As KAR Global chief economist Tom Kontos just highlighted, wholesale prices continue to rise.
To help consignors take advantage of the situation, ADESA deployed a new tool on Thursday to enhance the reconditioning process and optimize return on investment for sellers.
By leveraging millions of data points on vehicles, repairs and sales, the company highlighted this technology arms sellers with actionable repair suggestions that maximize the profit opportunity on the resale of those vehicles in the wholesale channel.
KAR mentioned in a news release that the new tool also showcases how specifically tailored repairs and enhancements will improve its vehicle grade, helping vehicles become front-line ready, faster.
“With instant access to recommended recon services and the ROI of each, this new tool makes it easier than ever for sellers to make data-driven decisions on the fly,” said John Hammer, chief commercial officer of KAR and president of ADESA. “We’ve seen impressive results throughout our pilot period, even in a hot market, due to our sellers being able to invest in the right repairs to yield the highest possible return.
“Plus, sellers can see all of their vehicles in one place, along with the status and location of each, from check-in to inspections to shop work all the way to sale,” Hammer added in the news release.
KAR explained that the reconditioning tool visually can display the vehicles as recommendations in one centralized digital location — the ADESA Portal — putting the power in the hands of the seller.
The company added that sellers can see which services will improve the grade and therefore optimize profit. A maximum cost can be set to determine what can be done to the vehicle within budget while driving greater wholesale value.
“With a few clicks, sellers are able to decide which services to move forward with based on grade improvement, spend and ROI,” ADESA chief operating officer Srisu Subrahmanyam said in the news release. “With bumps in grade improvement, we are driving more eyes to the vehicle, as many customers filter by grade when evaluating inventory to purchase.
“Our sellers aren’t the only ones benefitting; dealers are reaping the benefits of retail-ready, higher-quality vehicles, cutting valuable cycle time between when they purchase at auction and when they can deliver to their retail customers,” Subrahmanyam went on to say.
Direct Automotive Services has named Steve Watson as chief financial officer.
Direct Automotive Services, formerly named Direct Auction Services, serves wholesale auto auctions, retail auto dealerships and final mile logistics companies throughout the lifecycle of vehicles, including local pickup and deliveries, vehicle reconditioning, auction labor and vehicle inspections and production optimization.
Watson was previously with Wholesale Inc., a vehicle wholesaler based out of Hendersonville, Tenn. He was chief financial officer for that company for eight years.
In 2018, RumbleOn purchased Wholesale Inc. RumbleOn is a publicly traded, national e-commerce company that uses technology to simplify how dealers and customers buy and sell online. As chief financial officer at Wholesale Inc., Watson “positioned the company for maximum valuation,” according to Direct Automotive Services.
Watson transitioned the company to RumbleOn, remaining as chief financial officer until RumbleOn moved accounting and finance operations to its Irving, Texas headquarters this year.
A certified public accountant, Watson has more than 29 years of accounting and finance experience.
“I am excited to work with the team at DAS,” Watson said in a news release.
Watson continued, “My goal is to use my experience and background to grow the financial and administration department. The company has grown rapidly in the past and is poised to grow even more. There are great things in the future.”
Watson will be based out of the DAS corporate offices in Hendersonville and will oversee the financials, accounting, HR/payroll, administration and IT departments with the help of DAS managers and controller for all five family brands; Roadrunner Services, Direct Reconditioning, Auction Tires Online, Labor on Loan and The Vehicle Inspectors.
“We are delighted to have Steve join Direct Automotive Services,” said David Nutter, president and chief executive officer of Direct Automotive Services.
Nutter continued, “He compliments our fast-paced culture, and we believe his impressive reputation for execution and achieving results, especially in the automotive sector with both private and public companies, makes him an exceptional choice to lead our financial strategy and overall company vision to the next level. His skill set fits well with the strength of our existing finance organization, and his broad range of capabilities including strength in data driven metrics and technology will elevate our systems as we continue to deliver industry-leading services in the U.S. and Canada.”
