7. Benefits of Belonging
to the IARA
Bottom line – when you belong to the IARA, you become a
better remarketer; a professional that learns and
understands all facets of remarketing and how it will
positively affect your company’s financial performance, as
well as your value to your clients.
8. Benefits of Belonging
to the IARA
Here are a few ways that IARA
membership will assist you in
increasing your financial performance:
• Education and specific training
courses resulting in a remarketing
certification.
• Network with other remarketing
professionals to learn best
practices and benchmarks in your
market segment.
• Learn about opportunities for
improvement, problem
solving, and other issues that may
hinder your business.
• Have input on industry changes
(before they happen) on
standards, such as arbitration and
certification.
• Participate in discussions about
dozens of topics including:
– Maximizing net returns.
– Education/training your
remarketing staff.
– Auction performance.
– Transportation.
– Upstream remarketing.
– Vehicle inspections.
– Exporting techniques.
– Guidebooks.
– Reconditioning issues.
– Vehicle history reports.
– Vehicle sourcing.
11. A Long, Long Time Ago – 6 Years
• 6 Years Ago – IARA was at 56 members
• 6 Years Ago – Only 3 Certified Automotive
Remarketers
• 6 Years Ago – IARA was still sorting out its
financial viability
• 6 Years Ago – IARA was 6 Years Old
• 6 Years Ago . . .some thought that IARA
might not make it . . .maybe just maybe . . .
12. Then just like that –
• 5 Years Ago – I became a Second VP for
IARA
• 2 Years Ago – I became President & Levi
McCoy V.P.
• . . .just maybe . . .
13. Ten Year Anniversary
• Then just like that it
was here in
Dallas, 2011. It was
Cowboy Stadium.
• It was . . . Just like
that . . .
• IARA HAD
ARRIVED!
• A Decade . . .
15. Then just like that – here we are 2013.
• Today – Canada Committee – comes
along with 24 new members
• Today – IARA has $$$$$ in it Financial
Statement, VERY SOLID INDEED!
• Today – CAR is over 64 STRONG!
Tomorrow . . .
Soon, Levi is President!
just maybe, just maybe – IARA!
16. 2013 Accomplishments
• Creation and growth of IARA Canada.
• Auto IMS improvement recommendations.
• Integrating with NAAA on critical Industry issues.
• Working with NAAA to improve Policy Guidelines for Arbitrations & Online Purchases.
• Working with NAAA Standards Committee to standardize Auction Announcements &
Disclosures.
• Partnered with the NAAA the present survey results to improve language in Vehicle
History Reports.
• Published an industry position paper on the future vision for Multiple Online Selling
Venues.
• Initiated initial audit template to be used for a Standardized CFPB Audit Process.
• IARA Analysis to improve Remote Rep features.
• Tremendous growth in CAR Certification enrollments & Certification Graduates.
• IARA website FORUM BLOG created.
• Twitter and Facebook presence created for IARA.
• Strengthening of IARA Financial position.
• Growth in Membership
• Standard membership fees of $1,250 for all members to be billed out annually in January.
18. IARA 2012-2013
New U.S. Members
• 166 Auto Auction
• America’s Auto Auction
• Auction Edge
• Capital One
• Caprock Auto Remarketing
• Complete Auto Services, Inc.
• Dealer’s Auto Auction of the
South
• DEKRA Inspections
• Diversified Vehicle Services
• FLD, Inc.
• Grow Financial Credit Union
• Harley-Davidson Financial
• Hearst Business Media
• Hyundai Motor America
• Liquid Motors, Inc.
• Motor Lease Corp.
• Porsche Cars North
America
• RSA-FiServ
• Southeastern Auto
Auction
• Statewide Auto Auction
20. Canadian Committee
• Drive change to strengthen the Canadian Remarketing industry
• Co-Develop industry guidelines for corporate performance
standards
• Conduct educational and training programs
• Discuss and develop industry best practices
• Provide a networking forum for remarketers
• Assist international growth and exposure
• Support and participate in industry events & seminars
21. Canadian Committee Meetings & Events
On track to hit our goal of hosting 3 annual IARA Canadian Committee
Meetings in Canada
Proposed & Planned Events in 2013
March CAR Conference - Las Vegas
April Auto Remarketing Canada Conference – Toronto
IARA General Meeting
IARA Canadian Remarketing Remarketer of the Year Award
June Canadian Committee Meeting – Toronto
Standardizing Condition Reports – Panel Discussion
Disclosures & Declarations – VHR Panel Discussion
August IARA 2013 Summer Round Table - Dallas
October Canadian Committee Meeting – Toronto
December Canadian Committee Meeting – Toronto
22. AutoRemarketing Canada Conference
• AutoRemarketing Canada Conference in Toronto – over 700 attendees!
– Hosted an IARA Canadian Committee meeting with over 100 in attendance
– Presented our current IARA Canadian initiatives, conducted a membership drive
– 7 new prospective members approached us after meeting
– Hosted our first “Consignors Only Meeting”
• IARA Canadian Committee Award Presented at AR Canada Conference
John Carere – National Remarketing Manager – RBC Automotive Finance (ALLY)
IARA / AR Canada – Remarketer of the Year Award 2013
23. Canadian Committee Accomplishments
• Met our goal of hosting three Canadian Committee meetings in Toronto in
2012 and are on track for 2013.
• Each meeting / event hosted record attendance!
• Hosted 2 “Consignor Only” events
• Continue to host monthly Canadian Committee conference calls.
• Canadian committee leads are joining U.S. Committee conference calls.
• Created a NEW membership enrollment process.
24. Canadian Sub-Committee Teams
•
Education and Certification
John Paonessa – Lead (GM Financial)
Gerry Corcoran - Pattison Lease
Claudio De Angelis – Foss
Steve Langdon - ADESA
Brent Burpee - CarFax
Dave Sutton
Membership Development
Doug Collis – Lead (Ford)
Marty Meadows - CarProof
Stu Ralph - North Toronto
Kathy Ward – Canadian Black Book
Press & PR
Josh Bailey – Lead (Canadian Black Book)
Stu Ralph – North Toronto
Remy Rousseau – Rousseau Publications
Industry Recognition and Rewards
Alex Johnston – Lead (Hyundai)
Larry Shred – Canadian Black Book
Richard Pasta – Kia Canada
Technology and Standards
Volunteer Needed!!!!
Don Wallace – Co-Lead (Manheim)
Kim Thomson - Porsche
Bernard de Souza - Nissan
Larry Shred – CBB
Lisa Scott – ADESA / Openlane - NAAA
25. Current & Completed Canadian Initiatives
• Post Sale Inspection standardization
– Recent panel discussion
• Disclosure & Declaration standardization
– Recent VHR panel discussion
• Monitor/provide industry input into pending provincial MVDA
legislation
– NS, SK and MB updates
• Central Repository for OEM Build Data
– New Initiative
26. Current/Completed US/Cdn Initiatives
• Multi-Platform Selling facilitation
• Internet-based resources for remarketers
• Align IARA and NAAA (Cdn) standards
– Pending NAAA (US) draft and meeting July 1, 2013
• Structural Damage Policy revisions and clarifications
– NAAA (US) draft revisions
• Used Vehicle Condition Report & Grading System
Standardization
– panel discussion
27. IARA Canadian Committee Membership
• Current Canadian membership consists of 24 companies
• Identified 28 new potential members
• Will continue to expand membership base over the
coming year.
28. 2012-2013 New Canadian Members
• ADESA / OpenLane Canada
• Ally Bank / RBC
• ARI
• BMW Canada
• Canadian Black Book
• Canadian Dealer Services
• CarFax
• CarProof
• Data Scan
• Ford of Canada
• Foss National Leasing
• GM Financial Canada
• Honda Finance Canada
• Hyundai Auto Canada
• Jim Pattison Lease
• Kia Canada, Inc.
• Manheim Canada
• Mitsubishi Canada
• Nissan Canada
• North Toronto Auction
• Pareto Corporation
• Porsche Cars Canada
• RSR Canada
29. Membership News!
• New Membership Registration - $1250 for all Members!
• Membership renewal – a predetermined date will be set
for annual renewal
• Now accepting membership dues in Canadian Dollars!
30. Membership Registration News!
Our Canadian Membership Committee will be sending all
current and prospective members an IARA membership
package which will include:
• Payment options in Canadian Dollars (invoice / online)
• Membership benefits form
• Contact info for Membership Committee
31. On behalf of the IARA
Canadian Committee
Thank You for Your
Support!
33. Certified Automotive Remarketer (CAR)
The mission of CAR is to enhance and promote the profession of Vehicle
Remarketing by providing the premier credential in the industry.
Curriculum includes 20 courses in five units:
1. Remarketing Channels
2. Pre-sale Activities
3. Actual-sale Activities
4. Post-sale Activities
5. Legal, Ethics, and Terminology
• Each module is 10-20 pages in length (great to read on planes!)
• The test are multiple choice, a score of 75% or better is required to pass
• Testing is available at industry events and throughout the country using
CAR graduates and other approved proctors
• Many recent graduates completed all 20 modules in less than 4 months!
34. Education & Certification Update
The IARA Certification program has really taken off!
120 – # of people who have taken at least one module toward certification
41 – # of companies supporting the certification process
20 – Number of companies with at least one CAR Graduate
70 – # of people who have successfully completed all 20 exams YTD
35. Certified Automotive Remarketers
2008 - Sal Terranova Carolina AA Chris Wise Charleston AA
2009 - Ricky Beggs Black Book USA Dave Sutton CARFAX
2010 - Jim Jackson ARI John Elizaga Emkay Les Lynott Emkay Mona Spoon Emkay David Thompson
Emkay Scott Braidwood ARI Steve Johnson ARI Jennifer Schade ARI Jill Tarallo Manheim/DealerTrack
Brian McBrearty ARI Dave Seher ARI Chris Slaughter ARI John Wright ARI
2011 - Brian Garner ARI Fred Walerski ARI Gus Xamplas Donlen Mike Kreider Credit Acceptance
2012 - Phillip Finley JD Byrider Stephanie Gingras DAASW Irina Toader Manheim Rob Wagner Hyundai
Bill McCready Charleston AA Laura Taylor Charleston AA Don Roccia Credit Acceptance Fred Uhter TSAA
Jeannie Chiaromonte Bank of America Randy Gold CARFAX Mike Bradley 166 Auto Auction Jackie Malik
Credit Acceptance Jiles Wanna TPC MGMNT Mark Hopkins Dealers AA Chuck Novince Manheim Scott
Kolb United Road Jackie Matejewski Credit Acceptance Diane Scharafin CARFAX Juan Spears Credit
Acceptance Rod Feuell Credit Acceptance
2013 (YTD) - Matthew Yoo CARFAX Mark Pelech Credit Acceptance Laura Westray Black Book USA
Terry Park Black Book USA Drew Smith GM Financial Steve Collins Black Book USA Bill Boutwell
Manheim-New England John McDavid Black Book USA Josh Giles Black Book USA David Heslet GM
Financial Tim West Black Book USA Heather Crawford Black Book USA Scott Yarborough Black Book
USA Eric Lawrence Black Book USA Zach Staruch Black Book USA Stacey Scarnati DAA Rockies
Michelle Noblitt DAA Rockies Charles Cathey Black Book USA Mark Simpson Black Book USA John
Carter GM Financial Joshua Hunt GM Financial Jimmy Marino GM Financial Chris Watkins GM Financial
Levi McCoy LeasePlanUSA Randall Harshman LeasePlanUSA Spence Couch MidSouth AA Stephen
"Derik" Page Black Book USA Brett Swanson Black Book USA Linda Amerman Black Book USA
36. Online Remarketing Courses
• Remarketing Orientation Courses – Online 24/7
• Delivered via Northwood University – CEU’s
• More than 150 Participants to Date
• Twelve Courses:
• Terminology
• Transportation
• VIN description
• Ethics
• Resale Channels
• Titling
• Introduction to Remarketing
• Inspections
• Reconditioning
• Guidebooks
• Technology
• Factors Affecting Values
More information regarding both programs can be found at:
www.iaraonline.org/training
38. IARA Officers
Robert Wagner, CAR
President
Levi McCoy, CAR
Vice President
Gus Xamplas, CAR
Director
Jeff Bescher
Treasurer
Mike Antich
Secretary
Bob Graham
Chairman of the Board
41. IARA Committee Chairs
Dave Alfonso
Industry Recognition
& Awards
Mike Antich
Press & Public Relations
Communication
Dave Sutton, CAR
IARA CAR Certification
Don Fowler - Membership
Development & Recruitment
Stephanie Gingras, CAR
Technology &
Social Media
Dan Heinrich - Remarketing
Industry Standards &
Vehicle Certification
Scot Kolb , CAR
Education & Conference
Management
46. Today’s Agenda
About NIADA
Benefits of Membership
NIADA Partnerships with NAAA and IAA
Membership Profile
Industry Trends
Regulatory Challenges
Auto Remarketing Challenges
Q&A
47. About NIADA
Founded in 1946
5th largest trade association in the US
Focused on:
Legislative Advocacy
Regulatory Compliance Support
Member Education
Member Services Programs
Member Consulting Services
Industry Relations
Voice of the Independent Auto Retail Industry
48. Benefits of Membership
Discounts on products & services
Legislative Advocacy
Educational Opportunities
Certified Master Dealer Program
NIADA National Convention & Expo
NIADA.TV Education Resources
NEW! Twenty Group Program
NIADA Leadership Conference
Industry News
Used Car Dealer Magazine
Annual Used Car Industry Report
NIADA Member Benefits Mailings and e-Newsletters
Business Resources
Expert advice on financing, marketing, taxes, legal matters and more.
49. NIADA Partnership with NAAA
NIADA’s Used Car Dealer Magazine and NAAA’s On the Block
Newsletter Merge.
One publication will be shared with all NAAA auctions /members and
all NIADA Dealer Members
Cost effective and efficient way to inform and educate both auctions
and used car dealers about each other’s side of the industry.
A great way to unify the remarketing industry and the dealers you do
business with everyday.
New discounted Auction Directory Listing Packages available
to all NAAA Members. Greater exposure and promotion of all
of your consignment and lane sales at auctions nationwide.
NAAA’s Annual Report will merge with NIADA’s Annual Used
Car Industry Report in 2014.
The release and availability of NAAA’s upcoming new
arbitration policies to all NIADA Dealer Members
50. NIADA & IAG Member Benefits
NIADA has recently worked with existing NIADA vendor
discount programs that were originally designed for
dealers to expand their services and provide similar
discount programs specifically for the smaller
independent auctions.
IAG and NIADA now offer excellent member benefits to
help IAG members grow their business, protect their
assets and enhance their profitability.
For a complete listing of over 20 IAG member benefit and
discount programs through NIADA, visit
www.independentauctiongroup.com and click on the
member benefits tab from the home page.
51. About our Members & the Used Vehicle Industry
Almost 38,000 Used Dealers Nationwide, according to
CNW Research. (those that sell 10+ vehicles per month)
NIADA Members represent approximately 40% of the
used vehicle retail market
14M units sold in 2012 worth $125-B dollars (CNW- 2012)
Average annual retail sales were at 370 units and at an
average price of $8,916 (CNW- 2012)
82% of NIADA dealer member inventory sourced via
auto auctions
Dealer Consignment Represented 58% of auction sales
in 2012 (NAAA 2013 Annual Report)
Diverse Membership: Used Retail Operators, BHPH
Dealers, New Car Franchise Dealers, Wholesalers
52. Industry Trends
Increased competition from new vehicle franchise
dealers. New dealers are holding onto and selling more
used units instead of sending their trades to auction.
The Non-prime auto finance market continues to expand:
57% of used vehicle retail originations reported in 2012
F&I regulatory burden is growing: items such as adverse
risk notice, red flags, risk based pricing, CFPB
actions, etc. are keeping dealers and our entire industry
on high alert.
Used vehicle demand is strong, There were 40M used
retail units sold in 2012 (CNW 2012). For every new
vehicle sold there were nearly three used sales.
53. Regulatory Issues
FTC Used Car Rule Updates: Issues NIADA is
monitoring:
Consumer groups continue to push for vehicle history data on every
buyers guide
The need for Spanish Buyers Guides
OEM warranty remaining on all Buyers Guides.
CFPB Actions: Issues NIADA is monitoring:
”Large market participants rule” effecting BHPH Dealers
2013 focus payday lenders, BHPH dealers
Adverse Risk, Risk Based Pricing, and Red Flags compliance
Rental Car Recall Vehicle Legislation
54. Member Auto Remarketing Challenges
Becoming more familiar and comfortable with the
online remarketing channels. Our Dealers still like to
go to the auctions and kick those wheels.
Dealers are looking for auctions to provide more
retail ready vehicles that they can place directly on
the front line without having to take the time and
energy to recondition them.
Finding the right market analytics tools to determine
the correct inventory levels for the right customer at
the right price
Competitive floorplan financing resources due to
heightened level of wholesale investment
69. Other Economic Drivers
Continued Monetary Stimulus If Needed
“the Committee decided
to keep the target range
for the federal funds rate
at 0 to 1/4 percent and
currently anticipates that
this exceptionally low
range for the federal funds
rate will be appropriate at
least as long as the
unemployment rate
remains above 6-1/2
percent”
70. Other Economic Drivers
Continued Monetary Stimulus If Needed
“the Committee decided
to keep the target range
for the federal funds rate
at 0 to 1/4 percent and
currently anticipates that
this exceptionally low
range for the federal funds
rate will be appropriate at
least as long as the
unemployment rate
remains above 6-1/2
percent”
71. Other Economic Drivers
Continued Monetary Stimulus If Needed
“the Committee decided
to keep the target range
for the federal funds rate
at 0 to 1/4 percent and
currently anticipates that
this exceptionally low
range for the federal funds
rate will be appropriate at
least as long as the
unemployment rate
remains above 6-1/2
percent”
79. AUCTION UNIT VOLUME
PERCENT CHANGE FROM PREVIOUS YEAR
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
1 2 3 4 1 2 3 4 1 2 3 4 1 2
2010 2011 2012 2013
Dealer Consignment Commercial Consignment Total
AuctionNet
Strong new car sales
80. AUCTION UNIT VOLUME
PERCENT CHANGE FROM PREVIOUS YEAR
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
1 2 3 4 1 2 3 4 1 2 3 4 1 2
2010 2011 2012 2013
Dealer Consignment Commercial Consignment Total
AuctionNet
Weak past new car sales
Strong new car sales
81. AUCTION UNIT VOLUME
PERCENT CHANGE FROM PREVIOUS YEAR
[VALUE]
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
1 2 3 4 1 2 3 4 1 2 3 4 1 2
2010 2011 2012 2013
Dealer Consignment Commercial Consignment Total
AuctionNet
Weak past new car sales
Strong new car sales
Strong
past new
car sales
82. Turnaround in Commercial Consignment
Adds to Strong Dealer Consignment
Millions of Units Sold
10.0
9.7 9.4 9.5 9.5 9.5
8.9
8.3
7.7 7.9
8.4
9.0
4.6%
-3.0% -2.8%
1.2%
0.3%
-0.6%
-5.9%
-7.1% -7.6%
3.3%
6%
8%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Units Sold Percent Change NAAA Survey, NAAA
83. Bottom Line
Better Times Are Ahead!
• The economic recovery will
strengthen
• Auto sales will approach past levels
• Auction volume will increase this
year and next
– And probably further on
• Auctions need to ramp up to be
able handle the increased business
84. THE ECONOMY, AUTO SALES
& AUTO AUCTIONS
Dr. Ira Silver
NAAA Economist
89. Industry shifts to customer demands
Historical Industry Shifts
1945:
First Physical
Auctions
1980s:
First Reconditioning
Centers
2003:
First Simulcast
Auctions
1990s:
Floor Planning for
Wholesale Purchases
90. 2003 2012
3,400 Buyers
41,000 Buyers
CAGR:
32%
(Source: Manheim)
Number of Buyers Purchasing Online
A 12X Increase in Ten Years
91. Number of Cars Purchased: Simulcast
(Source: Manheim)
2003 2012
43,000 cars
(Simulcast only)
553,000 cars
(Simulcast only)
CAGR:
34%
A 13X Increase in Ten Years
92. Number of Cars Purchased: Total Online
A 22X Increase in Ten Years
(Source: Manheim)
A 22X Increase in Ten Years
2003 2012
43,000 cars
(Simulcast only)
906,000 cars
(Simulcast & OVE)
CAGR:
40%
93. No. of Dealers Buying Exclusively Online
(Source: Manheim)
A 22X Increase in Ten YearsBuyers are getting more comfortable buying online
2003 2012
- 0 -
(No Dealers were
exclusively only)
10,500 Dealers
(15% of all Dealers)
94. Year
Page
Views Visits
2009 14.8M 2.9M
2012 20.0M 4.1M
OVE Dealer Traffic
Buyers are getting more comfortable buying online
(Source: Manheim)
96. The Industry Does Move!
Historical Industry Shifts
1945:
First Physical
Auctions
1980s:
First Reconditioning
Centers
2003:
First Simulcast
Auctions
1990s:
Floor Planning for
Wholesale Purchases
Mobile technology
Multi-platform
Exclusive online buying
Upstream buying
2013 shifts coming faster and faster:
NADA in litigation with FTC around risk based pricing notification on behalf of dealers around rule that requires them to send a risk based pricing notice to consumer even if they did not pull the credit. Finance Co. help to provide notices to dealers can distribute properly when finance company is pulling the credit.
FredUnemployment & capacity Utilization
Fred/ISM Mfrg & NonmfgConsulting2\Data\Primary\Major Economic Data MQA & Charts,Final ChartsM + Slack T190
