Based on input from users, ACV Auctions launched three new features to its nationwide online wholesale marketplace in an effort to increase efficiency for dealers buying and selling on the platform.
Coming on the heels of reinforcing its workforce with several industry veterans, the new updates to ACV Auctions’ platform revealed on Monday include:
— Run List for early access to select inventory
— New filter options to navigate the platform’s growing inventory
— Proxy bid options to help buyers
“We have listened to what options dealers would like to have, and we have delivered,” ACV chief executive officer George Chamoun said in a news release. “Our current live auction format is an effective and efficient way to sell the majority of wholesale cars.
“However, a subset of vehicles, such as low-mileage ones, may benefit from leveraging the Run List to market these vehicles over the course of several hours to drive activity,” Chamoun continued. “We’re empowering the dealer and consignors to sell and buy vehicles in the manner that fits their business.”
ACV Auctions elaborated further about each of these enhanced features.
Run List
Run List can provide access to certain auctions before they go live, enabling dealers to bid in a way that fits their schedule.
Within the Run List section, buyers can enter a one-time proxy bid (standard) or a persistent proxy bid, which means the proxy bid they enter will be applied to the current auction along with subsequent runs within 10 days. The company said their bid will automatically go into effect once the auction moves from the Run List to the Live Auction.
Dealers who are selling vehicles will see “Send to Run List” as a launching option for their auctions. Choosing this option will place the auction in the Run List lane, allowing buyers to actively bid on their auction before the auction moves into the Live Auctions.
ACV noted that sellers will still be able to launch their vehicles into the Live Auction lane immediately by following the normal launch process.
Run List is an option available in the app and on the website.
“Franchise dealers in particular will find ACV’s Run List appealing, from both buying and selling perspectives,” ACV Auctions chief sales officer Mike Waterman said. “Buyers can bid on their own timeline and can count on a carefully curated inventory of vehicles when they visit the Run List.
“The majority of the Run List inventory will be low-mileage, frontline cars, enabling commercial consignors, franchise dealers and large independent dealers to market specific vehicles more effectively,” Waterman continued.
Filter updates
ACV explained that enhancements to filters are geared to optimize the time dealers spend on the platform so they can find the exact dealer they want quickly and easily.
Dealers can now filter by the following categories:
— Distance by state and by ZIP code
— Vehicle body type
— Drivetrain
— Fuel type
— Transmission
— Auction type (such as Green, Yellow, Red, and Blue Light classifications)
Proxy bids
ACV highlighted that buyers now have two options when it comes to proxy bids — standard and persistent.
Standard proxy bid applies the proxy bid to an auction listing only, but not to future runs of that vehicle.
Persistent proxy bidding applies the proxy bid to an auction listing and all future runs, within 10 days.
“Allowing buyers to review and place proxy bids on a list of upcoming auctions optimizes their time spent in the app,” Waterman said. “Sellers get the benefit of increased eyeballs on their auctions, generating more views and bids. This will, primarily, be for vehicles priced $18,000 and higher because the target buyers for higher-priced vehicles typically prefer a Run List.”
ACV pointed out that it now operates in 138 territories from coast to coast and will be in more than 140 territories by year-end.
For more information on ACV Auctions, visit acvauctions.com.
Discussing IAA’s Thursday announcement that it has opened its Templeton, Mass., facility, the company’s chief executive officer and president John Kett said New England continues to be an important market for IAA.
“This branch, along with the seven others in and around Boston, support our growth strategy in this major market,” Kett said in a news release. “This new facility is one of the latest investments we continue to make up and down the Atlantic coastal region.”
IAA said that the IAA Templeton site — located at 223 Baldwinville Road in Templeton — includes 55 gross acres of land. IAA Templeton, the company’s third branch in Massachusetts and its eighth branch within a 100-mile radius of Boston, will support strong customer demand in Massachusetts and New England overall, according to IAA.
The company added that the site also supports inventory growth in that area.
Preview days are Thursdays from noon to 4 p.m. ET, with sales days taking place Fridays starting at 1 p.m. ET.
In celebrating the grand opening of its Lexington, S.C. facility on Sept. 11, IAA said the facility will help accommodate increased customer capacity demands.
However, the facility, which is IAA’s fourth branch in South Carolina, will “strategically enhance” IAA’s ability to serve the hurricane-prone Atlantic coastal region.
“We are pleased to open this branch, which is strategically located to serve this coastal region that is prone to catastrophic weather events like we saw as recently as a week ago,” IAA chief executive officer and president John Kett said in a news release.
IAA showcased the new facility’s meeting rooms at the celebration, as well as vehicle inspective center space, two new Run & Drive lanes and the company’s multi-channel auction model.
IAA added that customers and employees will experience a welcoming environment in the newly renovated lobby and conference rooms, which feature meeting and training space.
Lexington Chamber of Commerce president Otis Rawl and staff members of South Carolina Rep. Joe Wilson were guests at the grand opening.
Preview days for the branch, which is located at 343 Dooley Rd. in Lexington, are Tuesdays from noon to 4 p.m. and Wednesdays from 8:30 am to 9:30 am. Sales days are Wednesdays starting at 9:30 am.
“We are offering our customers the multi-channel buying experience they expect from us, as well as additional space and amenities,” Kett said.
IAA’s expansion of its Indianapolis branch brings the facility to more than 70 acres of capacity, said IAA chief executive officer and president John Kett.
IAA said that through its investment, the branch will see greater ability to serve new customer demand in Indianapolis and the surrounding metropolitan area.
“We will continue to make strategic investments to better serve our customers’ needs,” Kett said in a news release.
IAA senior vice president of U.S. operations Scott Guenther added, “We are excited by the investment in our Indianapolis branch, enhancing our property and helping us better serve our customers throughout the state of Indiana.”
The announcement follows the company’s high expansion activity in August. Some of those expansions took place at IAA’s branches in Pulaski, Va., Fontana, Calif., McAllen, Texas and Phoenix.
Reached by phone around 8:30 am (PT) on Wednesday, Nick Peluso had already bicycled a few handfuls of miles.
That may paint a picture of how active the Manheim Digital president will still be in his retirement from the company.
Manheim announced Thursday that Peluso, who has been in the auto auction industry for more than 30 years, will retire from the company at the end of the year.
Of course, “retirement” isn’t necessarily a word Peluso, who turned 60 earlier this year, likes to use. As he prepared to make this decision to retire from the company, Peluso did some reading and reflection on the meaning of the word.
“The word 'retirement' actually really applies to maybe the 40s and 50s when people worked a long career, got a pension, Social Security” and weren’t necessarily active, he said.
“Today, it's more about finding out what's next, whether it's giving back to your community, whether it's working with kids, whether it's finding another career, there's something next,” Peluso said.
He would later add in the interview, “I'm being told that even if you retire, it seems like you keep a very busy schedule.”
So, what’s next on the schedule for Peluso? Of course, he and his wife, Jessie, will continue to enjoy being grandparents. There’s also golf. And traveling with family.
In fact, Peluso’s son, daughter-in-law and their daughter live in Cologne, Germany, so going to visit them is “always a thrill.”
For the last several years, Peluso’s son has picked a spot in Europe where the family will meet up. They’ve visited spots like Spain and Italy, and have plans to go to Greece next year.
And to be sure, his career isn’t done.
“I’ve been so incredibly fortunate to work with such terrific people throughout my career — they’ve truly made my journey inspiring and memorable,” Peluso said in a news release. “And, while I’m retiring from Cox Automotive, I’m not thinking of this as the end of my career, but rather the beginning of my next journey.”
The best is yet to come for Manheim and its parent company Cox Automotive, Peluso said.
“Manheim and Cox Automotive is peaking. We've built a great team to come behind me. So, I'm excited for them and excited for myself. And whatever I run into or intersect with will be what I do next,” Peluso said in the phone interview. “I don't have any specific plans. I've been working either for my family or in this industry since I was 13 or 14 years old.”
So, Peluso will enjoy some well-deserved down time and family time, “and then we’ll figure out what’s next,” he said.
30-plus years in remarketing
Peluso started his auto auction industry career in 1988 as a Western regional sales representative for ADT Automotive, later becoming its vice president of sales and marketing. After Manheim purchased the company in 2000, Peluso became president of Remarketing Solutions, later taking on the role of senior vice president of customer management for Manheim, where he headed up sales, marketing and pricing.
He eventually became president of RMS Automotive and was named president of Manheim Digital in 2017.
Interestingly enough, even before he joined ADT, Peluso worked about seven years for a company called Cenval Leasing in northern California, where one of his tasks was selling off-lease and repossessed cars for the bank that owned Cenval.
They had their own lot to sell cars, but eventually there were so many vehicles that they needed to bring them to the auctions.
Peluso was hooked.
“I was just kind of blown away by the auto auction industry,” he said.
After Cenval was sold, ADT offered him the sales rep position.
Peluso said he, “jumped at the opportunity.”
Industry recognition
As accomplished as Peluso’s career has been, some of his more recent accomplishments include leading the charge for Manheim’s first omni-channel experience that brought together Manheim.com, Simulcast and OVE into one destination and helping to develop Manheim Express.
Additionally, he was named the Bobit Industry Icon Award winner this year by the National Auto Auction Association and the International Automotive Remarketers Alliance. Peluso has been a frequent speaker at Cherokee Media Group’s National Remarketing Conference, as well as a host of other industry conferences like the Conference of Automotive Remarketing and events from NAAA and IARA.
“While Nick has been a mainstay of the traditional auction industry for decades, his ability to visualize the future while navigating through unchartered waters is something that will inspire us for years to come,” Cox Automotive president Sandy Schwartz said in a news release. “Cox Automotive has been so very fortunate to have Nick as a member of our family, and I look forward to following him as he transitions to his next chapter.”
Added Manheim president Grace Huang, “Nick has been a true visionary who used his wisdom and experience to move Manheim and the industry forward over the past 30 years.
“Throughout his career, he was not only instrumental in creating impactful brands such as RMS Automotive and Manheim Express, he also helped to mentor and develop the next generation of bold leaders — this will be his lasting legacy," Huang went on to say.
With its new program offering flat-rate pricing for automatic post-sale inspections, Manheim says that dealers can automatically receive inspections for all wholesale vehicle acquisitions at a “predictable, consistent rate.”
The company said the new program can help increase dealer confidence in purchasing decisions within the wholesale used-vehicle marketplace.
Through the program, Manheim said, dealers can reduce their risks hassle free, and the program helps ensure vehicles bought at auction are in the expected condition.
Manheim experts conduct the inspections at the location and protect dealers against unexpected repair costs. Those costs, Manheim said, can cut into profits and cause delays in turning inventory.
The company also said that because the inspections can be applied to in-lane and digital purchases, that adds trust and transparency to the process. And that happens regardless of which channel a dealer decides to use, Manheim said.
The new program allows dealers to now automatically apply a flat rate to either of Manheim’s two existing types of inspections: Limited Powertrain Inspection (LPI) and Post-Sale Inspection (PSI).
Manheim explains that Auto LPI is designed for older, high-mileage vehicles. Auto LPI focuses on structural, transmission, engine, drivetrain and hybrid/electric battery damage.
The company describes Auto PSI as more comprehensive and said it is geared toward low-mileage vehicles.
Auto PSI covers items such as odometer verification, transmission engagement and function, engine function and operation, ABS and brake function, electrical accessory function and emission control equipment.
The inspections guarantee vehicle components for a specified period of time. Manheim said that if a car item passes during the inspection, but then fails during the guarantee period and costs $500 or more to repair or replace, the defect is eligible for claim resolution with Manheim.
For more information about inspection guarantees, users can visit Manheim’s site and view the Sale Policies section of Manheim’s Marketplace Policies.
The company said the flat-rate inspection offerings are another of its initiatives that it says can help free dealers up to make quick, informed and confident decisions. And Manheim said the dealers can do that through whichever channel works best for them, at a physical sale or one of Manheim’s digital platforms.
“Manheim is constantly looking for ways to instill greater confidence and efficiencies for both buyers and sellers in the wholesale used vehicle marketplace,” Cox Automotive vice president of Assurance Brett Woods said in a news release.
Woods continued, “With our automatic flat-rate pricing on inspections, dealers can spend more time focusing on acquiring the right vehicles and less time worrying about paying for unforeseen repairs.”
It’s been a busy month of expansions for IAA.
IAA’s announcement on Thursday that it is expanding its Pulaski, Va., branch is the latest of a series of expansion news items for the global vehicle marketplace company this month.
The company on Tuesday announced it was expanding its Fontana, Calif. branch. An additional announcement came on Aug. 15 that its Impact Auto Auctions subsidiary was expanding its London, Ontario branch. And on Aug. 2, IAA celebrated the grand opening of its Houston South facility.
Those were on top of two IAA announcements earlier this month that it was expanding its Phoenix branch in addition to expanding its McAllen, Texas branch.
But the Thursday notice on the Pulaski, Va. branch was the latest this month for IAA. The Pulaski branch is one of eight IAA branches in Virginia.
“This expansion provides important resources for our customers in this area of the country,” IAA chief executive officer and president John Kett said in a news release. “In addition, the East Coast has been prone to catastrophic weather events in recent years. This investment will support the potential increase in demand from those events.”
On the IAA Fontana branch expansion, Kett said the additional resources from the expansion would provide its customers a better buying experience.
“Los Angeles is an important market, and we will continue to make strategic investments to further our leadership position in the area,” Kett said.
IAA said the expansion of the Impact Auto Auctions brand in London, Ontario increases the gross acreage of the branch by nearly 25%.
“This expansion further solidifies our leadership position in both the Ontario market as well as overall in Canada,” Kett said.
Following the retirement this month of former XLerate Group Auctions’ Greater Kalamazoo Auto Auction owner and general manager, Eric Wagner was named the new general manager of GKAA.
Wagner brings more than 30 years of auto auction experience for independent and corporate-owned auctions to his new role as general manager. Wagner is originally from Toledo, Ohio, and has managed sales teams and auctions in major markets such as Michigan, Georgia and Florida.
XLerate Group chief executive officer Cam Hitchcock described Wagner’s management approach as a strong fit for the GKAA team.
“His experience with growing consignment and improving technological capabilities are 100% aligned with our strategy for Greater Kalamazoo,” Hitchcock said in a news release.
Hitchcock added that Don and Harriett DeVries founded Greater Kalamazoo Auto Auction in 1976, and XLerate Group auctions acquired the auction in 2015.
“The DeVries family, and Daryl in particular, created a lasting legacy of success and progress at GKAA. Daryl has set the course for Eric Wagner to continue that trajectory,” Hitchcock said.
Wagner said he was honored to join Greater Kalamazoo, “and humbled to take the reins from a man who is so respected in this industry.”
He continued, “Daryl and his family built a strong and capable team, running an exemplary, highly regarded auction.”
Myrick new GM at Tallahassee Auto Auction
In additional auction news, Tallahassee Auto Auction named Timothy Myrick general manager. BSC America president R. Charles Nichols announced Myrick’s move to the general manager position.
The company said Myrick has worked in operations and, more recently, fleet/lease at Tallahassee Auto Auction. Myrick plans to lead the auction team in continued ongoing growth and expansion projects. He previously worked in his family’s heavy construction business before joining the auction industry.
"Tim will lead the operations and sales teams to the next level with excellent service and the latest offerings in technology,” Nichols said, adding that Myrick will report to BSC America management team member Tommy Rogers.
“BSC America's Tallahassee Auto Auction has seen continued growth in both the dealer and commercial segments of our business,” Rogers said. “Tim's vast auction knowledge and steady approach and familiarity with the Florida Panhandle market will be instrumental as we move forward with our plans for growth and expansion. The additional acreage adjacent to the Tallahassee facility that is currently being developed along with plans for lane expansion and lot improvements will serve us well as we continue to solidify our position as the leading independent auto auction in the Florida Panhandle.”
Myrick said, “Focusing on the customer experience with a down-home approach and family atmosphere will create the best environment for current and new customers alike to do business with Tallahassee Auto Auction. I am excited for the opportunity to collaborate with BSC America's team in the Bel Air, Md., region and incorporate that same attitude of growth and expansion in the Tallahassee region. Continual investments in technology and the latest ideas are a testament to the success and values that we want to bring to our dealers."
BSC America vice president Michelle Nichols-Neff said the company is excited for Myrick to expand his role at Tallahassee Auto Auction.
“His experience and auction knowledge will serve us well as we continue to grow our footprint and develop the relationships that will add to the success in the Florida market,” Nichols-Neff said.
Houston Auto Auction: Strong activity at new facility
In other auction news, Houston Auto Auction said it has seen an “uptick” in consignment and attendance since it marked its 55th anniversary with a grand opening and sale at its new facility three months ago.
Houston Auto Auction said that despite reports of a quiet summer market in other areas of the county, Houston Auto Auction is seeing strong activity in the lanes. Since early May when the auction opened its new facility at 2000 Cavalcade in Houston, it has seen 15% growth in consignment and attendance.
“It has been a busy and exciting summer for us at Houston Auto Auction,” assistant general manager Greg Lawson said. "We moved into our new facility without missing a beat, and both our customers and our auction team members are delighted with all the benefits this great new location affords. With more space, improved efficiencies and exceptional technology, we have the ability to entertain larger clients, add new accounts to our consignment base and offer a superior auction experience to every customer.”
Manheim says it is ramping up its investment in Simulcast and plans to add a host of new features to the digital auction platform later this year and early next.
The company declined to provide a specific breakdown of the investment but did note that it is part of the 2-year, $100 million overall digital investment that Manheim began in 2018.
As for a timeline, Manheim is currently testing the new features with a group of dealers and plans a more extensive rollout later in the year, the company said.
“The new Simulcast updates further evolve a technology that has transformed the remarketing industry by bringing the auction to the dealer,” Manheim president Grace Huang said in a news release.
“These new features give dealers real-time access to even more vehicle details and images, so they can make faster, smarter bidding decisions,” she said.
“They’re also part of a bigger commitment by Manheim to invest in ways to improve the auction experience for dealers, creating a safer way to buy while helping them more effectively run their businesses.”
The upgrades to Manheim Simulcast, a platform launched in 2002, are below, as listed in Manheim’s news release:
- One platform that makes it easier for dealers to view the bidding/buying experience
- Odometers and auction lights, indicating any special conditions of the sale, that are now visible for vehicles on the run list
- Photo tabs that provide more visuals, larger images and multiple views, allowing dealers to see the vehicles from different angles without being onsite
- A responsive bid window that dealers can enlarge or compress based on their monitor size to make it easier to see all relevant information
- The ability to scroll forward or backward through the run list to preview vehicles before they’re on the auction block and follow the vehicle status after it leaves the block to potentially submit a bid on any unsold vehicles
- Visible proxy bid amounts to remind dealers that they have already placed a bid
Through July, there have been approximately 1.3 million cars sold to Manheim digital buyers so far this year, according to the auction company.
More than a third (35%) of year-to-date physical auction volume at Manheim has been sold through Simulcast and more than 60% of live-sale attendance was on the platform.
Last year, there were 14.5 million bids placed through Simulcast.
Close to half of Manheim’s vehicle sales last year were done digitally and the company expects that share to go over 50% this year, it said.
This spring, the company launched its first all-digital auction location.
Manheim Tucson became Manheim’s first auction to incorporate a 100% digital format, utilizing a four-lane setup where cars are parked in designated spots and sold to buyers both physically present at the facility and online. An auctioneer has them up for sale digitally through oversized monitors that include enhanced images, barcode price scanning and condition report info.
Buyers and sellers can participate in person at the auction or online through Manheim Simulcast.
“Initial dealer reaction has been very positive from our first all-digital auction launched at Manheim Tucson in May,” Huang said in an emailed Q&A for Auto Remarketing’s Power 300 issue.
“Dealers have told us that they like the benefits of a digital experience, from being able to bid in four lanes from one location to preventing the chance of accidents that can happen in the physical lanes,” Huang said.
“We chose Manheim Tucson for our first all-digital auction because it handles mainly dealer vehicles under $5,000, which can be challenging to sell through digital channels like Manheim Simulcast,” she said. “The early success of this location is proof that our innovative, all-digital experience can appeal to all types of buyers and work for all vehicle price points by creating an experience as close as possible to a live physical sale.”
While Manheim Tucson is 100% digital, the company has over 100 digital-only lanes throughout its other physical auction facilities and plans to add more, Huang said.
Manheim will be closing its Manheim Arena Illinois auction, a company spokesperson confirmed via email to Auto Remarketing on Tuesday.
The Chicago Tribune reported Monday that the closure would happen on Nov. 1.
In a statement sent to Auto Remarketing, parent company Cox Automotive said many of the employees at Manheim Arena Illinois, located in Bolingbrook, Ill., will have the chance to transfer to Manheim Chicago, which is located in Matteson, Ill.
“At Cox Automotive, we are continuously evaluating our operations to ensure that they are as efficient as possible for both our clients and our company,” the statement read. “To support this approach, we are closing our Manheim Arena Illinois operations and focusing our efforts on the continued growth and success of our nearby Manheim Chicago site.
“Our dedicated team members are among our most valued assets, and while many of them will be offered the opportunity to transfer to Manheim Chicago, those who will not, will have opportunities to apply for other positions within Cox for which they are qualified and will be offered a severance package based on their job level and years of service with the company.”
The company spokesperson said there are not any current plans for any other Manheim auction closures.
“However, Manheim continuously evaluates its operations to ensure they are as efficient as possible for our clients and the company,” the spokesperson said.
The spokesperson also said the closure of Manheim Arena Illinois is “not part of a broader Manheim/Cox Automotive reduction.”
