Dec. 2014 - Colorado Automobile Dealers Association

Vol. 14, Issue 12 December 2014
IN THIS ISSUE
Message from the Chair ................... page 2
Presidents Page ................................ page 4
Clear the Air Foundation ................... page 5
Regulatory & Legal Issues ................. page 6
Colorado Auto Outlook .................... page 8
ROUTE TO:
___ Owner/GM
___ Controller
___ GSM
___ Fixed Ops
___ New Car Manager
___ Used Car Manager
Chair’s Column
ACHIEVEMENTS FOR CADA IN 2014
Bill Hellman, Jr.
CADA Chair
LET US KNOW
ABOUT YOUR
GOOD NEWS!
Have you or
anyone else at
your dealership
won an award
recently? Have
you or your dealership provided
any outstanding
community
service? If so,
please send
CADA a brief
write-up of the
award or event
along with any
other information
to milestones@
coloradodealers.
org. Also include
your contact info
for further
follow-up.
2
My year as Chairman of the Colorado Automobile Dealers Association is coming to a close and it has
been a jam-packed 12 months. I’ve been especially pleased to be your chairman during this 100th anniversary year, one in which we’ve grown and accomplished much.
I’m pleased to be able to report that our financial health is strong. CADA’s assets have grown up to five
percent this year and they’ve more than doubled over the past 10 years.
Contributing to our financial success was this year’s outstanding Denver
Auto Show, held April 9-13, which posted record net revenues – an improvement of more than $240,000 over 2013. We also had the fourth highest attendance in history. The auto show kick-off events were the Green Car Convoy and Parade. The Convoy
started March 7 in Northern Colorado and made its way through the state, culminating in the Parade at
the Colorado State Capitol on April 6, featuring dozens of fuel-efficient and
alternative-fuels vehicles.
More than 260 dealers and their senior and marketing managers heard from
an outstanding lineup of presenters at the Innovative Dealer Summit, April 8th and 9th at Sports Authority Field at Mile High in Denver. We got the latest intelligence about all aspects of our business, including
advertising, digital and mobile marketing techniques, customer loyalty, service, legal issues and more.
The Charity Preview Party, with the theme of “Live and Let Drive,” held
in conjunction with IDS and the auto show, also enjoyed significant growth
in 2014 and was a record-setter all the way around. In five years the CPP has
become a popular addition to the state’s social calendar; we started at 222 guests
in 2010 and grew to 1,367 this year. We welcomed UMB Bank back as our title sponsor for the third year
and had our best-ever year overall for sponsorships. Topping it off, we were able to donate $83,241 to National Jewish Health, the Denver Post Community Foundation and the Clear the Air Foundation.
The Clear the Air Foundation, incidentally, also has had a great year. Revenue was way up and we were able to provide automotive technology scholarships to students at Lincoln College of Technology and Emily Griffith Tech School.
This year I’ve come to appreciate how wide CADA’s reach is, and what a great talent Tim and the staff
have for organizing. As a result, dealer engagement continues to increase with better involvement in our key
events.
This year’s CADA Annual Member Golf Event on July 21 had a high level of participation from our
members and secured a record level of sponsorships. This was the first time we had the golf event in July.
By the end of this year, CADA will have hosted more than 250 events at the Bill Barrow Building – all
at no cost to the various organizations that use the facility. Among the groups who have used our facility
were charitable, educational and scientific nonprofits; trade groups; professional societies; and automotive
manufacturers, regional marketing groups and dealer groups. Legislators, political candidates and campaigns; and political and legislative caucuses also gathered at our headquarters.
Politics and legislation benefiting our industry was high on CADA’s agenda again this year. We have
hosted more than 40 of our 100 state legislators in a series of Legislative Grassroots meetings across the
state, and we hope to meet another 20 to 30 in the next couple of months as we ramp up for the 2015
legislative session. We were successful in helping to enact three bills that affect our industry, including one
dealing with flood-damaged branded-title vehicles, a salvage brand bill and one that extended the tax credit
on alternative-fuels vehicles.
Dealers also took an active role in lobbying our federal lawmakers, especially on a federal mandate to
verify new vehicles complied with the Clean Air Act that required unnecessary and burdensome paperwork.
CADA’s Project DC and the NADA.
Washington Conference were among the year’s highlights for me. Several CADA members traveled to
Washington DC and personally met with our elected representatives and senators. Having an opportunity to
Colorado Automobile Dealers Association
December 2014
develop a more one-to-one relationship with them and articulate our
Colorado dealers’ issues was a meaningful experience. It offered a
glimpse of what sometimes seems like another world. Watching how
Tim connects with the lawmakers is a treat. And the city itself is just
an amazing place with so much history.
We had excellent attendance at the annual Regional Meetings
across Colorado in August and September. The CADA Board of
Directors just wrapped up a two-day strategic planning meeting in
which we took a look at the goals and set a direction for the association in the next three years. As an industry and as an Association
we’ve had good fortune in the last few years, but there are always
challenges ahead.
CADA has weathered many challenges through the years and
this year’s Annual Meeting and Gala celebrates our 100th anniversary. The association originated in 1914 as the Metropolitan Denver
Automobile Dealers Association. In 1933, the Colorado Automobile
Dealers Association was organized to protest a federal excise tax that
would have dealt a blow to their Depression-damaged businesses.
The two groups merged in 2009 and now we are 262 new car and
truck dealers strong.
The automobile business has changed a lot. Brands that thrived in
1914, such as Oldsmobile, Packard, Pierce-Arrow, and Studebaker,
are now gone, but many more have taken their place and moved
the industry forward. We continually redefine our business and our
products, while continuing with the main mission: providing reliable
and comfortable personal transportation.
To commemorate the 100 years of history the Board commissioned a book, The 100-Year Deal. This volume reproduces Bud
Wells’ extraordinary 1996 Colorado Car Book, and updates it with
information about new automotive technology, including efforts to
make our vehicles cleaners and more energy-efficient. We know that
you’ll appreciate having your own copy of The 100-Year Deal. It’s
our story and it anticipates a future full of new and exciting challenges for the automotive industry in Colorado.
I’ve thoroughly enjoyed my year as your chairman. I know I
don’t need to remind you of what a great job CADA staff do for us
every day. But CADA will always need an active and engaged dealer
membership to keep it thriving into the next 100 years.
NADA RELEASES NEW VIDEO
ON THE BENEFITS OF PRICE
COMPETITION IN AUTO RETAILING
Fierce competition among America’s franchised auto dealers benefits car buyers by driving down retail costs on both vehicle prices and financing rates, says the National Automobile
Dealers Association in a new animated video released today as
part of its “Get The Facts” initiative.
Car buyers benefit when multiple dealers compete for their
business, and because dealers have relationships with multiple
lenders they often provide car buyers with better financing
rates than they can get on their own, NADA says.
The video also addresses several misconceptions about
automotive retailing.
“Dealers see a net profit on new cars of less than 1 percent. Compare that to other goods, like furniture, which sees
margins of 40 percent or more between the factory and store,”
NADA says. “Dealers’ profits are so low because competition
forces them to drive prices down—competition that wouldn’t
exist if factories owned their own stores.”
NADA’s “Get The Facts” initiative is designed to inform
policymakers, opinion leaders and the media about the numerous benefits of the dealer franchise network through a variety
of multimedia resources and videos available at www.nada.
org/GetTheFacts.
KPA WEEKLY WEBINAR: Covers Environment & Safety or HR issues
EVERY Thursday from 10 - 11am
Time conflict? Register anyway!
If you are unable to join the webinar, please register anyway and
a recording of the webinar will be sent to you automatically.
For upcoming topics and to register: www.kpaonline.com/
webinars. Previous webinars are also available at this link!
December 2014
Colorado Automobile Dealers Association
3
President’s Page
GALA FULL OF “EXCITING AND POSITIVE ENERGY”
Tim Jackson
CADA President
UP-TO-DATE
NEWS FROM
NADA
NADA Headlines,
a compilation of the
day’s top automotive-retail stories, is
a FREE e-newsletter
published Monday
through Friday.
Along with top
stories, NADA
Headlines features
original news
content, NADA-TV
reports, links to
interviews
featuring NADA
leaders, photos,
and timely sponsor/
ad messages.
Go to www.nada.
org to sign up for
NADA Headlines
e-newsletters.
4
Were you able to attend the celebration of the century, CADA’s Annual Meeting and 100th Anniversary
Gala?
Here’s some feedback from those who did.
• When asked, “Overall, how would you rate CADA’s Annual Meeting and 100th Anniversary Gala
Celebration?” 95 percent said excellent or very good.
• When rating the 100th Anniversary Gala Celebration itself, respondents gave the event high marks
with 100 percent saying excellent or very good.
• Of those who also attended the earlier Annual meeting, 89 percent rated it excellent or very good.
• 100 percent of attendees indicated that their expectations for these events were met – or exceeded.
• And more than 85 percent of attendees said they had received all of the necessary information regarding the events prior to the celebration.
• We also found that those who attended really enjoyed the speakers we selected for the Annual Meeting with Glenn Mercer, Paul Eisenstein and Charlie Vogelheim receiving an average score of 4.4 out
of 5 indicating that all three speakers were rated good to excellent.
• As a gift for attending the gala celebration, guests received a complimentary copy of the CADA’s new commemorative book The 100
Year Deal, including the Colorado Car Book. We asked attendees
what they thought of the book, and, on a scale of 1 to 5 the book met
with resounding approval earning an average score of 4.6.
• We were thrilled to be able to host these two events at the Renaissance Downtown Denver City Center Hotel, a beautiful, new hotel
located in the former home of Colorado National Bank. We asked attendees to share their thoughts
on the location and services and the results were fantastic. Again, using a scale of 1 to 5 we found
that the hotel itself received an average rating of 4.81; the food and drink received an average rating
of 4.74; and finally, the DJ and entertainment, which received an average score of 4.45.
We also asked participants to share some open feedback in the form of comments. Here are a few that
caught my eye in particular:
• “Everything was perfect, the times were great.”
• “Exciting and positive energy.”
• “The Gala was a great place to network and connect within the industry.”
• “Great speakers, informative and entertaining. This really helped make the event. The location was
wonderful, a beautiful place that also allowed for free flowing conversation and movement. The food
was very good and the service was excellent.”
• “The auctioneer was a unique touch!”
• “First class event – great job.”
• “CADA never fails to impress! Very well done. Great idea’s for keeping it different.”
• “The Annual Meeting was great as well as the Gala. From the speakers at the Annual Meeting to the
food at the Gala, everything was great.”
• “Well done. Here’s to the next 100!”
• “Superbly well-run.”
• “Thanks for all the hard work. Couldn’t have picked a better place to be that evening.”
We certainly agree that it was a magical night – 100 years in the making. Its always fun to see many
wonderful friends join together for a night celebrating our wonderful industry, looking back fondly on the
past, paying close attention to the present and gazing ahead towards our future. If you were able to join
us, we hope you had a lot of fun, and if you weren’t able to attend, here’s to our next 100 years and a very
happy holiday season.
Tim Jackson
Colorado Automobile Dealers Association
December 2014
Clear the Air Foundation
TO DATE1260 RECYCLED CARS
The Clear the Air Foundation, created by the Colorado Automobile
Dealers Association, is reducing pollution by taking “junkers” off the
road and sending them to auto recyclers. Proceeds from this process
fund automotive scholarships for tech students, who will become future
technicians in our service departments.
The Clear the Air Foundation presents up to $50,000 a year in the
form of (20) $2500 scholarships for the next generation of auto service
technicians. So far we’ve provided several scholarships to students
attending Lincoln College of Technology and Emily Griffith School of
Opportunity.
Up to this point, Colorado’s new car dealers have stepped up to
the plate and donated the vast majority of 1200+ old cars through the
Clear the Air Foundation program that have been crushed and recycled.
We plan to finish the year strong we an all-time high of 1300 vehicles
recycled.
Please consider donating your older low-value cars to Clear the Air
Foundation. You’ll receive a tax write off and know that scrap value of
that donation will help fill your service bays.
We are challenging Colorado’s new car dealers to help CADA and
the Clear the Air Foundation crush those high emitters. Picture one of
those smoke-belching heaps…those old cars that force you to switch
the air to recirculate when you’re stuck behind them, and then imagine
the benefits of getting them off the road.
Together we can do this! Our campaign is a gift for the next generation that we all can celebrate today. It also benefits us as dealers and
our policy objectives at the Colorado Capitol. Send us those high emitters now. It is easy to donate. Simply contact George Billings, Clear
the Air Foundation Coordinator, at george.billings@coloradodealers.
org or by calling 303.775.8896. George will take it from there.
Todd Maul
Clear the Air Foundation, Chairman
Donating high-emitting cars is easy!
Contact George Billings for details
at 303.775.8896 or email
[email protected]
December 2014
Top Donation Leaders:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Christopher’s Dodge World: 35
Longmont Ford: 27
Suss Buick GMC: 20
Shortline Automotive: 16
Public/consumer donations: 15
Bighorn Toyota: 13
Dellenbach Motors: 12
Planet Hyundai: 11
Kuni Honda: 11
Planet Honda: 10
AutoNation Chevrolet North: 10
The Faricy Boys Chrysler Jeep: 9
Hellman Motor Co: 7
Glenwood Springs Ford: 6
Medved Chevrolet Wheat Ridge: 6
Ralph Schomp Honda: 6
Larry H. Miller CJDR: 5
Emich Chevrolet: 5
AutoNation Honda 104th: 5
Pueblo Dodge Chrysler Jeep: 5
Courtesy Acura: 5
1300
1260
650
0
Colorado Automobile Dealers Association
We need
YOUR car
donations
to reach our
next GOAL,
1300 cars!
5
Regulatory & Legal Issues
REMINDER OF STATE $2 DAILY FEE
ON VEHICLE RENTALS
Since mid-2009, the state of Colorado has imposed a $2.00 daily
fee on vehicle rentals. The guidance publication at that time noted
that rentals were exempt if “complimentary’. Subsequently, the question was asked whether this daily fee would apply when the dealer is
being reimbursed by the manufacturer or other warranty provider for
a daily rental charge. The answer from the state Department of Revenue was YES – the $2.00 daily fee applies when there is a charge
levied for the daily rental even if it is not the end-consumer that pays
the daily rental car charge.
Visit www.cadaopenroad.org Dec. 2 issue
for the latest state publication on this rental fee
and the filing/return form.
EMPLOYMENT LAW CHANGES FOR 2015
The MSEC Bulletin, Dec. 2014
This article briefly summarizes federal and state
law changes and emerging trends in employment law
for 2015. State information is included for Arizona,
Colorado, Montana, New Mexico, and Wyoming.
• Federal healthcare reform re-cap.
• Colorado’s minimum wage rate will increase to $8.23 per
hour as of January 1, 2015.
• Wage Protection Act – Colorado. This law authorizes the
director of the CO Department of Labor and Employment
to establish an administrative procedure to adjudicate wage
claims of $7,500 or less and issue citations and notices of assessments for the amounts due. Employers also face potential
fines and penalties and are subject to additional recordkeeping
requirements.
• Civil Rights Remedies – Colorado. Amendments to the Colorado Antidiscrimination Act (CADA) expanding the remedies
available to successful plaintiffs go into effect for claims filed
on or after January 1, 2015. Employees will be able to recover
front pay, compensatory damages, punitive damages, and attorney’s fees.
• Workers’ Compensation – Colorado. Beginning April 1, 2015,
Colorado employers must increase the number of physicians
they designate for on-the-job injuries from two to four.
Visit www.cadaopenroad.org Dec. 2 issue
for the complete article.
EMISSION INSPECTION
CHANGES FOR 2015
On January 2, 2015, several changes to the emission inspection
program for gasoline-powered vehicles go into effect. Key changes
include:
• Exemptions for new vehicles will increase from four (4) to
seven (7) model years. New vehicles are staying cleaner for
longer. The failure rate for vehicles in this age range is 0.4%,
or an average of one failure out of every 250 vehicles inspected. Exempting additional model years will keep lines shorter
at inspection stations while continuing to protect air quality.
Example: a 2011 vehicle won’t need an inspection until 2018.
• Vehicles that are eight (8) through eleven (11) years old*
will need their “On-Board Diagnostic (OBD)” computer
systems checked. *** If the “Check Engine” light is
turned on, then these vehicles will fail the inspection
and need repairs***
*This will apply to vehicles from model years 2005 through
2008 in 2015 when the changes take effect.
• Hybrid vehicles that are eight (8) years and older will now
require inspections. Starting in 2015, model year 2008 and
older hybrid vehicles will be inspected to make sure they are
running clean. Hybrid vehicles will only need an OBD check,
and will not be run on the dynamometer.
It will be important for dealers to understand these changes when
taking trade-ins. As a reminder, dealers must provide a passing emissions test or an emissions voucher at the time of sale for vehicles that
require testing and will be registered in the emissions program areas.
Note that fees will remain the same and the diesel testing program is not affected.
Visit www.cadaopenroad.org Dec. 2 & Dec. 9
issues for more information on these changes.
BE INFORMED...STAY INFORMED...WITH THE OPEN ROAD
To stay current with dealer news, management alerts, upcoming seminar and event details, legislative status reports, regulatory updates, industry news and trends, local dealer milestones, and other important items, make sure you are receiving the
weekly Open Road e-newsletter. To sign up for this FREE service, go to www.cadaopenroad.org
6
Colorado Automobile Dealers Association
December 2014
Federated Insurance and the
Colorado Automobile Dealers
Association recently sponsored
a risk management seminar
for business owners and key
employees like you. The seminar
focused on topics and resources
vital for having a first-rate
risk management culture
in place, including:
t.73T%SJWFST4UBOEBSET
t%JTUSBDUFE%SJWJOH
t)JSJOH4DSFFOJOHBOE
3FUBJOJOHø&NQMPZFFT
t.BOBHJOHUIF6MUJNBUF3JTL
#VTJOFTT4VDDFTTJPO1MBOOJOH
t"VUPNPCJMF%FBMFSTIJQ
$MBJNTø)BOEMJOH
t&NQMPZNFOU3FMBUFE
1SBDUJDFTø-JBCJMJUZ
t*NQMFNFOUJOHB%SVHBOE
"MDPIPM'SFF8PSLQMBDF
Attendees were given hands-on
strategies to implement risk management practices at their
businesses. Implementing these
practices can create many
business advantages, including
a safer work environment and
improved financial results.
Attendees of the DesignatedNeed
Risk Manager
Seminarfor
on November
12, 2014
Stuff
this Page!
Front Row (L to R):
Nina Jenkins—McDonald
Automotive Group
Becky Quade—McDonald
Automotive Group
Don McMillan—Hellman
Motor Company
Becky Eubank—John Elway
Chevrolet
Gillian Baker—John Elway
Chevrolet
Cathi Trippe—Phil Long Dealerships
Ron Ellis—Flower Motor Co., Inc.
Gary Smith—Davey Coach
Sales, Inc.
Back Row (L to R):
Karin Brumbaugh—Perkins Motor
Company, Inc.
Jon Jablkowski—Mike Ward Infiniti
Tim Bergman—Montrose Ford
Lincoln Mercury, Inc.
Wesley Abbott—Montrose Ford
Lincoln Mercury, Inc.
Paul Nichols—New Country
Cortez, Inc.
Nicholas Paoli—Phil Long
Dealerships
Scott Arnold—Phil Long Dealerships
Jeff Weatherman—Davey Coach
Sales, Inc.
Arthur Erwin—Christopher’s Dodge
World, Inc.
Brian Roussel—Federated Insurance
Laramie Sandquist—
Federated Insurance
Not Pictured:
Mike Russell—Federated Insurance
“This seminar proved to be a good
wake-up call on several issues.”
erships
l
a
e
D
o
t
Au
s at a
e
g
a
t
n
a
eminar
v
S
d
r
A
e
g
n
i
a
a
n
G
sk Ma
i
R
d
e
t
a
Design
December 2014
Colorado Automobile Dealers Association
AD-488eCADA Ed. 12/14 *Not licensed in the states of NH, NJ, and VT. © 2014 Federated Mutual Insurance Company
7
Colorado Auto Outlook
Released: November 2014
Covering data thru October 2014
Colorado Auto Outlook
Sponsored by:
TM
Comprehensive information on the Colorado automotive market
Quick Facts
Colorado new
vehicle registrations
were essentially unchanged in October
‘14 vs. 2013.
New registrations in
the state during the
first ten months of
this year increased
7.1% compared to
a year earlier.
Used vehicle market was off 2.2% in
October 2014 (vehicles seven years
old or newer), and
improved 4.4%,
year-to-date.
Three year old
vehicle market
share increased
2.9 share points.
Jeep, Mitsubishi, Lexus, Audi,
Porsche, and
Ram new vehicle
registrations each
increased more
than 19% so far
this year.
Data measures new
vehicle registrations in the state.
Monthly recording
of registrations occurs when the data
is processed by the
DMV.
Percent Change in Colorado New and Used Retail Light Vehicle Registrations
(Used registrations only include vehicles seven years old or newer)
20.0%
15.0%
8.4%
10.0%
7.1%
5.4%
4.4%
5.0%
New
Used
0.0%
-5.0%
-0.4%
-10.0%
-2.2%
Oct '14 v.
Oct '13
Aug '14 thru Oct '14 v.
Aug '13 thru Oct '13
YTD '14 thru Oct v.
YTD '13 thru Oct
Colorado New and Used Vehicle Markets Summary
(Used registrations only include vehicles seven years old or newer)
Previous Three Months
Retail New Vehicle Registrations
Retail Used Vehicle Registrations
Aug '13 thru
Oct '13
48,657
Aug '14 thru
Oct '14
52,767
Percent
Change
8.4%
Aug '13 thru
Oct '13
47,403
Aug '14 thru
Oct '14
49,985
Percent
Change
5.4%
Cars
Light Trucks
19,733
28,924
20,650
32,117
4.6%
11.0%
21,643
25,760
22,504
27,481
4.0%
6.7%
Detroit Three Brands
European Brands
Japanese Brands
Korean Brands
18,388
5,344
21,721
3,204
20,226
5,297
23,831
3,413
10.0%
-0.9%
9.7%
6.5%
22,260
4,885
17,341
2,917
23,842
5,521
17,415
3,207
7.1%
13.0%
0.4%
9.9%
Total
YTD thru October
Retail New Vehicle Registrations
Retail Used Vehicle Registrations
YTD
2013
146,012
YTD
2014
156,441
Percent
Change
7.1%
YTD
2013
143,999
YTD
2014
150,399
Percent
Change
4.4%
Cars
Light Trucks
60,010
86,002
61,246
95,195
2.1%
10.7%
65,897
78,102
67,502
82,897
2.4%
6.1%
Detroit Three Brands
European Brands
Japanese Brands
Korean Brands
55,721
16,126
64,414
9,751
60,144
16,215
69,968
10,114
7.9%
0.6%
8.6%
3.7%
68,840
14,934
51,603
8,622
70,934
16,270
53,310
9,885
3.0%
8.9%
3.3%
14.6%
Total
Data Information
All data represents new and used vehicle retail registrations in Colorado and excludes fleet and wholesale transactions. Used vehicle data only includes vehicles
seven years old or newer and excludes private party transactions. Please keep in mind that monthly registration figures can occasionally be subject to fluctuations,
resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the year-to-date
figures will typically be more reflective of market results. Green shaded areas in tables represent the top ten ranked brands.
Data Source: AutoCount data from Experian Automotive.
8
Colorado Automobile Dealers Association
December 2014
Colorado Auto Outlook
Page 2
Colorado Auto Outlook
New Vehicle Market Brand Registrations
Colorado New Retail Car and Light Truck Registrations
Three Month Period
Aug '14 thru Oct '14
October
Colorado
TOTAL
Acura
Audi
BMW
Buick
Cadillac
Chevrolet
Chrysler
Dodge
Fiat
Ford
GMC
Honda
Hyundai
Infiniti
Jaguar
Jeep
Kia
Land Rover
Lexus
Lincoln
Mazda
Mercedes
MINI
Mitsubishi
Nissan
Porsche
Ram
smart
Subaru
Tesla
Toyota/Scion
Volkswagen
Volvo
Other
YTD
Market Share (%)
YTD thru October
Colorado
Colorado
Colorado
2013
15,846
2014
15,782
% chg.
-0.4%
2013
48,657
2014
52,767
% chg.
8.4%
2013
146,012
2014
156,441
% chg.
7.1%
2013
2014
Chg.
158
239
254
152
126
1,219
133
397
35
1,899
455
1,361
490
98
11
1,020
538
76
296
52
396
218
80
47
1,036
39
612
9
1,585
22
2,114
610
60
9
153
292
256
132
96
1,250
104
396
11
1,945
456
1,269
447
101
8
1,081
502
54
287
61
335
187
66
70
1,070
47
648
11
1,673
7
2,236
466
56
9
-3.2%
22.2%
0.8%
-13.2%
-23.8%
2.5%
-21.8%
-0.3%
-68.6%
2.4%
0.2%
-6.8%
-8.8%
3.1%
-27.3%
6.0%
-6.7%
-28.9%
-3.0%
17.3%
-15.4%
-14.2%
-17.5%
48.9%
3.3%
20.5%
5.9%
22.2%
5.6%
-68.2%
5.8%
-23.6%
-6.7%
0.0%
590
731
902
440
376
3,819
359
1,283
114
5,748
1,332
4,175
1,543
305
38
2,903
1,661
233
914
168
1,079
663
297
142
3,137
130
1,865
33
4,946
93
6,433
1,957
227
21
515
953
955
468
319
3,939
351
1,335
68
6,373
1,438
4,139
1,698
307
33
3,643
1,715
232
1,103
205
1,273
710
270
218
3,393
178
2,116
36
5,524
39
7,358
1,649
177
37
-12.7%
30.4%
5.9%
6.4%
-15.2%
3.1%
-2.2%
4.1%
-40.4%
10.9%
8.0%
-0.9%
10.0%
0.7%
-13.2%
25.5%
3.3%
-0.4%
20.7%
22.0%
18.0%
7.1%
-9.1%
53.5%
8.2%
36.9%
13.5%
9.1%
11.7%
1,721
2,262
2,952
1,304
1,131
11,246
1,103
4,229
373
18,367
3,970
12,335
4,868
901
74
8,512
4,883
704
2,658
547
2,877
2,116
913
526
9,317
398
5,165
136
14,745
144
19,095
5,434
707
299
1,825
2,754
3,204
1,378
1,010
11,747
960
4,116
286
18,741
4,453
11,906
5,006
1,044
100
10,873
5,108
762
3,283
537
3,384
2,417
748
671
10,264
477
6,190
110
16,923
139
20,665
4,663
588
109
6.0%
21.8%
8.5%
5.7%
-10.7%
4.5%
-13.0%
-2.7%
-23.3%
2.0%
12.2%
-3.5%
2.8%
15.9%
35.1%
27.7%
4.6%
8.2%
23.5%
-1.8%
17.6%
14.2%
-18.1%
27.6%
10.2%
19.8%
19.8%
-19.1%
14.8%
1.2
1.5
2.0
0.9
0.8
7.7
0.8
2.9
0.3
12.6
2.7
8.4
3.3
0.6
0.1
5.8
3.3
0.5
1.8
0.4
2.0
1.4
0.6
0.4
6.4
0.3
3.5
0.1
10.1
0.1
13.1
3.7
0.5
0.2
1.2
1.8
2.0
0.9
0.6
7.5
0.6
2.6
0.2
12.0
2.8
7.6
3.2
0.7
0.1
7.0
3.3
0.5
2.1
0.3
2.2
1.5
0.5
0.4
6.6
0.3
4.0
0.1
10.8
0.1
13.2
3.0
0.4
0.1
0.0
0.2
0.0
0.0
-0.1
-0.2
-0.1
-0.3
-0.1
-0.6
0.1
-0.8
-0.1
0.1
0.0
1.1
-0.1
0.0
0.3
0.0
0.2
0.1
-0.1
0.1
0.2
0.0
0.4
0.0
0.7
0.0
0.1
-0.7
-0.1
-0.1
14.4%
-15.7%
-22.0%
76.2%
8.2%
-14.2%
-16.8%
-63.5%
Change in New Vehicle Segment Market Share - YTD 2014 thru October v. YTD 2013
Change in market share
3.0
2.0
1.0
1.8
0.5
0.3
0.3
0.2
0.2
0.1
0.1
0.1
0.0
0.0
0.0
-1.0
0.0
-0.1
-0.1
-2.0
-0.1
-0.3
-0.3
-0.6
-0.8
-1.5
-3.0
Data Source: AutoCount data from Experian Automotive.
December 2014
Colorado Automobile Dealers Association
9
Colorado Auto Outlook
Released: November 2014 (covering October 2014 data)
Page 3
Used Vehicle Market Brand Registrations (only includes vehicles seven years old or newer)
Colorado Used Retail Car and Light Truck Registrations
October
TOTAL
Acura
Audi
BMW
Buick
Cadillac
Chevrolet
Chrysler
Dodge (incl. Ram)
Ford
GMC
Honda
Hummer
Hyundai
Infiniti
Jaguar
Jeep
Kia
Land Rover
Lexus
Lincoln
Mazda
Mercedes
Mercury
MINI
Mitsubishi
Nissan
Pontiac
Porsche
Saab
Saturn
Subaru
Suzuki
Toyota/Scion
Volkswagen
Volvo
Other
2013
15,647
194
245
325
126
197
1,729
334
1,134
1,878
470
948
51
499
181
5
935
490
96
305
100
328
233
55
79
116
1,117
146
37
27
123
739
113
1,738
400
128
26
2014
15,307
192
277
400
167
182
1,762
277
1,160
2,064
504
761
28
468
209
10
873
433
77
296
95
291
271
34
87
87
1,094
112
37
16
90
804
73
1,532
405
114
25
% chg.
-2.2%
-1.0%
13.1%
23.1%
32.5%
-7.6%
1.9%
-17.1%
2.3%
9.9%
7.2%
-19.7%
-45.1%
-6.2%
15.5%
100.0%
-6.6%
-11.6%
-19.8%
-3.0%
-5.0%
-11.3%
16.3%
-38.2%
10.1%
-25.0%
-2.1%
-23.3%
0.0%
-40.7%
-26.8%
8.8%
-35.4%
-11.9%
1.3%
-10.9%
-3.8%
Three Month Period
YTD thru October
Aug '14 thru Oct '14
2013
2014
% chg.
2013
2014
% chg.
47,403 49,985
5.4% 143,999 150,399
4.4%
613
659
7.5%
1,859
2,126
14.4%
686
789
15.0%
2,063
2,408
16.7%
997
1,311
31.5%
3,231
3,893
20.5%
372
523
40.6%
1,180
1,463
24.0%
586
676
15.4%
1,764
2,058
16.7%
5,286
5,717
8.2% 16,695 16,999
1.8%
1,054
918 -12.9%
3,327
2,953 -11.2%
3,431
3,711
8.2% 10,737 11,372
5.9%
5,971
6,646
11.3% 18,164 19,570
7.7%
1,390
1,609
15.8%
4,070
4,717
15.9%
2,768
2,604
-5.9%
7,927
8,168
3.0%
134
85 -36.6%
438
246 -43.8%
1,475
1,736
17.7%
4,513
5,247
16.3%
500
662
32.4%
1,431
1,793
25.3%
26
27
3.8%
76
76
0.0%
2,731
2,852
4.4%
8,261
8,177
-1.0%
1,442
1,471
2.0%
4,109
4,638
12.9%
272
269
-1.1%
812
762
-6.2%
894
903
1.0%
2,807
2,728
-2.8%
305
316
3.6%
967
964
-0.3%
1,048
940 -10.3%
3,225
2,973
-7.8%
723
843
16.6%
2,250
2,541
12.9%
167
126 -24.6%
478
397 -16.9%
256
304
18.8%
759
865
14.0%
356
306 -14.0%
1,273
994 -21.9%
3,389
3,670
8.3% 10,546 11,051
4.8%
451
365 -19.1%
1,586
1,085 -31.6%
116
113
-2.6%
391
349 -10.7%
71
53 -25.4%
257
138 -46.3%
382
298 -22.0%
1,173
931 -20.6%
2,231
2,476
11.0%
6,136
7,271
18.5%
326
232 -28.8%
984
739 -24.9%
5,211
4,959
-4.8% 15,389 15,453
0.4%
1,299
1,347
3.7%
3,839
3,924
2.2%
365
341
-6.6%
1,052
1,010
-4.0%
79
128
62.0%
230
320
39.1%
YTD
Market Share (%)
2013
2014
Chg.
1.3
1.4
2.2
0.8
1.2
11.6
2.3
7.5
12.6
2.8
5.5
0.3
3.1
1.0
0.1
5.7
2.9
0.6
1.9
0.7
2.2
1.6
0.3
0.5
0.9
7.3
1.1
0.3
0.2
0.8
4.3
0.7
10.7
2.7
0.7
0.2
0.1
0.2
0.3
0.2
0.1
-0.3
-0.3
0.1
0.4
0.3
-0.1
-0.1
0.4
0.2
0.0
-0.3
0.2
-0.1
-0.1
0.0
-0.3
0.1
-0.1
0.0
-0.2
0.0
-0.4
0.0
-0.1
-0.2
0.6
-0.2
-0.4
-0.1
-0.1
0.1
1.4
1.6
2.6
1.0
1.4
11.3
2.0
7.6
13.0
3.1
5.4
0.2
3.5
1.2
0.1
5.4
3.1
0.5
1.8
0.6
2.0
1.7
0.3
0.6
0.7
7.3
0.7
0.2
0.1
0.6
4.8
0.5
10.3
2.6
0.7
0.2
Change in Used Vehicle Market Share by Age of Vehicle
YTD 2014 thru October v. YTD 2013
4.0
2.9
Change in market share
2.0
2.0
1.8
0.2
0.0
-0.1
-2.0
-0.5
-0.8
-4.0
Three year old vehicle market share has increased,
while five year old share is down sharply
-6.0
-5.7
-8.0
-10.0
3 yrs. old
4 yrs. old
2 yrs. old
7 yrs. old
1 yr. old
6 yrs. old
< 1 yr.
5 yrs. old
Data Source: AutoCount data from Experian Automotive.
10
Colorado Automobile Dealers Association
December 2014
Colorado Auto Outlook
Page 4
Colorado Auto Outlook
New Vehicle Market Percent Change in Brand Registrations
YTD 2014 thru October v. YTD 2013
(Top 30 selling brands)
Jeep
27.7%
Mitsubishi
27.6%
Lexus
23.5%
Audi
21.8%
Porsche
19.8%
Ram
19.8%
Mazda
17.6%
Infiniti
15.9%
Subaru
14.8%
Mercedes
14.2%
GMC
12.2%
Nissan
10.2%
BMW
8.5%
Land Rover
8.2%
Toyota/Scion
8.2%
Acura
6.0%
Buick
5.7%
4.6%
Kia
4.5%
Chevrolet
2.8%
Hyundai
2.0%
Ford
-1.8%
Lincoln
-2.7%
Dodge
-3.5%
Honda
-10.7%
Cadillac
-13.0%
Chrysler
-14.2%
Volkswagen
-16.8%
Volvo
-18.1%
MINI
Fiat
-23.3%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Percent change in registrations
Data Source: AutoCount data from Experian Automotive.
Colorado Auto Outlook
Published for:
Colorado Automobile Dealers Association
290 East Speer Boulevard
Denver, CO 80203
Phone: 303-831-1722
Published by:
Auto Outlook, Inc.
PO Box 390
Exton, PA 19341
Phone: 800-206-0102
Email: [email protected]
Copyright Auto Outlook, Inc.,
November 2014
December 2014
Colorado Auto Outlook is distributed free of
charge to all members of Colorado Automobile
Dealers Association. The publication is sponsored and supported by CADA.
8EJN<IJ;I@M<I<JLCKJ%
Colorado Auto Outlook is published and edited
by Auto Outlook, Inc., an independent automotive
market research firm. Opinions in Colorado Auto
Outlook are solely those of Auto Outlook, Inc.,
and are not necessarily shared by CADA.
You need insights into your marketplace to make the best
decisions to maximize profits. The AutoCount® Dealer
Report analyzes full details on new and used competitive
dealer market share, down to specific areas you define.
You bring the questions. We’ll bring the answers.
Experian Automotive is the data provider for
Colorado Auto Outlook.
Colorado Automobile Dealers Association
11
NADA Director’s Message
NEW STUDY DISCREDITS CFPB’S FAIR CREDIT TESTING METHOD
A new comprehensive study of more than 8.2 million auto loan contracts by the consulting firm Charles
River Associates concluded that the proxy method used by the Consumer Financial Protection Bureau to
measure for unintended discrimination in an auto lender’s portfolio is “conceptually flawed” and “inherently unreliable.”
The peer-review study, Fair Lending: Implications for the Indirect Auto Finance Market, commissioned
by the American Financial Services Association and released on November 19, found significant bias and
high error rates.
The CFPB, which issued its guidance in March 2013, has used a proxy method to support claims of
unintended discrimination against—and extract settlements from—auto lenders and to pressure auto lenders
to change the way they compensate dealers for originating finance contracts.
The study found that the CFPB’s methodology frequently misidentified the background of consumers
and dramatically overestimated differences in dealer reserve paid by different groups of consumers. For
Jeff Carlson
example, the CFPB’s method overestimates African-American borrowers by 41 percent.
Glenwood Springs Ford
The study also concluded that the CFPB’s examination of differences in dealer reserve at the portfolio
Colorado NADA
level is meaningless because it fails to account for legitimate reasons for pricing differences at the retail level.
Director
Dealers have also offered up an optional program that addresses fair credit risks. Based on a fair credit
risk mitigation model developed by the U.S. Department of Justice in 2007 to resolve fair credit investigations of two dealers, NADA released its comprehensive Fair Credit Compliance Policy & Program in January 2014.
When implemented, NADA’s program documents instances when dealers discount interest rates and ensures the discounts are for legitimate
business reasons, like meeting a competing finance offer. Rather than require costly and inaccurate statistical testing, the program controls for
risk on the front end of the transaction.
Many dealers, including several large dealer groups, have implemented the program.
Meanwhile, the CFPB has repeatedly failed to fully respond to questions from Congressional Democrats and Republicans urging disclosure
of its testing methodology, which is lacking in the bureau’s guidance.
Based on this and other flaws in the guidance, 146 members of Congress—which includes 90 Republicans and 56 Democrats—have cosponsored legislation in the U.S. House of Representatives to rescind the CFPB’s 2013 guidance.
The bill, H.R. 5403, co-sponsored by Reps. Marlin Stutzman (R-Ind.) and Ed Perlmutter (D-Colo.), also requires transparency and public
input prior to the issuance of future CFPB guidance on auto lending. For more information, visit www.nada.org/cfpb.
Moving forward, the federal government should consider promoting broad industry adoption of NADA’s fair credit program, which addresses fair credit risks at the retail level while preserving competition in the marketplace.
‘Engage’ in New Opportunities - Rising car sales are leading the economic recovery. Dealers
are hiring. And for the first time since the Great Recession, new-car dealerships across the country now
employ more than 1 million people.The forecast this year calls for sales of about 16.4 million new cars and
light trucks. Next year, the forecast is even brighter with sales of nearly 16.8 million new vehicles.
NEWS
Reports
NADA Statement on New NHTSA Search Tool for Vehicle Recalls - To improve
vehicle safety, NADA urges every car owner who receives a recall notice from a manufacturer to visit his
or her local new-car dealership to have the vehicle inspected, and if necessary, fixed at no charge.
Used-Car Prices Will Fall, but Gradually - Taking current market trends into consideration,
NADA expects used-vehicle prices to finish the year roughly on par with 2013, before dropping by 3.5 percent to 4 percent in 2015 and 2016. Notable, yes, but even with the cumulative 8 percent decline factored in,
prices will still be well above levels recorded in the decade and half leading up to the last recession.
For the full articles on these and other NADA news stories,
please go online to www.NADA frontpage.com
12
Colorado Automobile Dealers Association
December 2014
Colorado’s Only
GUARANTEED Lead Provider.
Connecting more Colorado
buyers and sellers!
Only ColoradoDrives.com offers the cost
per sale you want. Spend less than Cars.
com and AutoTrader.com and get more with
ColoradoDrives.com. More guaranteed leads.
More listings next to free private party ads
and more local traffic than any other website.
And never pay for vehicle placement again.
To list your inventory call Justin Becker at 303-954-1024
or email [email protected].
THE ONE-STOP DIGITAL AD SOLUTION FOR AUTO DEALERS
Search
Re-Targeting
Reach Colorado’s largest online audience
and extend your reach across the largest
digital ad exchanges with The Denver Post
and AdTaxi Networks. Our multi-platform
solutions include search, social and display
advertising, plus targeting across channels,
locations and behaviors.
Targeted Display
Social Media
December 2014
The Denver Post and
AdTaxi Networks.
PAID ADVERTISEMENT
For more information contact
Roger Baggett at
303-954-2524 or email
[email protected]
Colorado Automobile Dealers Association
13
CADA Board of Directors, Committee & Foundation Chairs and Staff
OFFICERS
Mike Cimino
Phil Long Ford Lincoln
Colorado Springs – District #8
Chair of the Board
Bill Hellman
Hellman Motor Co., Delta
Vice Chair
Thom Buckley
Red Noland Auto Group, Colorado Springs
Treasurer
Fletcher Flower
Flower Motor Co., Montrose
Jeremy Hamm
Solon Automotive
Pueblo – District #9
Pat Murphy
Morehart Murphy Regional Auto Center
Durango – District #10
Ross Turner
Turner Automotive
Montrose – District #11
Secretary
Ed Dobbs
Land Rover Flatirons, Superior
Immediate Past Chair
John Carroll
Ed Carroll Motor Co., Fort Collins
Ryan Ramsay
Summit Ford
Silverthorne – District #12
DIRECTORS
Jeff Carlson
Glenwood Springs Ford
Colorado NADA Director
At-Large Director
Herm Brocksmith
Kuni Honda
Centennial – District #1
Todd Maul
John Elway Chevrolet
Chair – Clear the Air Foundation
Anthony Brownlee
Land Rover Denver
Littleton – District #2
Ray Reilly
Larry H. Miller Chrysler Jeep Dodge Ram
Thornton – District #3
COMMITTEE &
FOUNDATION CHAIRS
CADA STAFF
President
Tim Jackson, CAE, CMP
[email protected]
303.282.1448
Vice President
Tammi L. McCoy
[email protected]
303.282.1449
Chief Operating Officer
Marsha Temple
[email protected]
303.457.5123
Communications & Marketing Manager
Trainor Walsh
[email protected]
303.831.1722
Bond Coordinator
Linda Toteve
[email protected]
303.457.5122
Member Services Coordinator
Kim Harrison
[email protected]
303-831-1722
Insurance Services - Account Manager
Deb Lay
[email protected]
303.282.1453
CELEBRATING 100 YEARS
Anthony Banno
Stevinson Lexus of Frederick
Frederick – District #4
Christina Dawkins
Co’s BMW Center
Ft. Collins – District #5
Phil Marzolf
Ehrlich Vehicles, Inc.
Greeley – District #6
Donnie Chrismer
Korf Continental Sterling, Inc.
Sterling – District #7
John Medved
Medved Chevrolet Cadillac North
Chair - Legislative Policy Committee
Todd Maul
John Elway Chevrolet
Chair – Clear the Air Foundation
Gregg Stone
Kuni Lexus of Greenwood Village
Chair – Denver Auto Show
Stephen T. Zeder
Bighorn Toyota
Chair – Member Services Committee
Field Services Manager
Polly Penna
[email protected]
303.457.5119
Clear the Air Foundation
Program Coordinator
George Billings
[email protected]
303.775.8896
Administrative Assistant
Khorrie Luther
[email protected]
303.457.5117
William D. Barrow Building • CADA Headquarters
290 E. Speer Blvd. • Denver, CO 80203
Phone: 303.831.1722 • Fax: 303.831.4205
Website: www.coloradodealers.org
14
Colorado Automobile Dealers Association
December 2014
umb.com
Count
on more.
UMB is proud to be a continuing sponsor of the
Charity Preview Party at the Denver Auto Show,
and to bring more than 100 years of integrity, honesty
and steady growth to support Colorado Automobile
dealers. Whether it is commercial lending, floor
planning, lines of credit, acquisitions or real estate
loans, you can count on more from our Commercial
Lending team to help you drive your business.
December
2014
Member FDIC
Automobile
PAIDColorado
ADVERTISEMENT
Contact
Craig Fales
Senior Vice President
Commercial Lending
303.839.2213
Dealers Association
15
For the most current list of other on-going CADA seminars and events,
please visit the online calendar at www.coloradodealers.org/calendar
EVENT DESCRIPTION
DATE/TIME
WEBINAR: All Dealership Mgrs: How
to Coach Your Team to Success
WEBINAR: Internet Ups: Guiding Prospects from Email to Phone to Showroom
KPA Webinar: EH&S or HR Webinar
Online/Ongoing
Thursday, Dec. 18
at 11 am
Tuesday, Jan. 27
at 11 am
Every Thursday
at 10-11 am
LOCATION/INFORMATION
To register for any of these online
training webinars or to access archived sessions, go online to www.
coloradodealers.dealersedge.com
For more information go to
www.kpaonline.com/webinars
CADA ONLINE TRAINING CENTER
For dealerships serious about providing excellent training opportunities for all of their management team members. All live and
recorded sessions available via the new VIP Season Ticket with training for the entire management team at a low yearly fee. At the
low intro rate, you can train up to 10 of your managers for less than $8.35 per manager, per month! Access to all 45 NEW and live
DealersEdge® webinars throughout the year including:
- Total Access for up to 10 members of your team
- Access to online archives of more than 3,500
- Access to all archived training recordings (60-100 available)
- Emailed Best Practice and Case Study Reports
Call Jim Muntz at 800.321.5312, Ext. 801, or email [email protected]
LET US KNOW
ABOUT YOUR
GOOD NEWS!
Have you or
anyone else at
your dealership
won an award
recently?
Have you or
your dealership
provided any
outstanding
community
service? If so,
please send
CADA a brief
write-up of the
award or event
along with any
other information
to milestones@
coloradodealers.
org. Also include
your contact
information for
further follow-up.
WE DELIVER BUSINESS
FOR THE TENS OF THOUSANDS WHO ATTEND, the Denver Auto Show is the most efficient means
of conveniently comparing several makes and models of vehicles at one time...in one place...before making
an informed buying de-cision. The Denver Auto Show attracts not only car buffs looking for new concepts
and prototypes, but the public who plan to buy a new car, van or
light truck in the up-coming year, as well as families looking for
entertainment.
THE ALLIED SEGMENT includes specialty and limited production vehicles, handicapped access vehicle and assist op-tions,
van conversions, motorcycles and 4x4 truck accesso-ries, conversion options and equipment.
APRIL 8-12, 2015
THE ACCESSORY SEGMENT of the Show includes everything attendees would use to complement their new car purchase experience...from waxes and polishes, oils
and lubricants, tire and wheel companies, alarm and sound sys-tems to car and truck restyling, performance
upgrades, mo-bile electronics and garage installations.
RECOGNIZED AS THE MOST OUTSTANDING and comprehensive new vehicle showcase, the Denver
Auto Show is the perfect place to expand your market reach.
YOU’LL BUILD PROFITS and add to your customer base, generating revenue both on-site and long after
the Show is over by meeting face-to-face with one of the largest car and truck enthusiast audiences assembled
in one place!
RESERVE YOUR SPACE! Contact Rich Casey:
781-343-1474 or [email protected]
STATE RESOURCES
• Auto Industry Division: 303.205.5746, www.colorado.gov/revenue/AID
• Titles/Registration: 303.205.5608, www.colorado.gov/revenue/dmv (Select “Title - Register a Vehicle” link)
• Department of Revenue Taxation: www.colorado.gov/revenue/tax
• Latest Sales & Use Tax Rate Summary: www.coloradodealers.org/DR1002
Bulletin questions or comments? If you have questions about items in this newsletter or suggestions for future
articles, please contact Marsha Temple at 303.457.5123 or e-mail to [email protected].
DISCLAIMER: CADA IS NOT AUTHORIZED TO DISPENSE LEGAL ADVICE. THE INFORMATION CONTAINED IN THIS NEWSLETTER IS FOR INFORMATIONAL PURPOSES ONLY.
CADA ADVISES THAT DEALERS CONSULT LEGAL COUNSEL ON THE SPECIFICS OF ANY LAW OR REGULATION TO ENSURE FULL COMPLIANCE.