GAINESVILLE, Ga. -

To wrap up another year of providing the wholesale and retail community with weekly auction price updates, Black Book editorial director Ricky Beggs offered a special two-part series.

In the end-of-year “Used Car Market Report,” Beggs sits down with National Auto Auction Association president Ellie Johnson and president-elect Mike Browning to discuss this year’s highlights as well as what’s in store for 2015.

In Part I of the Black Book interview, Beggs focused on the NAAA executives’ career backgrounds.

This time around, Part II focused on expanding used supply and what it means for the wholesale industry.

Off-lease supply is predicted to spike considerably this year, and new-car sales are booming, meaning more trade-ins to be sold at auction.

Beggs touched on this topic, asking both Johnson and Browning how this impending supply increase will impact the auction market.

Browning said, “I think the physical auctions are going to be needed now more than ever. To liquidate the assets of supply saturation we aren’t used to, we are going to need physical locations.”

And Johnson said auctions should ramp up training in an effort to stay prepared for a busier period.

Johnson said, “We will have to make sure we are up-to-date on all of our training, whether you are a chain auction or an independent, make sure all of your team is up-to-date on it and service to the customer is key."

But with more supply comes lower prices. That said, when asked about the potential impact on wholesale values, Johnson didn’t seem very concerned.

 “I think they are going to drop a little bit, but I think the demand is still going to be there. We have been without a good inventory for a good time now, so I think the demand is going to stay there,” Johnson said.

Beggs also touched on another aspect in a market that is looking more and more like the one seen pre-recession. And with this shift comes loosening credit. Beggs asked the NAAA execs whether they had seen an uptick in repo vehicles in the lanes, due to looser credit conditions.

 “I think it is a pretty good market. We haven’t seen much increase. Yes, our customers have more volume, but that may be from acquisitions. I think they are making smarter loans, and they are not as loose as they were before 2008, so I think it’s been good,” Johnson said.

Browning added, “I think the lending practices have gotten better and a lot smarter. We have seen a little raise, but that is most likely due to the volume of the loans.

“Will we see more? Sure, but I don’t think we will ever get back to the levels seen before (during the recession),” he concluded.

As for what NAAA leadership will be focusing on over the course of the new year, Johnson said one of the key areas of focus will be safety.

“Safety is everybody’s responsibility, from the employee to the customer. We are forming a committee now that is scheduled to meet in February, part Manheim, ADESA and some of the independents, or how important safety is and the awareness,” Johnson said.

Browning explained the association will also be focusing on member engagement.

To view the full interview, see above.