Fleet-ing Thoughts

Vol. 2 No. 25

NVLA and NIADA: Doing the Vegas/Ft. Worth Shuttle

I’ve been on the road a lot for the past few years, and now, more then ever, I’m traveling almost constantly, but the week of June 6 was a first, even for me. In about four days I managed to attend two leasing 20 Groups and two national conferences going on simultaneously in Dallas/Fort Worth and Las Vegas. It should be noted that the overwhelming majority of folks did not have this conflict; most people attending the leasing events wouldn’t have called to attend the independent (used) car dealers convention, and vice versa. But since upstream remarketing is a rapidly advancing function that applies to both constituencies, as a vendor in the business (and a well rounded “car guy”), I didn’t want to skip either annual event.



NIADA Keynote Speaker Lawrence Helms addresses the audience











At first, my intention was to split my time between the National Vehicle Leasing Association (NVLA) Convention, this year in Dallas; and the National Independent Automobile Dealers (NIADA) Convention in Las Vegas. But when I was invited to speak on the benefits of upstream remarketing at the two Excel Marketing leasing “Super Groups,” one scheduled before the NVLA annual conference in Fort Worth, Texas, and the other the afterward (also in Fort Worth), I knew that no matter how I scheduled it, I would be logging a lot of flight time (Philly – Dallas – Las Vegas – Dallas – Philly…all in six days). It was all well worth it though, and my only regret, as usual, was not being able to spend more time at each event mingling with the attendees.


First, the Premier “20 Group” for Leasing Companies, the Excel Management “Super Groups”

For those who aren’t familiar with them, “20 Groups” have been around for franchise and independent dealers for at least three decades now, and by evidence of their longevity and dealer attendance, have proven to be one of the most effective vehicles for offering consulting services to car dealers. The concept is simple, but extremely powerful: bring together a group (usually 20, hence the name) of non-competing dealer owners on a regular (usually quarterly) basis in a roundtable-like format, and, with a set agenda, compare in a composite, sales and performance metrics, and share best practices and new ideas for improving business. These “20 Groups” are probably one of the most efficient ways by which a dealer can improve operations, because the ideas presented are not just theory, but are working programs with proven results.

I believe the 20 Groups began with new franchise dealers, then grew to include independent vehicle dealers, and to one very innovative expert in the leasing field, Bill Thomas of EXCEL* Management Dynamics. Thomas has organized what I think to be the first 20 Group sessions specifically focused on local commercial lessors, patterned after the Dealer 20 Groups in format but obviously dealing with very different issues. The two “Lessor Super-Groups” represent the best and the brightest regional independent lessors in the nation, operators who have earned their stripes by managing corporate lessors correctly for many, many years. I think it’s safe to say that the loyalty that these folks have built up among their local leasing clientele exceeds both retail buyer/lessor loyalty and even the client loyalty represented by the national conglomerate lessors. Not to mention that, as truly independent lessors up against the international lessors (who are now trolling for smaller fleet size corporate business), these guys have to be good at what they do, both as business people and as solutions providers for corporate transportation needs. So it’s only natural they band together in the first independent lessor “think tank” of its kind -- the “Lessor Super Groups.”

Occasionally, in vetting best practices and industry innovations, these folks invite selected vendors to come and introduce their wares, usually after one or more lessors represented in the group have already tried the vendor service and had a good experience. We at Driveitaway were fortunate enough to be in that select group of vendors this time, and presented to both groups, when each met either before or after the NVLA conference. Fortunately, my good friend and client, Scott Crawford from Wilmar Leasing was in the first group to welcome me on June 6 & 7th, and my good friend and client Ben Rosenbloom from Acme Leasing, was in the second group, to close out the week on June 11. Apart from talking about the innovations in upstream remarketing (which I always like to do), and about the most recent developments and efficiencies of the Driveitaway program & platform in particular (which I always really like a lot), I was pleased to be able to hang out with these folks, truly among the best in the business and first-class entrepreneurial types. A couple hail from downtown Philly to boot: Tad Yoder, from Marple Fleet Leasing, and Joe McMahon, from McMahon Automotive Group.


Now, onto the Opening Ceremonies of the NVLA Annual Conference…

Moving from Fort Worth to Dallas (actually Grapevine, TX) was a relatively easy jaunt, so after presenting to the first Super Group, we attended the June 7 opening ceremonies of the NVLA conference, which included a keynote address and opening cocktail reception in the exhibit hall. Once again, I ran into so many old friends I didn’t have time catch up with them all, and the next morning I was back on a plane.

Now, I really did want to attend some of the outstanding seminars at NVLA that were scheduled for the next two days. The first day included such topics as “Effective Marketing Techniques for Commercial/Fleet Lessors,” “Vehicle Reconditioning,” “How to Spec’ a Medium Duty Truck,” Effective Marketing Techniques for Consumer Lessors,” and, my personal favorite, “Maximizing Your Presence on the Web.” That was my favorite topic not only because we’re a Web-based automotive company, but because it was presented by my old friend Tarry Shebesta of Automobile Consumer Services and I heard he actually cited this blog as a reference on how to maximize presence…Thanks Tarry; I’m always glad to hear what people are reading….

The second day of the NVLA conference, which I also reluctantly missed, included seminars on topics such as, “Outsourcing,” “Legal and Legislative Update 2006,” “Deciphering Credit Reports,” and “Tax and Accounting issues” among many others. I also missed the Mesquite Championship Rodeo event held that night as well as a closing “Texas Hold’em” dinner the next night.


…Then a Flight to Vegas, to attend the NIADA 60th Annual Convention, Already in Progress…

Getting into Las Vegas on Thursday afternoon didn’t leave much time for the NIADA’s 60th annual convention, but as it started that Monday (5th) and didn’t end until Saturday, I at least had a day or so to catch up with some old friends. The Las Vegas Convention Center was filled with independent dealer events and activities, and if I actually tried to mention all of the outstanding seminars during the four days, I’d need another whole blog entry. I do want to mention two panel discussions of particular interest though: “What’s Happening in 2006 and How it Affects your Dealership,” which reported on automotive Internet (vehicle sell and buy side) advances; and the panel discussion entitled, “Acquiring Inventory Electronically – Best Practices for Independent Auto Dealers.” Now, a few years ago that seminar would have had a tough time playing at the NADA (franchise) dealer annual convention, but in 2006 it was one of the best attended events at NIADA – the industry is advancing in this area, more rapidly now, I think, than most outside observers suspect.

All in all, the NIADA 60th annual convention seemed to be one of the best, most well attended I’ve ever been to…I wish I’d had time to attend a lot more of it.


Randle Smith, new NIADA President, giving the incoming speech











…Almost 48 Hours in Vegas, so it’s Back to Fort Worth, Texas…

I closed out the week by flying back to Dallas/Fort Worth Saturday night (June 10th), to get to the last Lessor Super Group 20 Group the next morning. As I said, the plane landed a little later than expected, so I never got to attend the NVLA convention closing dinner. In fact, I seemed to run late the rest of what was left of that weekend, but having logged as many air miles, attended as many things, and met as many people as I did in a short amount of time, I’m grateful I was even conscious towards the end of it…at the end of my last Super Group presentation on Sunday morning, I wanted to close using the classic line that Dean Martin once said on stage in Vegas, “Ladies & Gentleman, I’d like to do more for you but I’m lucky I remembered this much…”

Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, National Vehicle Leasing Association, National Independent Automobile Dealers, Excel Management “Super Groups”, EXCEL* Management Dynamics, Wilmar Leasing, Acme Auto Leasing, Marple Fleet Leasing, Tad Yoder, McMahon Automotive Group, Automobile Consumer Services, Tarry Shebesta, Mesquite Championship Rodeo, NIADA 60th Annual Convention, Randle Smith, Lessor Super Group 20 Group

Vol. 2 No. 24

iRem@rketing 2006 –Technology Changes Everything. Part II.


Jack Nerad (left) answers questions from the audience after his keynote address












The second day of the iRemarketing conference kicked off with an excellent keynote address by Jack Nerad, Editorial Director and Executive Market Analyst, Kelley Blue Book’s “kbb.com.” As Jack is an experienced media personality, best known for his national radio show, “America on the Road” and his television appearances on the History Channel’s “AutoManiac,” his presentation on the changes technology is bringing to the car business was outstanding.

One of the strengths of Jack’s keynote was to point out the profound change that widespread use of the Internet has made on the used car industry. According to Jack, “The Internet is the most important technology to affect the buying and selling of automobiles since the popularization of television in the late 1940s and 1950s.” It occurs to me that the very fact that there is an annual iRemarketing conference, subtitled “the technology conference of the used car industry” underscores this truth, particularly in the area of used car remarketing. Even as recently as 15 years ago there would have been no need for a conference such as this, as, I dare say, the business hadn’t changed in 50 years. Before the mid 1990’s or so there was very little technology or innovative procedures in the used car end of the business. But boy, how life has changed.


What Have You Done for me Lately? Say, in the past 5 minutes?

More skilled presentations you couldn’t ask for. My old IRBR friend and colleague Jim O’Brien gave his usual informative and upbeat presentation of Lanelogic; Jim is the president of Lanelogic, probably one of the most visionary concepts ever to launch in the world of used cars. Introduced at the last NADA convention, and now rolling out in selected markets, Lanelogic looks to be the “first used vehicle market maker” utilizing real time sales data and market intelligence to conduct electronic trading between dealers nationwide. As Jim explains it, “our trading floor instantly determines the top market value of the vehicle a dealer wishes to sell or appraise and returns a guaranteed buy bid within five minutes, risk free.” Now, as a testament to how recent technology has accelerated change, I can’t even imagine such an innovation being introduced back when I was a dealer…some of the dealer friends I knew would have taken the whole thing about as seriously as the latest “Star Trek” rerun…and yet now, Jim tells me over 1,000 dealers showed interest in this system at NADA, and the list of inquiries keeps growing…


The Water’s also fine Midstream

It was a pleasure to be in the audience of a workshop conducted by another “Jim” I know, Jim McKnight, introducing the new and improved (under his leadership) Manheim Online Vehicle Exchange (OVE). While I always thought of any vehicle put up for sale that didn’t take place while said vehicle was still in service, or just out of service, as “downstream,” Jim identified Manheim’s OVE as a “midstream” sales platform, sitting between us “upstream” sellers and the downstream, physical auctions. So, while I’m still not 100% convinced that what isn’t “upstream,” is, by definition, “downstream,” Jim conducted a great workshop which laid out the basic value proposition for using an online marketplace before a vehicle goes on the physical auction block. Now again, I have to say, given that Manheim owns the largest group of “bricks and mortar” auctions in the country as well as OVE, this presentation on the value proposition of an online auction maybe would have been just as outlandish an idea when I was a dealer, as LaneLogic’s would have been – how time and the irrepressible benefits of technology change an industry…

Pat Ryan, CEO/Founder of First Look, one of the first used vehicle inventory management systems and a leader in the field, led a workshop demonstrating how First Look technology can help dealers more efficiently stock and control used vehicle operations. With the used vehicle department producing more gross and net profit than new vehicles -- even for franchise dealers -- the advantage of using tools such as First Look to anticipate consumer demand cannot be ignored. First Look recently partnered with the ADESA auction folks to provide the supply side of the equation, in which the First Look platform software identifies for a retailer what their local customers want in specific vehicles. Being an ex-retailer myself, I know that the true value of any used vehicle management system software is only fully realized if it meshes with the online platforms that provide vehicles (upstream, downstream, midstream). So in this partnership, I think Pat has defined the value proposition for the present and future.

Other workshops included a couple of retail “sell side” uses of technology, with Rob Chesney and Tom O’Leary outlining the advantages of selling inventory on eBay Motors; and Matt McKenna, from AutoTrader.com, outlined the new innovations in the nation’s largest used car online classified platform. Finally, Greg Mahugh and Ty Brewer presented a workshop on Auction Pipeline, a collaboration of seven physical auto auctions in the Northwestern United States that joined forces to offer a united online presence for sourcing inventory and merging their buyer groups for auction clients.


…And at the End of the Day, Catching up with Industry Friends…

And of course, the receptions each night on the exhibit floor gave plenty of time to network, meet new people, and say hello and catch up on news with some old friends who I haven’t seen since the last remarketing conference. In this case, some pictures probably tell that story best…



Tom McNutt, owner of McNutt Auto Transport Service, talks with a visitor to his booth














Jim McKnight, President of Manheim’s Online Vehicle Exchange, talks with Mark Jensen, Senior Vice President & Chief Operating Officer of AutoTradeCenter/ATC














Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato,John Manchin, I-Remarketing Conference, automaniac, Jack Nerad, Kelly Blue Book, Internet Remarketing Business Roundtable, National Automobile Dealers Association, Manheim Online Vehicle Exchange, First Look Pat Ryan, eBay Motors, Auction Pipeline, McNutt Auto Transport Service

A Not-to-Be-Missed Podcast with John Manchin, Remarketing Manager, Subaru Auto Leasing, Ltd.

As mentioned in the previous blog, I had a chance to hear an outstanding presentation by John Manchin, Subaru’s Remarketing Manager, at the I-Remarketing 2006 conference a few weeks ago. Afterward, John sat down with me to discuss his thoughts on upstream remarketing in the industry and using technology to remarket more effectively. When you hear in this podcast how clear and thoughtful he is, you’ll understand why he’s a successful professor as well as a manager. Enjoy.


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato,John Manchin, I-Remarketing Conference

Vol. 2 No. 23

iRem@rketing 2006: The Technology Conference of the Used Car Industry; or Savvy Seminars in San Antonio, Part I.


I don’t remember exactly how many years ago Ron Smith and his crew at AutoRemarketing Magazine launched the iRemarketing Conference, but I do know I haven’t missed one in at least five years. The latest one, held in San Antonio, May 17 – 19 was especially interesting, as I got to meet a few people new to remarketing, and to see old friends conduct some very informative presentations.

The always accommodating registration folks at the start of iRem@rketing 2006
















Ron Smith, Publisher of AutoRemarketing greats the crowd at iRem@rketing 2006, while Bill Zadeits, Associate Publisher and conference chairperson, observes.









With an opening greeting from Ron Smith and only one keynote speech, this year’s conference offered detailed workshops running simultaneously, which allowed for more audience interaction and participation. While most conferences include breakout sessions, this is the first that I have attended that was comprised almost entirely of workshops, and I think it made the event very effective and educational. Of course, during the breakfasts, breaks, and receptions at the close of each day, there was plenty of time to network and catch up with presenters and old friends in the industry (in most cases these are one and the same…).

Day One: A Presentation Worth Leaving the Golf Course For

After a morning golf outing, the first day started with one of the most informative workshops of the event, which is saying a lot, because there were many good ones over the two and half days. John Manchin, Remarketing Manager, Subaru Auto Leasing, Ltd., presented one of the most comprehensive presentations I’ve ever seen on the initial conception, implementation and tangible metrics of creating an upstream program for manufacturer leased vehicles. In addition to being a 31-year veteran of the car business, John is also an adjunct professor at Eastern University School of Business, and his teaching experience was clearly in evidence. John’s insights also reflect 12 years in the retail end of things, where I think any folks in sales for a vehicle manufacturer ought to be required to spend some time…it would create more realistic expectations in the manufacturer’s executive suite.

Selection of the Unfittest? Debunking a Widely-Held Myth

While John acknowledged that hindsight is always “20/20,” one of the things I liked best was that he recounted some of the “myths” that were circulated by the “bricks and mortar” folks just a few years ago, which inhibited the use of upstream innovations, even for manufacturers. It seems silly now, but the idea of “adverse selection” for those units reaching physical auction, did make many potential “early adopters” step back and reconsider undertaking an upstream program. The “adverse selection” story went like this: if an organization implemented an upstream program for their off-lease or off-fleet units, they would, naturally, sell the best vehicles upstream, leaving less desirable vehicles for the physical auction to sell. This, in turn, would lead those buyers in the lanes to bid lower for this lower number of units, which would, in turn, lower the total returns for the entire portfolio.

And yet, as John Manchin accurately pointed out, if this adverse selection myth, so widely propagated by the physical auctions and their trade association held true, then it would run counter to the very fundamentals of supply and demand. That is, given the same number of buyers and a reduced supply of vehicles, those vehicles running would get higher prices relative to the fewer cars in the auction lanes. In fact, the world was supposed to believe that the remaining vehicles would garner so low a price relative to what they would get if there were double or triple the number of vehicles running at the same time, that it would completely overwhelm the savings and financial benefits the seller received on those units sold upstream.

The “adverse selection” idea seems ludicrous today, and, of course, was proven wrong by guys like John Manchin, who ran upstream programs, kept accurate metrics, and can document millions of dollars in net savings annually from the implementation of upstream sales. But it was not that long ago that this counter-intuitive notion was embraced and did inhibit innovation for a period of time – partly because it was pronounced by some of the most respected large scale institutions in the country and also because it preyed on the normal fear that institutions have of change, as John pointed out in his presentation.

The Power of Peers

John took us through a comprehensive chronological summary of the goals he set out for Subaru’s upstream program before its initiation, the challenges and opportunities of implementing upstream selling, how the upstream system works at Subaru, and, most importantly, the metrics of the program’s success to date. After attending the workshop, I immediately asked John if he would give us the highlights of his talk in a podcast (I am always thinking of you, dear readers), and, fortunately for us, he consented. (Click on the headline above.) I think that I was impressed with John’s workshop not only because of how well it was prepared and presented, but, because of the power to inspire that he has in his address. No matter how much I or any other vendor attempt to motivate various sectors of the marketplace to adopt upstream remarketing and enjoy the benefits, it’s no match for presentations like John’s, a no-holds-barred account of the initial challenges and benefits of implementing an upstream program, that has the most impact on motivating change and creating the (re) marketplace of the future. Nice job John, and thanks again for the podcast.






John Manchin, Remarketing Manager, Subaru Auto Leasing, Ltd. conducts a well-received workshop on Subaru Sold, the upstream remarketing platform for Subaru.









And Rounding Out Day One…

There were three other workshops, in addition to John Manchin’s seminar, during the first half-day of the conference, that, fortunately, were repeated on the last half day of the event. Randy Barone, from aaXchange, one of the leading used vehicle inventory management systems available to retail dealers (provided by JM Solutions), conducted an effective presentation on the benefits of using technology to make used vehicle management much more effective and profitable as a retailer – transforming it to a science from a mysterious “hit or miss” art. In addition, my old friend Clive Kinross made an excellent presentation on his online vehicle auction exchange, Onlane (Onlane just won ARI’s Remarketing Partner of the Year award, by the way). And finally, Stephen Pugh and Lenny Sims from NADA Used Car Guides, and George Heppe from GigglePop, also presented a workshop. All and all, the first half day of iRem@rketing 2006 was filled with valuable information…


Next Entry: iRem@rketing 2006 Part II (including a podcast with Keynote Jack Nerad, editorial director and executive market analyst for Kelley Blue Book; host of the national radio show, “America on the Road,” and featured personality on the History Channel’s AutoManiac”)


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato,AutoRemarketing Magazine, iRemarketing Conference, John Manchin, aaXchange

Podcast with Theresa Ragozine, Worldwide Director, Travel and Fleet, Johnson & Johnson, the Winner of Automotive Fleet’s 2006 Fleet Executive of the Year Award

As I described in my May 30th blog about the NAFA Conference in Orlando, FL, Theresa manages a fleet of 30,000 vehicles, supervises a fleet staff of 10, and has been involved in fleet for the past nine years. Remarketing innovation (an area I’m particularly keen on, in case you haven’t noticed) is one of her many fleet accomplishments that led to the Automotive Fleet’s 2006 Fleet Executive of the Year Award she won, having initiated “Deals on Wheels,” a multi-national employee Intranet site contributing to nearly $25 million in fleet savings to date. Theresa also utilized a total cost of ownership analysis and reverse auction to gain a full understanding of the annual buy strategy with the auto manufacturers and developed a European leasing platform.

I had the opportunity to interview Theresa for my podcast series to discuss the award, her accomplishments and the remarketing industry. So, check it out for yourself by clicking on the podcast link in the title of this blog.

Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, National Association of Fleet Managers, Theresa Ragozine, Automotive Fleet’s 2006 Fleet Executive of the Year Award

Vol. 2 No. 22

2007 GM Fleet and Commercial Product Review – the Best Show I Never (Officially) Attended…

Groucho Marx once said that he wouldn’t belong to any club that would have him as a member… Well, I think I need to adopt that sentiment with regard to the manufacturer fleet preview shows, the large multi-day productions that Detroit manufacturers put on for their fleet clients -- commercial, daily rental and government buyers. Back in the good old days (when the budgets were healthier), I used to get invited to these all the time. Then came the time that I paid my way in, and now I’m just “hanging around,” that is, showing up…or, in other words, crashing the party.

At any rate, General Motors’ 2007 Fleet and Commercial Product Preview was in Nashville this year, in two waves: May 8–10 and May 10–12. I and most of the corporate fleet folks went in the second wave, since the first wave conflicted with the annual NAFA convention (May 6 – 9). Unfortunately, most of the daily rental folks went in the first wave, but I had a chance to say hello to a few of them as the “waves” kind of crossed over in the middle.

Let’s Show Off some Vehicles and Have a Party

Detroit manufacturers still go all out for their annual product shows for fleet buyers, paying their invited fleet guests’ way through the entire event (airfare, hotel, social events)…and they do it right, even now, in “challenging” financial times. This year’s GM show included not only the usual product reviews, receptions and an extensive “ride & drive,” but also offered invitees their choice of a golf outing, an historic Hermitage Tour, or a tour of the Corvette Museum. In addition, guests were invited to attend a special reception, dinner and presentation at the Country Music Hall of Fame. The trip is free to invited guests and GM fleet buyers, but not us remarketing types. We only help dispose of the fleet vehicles when they are slated to end their term for fleet buyers - a vital service for fleet turnover to be sure, as one usually needs to know how to get rid of an old fleet vehicle before a replacement is purchased. Unfortunately (am I sounding annoyed here?) our service hasn’t gotten the recognition among manufacturers that would earn us a fleet show invitation…

But no matter… I usually just show up at these things on my own when my schedule permits. Now, lest you think I’m there for the food, I usually don’t go for the entertainment part of the production (not that I haven’t considered it on occasion); I go to see the cars, get updated fleet program information, and meet up with many of my clients and friends, who, indeed, are all in one spot. This year was no exception, and it actually was very easy to just follow the crowd of fleet managers from NAFA in Orlando on May 9th, up to Nashville…lots of them were even on the same flight I was…and after all, it’s practically on the way back to Philadelphia…

One unique couple, whom I mentioned in a prior blog entry, were at both NAFA and the GM Fleet show: Bret and Gail Watson, the fleet industry’s “first couple.” As I mentioned before, Bret runs Sprint’s fleet (10,600+ cars, vans, and light trucks, #22 on the list of the “Top 300 Commercial Fleets” for 2006, according to Automotive Fleet magazine); and Gail is in charge of the fleet for Nationwide Insurance (over 6,100 cars, vans, and light trucks, ranked #51 on the same “Top 300” list).

[Since a quick math calculation reveals that the combined number of cars under the Watsons’ management is just shy of the top 10 fleets in the nation, I figured that if I hung around nice folks like Bret & Gail during the GM event, my chances of getting thrown out as a gate crasher would be greatly reduced…Thanks, guys.]

Okay, so one manufacturer preview show down, two more to go (Chrysler, and then Ford)…can’t play favorites gate crashing, after all; that might engender hurt feelings…


Technorati Tags: Driveitaway, upstream remarketing, fleet sales, fleet manager, John Possumato, General Motors’ 2007 Fleet and Commercial Product Preview, National Association of Fleet Administrators, Chrysler, Ford, GM, Daily rental, Government fleet, Corporate fleet