Latest Online Edition Read Here

UCN Interview with Derek Hansen Vice President of Digital Inventory Solutions, ‎Cox Automotive Inc.

TV Host Takes Cheap Shot at Dealers

TV Host Takes Cheap Shot at Dealers Featured

The latest attack on subprime automobile dealers came in the form of HBO’s satirical news/comedy show “Last Week Tonight with John Oliver” on Aug. 14. The 17–minute segment slammed the subprime and buy-here, pay-here industry, criticizing everything from mark-ups and high interest rates to repossessions. Oliver uses the most extreme negative examples: from a car sold with more than 100 percent markup to one that was repossessed with a baby in the back seat. He also cites information from the Los Angeles Times 2011 series of articles that slammed the buy-here, pay-here industry. Oliver also suggested there is a subprime auto bubble, though the piece offered little evidence to suggest there is such a bubble. The segment offered just a brief snippet about starter-interrupt devices, but did not clearly explain how the devices are used. Oliver also called out Ken Shilson, founder of the National Alliance of Buy-Here, Pay-Here Dealers. The show used a hidden-camera to record him speaking before a debt buyer’s group. Shilson offered a brief response to the show. “John Oliver is a comedy show that does not warrant any further comment from me,” he stated. “The content should not be taken seriously. “In my opinion we need to focus on relevant matters impacting the buy-here, pay-here industry today, which is exactly what we do at NABD.” Steve Jordan, CEO of the NIADA, agreed, “"The opinions from John Oliver's piece were satirical and funny, but didn't provide any credible industry data or level of journalism that would merit a formal comment on behalf of the automotive industry."     Corrine Kirkendall, vice president of compliance and public relations at Passtime, said the entire segment was disappointing. Kirkendall said the piece was especially unfair to Shilson by editing one part of a comprehensive program to paint his comments in a bad light. “It really misrepresented him,” she said. As far as the overall show, Kirkendall said the producers could have done a good piece without “bashing the industry,” but they didn’t do that. “I understand they were trying to be comical, but the sad part is it’s not accurate,” she said. "The facts they pulled were old statistics and old information. “There’s always two sides to a story and they didn’t show the dealer side to it. It’s a business (dealers) have to operate under very strict rules, while putting up all the risk for a consumer with challenged credit. “They don’t look at what the risk is for the business person, particularly for buy-here, pay-here dealers who are using their own money.” Kirkendall said she understands the consumer side of the issue. “But there has to be a balance and some fair play,” she said, “and there wasn’t fair play.” Despite lambasting dealers who sell to poor-credit customers, Oliver started out the piece by citing how challenging it is for people without cars to get to work and how inefficient public transportation is as a replacement.   Watch the video below:  Last Week Tonight with John Oliver: Auto Lending

Media

Auto Lending: Last Week Tonight with John Oliver (HBO)
Last modified on Tuesday, 23 August 2016 12:38
Rate this item
(0 votes)

Related items

  • Feds Charge Dealership Staff for Ad Scam
    Three people have been arrested for their roles in an alleged advertising scam at a Northern California car dealership.According to the indictment, from at least 2010 to 2016, Amir Bakhtiari orchestrated an embezzlement scheme at Sonnen Motorcars, a dealer group that owned and operated three car dealerships in Marin County - Sonnen Volkswagen, Audi Marin, and Porsche Marin.  From 2009 to 2016, Bakhtiari managed the Volkswagen and Audi dealerships.  Bakhtiari allegedly used his role to initiate a scheme wherein Sonnen made payments on fraudulent invoices to fake advertising vendors who then forwarded the majority of the proceeds from the scam back to Bakhtiari.  The indictment alleges that Arlette Casino, who served as Sonnen’s controller from 2013 to 2016, and Austin Caba, who controlled one of the fake advertising vendors, conspired with Bakhtiari and participated in the scheme since at least 2013. The indictment alleges that Bakhtiari directed approximately $6.3 million in fraudulent transfers from 2010 to 2016. When the money reached the vendor bank accounts, the individuals who controlled these accounts wrote checks back to Bakhtiari for a majority of the funds.  In total, Bakhtiari received approximately $3.6 million via checks in this manner.   According to the indictment, Bakhtiari and Casino also initiated other fraudulent payments to themselves, including bonuses that Bakhtiari falsely claimed were funded by the corporate offices of Volkswagen or Audi.  Bakhtiari and Casino approved the payment of these fraudulent bonuses, knowing they were not authorized by the majority owner of Sonnen Motorcars.  Bakhtiari, Casino, and Caba were all charged with conspiracy to commit wire fraud.  Bakhtiari and Caba were also charged with conspiracy to engage in monetary transactions in property derived from specified unlawful activity and engaging in monetary transactions in property derived from specified unlawful activity.
  • Ford Recalls Rangers for Passenger Air Bags

    Ford Motor Co. is recalling 2,700 2006 Ford Ranger trucks. 
Upon deployment of the passenger side frontal air bag, excessive internal pressure may cause the inflator to explode.
Ford will notify owners, instructing them not to drive their vehicles. Dealers will replace the passenger's frontal air bag inflator with an alternate inflator, free of charge. 
The recall was expected to begin Jan. 16. Ford's number for this recall is 18S02.
  • Cars.com Announces ‘Best of’ Awards
    Cars.com has announced the winners of its annual ‘Best Of’ Awards. The awards by both automakers and car shoppers include six different categories: Eco-Friendly Car of the Year, Family Car of the Year, Luxury Car of the Year, Most Fun-to-Drive Car of the Year and the site’s highest honors, Best Pickup Truck of 2018 and Best of 2018. The 2018 Best of Awards mark the eighth year of the awards program.  The highest honor, Best of 2018, went to the all-new 2018 Volkswagen Atlas. “Volkswagen found a winning formula with its 2018 Atlas,” said Jennifer Newman, Cars.com’s editor-in-chief. “The three-row SUV does what few can: comfortably haul seven adults and plenty of cargo. And despite its large size, this SUV’s driving dynamics are nimbler than expected. The 2018 Volkswagen Atlas delivers on its promise of utility without any compromises.”Winners in each category, as determined by Cars.com’s panel of vehicle and industry experts, are (all model-year 2018):Best of 2018: Volkswagen AtlasBest Pickup Truck of 2018: Chevrolet Colorado ZR2Eco-Friendly Car of the Year: Chevrolet Bolt EV Family Car of the Year: Chrysler PacificaLuxury Car of the Year: Audi A4Most Fun-to-Drive Car of the Year: Volkswagen Golf GTI“From an off-road pickup truck to a luxury sedan, and even a family hauler, this year’s crop of award winners truly represents the best of the best across an array of segments, shopper needs and lifestyle types,” Newman said.Winners were announced at Cars.com’s 2018 Best of Awards Show, an annual event during the North American International Auto Show in Detroit. Cars.com experts consider three key criteria for every car tested: quality, innovation and value; for pickup trucks, the criteria are power, capability and value. These are all assets that experts consider requirements for a well-rounded, award-worthy vehicle.
  • GM Wins Loyalty Honor
    Business information provider IHS Markit has awarded General Motors Corporation the top honor in automotive manufacturer loyalty. IHS Markit honored winners in several categories, including General Motors for the top award, Overall Loyalty to Manufacturer – with a loyalty rate of 69.1 percent; and Ford brand for Overall Loyalty to Make – with a loyalty rate of 63.4 percent. IHS Markit analysis found that, with approximately 17.5 million new vehicle registrations during the 2017 model year, 53.6 percent of customers returned to market to purchase or lease another new vehicle from the same make they already owned. This represents a record loyalty rate and an increase of 0.8 percentage points from last year.Lincoln was found to be the brand with Highest Loyalty to Dealer, meaning, 48.5 percent of all Lincoln owners returned to a Lincoln dealer for another Lincoln in the 2017 model year. “Our Automotive Loyalty Awards program continues to demonstrate the focus automakers, brands and their dealer networks place on winning back and conquesting customers during a strong sales year that’s become even more competitive,” said Joe LaFeir, senior vice president, automotive, IHS Markit. Ford achieved the highest loyalty rate of all makes during the 2017 model year, winning the Overall Loyalty to Make award. The award for Highest Conquest Percentage for the 2017 model year went to Jeep. Toyota was honored for highest Ethnic Loyalty to Make among all ethnic groups combined, as it led in loyalty among all three ethnic groups – African American, Hispanic and Asian. Buick was named for Most Improved Loyalty to Make for the model year and Jaguar was recognized for Most Improved Conquest Percentage during the 2017 model year.
  • Used Car Sales Top List of Complaints
    Residents of Ohio complained to their attorney general about used car sales more than any other category.
Of the more than 22,000 consumer complaints filed in 2017, some 3,750 concerned used-car sales.
The next highest category, shopping online and in stores, had about 1,170 complaints.
The Consumer Protection Section of the attorney general’s office tracks complaints in several general categories for reporting purposes. In 2017, the top category overall was motor vehicles.
Copart Expands Texas Operation

Copart Expands Texas Operation

Copart Inc. has announced the purchase of the former Safe Tire Disposal Corp. facility at 11150 Applewhite Road, San Antonio, Texas, along with its intention to clear the 36-acre property...

Dealers Use In-House CRM to Drive Sales

Dealers Use In-House CRM to Drive Sales

Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have...

  • CarMax Moves into New Market
    CarMax Moves into New Market CarMax Inc. celebrated the grand opening of its first store in Michigan, located in Kentwood at 4431 28th Street. The Kentwood store will have the capacity to stock approximately 200…
  • DMS Incorporates Carfax
    DMS Incorporates Carfax Auto/Mate Dealership Systems has integrated its dealership management system with myCarfax Service Shop tools to help their dealer customers increase the success of their fixed operations. This enhancement makes it…
  • CarMax Opens Store in Northeast
    CarMax Opens Store in Northeast CarMax Inc. celebrated the grand opening of its new store in Albany, N.Y.The store is located at 1860 Central Ave. The Albany CarMax has the capacity to stock approximately 200…
  • CarMax Grows in California
    CarMax Grows in California CarMax Inc. is currently hiring more than 40 associates for the company's third store in the Bay Area of California. The store, scheduled to open in November, will be located…
  • CarMax Reports Higher Sales, Revenue
    CarMax Reports Higher Sales, Revenue CarMax Inc. reported higher sales and revenue for the second quarter ended Aug. 31. Net sales and operating revenues increased 2.9 percent to $4 billion. Used unit sales in comparable…
  • TV Host Takes Cheap Shot at Dealers
    TV Host Takes Cheap Shot at Dealers The latest attack on subprime automobile dealers came in the form of HBO’s satirical news/comedy show “Last Week Tonight with John Oliver” on Aug. 14. The 17–minute segment slammed the…

    Auto Lending: Last Week Tonight with John Oliver (HBO)
  • Carvana Moves into Midwest
    Carvana Moves into Midwest Carvana announced its expansion into Columbus, Ohio. This launch marks the company’s first market in the Midwest region and first in the state of Ohio. Columbus marks Carvana’s seventh new…
  • Carvana Partners with Credit Union
    Carvana Partners with Credit Union Carvana has partnered with LGE Community Credit Union. Through the partnership, LGE members can browse Carvana's online inventory of vehicles and purchase a car and have it delivered to them…
  • Dealers Use In-House CRM to Drive Sales
    Dealers Use In-House CRM to Drive Sales Robert Beck, president, Stop ‘N Drive Motors, San Antonio, Texas: “We have one location and we opened up in 2005. “We usually stock about 40 to 50 cars. We have…
  • America’s Car-Mart Moves Fewer Units
    America’s Car-Mart Moves Fewer Units America’s Car-Mart Inc. reported net income of $7.1 million in the quarter ended July 31.The buy-here, pay-here chain reported revenues of $146 million compared to $143 million for the prior…