Auction volume trends entering Q4

Action from a Sept. 15 grand opening sale at Manheim Wilmington in North Carolina. Photo by Joe Overby.
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CARY, N.C. –
Hurricanes Harvey and Irma took a chunk out of auction volumes for late-model vehicles.
According to the latest Guidelines report from J.D. Power Valuation Services, late-model auction volume was down 18.1 percent month-over-month in September. It dropped 9.3 percent year-over-year.
More specifically, auction volume for this age group (vehicles 3 years old or less) was at 213,950 units for the month. That puts year-to-date late-model auction volume at 2.16 million, according to J.D. Power.
On an overall basis (late-model and otherwise) experts were predicting earlier this year that the auto auction industry would set a new sales record of more than 10 million vehicles this year, compared to 9.8 million last year.
Ira Silver, National Auto Auction Association chief economist, said this summer he believes 10 million sales for the industry is on target. Tom Kontos, KAR Auction Services chief economist, said he also believes the industry is tracking to sell “more than 10 million” units this year.
In October, Kontos confirmed that he still believes it will be north of 10 million, indicating that volume might be distributed to the hard-hit areas from places like the Northeast, which have strong off-lease numbers.
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However, he doesn’t anticipate the supply itself will be less.
Likewise, in October, Silver confirmed his projection of 10 million auction sales for 2017, saying that October and November would likely make up for the disruptions that happened the prior two months.
Correspondent Arlena Sawyers contributed to this report.