Less than a week after enhancing its presence in five markets, IAA on Wednesday announced branch capacity expansions across four more key markets in Florida, New York, Alabama and Montana.
IAA highlighted these expansions increase inventory storage capacity in total acres by more than 50% across the four branches in the markets of Miami (Florida), Long Island (New York), Birmingham (Alabama) and Missoula (Montana).
“These expansions provide much-needed capacity to support the growing needs of both our buyers and sellers,” said Tim O’Day, IAA’s president of U.S. Operations. “Our continued strategic investment in real estate supports our ability to anticipate and exceed customers’ needs while further expanding service in our key markets.”
The expanded branches include:
IAA Miami North, 20499 Stirling Road, Pembroke, Fla.
IAA Long Island, 66 Peconic Avenue, Medford, N.Y.
IAA Birmingham, 1600 Highway 150, Bessemer, Ala.
IAA Missoula, 10131 Garymore Lane, Missoula, Mont.
A listing of branch preview and sales days can be found at www.iaai.com.
McConkey Auction Group (MAG) now has a single online home.
On Tuesday, the company announced the launch of MAGauctions.com — a website that includes all segments of its wholesale auction businesses. Prior to its development and Friday’s deployment, the company had separate websites for DAA Northwest, DAA Seattle and its motorsports division.
MAG highlighted that one of the tools its new site provides is a comprehensive sale calendar. Dealers now can view all scheduled MAG events in a single online location.
“The calendar development was a priority when we began the project,” MAG vice president of marketing Mitzi VanVoorhis said in a news release. “We started working on the new website before COVID-19 hit — the rapid pace of change since then has made the calendar a go-to tool.”
In addition to the calendar and information about DAA Northwest, DAA Seattle, MAG Now, MAG Motorsports and MAG RVs, the site also provides dealers with entry to both EBlock and Edge Pipeline.
The McConkey Auction Group served as a beta location for EBlock earlier in the year. Its MAG Now auctions are powered by EBlock and take place every Wednesday at 1 p.m. PT.
MAG’s weekly DAA Northwest and DAA Seattle auctions are offered via Edge Simulcast.
Future plans for MAGauctions.com include the integration of new dealer tools, according to the group.
“We are in a time of digital transformation,” MAG president and chief executive officer Bob McConkey said. “Our new website is one avenue we have employed to supplement our hands-on, relationship-based service.”
The coronavirus pandemic continues to intensify one of the basic principles of economics. Dealer demand for inventory is growing, but supply at the auction still isn’t back to the level seen before facemasks, stay-at-home orders and other COVID-19 connected elements became commonplace.
The new COVID-19 Market Update from Black Book released on Tuesday described the latest viewpoints from both auctions and dealers that are all trying to serve their customers bases with limited manpower and social-distancing challenges.
Meanwhile, auction prices keep ticking higher, eroding at dealer margins already slim in some instances.
Black Book reported that according to its volume-weighted data, overall car segment values increased 0.88% this past week. Analysts determined all car segments experienced increases, except for sub-compact cars, which have been on a continual decline since the end of March.
“For the past four weeks, the compact car segment has had the largest car segment increases, but this past week the top spot was taken by the sporty car segment with a 1.65% increase,” analysts said in the newest update.
When volume-weighting is applied, Black Book found that the overall truck segment values — including pickups, SUVs, and vans — increased by 0.52% last week with all segments increasing except full-size vans.
Analysts added that the minivan segment led the increases with a strong rebound of 1.65% after 11 consecutive weeks of declines.
When recapping what the firm heard in discussions with auctions, Black Book mentioned what Auto Remarketing previously reported that Manheim is allowing consignor representatives back on the auction block to rep their vehicles during sales.
“Auctions, both physical and digital, continue to be hot with bidding activity and sales rates returning, and in some places exceeding expectations for this time of year,” Black Book said.
“Supply available at the auctions continues to be low and is contributing to the increase in sales rates and higher prices that buyers are having to pay to secure inventory,” analysts continued.
“Lease extensions and lack of repossessions over the last three months are resulting in some auctions being light on inventory to consign,” Black Book went on to say. “The estimation by some of the auctions we’ve been in contact with are expecting to be low on inventory for another two to three weeks.”
Auctions being low on inventory to cross virtual blocks is not helpful to dealerships, based on what Black Book shared about its conversations with store buyers and personnel.
“The most common comment we heard from dealers this past week is centered around their lack of inventory, both new and used,” Black Book said. “Dealers are finding themselves having to pay more for inventory, resulting in a smaller margin when the unit is retailed.
“However, most dealers we’ve talked to would rather keep the inventory moving and make the money on turning volume to prevent getting stuck with any units if the demand slows,” analysts continued.
“Availability of good condition, low mileage units are a rarity right now, and dealers are finding themselves having to settle for vehicles that require some reconditioning to be retail ready,” Black Book added.
Meanwhile, on the new-car side, dealers are struggling there, too. Analysts recapped that some dealers are still reporting being down by as much as 50% in available new-model inventory.
“Lack of new inventory has some dealers concerned about making it through the month with their current supply,” Black Book said.
“Manufacturing has resumed, but most of the facilities are not yet back to running all shifts and operating at full capacity,” Black Book continued. “New deliveries continue to be few and far between, contributing to the increased demand for used units.”
IAA on Thursday announced branch relocations and expansions in five markets, stating that the five locations now provide more inventory storage in addition to updated branch facilities.
The relocated and expanded branches include:
— IAA Fontana, 9951 Banana Ave., Fontana, Calif.
— IAA El Paso, 14751 Marina Ave., El Paso, Texas
— IAA Roanoke, 1576 Quarterwood Road, Montvale, Va.
— IAA Englishtown, 230 Pension Road, Englishtown, N.J.
— IAA Sioux Falls, 47028 276th St., Lennox, S.D.
“We strive to ensure that our extensive facility footprint is consistently meeting the needs of our buying and selling customers,” president of U.S. operations Tim O’Day said in a news release.
O’Day continued, “Our proactive expansion strategy depends on a strong partnership with our customers, allowing IAA to anticipate and exceed their inventory needs.”
A listing of branch preview and sales days is available.
Another independent auto auction has lined up EBlock to provide an avenue into dealer-to-dealer online wholesale segment.
Akron Auto Auction announced the partnership with EBlock on Tuesday and said the first auction sales event between the two companies will be on June 18. EBlock and Akron Auto Auction will then hold online dealer-to-dealer sales each Thursday at 1 p.m. (EST).
“Leveraging EBlock’s technology gives our auction a proven means to facilitate and expedite digital transactions,” Akron Auto Auction president Chad Bailey said in a news release.
“Truthfully, we’ve been looking for a partner that understands the auction business and has a vision for its future,” Bailey said. “Our partnership with EBlock comes at a critical time as not only do we believe our customers have wanted us to offer this platform, but we internally have felt like this is another tool that will fit very well within our already vast tool belt.”
EBlock president and chief executive officer Jason McClenahan added, “Our goal at EBlock is to set innovative, independent brick-and-mortar auctions up to compete in the dealer-to-dealer auction space, leveraging their relationships and infrastructure to deliver the ultimate auction experience online for their customers
“We come from the auction world; our focus is to take a technology-first approach towards expanding the auctions digital offering, without compromising the experience buyers and sellers alike expect when dealing with brick-and-mortar auctions. That is what really separates the EBlock experience from everyone else in the space,” McClenahan said.
EBlock, whose roots are in Canada, had shifted its strategy a bit, as it formulated a plan for the American market.
The company has decided “to not compete” with physical auctions in the U.S. but rather to partner with them, McClenahan said earlier this year.
EBlock launched a partnership and exclusive integration with remarketing technology provider Auction Edge in January — a collaboration designed to give independent auctions their own slice of the online dealer-to-dealer auction market.
The partnership between the two companies began in January with the McConkey Auction Group, which through the integration of the technologies now has its own online dealer-to-dealer auction platform called MAG Now. It hosted the first MAG Now event on Jan. 28.
But the EBlock philosophy has always been one of blending brick-and-mortar with digitization, McClenahan said in an episode of the Auto Remarketing Podcast recorded at NADA Show 2020 in February. The company does not believe physical auctions are leaving any time soon.
“We’ve always been the ones (to say) that they need to evolve, leverage their logistics, their land to compete in the digital world,” he said during the podcast. “And we’ve proven that concept with our holding compounds nationwide in Canada. We’ve never just been a straight-up digital auction. We’ve always had land complementing that.”
Not to mention the brick-and-mortar background of EBlock’s leadership, including McClenahan, who spent 17 years in that space.
“And we saw a gap in the marketplace where the independent auctions don’t have a means to compete with the other online disruptors,” McClenahan said. “We thought it was the best entry to the United States. And it gave the independent auctions the ability to not only survive but to thrive, in our opinion.”
He added: “We’ve kind of picked a strategy now to not compete in the US and be partners with the auctions. We’re going to be their technology provider.”
Warren Byrd not only is departing his executive role with KAR Global; the wholesale industry veteran also is giving up his leadership position with the National Auto Auction Association.
On Monday, NAAA announced that Byrd has decided to step down from the association’s board of directors after more than a decade of service on the leadership team.
Beginning in 2009, the association recapped Byrd served as NAAA’s secretary until 2016 when he became the association’s treasurer.
NAAA said past president Paul Lips, who also is chief revenue officer at ADESA, will take the reigns as treasurer effective as of May 13. In addition, NAAA said Lips will join the board of directors and act as ADESA’s representative on the NAAASC/JDPower Joint Marketing Committee.
“While we’re saddened by his leaving, we wish Warren all the best,” NAAA chief executive officer Frank Hackett said in a news release. “His efficient fiscal management and strong financial discipline as treasurer has been a key factor in making NAAA the dynamic, robust organization it is today.
“On behalf of the entire membership, I thank Warren for his dedicated service and invaluable contributions to NAAA and our industry,” Hackett added.
The association highlighted one of Byrd’s notable accomplishments is that he was instrumental in the creation of NAAA’s AuctionNet annual dividend program, which has returned nearly $3 million to participating auctions to date, Hackett added.
In 2011 NAAA honored Byrd for his service by naming him a Warren Young Fellow with a $2,500 donation in his name to the association’s Warren Young Scholastic Foundation. Last year he received the Remarketer of the Year Award at the CAR Conference.
Byrd’s departure from NAAA’s board coincides with his decision to leave KAR Global as its executive vice president of corporate development and real estate.
KAR Global announced on Friday morning that long-time senior executive Warren Byrd will step down after 23 years with the company.
Byrd most recently served the company as executive vice present of corporate development and real estate for the past 10 years, overseeing all corporate development projects and real estate acquisitions within its portfolio, including 300 locations across North America and Europe.
KAR said Byrd will still stay in a limited consultative capacity for the remainder of the year.
“Warren has positively influenced every facet of the remarketing industry and our company,” KAR Global chairman and chief executive officer Jim Hallett said in a news release. “His exceptional work ethic and expertise have led him to serve in a variety of leadership roles at KAR and with our industry partners. I’ve always admired his dedication not only to KAR but also to actively engaging in remarketing initiatives and alliances, and committing his time and talent to steer our industry into the future.
“We will miss his friendship, his leadership and the calm, human and collaborative voice he has always brought to the industry dialogue,” Hallett added.
During Byrd’s tenure, KAR recapped that it acquired more than 50 auctions and built dozens more. More recently under his direction, KAR constructed its new corporate headquarters in Indiana and opened the new ADESA Chicago auction.
The company also praised Byrd for his contribution in establishing KAR’s online systems, including DealerBock, ADESA’s digital platform where dealers can browse, bid and buy online seven days a week, 24 hours a day.
As a graduate of Notre Dame Law School, Byrd began his career as an attorney at a law firm in Indianapolis. He joined ADESA in 1994 as general counsel and was quickly promoted to chief information officer and vice president of corporate development followed by president of ADESA Impact, a salvage auction subsidiary.
Immediately prior to assuming his current role, Byrd served as executive vice president of corporate development at ADESA.
“I’ve been extremely fortunate to work within the auto remarketing industry for nearly three decades and to collaborate with so many extraordinary people — creating memories I will never forget,” Byrd said. “The growth I’ve been a part of within KAR has been astonishing, and I am proud of all we’ve accomplished working together to further the industry.”
Over the years, Byrd has received many industry accolades including, most recently, the 2019 Remarketer of the Year awarded at the Conference of Automotive Remarketing. This award honors industry leaders who actively advance the remarketing industry and guide the next generation of leaders.
A proud proponent of the auto remarketing industry, Byrd has served as a board member of Auto Auction Services Corp. as well as treasurer, board member and executive committee member of the National Auto Auction Association and committee member of AuctionNet, a joint venture with NAAA and J.D. Power.
John Kett says IAA has a long history of running a digital auction in companion with a live open auction.
But Kett, who is chief executive officer and president for IAA, says the company over time conducted research and saw that customers increased their reliance on the company through digital means to bid on and buy cars.
“So we made the move to an entirely digital platform,” Kett said in an interview with Auto Remarketing.
He continued, “We completed that the first part of April, which was something we had planned to do in the first half of 2020. But then we had begun the rollout. And when COVID hit, with our teams, we got together and then rapidly accelerated the deployment to get it done. So we’re really excited about many aspects of it.”
IAA on Tuesday introduced IAA Interact, a merchandising platform that combines imagery, information and personalization. Kett said the platform has been under development for a couple of years.
The company said the platform provides detailed vehicle information to engage buyers. For sellers, it brings a more competitive bidding environment and higher proceeds.
In designing IAA Interact, the company used e-commerce merchandising research to bring increased online bidding and buying.
IAA says the platform engages buyers with a vehicle digitally through touch points that provide details to bring buyers confidence in their online bidding and buying decisions. With the Interact tools and features, IAA says buyers see a strong research process, improved purchasing guidance and higher level of trust.
“High resolution images, panoramic video, and in-depth product information are fundamental to a successful ecommerce strategy,” said Justin Mahlik, IAA senior vice president of buyer development and innovation, in a news release.
Mahlik continued, “As a technology company, we understand that offering limited static images and basic vehicle information is an extremely outdated way to market a vehicle. IAA Interact provides online buyers with an immersive experience that mimics being physically present with the vehicle, resulting in increased trust, bidding and buying activity.”
The IAA Interact merchandising platform includes three elements and several value-added tools at no cost to the buyer:
— Imagery: IAA says each vehicle asset is unique. Because of that, online buyers depend upon images and video allowing them to inspect vehicle parts, components and damage. The Interact platform consists of IAA 360 View, IAA High Resolution images, and IAA Key Images.
— Information: The company says that with vehicle details such as OEM specifications and part interchange numbers, buyers can make more-informed bidding and purchasing decisions. The Interact platform includes information tools such as SpinCar Feature Tour, IAA Engine Start video, Chrome Equipment Details, and Hollander Part Interchange numbers.
— Personalization: In the purchasing process, digital buyers currently have “heightened expectations,” IAA said. The company uses researching, bidding and buying behavioral data to provide a personalized experience for buyers. Personalization tools in the Interact platform include IAA Buyer Recommendations, which are available through the buyer’s dashboard.
Kett elaborated on the personalization aspect, telling Auto Remarketing that IAA’s buyers have higher expectations in the buying process.
IAA, Kett said, has conducted a great deal of research about what buyers want.
And they want to be able to identify the vehicles that are important to them quickly and be able to get the information they need to make an educated decision on how much they want to pay for that vehicle, he said.
“So, we have personalized it through some of our data science so we can understand what buyers are bidding on and what they’re interested in and even what they’re looking at,” Kett said.
He continued, “And then we can customize and feed to them vehicles that we believe would be important to them. So we have what we call an IAA buyer recommendation that is a sort of a bespoke list of vehicles that the buyer is interested in based on what we know about them.”
Buyers like that feature, because IAA sells millions of vehicles a year, and buyers are not interested in many of those, Kett said.
“So the faster we can get in front of them the vehicles they are interested in, the more engaged they’re going to be with IAA and the more they’re going to want to come back and use our platform,” Kett said.
The IAA Interact merchandising platform follows the company’s recent announcement of its expanded partnership with digital merchandising company, SpinCar, to offer Feature Tour.
Finance company Exeter says its auction partners “are a vital part of Exeter’s servicing arm.”
“They are asked to perform transportation of thousands of units, reconditioning, redemptions and most important, market to our dealer base,” the company said in an emailed statement
Exeter continued, “The stronger the marketing of our brand, the more dealers that come into our auction lane, and online, to purchase our assets.”
With that in mind, Exeter has announced its 2019 Exeter Auction Excellence Awards.
Exeter said it recognizes its auctions similar to the NCAA, based on size of their operation and number of Exeter units sold.
The company named ADESA Northwest in Eugene, Ore., as its Division III winner. ADESA Kansas City is the Division II winner, and America’s Auto Auction Austin is the winner for Division I.
“Congratulations on your awards and being the best of the best, for our account,” Exeter wrote.
A new Concord, N.C., location for global online vehicle auction company Copart will be its sixth North Carolina site.
The company said the opening of the location is a “response to the increasing demands of automotive buyers and sellers.”
The new location will serve the Concord community by creating new jobs, Copart president Jeff Liaw said in a news release.
It will also allow Copart to serve its sellers better “with more storage space and added convenience,” Liaw said.
The Copart Concord location hosts weekly auctions on Thursdays at 10 a.m. eastern time. Eligible buyers can visit Copart.com to join auctions and bid on inventory, or they can do that via the Copart Mobile App for iOS and Android devices.
“We are pleased to contribute to Concord’s continued economic success,” said Copart Concord general manager Jarrod Gadd.
Gadd continued, “We look forward to providing great customer service to our buyers and sellers.”
