in the second half of the year as soaring gasoline prices force consumers to cut back The 2.1 percent drop in total sales last month was the largest decline since a 2.9 percent plunge in November 2001, the period following the 2001 terrorist attacks.

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Monday, September 12, 2005

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LATE BREAKING NEWS
GAS PRICES PUSH 1ST-EVER MID-YR MILEAGE-RATE CHANGE:

The IRS respondedto the steep cost of gasoline by announcing on Friday an unusual midyearchange to the mileage rate used for business-expense deductions. Thestandard mileage-rate deduction is jumping to 48.5 cents a mile forbusiness miles driven from Sept 1 through Dec 31 from the 40.5 cent ratethat will remain in effect for the 1st 8-months of the year, the agencysaid. Baltimore Sun<http://www.baltimoresun.com/news/local/bal-te.bz.irs10sep10,1,7791928.story?coll=bal-local-headlines&ctrack=1&cset=true>

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Tuesday, September 06, 2005

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Are you in the buy here pay here business? Turn your automobile notes into CASH. We get top dollar for your auto notes. We can deal with weekly, bi-weekly, semi-monthly and monthly automobile note bulk portfolios. With no reserves and minimum seasoning, you get all the money upfront and you are off the hook. Leave the collections to the banks and do what you do best, sell CARS. All makes and models even salvage and tmu units are accepted. Let us buy your account receivables. We purchase bulk auto notes in large or small pools in any payment frequency. Unlike others we specialize in buy here pay here auto notes that is all we do. We can price your auto bulk receivables in just a few days, a typical transaction is less than seven. Our investors are looking for buy here pay here auto notes to buy. Increase your cash flow and sell your bulk auto notes for cash now! Car paper is all we do call us today

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Sunday, September 04, 2005

GM's Logo On All New Cars

Quoted from an article in the Detroit News (http://www.detnews.com/2005/autosin.../A01-149235.htm)
Quote:
General Motors Corp. is going to stamp its corporate logo on every car and truck it sells in North America in an effort to better link its eight brands with the parent company. The automaker, revving up marketing efforts to reverse declining sales, plans to use the logo first on a slew of important new vehicles such as the Buick LaCrosse and Pontiac G6. The new badges will land on every 2006 model sold in North America across GM's eight brands -- Chevrolet, Buick, GMC, Cadillac, Hummer, Saab, Saturn and Pontiac. "Our own studies show that consumers place a tangible value on the General Motors name," said Mark LaNeve, GM's top sales executive. Ford Motor Co. sells Ford-branded vehicles and DaimlerChrysler AG's Chrysler Group sells Chrysler products. GM is the only major automaker that does not market cars or trucks under its corporate name. The new initiative dovetails with GM's marketing strategy for OnStar and the StabiliTrak stability control system, which are pitched under the GM umbrella and will become standard equipment across the GM product line. "The GM corporate name has a stronger public image than some of the brands that make up the company," said Joe Barker, with CSM Worldwide in Farmington Hills. "It tells consumers GM is backing this vehicle."

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