AuctionACCESS broadened its floor plan network on Tuesday, adding Floorplan Xpress to the mix. Officials indicated this integration will allow auctions to view updated floor plan availability and originate floor plan transactions with Floorplan Xpress all at the click of a button.
“Floorplan Xpress is a significant addition for our floor plan network,” said Charlie Adams, director of business development at AutoTec. “Auctions, dealers and Floorplan Xpress will all benefit from this efficient process that is quickly becoming the industry standard for transmitting floor plan data.”
Floorplan Xpress vice president of operations Mike Morgan added, “We are excited about this partnership and the significant benefits it will have for our auction and dealer partners.
“This integration will help fuel our nation-wide growth to more auctions and dealers throughout the United States,” Morgan went on to say.
Tuesday’s development comes about a month after AuctionACCESS announced that it added AuctionCredit to its network of floor plan providers through the system.
The Greater Rockford Auto Auction announced recently that it has hired a new national sales manager. Formerly the general manager of Manheim New Mexico, John Smith takes on the new role along with the responsibilities of overseeing sales and marketing efforts at the auction.
Smith has 22 years of auction experience, now coming back to the auction business after leaving Manheim in 2011. Before joining GRAA, Smith went on to own an AAMCO transmission shop and partnered with an independent dealership in Albuquerque.
“We are excited to add John to our team at the Greater Rockford Auto Auction,” said Chad Anderson, the auction’s general manager. “John’s experience, understanding of the industry, and drive for the auction business complement our strategy well. We look forward to his involvement as we grow the auction and reinvest in the business with enhancements such as our new state of (the) art 10,000 square foot reconditioning facility set to open this April as well as our upcoming complete remodeling and enhancement of our auction lanes.”
In other auction news, the Plaza Auto Auction of Iowa announced recently its plans for its first Powersports Sale of the Year on March 25. Mark Greb, the auction’s owner, hopes the warming weather will coincide with the theme of the event.
“Our first Powersports Sale of 2015 is shaping up to be a fantastic event,” Greb said. “We’re expecting well over 125 units, including (a) group of 20 Harley Davidsons that are sure to catch the attention of everyone attending the sale. We’ll also have a great group of RVs, motor homes, four wheelers, and boats, and there’s even a race car in the mix.”
The sale will begin at 5:30 p.m. that Wednesday, an hour before the auction’s regular consignment sale. The auction reports that all units will cross the blocks during the event.
“We check the slide-outs on the campers, test the generators, and write up condition reports on every unit,” Greb said. “Dealers come to our Powersports sale from all over the Midwest, because they know we have a great selection, and they have confidence in both the quality of our inventory and in (the) level of service they receive here at Plaza Auto Auction of Iowa.”
More information can be found on the auction’s website.
The Dealers Auto Auction of Oklahoma City held its first of several March Madness themed sales, which was also celebrated in conjunction with its 28th anniversary, this past Thursday. Its second sale following the theme will be held on Thursday of this week.
“At our sales on March 12 and 19, our customers can participate in weekly bracket contests, and the one with the best picks wins a $250 Visa Cash Card each week,” said Gary Smith, the auction’s owner. “They’ll also have a chance to show off their bucket skills, as two dealers will be chosen each week for a free-throw contest, where the winner gets a cash prize.”
The auction also hosted a GM factory event on March 3, which it will hold again on Tuesday. Like the first sale, the one on Tuesday will feature 500 vehicles in two lanes with bidding both in the lane and online. Dealers attending the factory sales at the auction will be able to sample the free breakfast and lunch as well as participate in the sale-end drawing for $100 Outback gift cards.
The auction’s final March Madness sale will be held on March 26, featuring more than 1200 vehicles from various consignors. All dealers attending the sales between March 12 and March 26, both online and in person, will qualify for drawings before and after the March Madness sale, with prizes ranging from gift cards and basketballs to basketball goals and flat screen TVs.
To the west, the Dealers Auto Auction of the Rockies has its 5th Annual Live Charity Auction scheduled for June 18, following its regular weekly Thursday sale, to benefit the Freedom Service Dogs of America. The event will be attended by Rocky, the Denver Nuggets mascot, as well as two of the team’s dancers.
All proceeds raised during the live auction will be donated to the charity. The event is free for DAA Rockies customers and employees, which will also feature photo opportunities with Rocky and the Denver Nugget dancers as well as a celebrity guess auctioneer, Dean Gunter, from the Mile High Car Company. More information about the charity can be found on the Freedom Service Dogs of America website.
Next up, Carolina Auto Auction extended their Tax Time Sale at the end of February by another week to accommodate the unusually heavy amounts of snow and ice in the area. Despite the weather, 650 of its dealers attended the event on Feb. 25, with many attendees online. 1200 units crossed the lanes, 700 of which sold. $25,000 in cash and prizes were available, with a $10,000 prize that was awarded to Adam Duke, donning a Duke University sweatshirt, from Double A Auto Sales in Easley, S.C.
The auction’s Anniversary Sales Event began on March 4 and will run until its culmination on April 15, which will feature the auction’s “CAA Silver Cash Bar” and more chances for dealers to win cash prizes, including $250,000 and real silver bullion bars.
Brasher’s Sacramento Auto Auction announced it is “rolling out the red carpet” for its 37th Anniversary Celebration on March 23 and March 24.
The event festivities will include a customer dinner, live entertainment and two days of auctions featuring 3,000 vehicles.
The anniversary event will begin with “Brasher’s Live!” when the auction will entertain customers in a dinner theater built on the auction site, followed by an announcement by John Brasher, the auction’s owner, who will recognize the new members of the auction’s Silver Circle, which includes dealers who have done business with the auction for 25 years or more.
The first night’s events will also include entertainment from stand-up comedian Jason Hewlett as well as dinner then followed by the auction of the first 500 vehicles, including vehicles from featured consignors. Those include Ford, Enterprise, Exeter, and a few franchised dealers in Northern California. Reliance Motors will also hold a 100-vehicle Pure Sale that evening.
The next day, the Anniversary Sale Finale will feature the remaining 2,500 vehicles, also including potential prizes such as a custom 1969 Ford Ranchero. The featured consignors include Ford Credit, Capital One, GM Financial, Lobel Financial, Wells Fargo, AvisBudget Group, Hertz, U-Haul, Repo Remarketing, ARI, Golden One, and AL Financial.
“We look forward to our anniversary sale every year,” said John Brasher, the auction’s owner. “It’s our opportunity to thank our customers in a big way for their friendship and loyalty, and we pull out all the stops to make sure our customers know how much we appreciate them.
“We work hard to make each year’s celebration a memorable one, and every year it grows as dealers are eager to participate in one of the largest sales in the region coinciding with the most active market of the year.”
At one of the auction’s sister locations , Brasher’s Idaho will host its 15th Annual Smoker Sale in Boise, Idaho, in June. Hosted on June 17 and June 18, the two-day event will feature two sales with more than 2,000 vehicles and a “clash of Titans” as local dealers and other members of the auto industry “square off” in the boxing ring.
A summer tradition, the Smoker event culminates with an 8-bout boxing match at Century Link Arena in downtown Boise, attracting car dealers and remarketers from around the country. In the past, the event has featured both professional and semi-professional boxers as well as colleagues from the auction industry.
After the boxing matches on June 17, the auction’s owner, Doug Brasher, will host the “Last Man Standing” contest from the ring, calling on members of the industry to raise money for local charities.
“Since instituting the Last Man Standing event eight years ago, we’ve raised more than $200,000 for local charities,” Doug Brasher said. “It all comes together as an exciting night for good causes. We’ll give everyone who attends the opportunity to ‘stand’ for as much money as they’d like to donate to help those in need.”
This year, the Smoker will benefit Camp Hodia, the Juvenile Diabetes Research Foundation, Boise Burnout Fund, Shop with a Cop, and the Idaho Foodbank.
The main event will also feature a celebrity guest, Pernelle “Sweet Pea” Whitaker, one of the top five lightweight boxers in history, according to the company, who won a silver medal at the 1982 World Championships and gold at both the 1983 Pan American Games and the 1984 Olympics.
For more information about the event, visit the auction’s website.
Manheim Fort Lauderdale will host its grand reopening sale this Friday to mark the completion of renovations to its facilities.
The project, which included renovations of both the interior and exterior of the auction, included a remodel of all 10 sales lanes, the construction of a new technology center for dealers, a full overhaul of the auction offices and the beautification of the exterior grounds.
“This project really gave us a new feel and a new look for the entire facility,” said Ryan Mason, the auction’s general manager. “Our lanes really look terrific. They now have new floors, blocks and TVs. The addition of a technology center for our customers is another highlight of this project. It’s a very important feature that will help Manheim customers with a much-needed area we did not have before.”
The renovation project developed over the course of a year and cost over $400,000. The auction, one of 11 Manheim locations in the Sunshine State, hosts its weekly sales on Tuesdays and Fridays and registers more than 3,500 vehicles for sale each week.
A dealer reception will be hosted by the auction on Thursday as well as breakfast and lunch for the dealers at the reopening sale on Friday. The auction will also feature surprise giveaways at the grand reopening event.
Raymond and Joey Wilkes, a father-son team with more than 50 years of automotive experience, on Friday opened Capital City Auto Auction, a new independently owned and operated facility in Ohio.
The owners highlighted their management and staff are committed to combining the warm and friendly feel dealers enjoy at auctions with technology and all the automotive services needed to fully recondition vehicles.
“We just want to do things the right way,” Raymond Wilkes said. “We want dealers to be happy.”
Capital City AA boasts several unique features.
First, with 135,000 square-feet of interior display space, Wilkes plans on filling four auction lanes. He pointed out that somewhat rare to an auction facility is the ability to house nearly 400 vehicles inside the space, alleviating the burden adverse weather on buyers and sellers.
From lane-side pub-style seating, dealers can see each vehicle, while wait staff delivers refreshments thus ensuring an accommodating buy/sell atmosphere.
Technology abounds with specially designed in lane speakers and sound walls.
Furthermore, dozens of monitors flank the arena for ease and convenience.
While Wilkes prides himself on the aesthetics of the venue, he insisted what will be a major draw for dealers is the fee structure.
On average, Wilkes indicated, fees at Capital City AA are roughly half of what dealers have become accustomed to paying. Capital City AA also mentioned dealers can take advantage of $99 buy and sell fees during March.
Wilkes’ automotive background has given him insight into ways to streamline services to be conducive to dealers’ time and budget. The grand opening for the 60,000-square-foot auto body shop is slated for the spring.
The body shop has all new equipment including five car tunnel paint booths and four prep booths.
Also on site is a mechanic shop, detail facility and transportation solutions.
Soon, the new auction will begin construction on an express tunnel car wash that will be open to the public on non-auction days.
“The simplicity of titling and floor planning will be a welcome bonus for dealers with a myriad of options,” Wilkes said.
Capital City Auto Auction will run sales every Friday beginning at 11 a.m.
For additional information, visit www.capcityaa.com.
Southeastern AA of Savannah Breaks Records & Supports Shriners Hospital for Children
This past Wednesday, Southeastern Auto Auction of Savannah held its Cars, Cash & Caring Sale.
The “cars” portion of the sale featured a record breaking number of vehicles sold to a record breaking number of dealers in attendance.
The “cash” portion of the sale featured $30,000 in cash and prizes that were given away after the sale including $10,000 cash, a golf cart, green egg grill, 70-inch televisions, drones, a Bose surround sound system and much more.
The “caring” portion of the sale featured a donation of more than $3,000 to Shriner's Hospital for Children. This donation came from money raised through 50/50 drawings and an auction contribution for every transaction made over the previous five weeks.
Shriner's Hospital for Children is committed to providing the best care for children in the specialty areas of orthopedics, burn care, spinal cord injury and cleft lip and palate, regardless of the family’s ability to pay.
“It was a perfect day for selling cars, giving away prizes and helping a great organization like Shriners Hospital for Children,” Southeastern vice president Bill McCready said.
“The great 80-degree weather we had was just one more reason to smile,” McCready continued. “I want to thank everyone, especially our generous and caring dealers, for helping to raise this amount of money for children in need.”
Southeastern Auto Auction is located in Savannah, Ga., and holds a dealer-only sale every Wednesday at 10 a.m. and a public sale every Thursday at 7 p.m.
In auction news this week, ARI honored Louisiana’s 1st Choice Auto Auction as one of its leading providers, and Manheim announced it is once again sponsoring The Kyle Petty Charity Ride Across America to support Victory Junction — a camp created to enrich the lives of children with chronic or life-threatening illnesses.
First up, for the second time in four years, Louisiana’s 1st Choice Auto Auction has been named a leading provider in its region for fleet company ARI.
ARI’s Vehicle Remarketing program awards auctions every day for outstanding performance in tasks such as days to pick up, condition reports, retention and more.
ARI chose Louisiana 1st Choice Auto Auction on “both quantified statistical performance and superior customer service skills in the handling of their account,” the auction reported.
“We were thrilled to learn that we led our region for ARI in 2014, and I share this award with all the hard-working members of our staff here at Louisiana’s 1st Choice,” said John Poteet, managing partner at the auction. “We are fortunate to have an auction team that that not only takes pride in their work but shows innovation and creativity on the job along with a determination to make our customers happy. Their efforts produce excellent results for ARI week in and week out, and are directly responsible for our distinction as ARI’s 2014 Auction of the Year in Region 5.”
The auction has been handling vehicles for ARI since May of 2008, and has ranked among the top three auctions in its region consistently, and won the same award in back in 2011.
The auction is preparing to celebrate its 13th anniversary, and Poteet reported the auction continues to attract larger larger consignments and more buyers to the auction lanes.
In fact, the company is adding two additional lanes to meet the growth; they are scheduled to be open for operation by April.
A new detail and condition report writing operations center will open simultaneously with the new lanes, as well.
“Attendance at Louisiana’s 1st Choice Auto Auction has increased every year since we opened our doors in 2002, with a 10 percent increase over last year’s numbers alone,” said Poteet. “Our mission is to provide our valued customers with superior customer service that exceeds their expectations, and the Auction of the Year Award with ARI, coupled with increased activity in the auction lane, indicates that our efforts are being recognized.”
Manheim to Sponsor Kyle Petty Charity Ride
Manheim announced this week it will once again serve as presenting sponsor for The Kyle Petty Charity Ride Across America, scheduled for May 2 through May 8.
NBC Sports NASCAR analyst and former NASCAR driver Kyle Petty will lead 200 motorcyclists along the 2,500 mile-route, stretching from Santa Cruz, Calif. to Branson, Mo., to raise funds and awareness for Victory Junction — a camp created to enrich the lives of children with chronic or life-threatening illnesses.
“Each year, we select a route that’s full of breathtaking scenery, while also allowing us to spread the word and build excitement around our mission along the way,” said Petty. “Year after year, the Ride creates lasting memories for our riders, most importantly, it provides life-changing opportunities for children at Victory Junction.”
The 2015 Kyle Petty Charity Ride Schedule is as follows:
- Day 1, Saturday, May 2 – Santa Cruz, Calif. to Bakersfield, Calif.
- Day 2, Sunday, May 3 – Bakersfield, Calif. to Tonopah, Nev.
- Day 3, Monday, May 4 – Tonopah, Nev. to Bryce Canyon, Utah
- Day 4, Tuesday, May 5 – Bryce Canyon, Utah to Moab, Utah
- Day 5, Wednesday, May 6 – Moab, Utah to Colorado Springs, Colo.
- Day 6, Thursday, May 7 – Colorado Springs, Colo. to Hutchinson, Kan.
- Day 7, Friday, May 8 – Hutchinson, Kan. to Branson, Mo.
The ride has helped send 7,815 children to Victory Junction at no cost to their families.
“When Kyle started this Ride 21 years ago, I don’t think any of us realized just how special it would become,” said Kyle’s father Richard Petty. “Riding across our beautiful country on two wheels with great friends and family is incredible, but knowing you’re doing it to help others makes it the ride of a lifetime.”
To follow Kyle Petty and the riders live, visit www.facebook.com/KPCharityRide, or on Twitter and Instagram, @KPCharityRide.
The Independent Auction Group and the International Automotive Remarketers Alliance have signed a four-year sponsorship agreement, IAG announced Monday.
Under the agreement, IAG becomes the lead sponsor of the IARA’s Summer Roundtable and IARA’s website.
The first IAG-sponsored event will be during the IARA Summer Roundtable scheduled for Aug. 18 and Aug. 19 at the Downtown Fort Worth Hilton.
“The mutual benefit of this sponsorship is strong. The IARA responds to a need for national representation within the vehicle remarketing organizations of our multi-billion dollar per year industry,” said Lynn Weaver, IAG co-chairman “ The IAG organized to bring together resources and services for independent auction owners, managers, and employees to support that same industry.
“IAG’s mission has always been to promote independently owned auctions and to sustain an alliance within the industry that gives its membership a group conscience and voice. The opportunity to join with IARA strengthens that voice and increases the reach throughout our industry to better opportunities for all,” he continued.
Levi McCoy, IARA president, added: “We are pleased to have the Independent Auction Group as our new partners. The Independent Auction Group is a diverse and growing component of the remarketing industry. IAG auctions are members of the National Auto Auction Association and represent everything that is great about IARA’s working partnership with NAAA.”
IARA executive director Tony Long added: “This partnership brings IARA a long-term stability to our sponsorship program and will raise the bar for quality at our meetings. In turn, our agreement provides improved membership opportunities for IAG members and increased opportunities for dialog with consignors, service providers, and other key players within the remarketing industry.”
In announcing its fiscal second-quarter and six-month results, Copart Inc. highlighted a decrease in revenue and vehicle sales, with bright spots being a spike in service revenue and inventory.
Copart experienced a revenue slide of $10.2 million or 3.6 percent during their second fiscal quarter, a move the company’s management team discussed in more detail during a conference call to discuss quarterly and six-month results ending January 31.
For the company’s fiscal second quarter, revenue, gross margin and net income were $276.3 million, $114.9 million and $52.2 million, respectively.
Though the company experienced a slide in revenue, these numbers represent a 3 percent bump in gross margin and a 15.1-percent increase in net income from the same quarter of last year.
That said, vehicle sales followed revenue trends and were also down a bit during the quarter and six-month period.
For the company’s Q2 fiscal quarter, Copart’s vehicles sales revenue same in at $37.8 million, down from $50.7 million for the same period of 2014. For the six months ending Jan. 31, the company made $81.5 million in vehicle sales revenue, down from $104.2 million during the first six months of the company’s 2014 fiscal year.
Jay Adair, chief executive officer, discussed the reality of flat revenues during the call, and said the company did have one less business day in this quarter as compared to a year ago, which played a role.
“The rest of it I would say is timing due to a very strong Q1 this year as was witnessed, and so some of those it just depends on when vehicles come in, when they are going to sell. And we saw some heavy sales in Q1, little slower in this quarter, and I suspect we will see a good sell-off in Q3,” said Adair.
Sales price was also down a bit in Q2 — a contributing factor to drops in overall revenue.
“We believe this is primarily due to scrap, scrap pricing has come off substantially, not only year-over-year but Q1 to Q2. And cycle times have remained relatively flat at this time,” said Adair.
Will Franklin, Copart chief financial officer, also pointed out scrap metal pricing had an effect on the company’s “lower-end cars” sector of the business.
“In North America the scrap metal pricing had a significant impact on our lower-end cars, and our overall base, if there was a marginal decline. On a consolidated basis, because we had a growth in revenue per car and other areas of our operations internationally, they are relatively flat. In terms of importance, scrap metal pricing is a significant factor,” said Franklin. “So, I mean, we look at two primary drivers when we correlate our pricing and that’s used-car pricing and commodity pricing. And in terms of significance, I would weigh used-car pricing is slightly more significant.”
Service revenues was a bright light for the company’s results call, though. Copart made $238.5 million in service revenues in its fiscal Q2, up slightly from $235.7 million made during the same time last year. For the six months ending Jan. 31, the company made $485.2 million in service revenue, up from $462.1 million made during the first six months of 2014.
During the Q&A portion of the call, Wall Street Analysts asked about factors behind service revenues bump of a bit over 1 percent, with inventory up about 9 percent.
“We had a real big Q2. So, we are able to not only build inventory, but we had some large sales … So, some of it is just timing, I mean, it’s the type of vehicles you get the mix, meaning some of our accounts move vehicles twice as fast as others on the insurance side,” said Adair. “On the non-insurance side, we have got a mix of vehicles that are far more profitable, because they are dealer cars, as opposed to mix of vehicles that are more charity focused. So, it depends on mix. It depends on timing,” Adair explained.
Franklin also mentioned that vehicle sales will most likely spike in Q3, as the company has times to work through inventory growth.
“So, our inventory grew at the end of the quarter. I mean, we had a significant increase in assignments towards the end of the quarter, which didn’t allow us to cycle that through the sales process that will flow through in our third quarter,” Franklin said.
The National Automobile Dealers Association reminded members this week they must change their accounting method to comply with the tangible property regulations mandated by the Internal Revenue Service.
NADA explained these regulations generally govern whether expenditures on tangible property may be expensed or must be depreciated. These rules are generally effective with the filing of 2014 tax returns.
The association mentioned the IRS has released Revenue Procedure 2015-20, which provides relief for small-business taxpayers who adopt these new rules. The relief applies to any separate trade or business of a taxpayer that has total assets of less than $10 million or average annual gross receipts of $10 million or less for the three prior years.
“This may apply to some dealerships and many related entities such as real estate companies,” NADA said. “The revenue procedure allows small-business taxpayers to make changes in methods of accounting associated with the tangible property regulations without filing Form 3115.
A fact sheet on the IRS guidance has been prepared for NADA by the dealer accounting firm Crowe Horwath. The fact sheet is available here.
“Dealers currently working with their tax preparers to adopt the regulations are encouraged to discuss the applicability of this new simplification provision,” NADA said.
