Auctions

Missouri AA chooses 3 homegrown managers for leadership roles

COLUMBIA, Mo. - 

A ServNet Auction Group member located in the heart of the Midwest is making sure its standing within the wholesale community remains strong as leadership changes unfold.

According to a news release delivered to Auto Remarketing on Friday, Missouri Auto Auction owners Gregg and Dagmar Boswell have announced a change in the management and ownership structure at the auction. In conjunction with the reorganization, Justin Brown assumes duties as the auction’s general manager while previous managing partner Kevin Brown leaves the company to pursue other interests. 

The Boswells also shared that as part of the transition, Cody Boswell and Candice Boswell-Bray will assume greater oversight responsibilities and play more strategic roles in the next generation of leadership at Missouri AA.

“This is an exciting time for us at Missouri Auto Auction,” Gregg Boswell said. “We wish Kevin well and appreciate his efforts over these many years in helping to build the auction. He has overseen the many physical improvements made to the facility and has been instrumental in developing vital relationships in the industry.

“His departure marks a new focus on the next generation of leadership, and we look forward to an exciting future as Cody, Candice and Justin devote their energy and skill to our business,” Gregg Boswell continued.

Justin Brown has worked for Missouri AA since 2006, beginning his career with the company as a sales representative and working for the past several years as the auction’s sales manager. Under the leadership of Gregg Boswell and Kevin Brown, Justin Brown has advanced within the company, learning all aspects of operations over the 12-year span prior to his appointment as general manager.

Justin Brown also is a recent graduate of Auction Academy.

Cody Boswell and Candice Boswell-Bray both have more than a decade of auction management experience, learning firsthand from their work at the auction and from their parents, who have been in the auction business for more than 40 years.

Also a graduate of Auction Academy, Cody Boswell is an auctioneer at Missouri AA.

“Both Cody and Candice share a depth of knowledge about the auction and the industry that will serve them well in their leadership roles as Missouri Auto Auction continues to grow,” Gregg Boswell said

“I have great confidence in Justin’s move into the senior role as general manager overseeing the day-to-day operations. This next generation in leadership will serve our auction and our customers well.” Gregg Boswell went on to say.

Missouri AA has experienced solid, continual growth since its founding 18 years ago in 2000. Today, more than 500 vehicles are offered for sale each week at a greatly enhanced and more advanced facility.

“Much of Missouri Auto Auction’s success can be attributed to a supportive employee culture and belief in promoting from within,” Justin Brown said.

“Our staff has always been and will continue to be the distinguishing factor that sets Missouri Auto Auction apart, playing a pivotal role in building the lasting relationships that contribute to our ultimate success,” he added.

Missouri AA holds a consignment sale every Friday at 9 a.m., with monthly vehicle and equipment sales for the government, businesses and dealers that are open to the public. Missouri AA operates within the Auction EDGE technology system, which can deliver live online auction lane bidding, market reports of auction sales results and available inventory from auto auction affiliates nationwide.

Manheim text notification service helps buyers never miss desired vehicles at auction

ATLANTA - 

During auction sales where thousands of vehicles are presented on multiple auction blocks, buyers are benefiting from receiving text message notifications that alert them prior to a vehicle they’re interested in coming up for sale.

With Manheim’s Lane Alert service, buyers can maximize profits and ensure that they can bid on specific units without having to use their time reviewing run lists or planning out their sale day strategy. Now, just six months post-launch, Manheim said that more than 700,000 Lane Alert text messages have been sent and more than 33,000 vehicles have sold to a client who signed on to receive text message notifications.

“The adage, ‘you can’t be everywhere all the time’ is never truer than during a busy auction sale day when it is critical that a buyer be in the right lane to bid on the cars they need most,” vice president of Manheim Digital Marketplace and RMS Automotive Zach Hallowell said in a news release. “Lane Alerts is another example of how Manheim is ‘meeting our clients where they want to be’ by augmenting the auction experience with technology in order to make doing business with us easier and faster.”

Whether buyers are using Simulcast or visiting physical sales, Lane Alerts is designed to help them not miss out on the opportunity to purchase specific cars that they have identified as needing the most.

According to Manheim, in June, almost 60,000 clients had already chosen to take advantage of the new service following its launch in January.

“The new Lane Alert is one of the best improvements I have seen in years,” said Robert Christensen, president of Apple Auto Sales. “Until now, I have had to look at each of the presale lists for the lanes that had cars I wanted, find out how many unfilled lane spots there were and then try to calculate when my vehicles were going to be running through so I could bid on them.

“Now, it is so easy. I like that I get an alert on my phone when the vehicle is 10 vehicles away from entering the auction block. It is perfect for me to be prepared for bidding,” Christensen continued.

In addition to being able to sign up for Lane Alerts through their dealer profile at manheim.com/lanealerts, interested dealers can also register for the service from vehicle details pages and search results pages on Manheim.com.

ADESA Winnipeg named NAAA Eastern chapter of the year 3rd straight time

FREDERICK, Md. - 

For a third consecutive year, ADESA Winnipeg has been named the National Auto Auction Association’s Eastern Chapter Auto Auction of the Year, in recognition of its staff's notable public service efforts.

NAAA announced Thursday that the auction was chosen for successfully organizing 25,000 people to raise $5.2 million in donations and its involvement in over 55 charitable activities.

“Determined to leave an even bigger philanthropic footprint on their community than last year, the auction staff embarked on a non-stop succession of fundraising events and volunteer activities, from celebrity races and golf tournaments to fashion shows galas and live auctions,” NAAA said in a news release.

ADESA Winnipeg is now one of four auctions in the running for the top NAAA honor, the Auto Auction of the Year Award for Excellence in Community Service.

Earlier this week, NAAA announced that Kansas City Independent Auto Auction, Manheim Darlington and ADESA Indianapolis of are this year's Western, Southern and Midwest chapter auctions of the year, respectively.

This year, ADESA Winnipeg served in a meaningful way when it hosted a live auction for about 1,000 people that raised $625,000 for The Dream Factory, an organization committed to funding the dreams of children with life-threatening illnesses. Meanwhile, soon after the fundraiser, the auction became aware of a 29-year-old single mother of two who was diagnosed with terminal cancer. So,  ADESA Winnipeg staff collected a total of $32,413 to help the woman plan her children’s future, according to NAAA.

“It is my great pleasure to announce ADESA Winnipeg as the Eastern Chapter’s candidate for Auto Auction of the Year during National Auto Auction Week because it’s evident community service ranks highly in the auction’s core values as this is its third consecutive year to be selected for this honor,” said NAAA Eastern Chapter president Steven DeLuca, in a news release. “Congratulations to ADESA Winnipeg’s team and community. Their passion to give back to those in need is inspirational.”

When it comes to supporting public service, each year, ADESA Winnipeg provides every employee with eight hours of paid leave so that they can have the time to give back to any cause of their choosing. NAAA said the time donated amounts to almost 2,000 volunteer hours each year.

Later this year, in addition to being featured in NAAA’s member publications, ADESA Winnipeg will receive $5,000 and an additional $20, 000 payable to a charity of the auction’s choice and be presented with a crystal trophy at NAAA’s annual convention in November.

The annual convention is held in partnership with the National Remarketing Conference — part of Used Car Week, which is scheduled for Nov. 12-16 at the Westin Kierland Resort in Scottsdale, Ariz.

How dealers are handling wholesale prices on continued climb

CARY, N.C. - 

A pair of monthly wholesale market trackers showed price increases in July, propelled in part by what trucks and utilities are fetching in the lanes nowadays.

How are dealers reacting?

Well, one weekly sale observer described the scene as “many buyers were left shaking their heads.”

So let’s get into the numbers of what’s leaving dealers with visible signs of frustration.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, KAR Auction Services chief economist Tom Kontos reported that wholesale used vehicle prices in July averaged $10,902 — up 0.1 percent compared to June and up 0.1 percent relative to July of last year.

Meanwhile over at RVI Group, the firm’s Used Vehicle Price Index (UVPI) for the United States came in at 1.057 in July compared to 1.034 in June and 1.014 last July. RVI calculated that readings represented an increase of 2.2 percent month-over-month and 4.2 percent year-over-year.

In his monthly Kontos Kommentary, the KAR expert explained that actually more car and truck segments showed month-over-month declines than gains with a slight uptick in the mix of trucks accounting for the small overall average gain. Kontos pointed out that truck model classes now make up 53 percent of the total units sold at auction with the 50 percent threshold having been reached about a year ago. 

“After four months of year-over-year declines, average wholesale used vehicle prices registered a slight increase in July,” said Kontos, who is among the collection of experts coming to Used Car Week, which begins on Nov. 12.

“However, this was primarily due, once again, to a shift in sales mix towards the truck model classes and the continued influx of younger off-lease vehicles, both of which have been tending to drive up average prices.  Still, the summer market for used vehicles appears to be solid, both at the wholesale and retail levels,” Kontos continued.

The editors at Black Book are responsible for watching wholesale prices as well as collecting anecdotes from the lanes. According to the latest Market Insights report, Black Book determined small pickups and full-size cars both showed gains this past week, even though we’re getting deep into summer.

“Subcompact cars have started to show some weakness after a strong retention trend earlier this year. On the other hand, sub-compact crossovers are continuing to do relatively well,” said Anil Goyal, Black Book executive vice president of operations, who also will be on hand for Used Car Week, which is being orchestrated at the Westin Keirland Resort and Spa in Scottsdale, Ariz.

Volume-weighted, Black Book reported that overall car segment values decreased by just 0.20 percent last week. In comparison, editors mentioned values had decreased at a rate of 0.22 percent per week during the previous four weeks.

Among car segments, sub-compact car values decreased the most last week, softening by 0.56 percent or $34.

Again volume-weighted, Black Book noticed that overall truck segment values (including pickups, SUVs, and vans) dipped by 0.15 percent last week. Editors noted that values had decreased at a rate of 0.24 percent per week during the previous four weeks.

Within truck segments, full-size van values decreased the most last week, dropping by 0.50 percent or $74.

In light of all of those data points, Black Book’s lane observers stationed at sales nationwide shared some pretty vivid dealer responses to how managers are juggling their inventory needs against their floor-plan availability.

— From Michigan: “The retail market remains somewhat sluggish in contrast to what happened at the wholesale auction this week. Many buyers were left shaking their heads at the inflated prices on the block.”

— From Massachusetts: “Trucks still rule, and the money was strong except for the poorer quality vehicles.”

— From Georgia: “The sale started off with a lot of activity and very few no-sales. The conversion percentages soon dropped as the floors seemed to be too ambitious.”

— From California: “Strong bidding in person and online, resulting in a really good August sale.”

Whether the sale originated in the Golden State or elsewhere nationwide, if the event included fleet and off-lease units that were 3 years old and less than 45,000 miles on the odometer, Kontos shared how buyers needed to come up with more cash to make the hammer drop in their favor for those vehicles.

Kontos indicated that when holding constant for sale type, model year age, mileage and model class segment, prices for midsize cars in that late-model category rose 5.9 percent or $676 year-over-year in July to $12,169. Prices for midsize SUV in this wholesale space increased 2.2 percent or $435 year-over-year to $20,541.

“Once again, midsize car prices outperformed prices for midsize SUVs and crossovers, as the incoming supply of trucks continues to outpace that of cars,” Kontos said.

“The strength of prices for both groups in this analysis indicates that upstream sales are preventing an oversupply of off-lease units from reaching physical auction lots,” continued Kontos, who elaborated about the wholesale market in a video available here as well as at the top of the page.

Kontos went on to mention more data from KAR Auction Services — a member of the Automotive Intelligence Council — that indicated average wholesale prices for used vehicles remarketed by manufacturers in July rose 3.3 percent month-over-month and 3.4 percent year-over-year.

Kontos also noted that prices for fleet/lease consignors ticked up 0.4 percent sequentially and 8.1 percent annually in July.

Furthermore, Kontos mentioned that average prices for dealer consignors moved 2.0 percent higher versus June but slid 2.3 percent relative to July of last year.

The KAR chief economist closed his latest Kontos Kommentary by sharing information from Autodata that indicated July certified pre-owned sales softened 7.5 percent from the prior month and 1.9 percent year-over-year based on fewer selling days. On a year-to-date basis, Kontos added that Autodata has CPO sales up 2.8 percent versus last year.

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   July 2018  June 2018  July 2017  Prior Month  Prior Year
           
 Total All Vehicles  $10,902  $10,895  $10,887  0.1%  0.1%
           
 Total Cars  $8,519  $8,548  $8,613  -0.3%  -1.1%
 Compact Car  $6,434  $6,441  $6,582  -0.1%  -2.3%
 Midsize Car  $7,457  $7,533  $7,633  -1.0%  -2.3%
 Full-size Car  $7,275  $7,495  $7,018  -2.9%  3.7%
 Luxury Car  $13,294  $13,172  $13,582  0.9%  -2.1%
 Sporty Car  $14,225  $14,515  $14,164  -2.0%  0.4%
           
 Total Trucks  $12,922  $12,901  $13,058  0.2%  -1.0%
 Minivan  $7,937  $8,652  $8,604  -8.3%  -7.7%
 Full-size Van  $13,306  $13,202  $11,875  0.8%  12.1%
 Compact SUV/CUV  $10,805  $10,829  $10,467  -0.2%  3.2%
 Midsize SUV/CUV  $10,992  $11,135  $11,402  -1.3%  -3.6%
 Full-size SUV/CUV  $13,198  $13,499  $13,353  -2.2%  -1.2%
 Luxury SUV/CUV  $18,495  $18,331  $19,099  0.9%  -3.2%
 Compact Pickup  $9,796  $9,471  $9,615  3.4%  1.9%
 Full-size Pickup  $16,583  $16,386  $17,061  1.2%  -2.8%

Source: ADESA Analytical Services.

       

Independent auto auctions talk mobility, safety, hiring & more

CARY, N.C.  - 

There’s no doubt about it. Independent auto auctions certainly face a challenge from the growth of corporate counterparts Cox Automotive and KAR Auction Services, which are the parent companies of the Manheim and ADESA auction chains, respectively.

But folks like Brandon Walston, the general manager of the independent San Antonio Auto Auction, also see the opportunity in their position.

“The challenges are definitely the two big players … how much they’re growing horizontally and vertically in the industry, and the resources they have behind that,” Walston said in an interview at Auto Remarketing’s North Carolina offices.

“On the flip side of that, I think that the opportunities that leaves us as independents are we kind of have the flexibility — as long as we’re open to it — to be able to work with these new things that they’re putting in the market,” he said, referring to the technologies from Cox Automotive and KAR that are also available to independent auctions.

“We’re independent so, for example, we have the advantage of being able to work with DealShield from Cox. To be able to offer that to our customers, as well. We have the advantage of being able to post vehicles on OPENLANE, from KAR,” Walston said.

For local customers of independent auctions like San Antonio, they’re able to utilize the additional services from the larger companies, all while maintaining “our special touch of service,” Walston said.

“So, the combination of that, I think we can really use to our advantage if we’re open to it and flexible, and not stuck in our ways of ‘this is how it’s got to go,’” Walston said.

Hunter Dunn, who is the general manager of Corpus Christi Auto Auction, joined Walston for the Aug. 8 interview ahead of this National Auto Auction Week that touched on challenges and opportunities for independents, mobility and new tech, auction safety, finding talent and more.

Both Texas auctions are part of the W Walker Auction Group and members of the ServNet Auction Group, a network of independent auctions.

Dunn said that given the various parts of the market that a company like Cox Automotive reaches through its services — DealShield, vAuto, NextGear, etc. — “it wouldn’t benefit us to say, ‘you know, we’re not going to use any of this stuff from this particular company.’ Because it makes us stronger, it opens up our buyer base, for sure.”

And utilizing the amenities provided by the corporate parents of the large auction chains gives the independents a shot in the arm, too. It makes them more marketable.

Being a DealShield user, for instance, “it becomes a selling point for us, too, where you’re not just having to go to Manheim to use DealShield, you can use it at independent auctions such as myself and (Walston’s) and other independent auctions across the nation,” Dunn said.

Opportunities in mobility & beyond

There are also opportunities for independent auctions in this new automotive landscape of mobility, ridesharing, subscription services and the like.

It’s a matter of providing a local service resource for some of those players, and reaching out to them to provide such services as vehicle storage or marshaling, Walston said.

“We’re in our market, we know it as good as anyone else (in) that area,” he said.

And, of course, post-use auction sale of vehicles is another areas independents can provide a service to these new players in automotive.

Walston and Dunn also both mentioned how independents can help “streamline” the return process for these fleets of vehicles.

Safety challenges

Regardless of whether an auction is owned by a family, small business or corporation, safety has become a focal point in the business.

And it’s a daily practice.

“Safety is definitely a thing you can’t just preach once and expect it to work. So, it’s a constant thing for us to have safety meetings. Every week. Every sale day,” Walston said.

The hammering home of this message “may seem repetitive on the surface,” Walston said, but as he and Dunn both emphasized, “it can’t be said enough.”

Dunn added: “And we get reminded of this, unfortunately, every so often when you hear something tragic happening at an auction. It brings it back in our memory of how important it is, and it makes us refocus (on)” how those situations can be prevented and how might preventive measures be implemented at their own auction to avoid such tragedies.

“The families of our employees and everyone that we work with expect them to have a safe place to work and expect to see them at home after work every day,” Walston said. “And that’s our responsibility as leaders to do our best and ensure that.”

It is imperative that’s top of mind each day.

“Auctions are dangerous places … you’re dealing with combustible motors, a lot of times you’re dealing with older cars that maybe haven’t passed all the safety checks. It’s a dangerous place. And you try to minimize (the danger),” Dunn said.

Walston said it’s important to ensure that is realized by customers, employees and the like.

There is no room for complacency, Dunn said, even things like dealers walking in and out of lanes or using their phones. Given how prevalent phones are at auctions — scanning VINs, taking pictures, etc. — that can be a “distraction.”

Continuing to find talent

Walston and Dunn also touched on the hiring process in the auction business.

And a big part of that is just spreading the word about the industry itself.

As Walston said, “In general, not enough people know about the auction industry” — and before he started at San Antonio Auto Auction, he counted himself in that bunch

In terms of bringing in employees, Walston said he’s found success with a blend of folks with auto industry experience and fresh talent that can bring new ideas.

In addition to experience, “an open mind to be trainable,” is also important, Dunn said, given how much often the industry changes — particularly the technological shifts in recent years

And often, referrals have made for some of the best hires, Dunn said.

Car and auction industry experience isn’t necessarily the top priority — and sometimes when they don’t have background in the business, an employee comes in with more of a clean slate.

One thing Walston stresses when hiring is that the auction industry is a “relationship business.”  

The nature of the wholesale car industry, an auction will see customers every week. That’s quite a departure from a general retail sales job, for instance.

“You’re building relationships with these guys,” Walston said. “You’re not selling them something one time and they’re out the door; you’re in it for the long haul with them.”

Power 300: Brenda Aden of ADESA Las Vegas

CARY, N.C.  - 

In the latest installment of the annual Power 300 issue of Auto Remarketing, we go behind the scenes with some of the leading companies in the used-car space and their top executives with a few Q&A features.

Next up is Brenda Aden, general manager of ADESA Las Vegas. 

Auto Remarketing: What’s the typical week like at your auction, if there is such a thing as ‘typical’? 

Brenda Aden: There’s never a ‘typical’ week, ever! With the industry changing so quickly, every single week is different. There’s always something new, something evolved, or something we’re implementing to provide enhanced customer service, more efficient sales and better employee engagement. That said, our sale day is every Thursday, and our specialty sales are on the second Friday of each month. There’s a lot of prep that goes into each sale day and ensuring our customers’ vehicles are represented as best as possible.

AR: What are some strategies you personally implement to keep track of all the moving pieces of the day-to-day operation of an auction?

BA: I’m a huge believer in communications and employee development. Our managers meet every day, even if it’s for a few minutes, so that each manager recognizes all the moving pieces and better understands the other departments and the work they do. These ‘huddles’ are a simple way of ensuring we’re all on the same page and working together toward the same goals.

And for the same reason, each of our managers also meets daily with their employees. Th is helps us consistently provide the effi cient operations and exceptional customer experience that our customers deserve and expect.

AR: As the automotive landscape continues to shift toward tech and digitization, what are some opportunities for brickand-mortar auctions? 

BA: Long-term, the digital revolution will bring many new opportunities to physical auctions that are nimble enough to recognize them — but near-term, the speed of the shift and the types of opportunities will vary from auction to auction and region to region depending on the customer mix. Auctions can differentiate themselves through the level of service they provide and by helping their customers navigate any new terrain.

For example, by helping customers integrate digital and mobile channels, like the ADESA Marketplace app, Mobile Auctions and TradeRev into their business strategy, we can teach them how these new tools and services can help them be more profi table in-lane, online and on the go!

AR: What’s the vehicle supply situation looking like at your auction? Any impact from off-lease volume?

BA: Overall, our experience is right in line with expectations and consistent with the broader market trends observed by KAR chief economist Tom Kontos: Wholesale prices remain strong for off -lease vehicles despite the overall softening market.

Manheim index climbs 5% to new series high

ATLANTA and LAWRENCEVILLE, Ga. - 

As Auto Remarketing reported, the July seasonally adjusted annualized rate for used-car sales hit the highest point for the start of a third quarter in six years.

That sales pace Cox Automotive highlighted as well as the recent lane activity Black Book recently witnessed appear to be fueling a wholesale market turbine that’s pushing one of the industry’s benchmarks to a new high.

Cox Automotive recapped that wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 1.51 percent month-over-month in July. Analysts explained the movement brought the Manheim Used Vehicle Value Index to 136.9, which represented a 5.1-percent increase from a year ago and the highest level ever for the series.

Looking at trends in weekly Manheim Market Report (MMR) prices, Cox Automotive indicated that the abnormal summer bounce that started in June continued and strengthened in July.

“Correspondingly, the best-selling cars at Manheim are worth more today than a month ago, and many vehicles are worth more now than a year ago,” analysts said. “Price comparisons to last year will be tougher through the rest of the year; but recent weekly increases were higher than last year, keeping current price performance ahead of last year.”

Over at Black Book, editors recently noticed how depreciation slowed again.

According to the latest edition of Black Book Market Insights, a handful of cars are continuing to show some of the strongest one-month retention trends during July — a time when cars are historically supposed to begin seeing heavier depreciation heading into the late summer months.

Volume-weighted, overall car segment values decreased by 0.22 percent last week, according to Black Book. In comparison, editors mentioned the market values had decreased by 0.25 percent on average in the prior four-week period.

“Wholesale markets values are steady as dealers continue to stock up on inventory for used vehicles due to strong retail,” said Anil Goyal, executive vice president of operations at Black Book.

On the truck side, Black Book’s volume-weighted information showed that overall truck segment values (including pickups, SUVs and vans) decreased by 0.15 percent last week. In comparison, the market values had declined by 0.26 percent on average during the previous four-week period.

Black Book’s anecdotes from the lanes added further color to the numbers editors tabulated.

An auction general manager in Connecticut told Black Book’s representative, “We have recently had record sales regarding consigned vehicles and sales conversions which have consistently been above 70 percent.”

Next door in Massachusetts, the lane watcher recapped, “The dealers are willing to spend extra money on the nicer units. The captives and the fleet/lease sellers had their best sale in weeks.”

And in the Midwest, the pace of sales was reinforced by the observer stationed in Indiana saying, “Dealer business is good, so they are buying replacement vehicles for their lots. Trucks and luxury cars are still scarce as is any vehicle that is really nice.”

Turning back to the Cox Automotive wholesale assessments, the Manheim data showed all major market segments saw price gains on a year-over-year basis in July. Compact cars and midsize cars outperformed the overall market, rising by 5.2 percent and 7.2 percent, respectively. Not far off the overall price rise were pickups (up 3.3 percent), utility vehicles (4.5 percent) and vans (up 3.4 percent).

Even within the rental-risk space, Cox Automotive spotted how pricing strengthened.

Analysts indicated the average price for rental risk units sold at auction in July was up 6 percent year-over-year and 1 percent month-over-month.

Cox Automotive added that the average mileage for rental risk units in July — at 45,200 miles — rose 9 percent year-over-year and 6 percent month-over-month. 

Cox Automotive closed the commentary analysts shared with the latest Manheim Index update by trying to summarize what all of the unusual wholesale trends mean.

“The strange summer price appreciation in used cars is partly a function of a strong economy at its peak, with mounting affordability challenges for the consumer that favor growth in used-vehicle sales at the expense of new,” analysts said. “These conditions have supported strong used-vehicle prices for over a year.

“The catalyst for even stronger price movement this summer is the fear of import tariffs’ leading to higher prices in the future,” they continued. “Higher prices and the related declining level of supply create a psychological feedback loop for consumers, encouraging buying now with the expectation that prices may be higher later.”

Car values push up Black Book’s monthly index

LAWRENCEVILLE, Ga. - 

While experts are seeing a softening of consumer interest in new cars, Black Book is noticing the values for traditional two-door and four-door vehicles are keeping wholesale prices stronger than what’s typically witnessed during the summer.

More evidence of current trends arrived on Monday through Black Book, which released its latest Used Vehicle Retention Index.

The new reading represented an 0.5-percent increase in July as the index registered at 113.9, up from 113.3 in June. Editors indicated the index has ticked up by 0.7 percent during the past 12 months.

Editors reiterated that their Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition.

Leading the July index increase was the subcompact car segment with a 1-percent climb over the prior month. Editors pointed out that values for the sporty car, premium sporty car, compact car, midsize car and full-size car segments all had gains of at least 0.5 percent.

Meanwhile, Black Book spotted declines for full-size pickups and full-size luxury SUVs.

“The Black Book Index strength over the last year is a clear reflection that there is strong demand for many segments of used vehicles — particularly for cars,” said Anil Goyal, Black Book’s executive vice president of operations who is among the experts coming to Used Car Week, which runs from Nov. 12-16 in Scottsdale, Ariz.

“While we are forecasting typical seasonal depreciation pattern through the remainder of the year, dealers and remarketers should continue to see increasing sales volume on used vehicles, driven by continued employment growth and high consumer confidence,” Goyal added.

The index dates back to January 2005, where Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1 percent while during 2016, the index fell by just 6.4 percent.

During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used-vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.

To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.

NAAA Platinum series: Details on upcoming National Auto Auction Week

FREDERICK, Md. - 

On each day of this year’s upcoming National Auto Auction Week, a 2018 Chapter Auction of the Year Award winner will be announced as a finalist in the running for NAAA’s Auction of the Year Award for Excellence in Community Service.

In a recent letter to NAAA members, National Auto Auction Association president Warren Clauss said that this year is the first year that the association will reveal the names of the four auctions receiving the Chapter Auction of the Year Award during National Auto Auction Week.

As a part of this year’s National Auto Auction Week running from Aug. 13 through Aug. 17, NAAA said that its partners and employees are gearing up to host and support a number of special events within  the five-day time period.

“NAAA member auctions generously shared their success by donating an average of $26,000 to charity and contributing countless volunteer hours in public service,” said Clauss. “That’s something to be proud of — and an achievement worth sharing. So please join me in celebrating National Auto Auction Week by making the public aware of our industry’s many contributions.

“I encourage you to say ‘thank you’ to our partners, employees, family, friends and neighbors whose support makes all our success possible by hosting some special events,” Clauss said.

Furthermore, the week will be used to spread safety awareness and accident prevention as well, according to Clauss.

He said: “We’ll also be focusing on safety awareness and accident prevention with the message that auctions are a safe place to work and conduct business.”

Wholesale prices stay ‘unusually strong’ as August arrives

LAWRENCEVILLE, Ga. - 

As the industry turns its collective calendar to August, Black Book is seeing wholesale prices staying “unusually strong” for this time of year.

The latest Black Book Market Insights report showed how cars held better retention overall than trucks this past week with prices for sporty cars again increasing slightly.

“The used-vehicle market values remain unusually strong. The depreciation rates last week were the lowest in eight weeks,” said Anil Goyal, executive vice president of operations at Black Book.

Volume weighted, editors indicated overall car segment values decreased by just 0.09 percent last week. In comparison, the values had decreased at a rate of 0.30 percent per week during the previous four weeks.

Among car segments, Black Book reported that prestige luxury car values decreased the most last week, softening by 0.30 percent or $107.

Again volume weighted, editors mentioned that overall truck segment values (including pickups, SUVs and vans) dipped by 0.19 percent last week. In comparison, Black Book recapped that truck values had declined at a rate of 0.28 percent per week during the previous four weeks.

Within truck segments, Black Book determined full-size crossover/SUV values dropped the most last week, sliding by 0.42 percent or $96.

Moving along to what Black Book collected from its representatives stationed at nearly 60 sales nationwide, dealer attendance varied greatly.

A high note was struck up in Washington where the observer, “attended a special event sale that saw record numbers with the consignment over 5,000 and a conversion rate of over 70 percent.”

Meanwhile, down in Georgia it was a different story as the representative shared, “Physical attendance was low which matched the consignment at the highline sale. Online attendance and participation was good, which saved the day.”

Going back out West, Black Book’s personnel stationed in California noticed, “Strong sales have become the norm recently as have higher prices. Dealers are having difficulty sourcing quality older vehicles.”

In the Lone Star State, Texas dealers are in search of inventory that’s not likely to surprise wholesalers as Black Book’s lane watcher said, “Trucks are selling well if they have an above average condition grade.”

The last observation originated from Tennessee where the Black Book representative stated, “SUVs and pickups are selling the best, but the consignment numbers are down.”

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