an automotive history including the colorado car book · consumer financial protection bureau...

An Automotive HistoryIncluding The Colorado Car Book

HURRY!REGISTER FORTHE GALA AND

GET YOUR COPY OFTHE ANNIVERSARY

BOOK!CADAat100.org

Vol. 14, Issue 11 November 2014

ROUTE TO:___ Owner/GM___ Controller___ GSM___ Fixed Ops___ New Car Manager___ Used Car Manager

2 Colorado Automobile Dealers Association November 2014

JOIN US FOR THE BIG CENTENNIAL CELEBRATION

People like knowing they belong to an exclusive club, as any marketer will tell you. As a member of the Colorado Automobile Dealers, you’re one of the fortunate few that are receiving invitations to the CADA Annual Meeting and 100th Anniversary Gala on November 25.

Our theme this year is “Past, Present & Future – A celebration so big, it’s been a hundred years in the making!” Both the Meeting and Gala will be held at the recently opened Renaissance Denver Downtown City Center Hotel, 17th and Champa Sts. The Meeting begins at 4 p.m., followed by the Gala at 5:30 p.m.

Our venue fits in with our historical theme since it is the former site of the Colorado National Bank. At 99 years of age, it’s almost as old as CADA is. Listed on The National Register of Historic Places, the hotel has been completely renovated to recapture its former glory, including the spectacular Alan True murals on the ceiling of the main lobby.

This year’s Meeting features three of the most exciting futurists in the automotive world: • Glenn Mercer, GM Consulting – The Future of the Automobile Dealership. Glenn will explain how

the dealership model will change over the next 25 years, including where they’ll be located, what they’ll look like, the services they’ll perform. Glenn is known to the industry as the researcher and author of an NADA study on Factory Image Programs and their ROI. Phase II of the study focused on Dealerships of the Future. In addition, Glenn will draw on almost 30 years of automotive consult-ing work with international business consultant McKinsey & Co. and in his own consultancy.

• Paul Eisenstein, The Detroit Bureau and TheDetroitBureau.com – The Car of the Future. He will discuss some of the future of automotive technologies, including autonomous vehicles and develop-ments in power sources, as well as the creature comforts and infotainment offerings that consumers crave. Paul’s work covering the automotive industry for more than 30 years gives him an insider’s view of how personal transportation is evolving. He is publisher of The Detroit Bureau, known for its insightful and in-depth reporting on our industry and a regular contributor to many print, broadcast and electronic media.

• Charlie Vogelheim, Vogelheim Ventures – The Customer of the Future. The industry has under-gone radical changes in recent years. Charlie will offer a picture of how those changes will continue, what consumers will expect in the way of products and services, and how the buying experience will evolve to meet their expectations. Charlie has been a player in the automotive world for almost 30 years, including stints as VP at JD Power and executive editor for Kelley Blue Book and Motor Trend Auto Group. Charlie is a regular contributor for Motor Trend Audio and is also involved with several other initiatives.

Besides sharing their insights, there will be time for our three speakers to answer some of the questions their provocative presentations are sure to spark.

After the Meeting, you have an opportunity to visit with your fellow dealers and enjoy a party with music, cocktails, hors d’oeuvres, and more: registration for the Meeting and Gala offers will provide you your own copy of our 100th Anniversary book, The 100-Year Deal. This commemorative volume includes a reprint of Bud Wells’ Colorado Car Book along with new photos and updates on automotive technology and the “greening” of the automobile. It’s a unique, very special volume with an extremely limited distribution.

Registering for the Meeting and 100th Anniversary Gala – at the modest cost of $100 – guarantees you’ll get the book, powerful presentations from our three our speakers, and a great party in a historic venue. Don’t miss this exclusive event with your fellow CADA members – 100 years in the making!

LET US KNOW ABOUT YOUR GOOD NEWS!

Have you or

anyone else at your dealership won an award recently? Have

you or your deal-ership 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.

Chair’s Column

Bill Hellman, Jr.CADA Chair

November 2014 Colorado Automobile Dealers Association 3

TO REGISTER: Please return this form and payment of $100 per person or register onlineWeb: www.coloradodealers.org/gala E-mail: [email protected]: 303.831.9100 Mail: CADA, 290 E. Speer Blvd., Denver, CO 80203 (checks payable to “CADA”)

Dealership Phone Fax

Name E-mail

Name E-mail

Name E-mail

Name E-mail

Credit Card # Expiration Date

Address for Credit Card

Plan now to participate in

CADA’s Annual Meeting and100th Anniversary GalaPast, Present & Future

A celebration so big, it’s been a hundred years in the making!Please note, the event will not be held at the Vehicle Vault as previously planned

ANNUAL MEETING SPEAKERSGlenn Mercer • President, GM AutomotiveGM Automotive is an auto industry consulting and investment advisory firm working with suppliers, OEMs, dealers and the aftermarket, from venture capital to private equity to sell-side equity analysis. Mr. Mercer has over 25 years experience in the automotive industry, has worked in private equity the past few years and was a director of several privately held automotive firms and the International Motor

Vehicle Program at MIT, Wharton School and Tokyo.

Paul Eisenstein • Reporter, publisher and chief of The Detroit Bureau and TheDetroitBureau.comMr. Eisenstein has covered the auto industry since 1979. One of the world’s most widely published automotive journalists, his work routinely appears in such publications as The Economist, Germany’s Auto Motor und Sport, MSNBC.com, Cigar Aficionado, Wired, Motor Trend, TheDailyBeast.com and

dozens more. He is a regular commentator on NPR and a frequent guest on numerous other broadcast outlets.

Charlie Vogelheim • Host of Motor Trend AudioCharlie Vogelheim brings nearly 30 years of automotive experience including roles as host of “Motor Trend Audio,” executive editor at Kelley Blue Book and VP at J.D. Power and Associates. Charlie currently hosts the weekly podcast “Motor Trend Audio.” At J.D. Power, Charlie produced the International Automotive

Roundtable. During Charlie’s 20 years at Kelley Blue Book, he served as a key member of its editorial team.

Tuesday, November 25, 2014Annual Meeting 4–5:30 p.m. ~ Gala 5:30–7:30 p.m.

Registration opens at 3 p.m.

Renaissance Denver DowntownCity Center Hotel

(Formerly Colorado National Bank)

918 17th St. • Denver, CO 80202

The highlyanticipated 100th Anniversary Bookwill be released at

the Gala. Join us topick up your copy!

Cost: $100 per person, includesAnnual Meeting presentations, celebratory gala

with music, hors d’oeuvres, cocktails and a copy of THE 100-YEAR DEAL

JUSTADDED


2014 ELECTION RESULTS (THE SMILES HAVE IT) –AND WHAT THEY MEAN FOR COLORADO DEALERS

In what turned out to be a wave election across the US on Tuesday, Colorado not only joined the wave, it may ultimately prove responsible for the new balance of power in Washington – and beyond. While the results may not please every Coloradoan, one thing is for certain – the final outcome will make Colorado more biz-friendly.

Colorado’s US Senate RacesPerhaps the most impactful of Tuesday’s results, Cory Gardner pulled out an impressive upset in his

race for the US Senate against two-term incumbent, Mark Udall. Gardner, a third generation implement dealer from the eastern pains of rural Colorado, understands the challenges it takes to make a small busi-ness successful. Gardner followed his dad and granddad into the business and has dealt with everything from manufacturer overreach, to workers’ compensation insurance, from unemployment insurance costs to rising health care premiums and knows that it takes hard work to make a modest profit in order to ensure the operation will be there tomorrow. Some were surprised when Gardner decided to forfeit his very safe US House seat and make a run for the Senate in this volatile mid-term election. The campaign was one of the most expensive in history and by far the most expensive ever for Colorado; NADA’s DEAC committee

helped Gardner at the maximum level allowed by law, and several dealers did as well.Here’s an excerpt from the (mostly Dem-friendly) Colorado Pols publication: In the end, this was a perfect storm for Mark Udall, and a

challenge he was just not built to overcome. Udall, a contemplative and reserved public figure not predisposed to self-promotion, couldn’t match Gardner’s relentless charisma, and as a result the negative attacks on Gardner lacked a counterbalancing affirmative case for Udall’s re-election.

Colorado’s US House Races

Highly anticipated by the punditry class, and heavily watched around the country, the showdown in CD-06, between incumbent Con-gressman Mike Coffman and the well-funded former state House Speaker Andrew Romanoff was quite the barnburner. Like the Senate contest, outside groups poured millions into this race, while Romanoff, a consummate fundraiser, outspent Coffman by more than one million dollars. In the end though, Coffman proved too strong, and despite his cash advantage, Romanoff was not only beaten, he was “shellacked.”

Congressman Ed Perlmutter, D-Golden, who has proven to be a reliable friend to dealers on important issues such as overreach by the Consumer Financial Protection Bureau (CFPB), handily survived a challenge and will return to a fourth term representing Colorado’s new-est US House District.

Former Weld County District Attorney Ken Buck, won his second try at federal office, with a convincing win in Colorado CD-04, a race made possible when Cory Gardner vacated the seat to run for US Senate.

In other Colorado US House races, incumbents reigned. Congresswoman Diana Degette, D-Denver; Congressman Jared Polis, D-Boul-der; Congressman Scott Tipton, R-Cortez; and Congressman Doug Lamborn, R-Colorado Springs, all sailed to sizeable wins with varying, though always significant, margins.

Colorado’s Statewide Constitutional OfficesGovernor John Hickenlooper held off a robust challenge by Bob Beauprez in what turned out to be one of the most competitive gu-

bernatorial contests in the nation. Though the lead seesawed back and forth between the two candidates all night, ultimately Hickenlooper survived the biggest political scare of his career with an impressive 2.8% margin of victory. A Beauprez governorship was expected to have been very business-friendly, though Hickenlooper has demonstrated his support for most of our dealer’s key priorities, issues and objectives.

In an important win for dealer issues, Cynthia Coffman was elected to the office of Colorado Attorney General. Additionally, Walker Stapleton easily retained his position as State Treasurer. Finally, Wayne Williams, former County Clerk and County Commis-sioner in El Paso County, was elected to serve as Colorado’s Secretary of State.

President’s Page

Tim JacksonCADA President


Clear the Air Foundation

Top Donation Leaders: John Elway Chevrolet Broadway: 32

Christopher’s Dodge World: 28Longmont Ford: 22

Suss Buick GMC: 20Shortline Automotive: 15Dellenbach Motors: 12Public Donations: 12Planet Hyundai: 11

Kuni Honda: 11Planet Honda: 10

AutoNation Chevrolet North: 10

Donating high-emitting cars is easy!Contact George Billings for details

at 303.775.8896 or [email protected]

PARTICIPATION 1211

RECYCLED CARS

We need YOUR car donations

to reach our next GOAL of 1300 cars!

1211

650

0

1300

Colorado General AssemblyIn the Colorado House, Democrats will retain the majority

by a razor-thin margin – 34 to 31. It represents a much closer margin than in the recent 2013-14 session.

In the Colorado Senate, Republicans will control an 18-17 majority. From a pure balance of power standpoint, it will prove beneficial to business that the GOP won that body.

2014 Election Summary:Ultimately Colorado lived up to its billing as a dark purple

state – and it probably couldn’t be any more evenly divided than it currently is. On November 3rd five of the nine members of the Colorado Congressional delegation were Democrats and four were Republican. On November 5th Five Republicans and four Democrats were elected to make up the delegation.

As for CADA and our high priority dealer issues, this make-up of legislative bodies serves us very well. Though Republicans are generally deemed better on pure business is-sues (workers compensation, unemployment insurance, health care, civil justice and litigation issues) statehouse Democrats have proven equally good on issues specific to dealer factory relations and remaining closed on Sundays.

As reported in the October issue of CADA Bulletin, the association has conducted 40+ Legislative Grassroots meet-ings with policymakers all across the state. We have another 20 to 30 similar meetings planned over the next two to three months. Your involvement in these advocacy efforts can make all the difference when it comes time to find champions to carry the water on our biggest priorities.

Based on election night victories, 91 percent of the Colo-rado state House and Senate candidates who received support from CADA and our Colo CAR PAC were elected.

Additionally, NADA reports that 94 percent of federal level candidates who received support from the Dealer Election Ac-tion Committee (DEAC) won election on Tuesday.

And, of those federal candidates who were running for of-fice from Colorado, 100 percent of those who were backed by DEAC won election to his or her respective office. Thank you to each of our dealers who contributed to DEAC this cycle. Your generosity helped us move the ball forward in 2014 and gives us tremendous momentum going into 2015.


BE INFORMED...STAY INFORMED...WITH THE OPEN ROADTo stay current with dealer news, management alerts, upcoming seminar and event details, legislative status reports, regula-tory 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

TAKATA AIRBAG RECALL: REMINDER OF DOT HAZARDOUS MATERIAL REQUIREMENTS

The number of vehicles affected by the Takata airbag recall continues to increase, which means that if you don’t already, you will soon have plenty of airbags to replace and dispose of. Are all your employees trained on the specific DOT regulations required to ship these hazardous materials?

Download our SRS Bulk Shipping and Packaging Instruc-tions to see what you need to be doing to stay compliant. Then contact me to start getting your employees trained.

Environment & Safety compliance services are available from CADA Endorsed provider, KPA. Visit www.kpaonline.com/contactus to schedule a call with an account executive or call 866.356.1735.

You may also contact Polly, Penna, Field Services Director, CADA, [email protected], Cell: 303.945.6426.

X Visit www.cadaopenroad.org Nov. 4 issue to download the instructions and for more information on the recall.

EFFECT OF SUPREME COURT’S DENIAL OF REVIEW OF SAME-SEX MARRIAGE CASES by Ryan Sarni, Esq. MSEC Hot Topics 10/13/2014

As many MSEC members are aware, last week the U.S. Supreme Court declined to rule on the constitutionality of state laws that prohibit same-sex marriage. The Court rejected a request to review seven total rulings from the Fourth, Seventh, and Tenth federal cir-cuit courts of appeals on the issue. In each instance, the lower courts found that state law bans on same-sex marriage were not constitu-tional. However, the rulings were stayed pending potential Supreme Court action. Given that such action is not forthcoming, the lower

courts’ rulings are now essentially in effect.The impact of these decisions for employers

cannot be overstated. States such as Colorado, Kansas, North Carolina, South Carolina, West Virginia, Wyoming, Virginia, Indiana, Wisconsin, Oklahoma, and Utah are now legally subject to

circuit court of appeals decisions that invalidate same-sex marriage bans. Many of these states have begun issuing marriage licenses to same-sex couples.

If an employee was not previously married to a same-sex spouse in a state that recognized same-sex marriage, employers may be required to allow employees to enroll those spouses in benefits. Changes include implications for taxability of employer-sponsored health care, eligibility for health care continuation under the Con-solidated Omnibus Budget Reconciliation Act (COBRA), enrollment rights pursuant to the Health Insurance Portability and Accountabil-ity Act (HIPAA), cafeteria / flex plan elections, survivor benefits, and reimbursement under flexible spending accounts.

The number of states recognizing same-sex marriages has greatly increased, and, with it, the number of potential employees who can enroll their same-sex spouses in federally regulated benefits.

X Visit Mountain States Employers Council at www.msec.org (login required; CADA members receive basic level membership in MSEC; call 800.884.1328 to talk with an attorney or obtain an ID/password).

REMINDER OF USED CAR BUYERS GUIDE REQUIREMENTS

Dealership staff are likely well aware of this long-standing FTC requirement: a Buyers Guide must be posted on a used vehicle before it is “offered” for sale. There are numerous detailed requirements as well—double-check that all requirement of how these guides must be posted and then provided to customers are being met. Potential fines are $11,000 per violation but also can become an issue if a dispute arises with a customer.

A few examples:• A vehicle is offered for sale when it is displayed for sale or

a customer is allowed to inspect it for the purpose of buying, even if the car is not fully prepared for delivery.

• On the back of the Guide, fill in the name and address of your dealership. You must also fill in the name (or position) and the telephone number of the person the consumer should contact with complaints. You may use a rubber stamp or preprint the Guide with this information.

• If a used car transaction is conducted in Spanish, a Spanish language Buyers Guide must be posted on the vehicle before it is displayed or offered for sale

X Visit www.cadaopenroad.org Nov. 4 issue for more details on the FTC Used Car Rule.

Regulatory & Legal Issues


Title Processing Seminar: Beginner/Intermediate By Cindy Vieyra - Owner, Accurate Auto Title Specialists

Review of key transactions along with common problems • DMV requirements for: New car sale / Used car sale / Out of state sale / Leased

vehicles / Signing the title with a power of attorney; trust documents / Power of attorney dates and the lien release / Reading a title: brands / DMV Jargon / County Returns / Reading a registration / Etc.

• Jan Angel, with over 30 years of experience, from Weld County will co-present. • Common problems / rejects - how to resolve; tips/suggestions obtained from

various county and state personnel. • Time for your Q&A – bring examples or issues you want addressed. Submit questions or additional

topics in advance to: [email protected] CITY DATE/TIME LOCATION

Denver

Thursday, Nov. 20 11:30am-2:00pm (Lunch included) Main session After the session, Cindy will be available for one-on-one consultations

William D. Barrow Building CADA Headquarters, Media Center 290 East Speer Blvd, Denver, 80203; Phone: 303.831.1722

Bring problem paperwork you have & Cindy will do a preliminary consultation (limit one per store initially; additional as time permits)

About Cindy Vieyra. Cindy Vieyra is the owner of Accurate Auto Title Specialists (AATS), providing title processing expertise and assistance to auto dealers, credit unions, lenders, and other individuals. She has over fifteen years of title processing experience in Colorado with seven years at the Denver County DMV and nearly a year and half with a local new car dealership. AATS assists with all types of titling, registration and related courier services. Cindy’s services include supplemental help during vacations/leaves (for dealerships) and assistance with problem cases such as out of state title issues. http://www.cindytitles.com

COST: $139.00* - 1ST PERSON; $129*- ADD’L ATTENDEES (SAME DEALERSHIP); *INCLUDES MEAL

Dealership # Additional Attendees:_____ @$129 each Name Title _____ E-mail Phone Fax _____ ! Check to request an invoice Credit Card # ______________________EXP _____ (Visa / MasterCard / American Express accepted) Credit Card Billing Address (if differs from dealership) _________________ " SEND TO: FAX: 303.831.9100 OR EMAIL to contacts listed below OR

MAIL: CADA, 290 E. Speer Boulevard, Denver, Colorado 80203 [Checks payable to “CADA”] QUESTIONS: REGISTRATION/BILLING: Tammi L. McCoy, 303.282.1449 Kim Harrison, 303.831.1722 [email protected] [email protected]

Title Processing Seminar


Colorado Auto Outlook

23.0%

8.6% 8.1%

16.5%

6.6% 5.3%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Sep '14 v. Sep '13

July '14 thru Sep '14 v. July '13 thru Sep '13

YTD '14 thru Sep v. YTD '13 thru Sep

New

Used

Released: October 2014 Covering data thru September 2014

Colorado Auto OutlookComprehensive information on the Colorado automotive market

TM Sponsored by:

Colorado new vehicle registra-tions increased a reported 23% in September ‘14 vs. 2013.

New registrations in the state during the first nine months of this year increased 8.1% compared to a year earlier.

Used vehicle mar-ket was up 16.5% in September 2014 (vehicles seven years old or newer), and improved 5.3%, year-to-date.

Three year old vehicle market share increased 3.1 share points.

Jeep, Lexus, Mitsubishi, Mazda, Ram, and Audi new vehicle registrations each increased more than 21% so far this year.

Data measures new vehicle registra-tions in the state. Monthly recording of registrations oc-curs when the data is processed by the DMV.

Quick Facts

Data InformationAll 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.

Colorado New and Used Vehicle Markets Summary(Used registrations only include vehicles seven years old or newer)

Previous Three MonthsRetail New Vehicle Registrations Retail Used Vehicle Registrations

July '13 thruSep '13


PercentChange



PercentChange

Total 46,814 50,826 8.6% 45,046 48,032 6.6%

Cars 19,553 20,330 4.0% 20,819 21,730 4.4%Light Trucks 27,261 30,496 11.9% 24,227 26,302 8.6%

Detroit Three Brands 17,748 19,480 9.8% 21,258 22,686 6.7%European Brands 5,195 5,291 1.8% 4,617 5,312 15.1%Japanese Brands 20,689 22,694 9.7% 16,453 16,887 2.6%Korean Brands 3,182 3,361 5.6% 2,718 3,147 15.8%

YTD thru SeptemberRetail New Vehicle Registrations Retail Used Vehicle Registrations

YTD2013

YTD2014

PercentChange

YTD2013

YTD2014

PercentChange

Total 130,166 140,659 8.1% 128,352 135,092 5.3%

Cars 53,813 55,302 2.8% 58,813 60,720 3.2%Light Trucks 76,353 85,357 11.8% 69,539 74,372 7.0%

Detroit Three Brands 49,633 53,968 8.7% 61,562 63,586 3.3%European Brands 14,487 14,752 1.8% 13,334 14,552 9.1%Japanese Brands 57,323 62,774 9.5% 45,823 47,970 4.7%Korean Brands 8,723 9,165 5.1% 7,633 8,984 17.7%

Percent Change in Colorado New and Used Retail Light Vehicle Registrations(Used registrations only include vehicles seven years old or newer)



1.8

0.6 0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1

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Page 2 Colorado Auto Outlook

New Vehicle Market Brand Registrations

Change in New Vehicle Segment Market Share - YTD 2014 thru September v. YTD 2013

Colorado New Retail Car and Light Truck Registrations

SeptemberThree Month Period

July '14 thru Sep '14YTD thru September

YTDMarket Share (%)

Colorado Colorado Colorado Colorado

2013 2014 % chg. 2013 2014 % chg. 2013 2014 % chg. 2013 2014 Chg.TOTAL 17,443 21,458 23.0% 46,814 50,826 8.6% 130,166 140,659 8.1%

Acura 234 210 -10.3% 604 507 -16.1% 1,563 1,672 7.0% 1.2 1.2 0.0Audi 251 385 53.4% 717 908 26.6% 2,023 2,462 21.7% 1.6 1.8 0.2BMW 355 380 7.0% 872 991 13.6% 2,698 2,948 9.3% 2.1 2.1 0.0Buick 150 209 39.3% 418 478 14.4% 1,152 1,246 8.2% 0.9 0.9 0.0Cadillac 143 129 -9.8% 353 293 -17.0% 1,005 914 -9.1% 0.8 0.6 -0.1Chevrolet 1,382 1,486 7.5% 3,780 3,741 -1.0% 10,027 10,497 4.7% 7.7 7.5 -0.2Chrysler 120 127 5.8% 334 326 -2.4% 970 856 -11.8% 0.7 0.6 -0.1Dodge 429 518 20.7% 1,333 1,381 3.6% 3,832 3,720 -2.9% 2.9 2.6 -0.3Fiat 40 19 -52.5% 114 81 -28.9% 338 275 -18.6% 0.3 0.2 -0.1Ford 2,050 2,461 20.0% 5,644 6,091 7.9% 16,468 16,796 2.0% 12.7 11.9 -0.7GMC 487 536 10.1% 1,230 1,370 11.4% 3,515 3,997 13.7% 2.7 2.8 0.1Honda 1,427 1,686 18.1% 3,981 3,851 -3.3% 10,974 10,637 -3.1% 8.4 7.6 -0.9Hyundai 587 739 25.9% 1,546 1,740 12.5% 4,378 4,559 4.1% 3.4 3.2 -0.1Infiniti 124 142 14.5% 288 304 5.6% 803 943 17.4% 0.6 0.7 0.1Jaguar 14 11 -21.4% 37 34 -8.1% 63 92 46.0% 0.0 0.1 0.0Jeep 1,053 1,491 41.6% 2,658 3,526 32.7% 7,492 9,792 30.7% 5.8 7.0 1.2Kia 598 713 19.2% 1,636 1,621 -0.9% 4,345 4,606 6.0% 3.3 3.3 -0.1Land Rover 92 119 29.3% 218 224 2.8% 628 708 12.7% 0.5 0.5 0.0Lexus 375 486 29.6% 867 1,103 27.2% 2,362 2,996 26.8% 1.8 2.1 0.3Lincoln 71 101 42.3% 174 189 8.6% 495 476 -3.8% 0.4 0.3 0.0Mazda 384 547 42.4% 964 1,263 31.0% 2,481 3,049 22.9% 1.9 2.2 0.3Mercedes 229 304 32.8% 661 747 13.0% 1,898 2,230 17.5% 1.5 1.6 0.1MINI 123 127 3.3% 316 281 -11.1% 833 682 -18.1% 0.6 0.5 -0.2Mitsubishi 48 60 25.0% 144 217 50.7% 479 601 25.5% 0.4 0.4 0.1Nissan 1,130 1,413 25.0% 2,956 3,128 5.8% 8,281 9,194 11.0% 6.4 6.5 0.2Porsche 54 80 48.1% 133 189 42.1% 359 430 19.8% 0.3 0.3 0.0Ram 657 847 28.9% 1,725 2,035 18.0% 4,553 5,542 21.7% 3.5 3.9 0.4smart 14 16 14.3% 41 32 -22.0% 127 99 -22.0% 0.1 0.1 0.0Subaru 1,722 2,236 29.8% 4,820 5,348 11.0% 13,160 15,250 15.9% 10.1 10.8 0.7Tesla 32 17 -46.9% 98 50 122 132 0.1 0.1 0.0Toyota/Scion 2,251 3,086 37.1% 6,064 6,972 15.0% 16,981 18,429 8.5% 13.0 13.1 0.1Volkswagen 731 698 -4.5% 1,848 1,599 -13.5% 4,824 4,197 -13.0% 3.7 3.0 -0.7Volvo 80 67 -16.3% 223 171 -23.3% 647 532 -17.8% 0.5 0.4 -0.1Other 6 12 100.0% 17 35 105.9% 290 100 -65.5% 0.2 0.1 -0.2




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Three year old vehicle market share has increased, while five year old share is down sharply

Released: October 2014 (covering September 2014 data) Page 3

Used Vehicle Market Brand Registrations (only includes vehicles seven years old or newer)

Change in Used Vehicle Market Share by Age of Vehicle YTD 2014 thru September v. YTD 2013

Colorado Used Retail Car and Light Truck Registrations

SeptemberThree Month Period

July '14 thru Sep '14YTD thru September

YTDMarket Share (%)

2013 2014 % chg. 2013 2014 % chg. 2013 2014 % chg. 2013 2014 Chg.TOTAL 16,919 19,715 16.5% 45,046 48,032 6.6% 128,352 135,092 5.3%Acura 233 253 8.6% 601 647 7.7% 1,665 1,934 16.2% 1.3 1.4 0.1Audi 237 281 18.6% 632 730 15.5% 1,818 2,131 17.2% 1.4 1.6 0.2BMW 396 515 30.1% 956 1,264 32.2% 2,906 3,493 20.2% 2.3 2.6 0.3Buick 140 212 51.4% 336 493 46.7% 1,054 1,296 23.0% 0.8 1.0 0.1Cadillac 221 282 27.6% 556 660 18.7% 1,567 1,876 19.7% 1.2 1.4 0.2Chevrolet 1,887 2,225 17.9% 5,097 5,292 3.8% 14,966 15,237 1.8% 11.7 11.3 -0.4Chrysler 374 368 -1.6% 1,037 901 -13.1% 2,993 2,676 -10.6% 2.3 2.0 -0.4Dodge (incl. Ram) 1,162 1,479 27.3% 3,205 3,545 10.6% 9,603 10,212 6.3% 7.5 7.6 0.1Ford 2,171 2,578 18.7% 5,786 6,386 10.4% 16,286 17,506 7.5% 12.7 13.0 0.3GMC 494 655 32.6% 1,305 1,546 18.5% 3,600 4,213 17.0% 2.8 3.1 0.3Honda 946 1,053 11.3% 2,568 2,573 0.2% 6,979 7,407 6.1% 5.4 5.5 0.0Hummer 43 38 -11.6% 113 81 -28.3% 387 218 -43.7% 0.3 0.2 -0.1Hyundai 520 706 35.8% 1,384 1,694 22.4% 4,014 4,779 19.1% 3.1 3.5 0.4Infiniti 185 257 38.9% 458 612 33.6% 1,250 1,584 26.7% 1.0 1.2 0.2Jaguar 12 11 -8.3% 31 26 -16.1% 71 66 -7.0% 0.1 0.0 0.0Jeep 985 1,116 13.3% 2,543 2,732 7.4% 7,326 7,304 -0.3% 5.7 5.4 -0.3Kia 511 582 13.9% 1,334 1,453 8.9% 3,619 4,205 16.2% 2.8 3.1 0.3Land Rover 96 112 16.7% 244 246 0.8% 716 685 -4.3% 0.6 0.5 -0.1Lexus 318 367 15.4% 860 847 -1.5% 2,502 2,432 -2.8% 1.9 1.8 -0.1Lincoln 110 134 21.8% 298 311 4.4% 867 869 0.2% 0.7 0.6 0.0Mazda 402 364 -9.5% 1,019 905 -11.2% 2,897 2,682 -7.4% 2.3 2.0 -0.3Mercedes 277 345 24.5% 689 805 16.8% 2,017 2,270 12.5% 1.6 1.7 0.1Mercury 58 59 1.7% 166 126 -24.1% 423 363 -14.2% 0.3 0.3 -0.1MINI 99 130 31.3% 255 309 21.2% 680 778 14.4% 0.5 0.6 0.0Mitsubishi 121 118 -2.5% 343 309 -9.9% 1,157 907 -21.6% 0.9 0.7 -0.2Nissan 1,239 1,467 18.4% 3,222 3,594 11.5% 9,429 9,957 5.6% 7.3 7.4 0.0Pontiac 153 139 -9.2% 445 335 -24.7% 1,440 973 -32.4% 1.1 0.7 -0.4Porsche 35 48 37.1% 125 112 -10.4% 354 312 -11.9% 0.3 0.2 0.0Saab 31 21 -32.3% 67 50 -25.4% 230 122 -47.0% 0.2 0.1 -0.1Saturn 134 109 -18.7% 371 278 -25.1% 1,050 841 -19.9% 0.8 0.6 -0.2Subaru 788 952 20.8% 2,098 2,298 9.5% 5,397 6,467 19.8% 4.2 4.8 0.6Suzuki 114 89 -21.9% 304 232 -23.7% 871 666 -23.5% 0.7 0.5 -0.2Toyota/Scion 1,814 1,940 6.9% 4,974 4,866 -2.2% 13,651 13,921 2.0% 10.6 10.3 -0.3Volkswagen 462 502 8.7% 1,236 1,315 6.4% 3,439 3,519 2.3% 2.7 2.6 -0.1Volvo 123 142 15.4% 318 331 4.1% 924 896 -3.0% 0.7 0.7 -0.1Other 28 66 135.7% 70 128 82.9% 204 295 44.6% 0.2 0.2 0.1




-18.6%

-18.1%

-17.8%

-13.0%

-11.8%

-9.1%

-3.8%

-3.1%

-2.9%

2.0%

4.1%

4.7%

6.0%

7.0%

8.2%

8.5%

9.3%

11.0%

12.7%

13.7%

15.9%

17.4%

17.5%

19.8%

21.7%

21.7%

22.9%

25.5%

26.8%

30.7%

-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%

Fiat

MINI

Volvo

Volkswagen

Chrysler

Cadillac

Lincoln

Honda

Dodge

Ford

Hyundai

Chevrolet

Kia

Acura

Buick

Toyota/Scion

BMW

Nissan

Land Rover

GMC

Subaru

Infiniti

Mercedes

Porsche

Audi

Ram

Mazda

Mitsubishi

Lexus

Jeep

Percent change in registrations

New Vehicle Market Percent Change in Brand RegistrationsYTD 2014 thru September v. YTD 2013

(Top 30 selling brands)

Page 4 Colorado Auto Outlook

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 Auto OutlookPublished for:Colorado Automobile Dealers Association290 East Speer BoulevardDenver, CO 80203

Phone: 303-831-1722

Published by:Auto Outlook, Inc.PO Box 390Exton, PA 19341

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Copyright Auto Outlook, Inc., October 2014

Colorado Auto Outlook is distributed free of charge to all members of Colorado Automobile Dealers Association. The publication is spon-sored and supported by CADA.

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.



NADA’S SOLUTION REDUCES FAIR CREDIT RISKS

When I met with the Automotive Press Association in Detroit earlier this month, I had one goal in mind: inform the journalists and industry executives about how the real dealer franchise system works and set the record straight. There’s been a lot of misinformation reported in the news lately about the business model of new-car dealerships.

The fact of the matter is that the dealer retail network is the most competitive, cost-effective and pro-consumer model for buying and financing vehicles.

Fierce competition between local dealers in any given market drives down prices for car buyers both in and across brands. If a factory owned all of its stores it could set prices and car buyers would lose virtually all bargaining power and would be stuck paying the full sticker price. And dealer-assisted financing—which is always optional—provides car buyers with competitive rates on auto financing, which are frequently more affordable than what car buyers can get from a bank or credit union. But the federal government is trying to take away the right of car buyer’s to get discounted rates from dealers.

In March 2013, the Consumer Financial Protection Bureau—without prior notice or public comment—issued ‘guidance’ on indirect auto lending that pressures finance sources to compensate dealers with a flat fee. The CFPB claims that negotiated interest rates between dealers and their customers can create a signifi-cant risk of unintentional ‘disparate impact’ discrimination.

The National Automobile Dealers Association strongly opposes discrimination in any form and fully supports the efforts of the CFPB, the Department of Justice, the Federal Trade Commission and other federal agencies to eliminate it from the marketplace. However, it is essential that the government address this issue in a way that will effectively address fair credit risks while preserv-ing competition in the marketplace.

A government imposed flat fee model wouldn’t benefit consumers because it would eliminate their ability to get a rate discount on their auto financing. Under the current system, dealers have an incentive to select lenders that offer them low wholesale buy rates and dealers frequently have to discount the APRs they offer their customers to earn their business. This dynamic drives down rates for our customers. If the CFPB were to succeed in getting the industry to shift to an across-the-board flat fee compensation system, dealers’ incentive would shift to choosing lenders that pay them the highest flat fee, which in turn would frequently result in higher APRs for consumers.

A mandatory flat fee compensation system also would fail to remove the fair credit risks that a dealer is exposed to when it lacks a legiti-mate business explanation for earning different amounts in its credit transactions.

Fortunately, NADA has identified a way forward that addresses both fair credit and competition considerations.Last January, the association developed the NADA Fair Credit Compliance Policy and Program that provides a dealer with an optional

mechanism to promote compliance with fair credit laws. The program was released in partnership with the American International Automobile Dealers Association and the National Association of Minority Automobile Dealers.

The voluntary program addresses fair credit risks by ensuring that the amount of dealer reserve earned in a transaction is supported by a legitimate business reason. A dealer following the program sets a standard starting point for dealer reserve that it includes in its credit offers to consumers and only deviates from that rate for predetermined, legitimate business reasons. These include the presence of a monthly budget constraint, a more competitive offer and inventory reduction considerations. The dealer documents each pricing decision so that it can demon-strate that it was based on a legitimate, non-discriminatory factor. The NADA program fully incorporates the program created by the Depart-ment of Justice for two auto dealerships in 2007 to resolve fair credit cases.

By creating this structure and supporting it with appropriate training and oversight, the NADA program provides a mechanism for address-ing fair credit concerns at the consumer, dealer and lender levels.

Last month, Marlin Stutzman (R-Ind.) and Reps. Ed Perlmutter (D-Colo.) introduced H.R. 5403, a bipartisan bill that would nullify the CFPB’s 2013 auto lending ‘guidance.’ The bill would require new CFPB guidance involving auto financing to be transparent and open to public participation. Already 118 Members of Congress (46 Democrats and 72 Repub-licans) in the U.S. House of Representatives have committed to cosponsor or are cosponsors of this important measure. For more information, visit www.nada.org/cfpb.

The NADA Fair Credit Compliance Policy and Program presents the industry with a realistic and effective means of addressing fair credit risks at all levels and in a manner that preserves robust competition in the market-place. The federal government should encourage its broad adoption.

NADA Director’s Message

Jeff CarlsonGlenwood Springs FordColorado NADA Director


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CELEBRATING 100 YEARS

CADA Board of Directors, Committee & Foundation Chairs and Staff

William D. Barrow Building • CADA Headquarters 290 E. Speer Blvd. • Denver, CO 80203

Phone: 303.831.1722 • Fax: 303.831.4205Website: www.coloradodealers.org

OFFICERSChair of the Board

Bill HellmanHellman Motor Co., Delta

Vice ChairThom Buckley

Red Noland Auto Group, Colorado Springs

Treasurer Fletcher Flower

Flower Motor Co., Montrose

Secretary Ed Dobbs

Land Rover Flatirons, Superior

Immediate Past ChairJohn Carroll

Ed Carroll Motor Co., Fort Collins

DIRECTORSHerm Brocksmith

Kuni HondaCentennial – District #1

Anthony Brownlee

Land Rover DenverLittleton – District #2

Ray Reilly

Larry H. Miller Chrysler Jeep Dodge RamThornton – District #3

Anthony Banno

Stevinson Lexus of FrederickFrederick – District #4

Christina Dawkins

Co’s BMW CenterFt. Collins – District #5

Phil Marzolf

Ehrlich Vehicles, Inc.Greeley – District #6

Donnie Chrismer

Korf Continental Sterling, Inc.Sterling – District #7

Mike Cimino

Phil Long Ford Lincoln Colorado Springs – District #8

Jeremy Hamm

Solon AutomotivePueblo – District #9

Pat Murphy

Morehart Murphy Regional Auto CenterDurango – District #10

Ross Turner

Turner AutomotiveMontrose – District #11

Ryan Ramsay

Summit FordSilverthorne – District #12

Jeff Carlson

Glenwood Springs FordColorado NADA Director

At-Large Director

Todd MaulJohn Elway Chevrolet

Chair – Clear the Air Foundation

COMMITTEE & FOUNDATION CHAIRS

John MedvedMedved Chevrolet Cadillac North

Chair - Legislative Policy Committee

Todd MaulJohn Elway Chevrolet

Chair – Clear the Air Foundation

Gregg StoneKuni Lexus of Greenwood Village

Chair – Denver Auto Show

Stephen T. ZederBighorn Toyota

Chair – Member Services Committee

CADA STAFFPresident

Tim Jackson, CAE, [email protected]

303.282.1448

Vice President Tammi L. McCoy

[email protected]

Chief Operating OfficerMarsha Temple

[email protected]

Communications & Marketing ManagerTrainor Walsh

[email protected]

Bond CoordinatorLinda Toteve

[email protected]

Member Services CoordinatorKim Harrison

[email protected]

Insurance Services - Account ManagerDeb Lay

[email protected]

Field Services ManagerPolly Penna

[email protected]

Clear the Air Foundation Program Coordinator

George [email protected]

303.775.8896

Administrative AssistantKhorrie Luther

[email protected]


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LET US KNOW ABOUT YOUR GOOD NEWS!

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further follow-up.

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]: 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.

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For the most current list of other on-going CADA seminars and events, please visit the online calendar at www.coloradodealers.org/calendar

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WEBINAR: Getting All Auto Group Parts Mgrs of All OEMs on Common Reporting System

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APRIL 8-12, 2015

Title Processing – Basic/Intermediate Training, Presented by Cindy Vieyra Accurate Auto Title Specialists, LLC

CADA Headquarter Offices290 East Speer Boulevard Denver, CO 80203

Thursday Nov. 20at 11:30 – 2pm

CADA’s Annual Meeting and 100th Anniversary Gala

Renaissance Denver Downtoan City Center Hotel, 918 17th Street, Denver, CO 80202

Tuesday Nov. 25at 4 – 7pm

an automotive history including the colorado car book · consumer financial protection bureau...

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