Black Book might have seen the last uptick in wholesale prices for the year.
Black Book released its Used Vehicle Retention Index for October as editors pinpointed the latest reading at 116.3, which represented a 1.5-percent increase over the last 12 months (114.6) and a 0.2 percent uptick since September (116.0).
Editors explained October’s used-vehicle retention activity may have represented the last positive change of the 2018 campaign, as seasonal depreciation patterns began to take hold throughout the month. Black Book noticed that cars, especially, saw their run of positive changes begin to lose steam, with strong retention trends that persisted throughout much of the year.
While most truck segments performed slightly better than cars, editors determined trucks still saw depreciation accelerate during the month.
The segments with the highest month-over-month gains in the index included:
• Compact crossover/SUV: up 0.95 percent
• Subcompact car: up 0.88 percent
• Midsize luxury CUV/SUV: up 0.53 percent
While the segments losing the most included:
• Full-size luxury CUV/SUV: down 0.81 percent
• Premium sporty car: down 0.46 percent
• Small pickup: down 0.45 percent
The Black Book 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.
“This Index data can be especially valuable this time of year because it is designed to give automotive professionals and portfolio managers an analytical look into the trends driving segment performance across cars and trucks,” said Anil Goyal, executive vice president at operations.
“Particularly as we begin to close out the year, it’s important to leverage the index data and related residual forecasts as dealers and lenders begin to look at their inventory and portfolio makeup, and whether to increase or decrease in any particular segment, and what they want that to look like heading into 2019,” Goyal went on to say.
Black Book reiterated the index dates to January 2005 when editors 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.
Manheim has been expanding its mobile auction offerings across a wide swath of the country, with its growth moves dotting the map like the combined footprints of the ACC, Big Ten and SEC.
The expansions in the mobile auction network, which span the Northeast, Midwest, Mid-Atlantic and Southeast, come amid demand from dealers and commercial consignors for more options in remarketing.
The company has also seen some growth in the offsite digital sales hosted by commercial consignors.
“Pioneering mobile auction sales over a decade ago, we’re proud of our efforts to deliver a more convenient way for dealers to access needed inventory to grow their businesses,” said Patrick Brennan, senior vice president of Marketplace at Manheim, in Monday’s news release.
“We’ve also heard that our sellers are looking for ways to reduce costs, better compete and move inventory faster — and our team is helping make to make this happen every day,” Brennan said.
By region, here are the recently added mobile sales/locations:
- Northeast: Sales added in Reading, Pa.; Utica, N.Y.; Rochester, N.Y.; Long Island, N.Y.
- Midwest: There is a new lane at Manheim St. Louis South County, and there will be a new Missouri sale coming this month. A mobile sale is on tap for Des Moines, Iowa area, too — the first in the state.
- Mid-Atlantic: The existing Manheim Roanoke (Va.) sale has been relocated and has new consignors. Second location in Richmond, Va., has been added.
- East: Manheim Metro Charlotte expanded to two lanes in September. There are plans to expand the Greensboro, N.C., mobile partnership.
- Southeast: Manheim Gadsden sale was added this year in Alabama. Manheim increased frequency of sales at Manheim Columbus (Ga.). Its Tallahassee, Fla., mobile sale began in the middle of October.
Manheim Logistics gets new digs
In other news from the company, Manheim Logistics Solutions has set up shop in a new office facility in Phoenix that combines the Ready Logistics and Central Dispatch operations.
This $2.7 million investment follows an earlier investment Manheim made to boost its tech platforms.
The Manheim Logistics businesses can now utilize 51,000 square feet of space atop Sky Harbor Towers that includes a dedicated training area, open workspaces, fitness center, café and more.
“As Cox Automotive transforms the way the world buys, sells, owns and uses cars, Manheim Logistics is working to make transportation an inherent part of the automotive transaction rather than a separate one,” said Jim Williams, senior vice president of Logistics for Cox Automotive Inventory Solutions, in a news release.
Williams added: “The move to an expanded facility supports our transition from offering full- and self- service options to being a provider that delivers seamless, combined solutions that meet clients’ diverse needs and drive value.”
In some places, the coldest temperatures in months have been recorded recently. Some locations already are seeing snowflakes.
And wholesale prices are cooling too, according to Black Book.
Anil Goyal, executive vice president of operations for Black Book shared in the newest edition of Market Insights that, “Last week, used-car values experienced the highest depreciation since January this year — driven by rising no-sales noticed at several auto auctions.”
Volume-weighted, editors found that overall car segment values decreased by 0.69 percent last week. In comparison, Black Book pointed out that market values had decreased by only 0.36 percent on average during the previous four-week period.
Among cars, editors shared the compact car, midsize car and sporty car segments experienced the biggest drops as declines ranged from $72 to $128.
Over the truck side, Black Book’s volume-weighted data showed overall truck segment values (including pickups, SUVs and vans) softened by 0.48 percent last week. That rate is nearly double the average that editors noticed during the prior four-week stretch that produced a 0.26-percent average decline.
For trucks, Black Book pointed out the midsize crossover/SUV segment performed the worst, sliding by 0.74 percent or $115.
Turning next to what Black Book representatives witnessed when attending nearly 60 sales, that no-sale activity Goyal referenced surfaced in multiple locations.
First from Wisconsin, “Rising no-sales are putting pressure on the consignor to lower the floors.”
And then in Nevada, “A softer sale this week with more no-sales than we have had in two months.”
As well as in South Carolina, “The sale started off promising before moving to mostly no-sales. The $5,000 price range was popular today.”
Two other anecdotes described what else is happening in the lanes nowadays.
Out of the Northwest, Black Book’s representative in Washington mentioned, “The dealers still present a positive sentiment as we had a good run of vehicles with a good selection of nice units.”
And finally in the Midwest, an observer in Illinois offered, “A new-car dealer stated that he purchased more vehicles than normal to take advantage of the falling market.”
It’s been great for 28 … years at Motley’s Richmond Auto Auction.
The operation recently celebrated its 28th anniversary with a promotional event that offered more than 700 vehicles consigned and more than 70 percent sold.
“This was another all-time record for the auction. We had more than 500 registered dealers in attendance for the sale,” auction general Manager Wyatt Carter said.
The auction, which was founded in 1990, gave away more than $21,000 in cash to the dealers.
Mark Motley, founder and chief executive officer of Motley Auctions added, “This was such an exciting day for us. Seeing all the hard work come together for such a great event for our dealers makes it all worth it.”
The auction also hosted its annual classics and exotics sale during the anniversary sale event. The top vehicle sold during the event was a 2013 Porsche 911 4S for $70,000.
“This is our largest event of the year, and every year we find a way to top the previous year,” Carter said. “We have the best staff in the industry, and every day the service they provide to our dealers is a top priority. The success of events like this are a direct result of their hard work and dedication.”
Motley’s Richmond Auto Auction is part of the AMS Auction Network and operates on 35 acres of land offering the ability to run seven simultaneous lanes, full reconditioning and mechanical facilities, in house body shop, in house transportation, AutoIMS and full integrated online capabilities.
For more information, visit www.richmondaa.com.
Auction123 has enhanced its dealer website and inventory management solutions, as well as its automated marketing tools for sites like Facebook Marketplace, Craigslist and eBay with vehicle-specific pricing information for Carfax Advantage dealers.
The company highlighted those dealers now can compare their pricing with the Carfax history-based values for units in inventory. Using Carfax information combined with local market trends, Carfax can provide a unique price for each vehicle.
With more accurate pricing information, dealers can market their vehicles competitively and reinforce to customers which vehicles are the best value.
“By integrating the Carfax History-Based Value with Auction123’s solutions, we are giving dealers the ability to more accurately price their vehicles based on a specific VIN’s history, as opposed to simply matching a vehicle to others in the market based on options and condition,” said Tracy Amato, executive director of Auction123.
“This is a huge game changer when it comes to determining the best pricing for a dealers’ inventory and identifies the value of vehicles that have fewer owners, more detailed service history and no accidents,” Amato added.
The Auction123 system is now geared to offer greater insight that can help dealers more accurately evaluate each specific VIN in their inventory. The company insisted dealers no longer have to rely on limited market value pricing for all vehicles matching the year, make, model, trim and condition.
Dealers can filter stored vehicles to see which units are priced above or below the Carfax History-Based Value and pull up the Carfax information on each one. In addition, dealers can view and adjust the trim, color, condition and options for each VIN as needed.
“Vehicle-specific pricing helps dealers hold gross on their inventory,” said Paul Nadjarian, head of products for Carfax. “With this information built into Auction123’s entire suite of products, Carfax Advantage dealers make better decisions when acquiring, advertising and retailing used cars.”
For more information or to get access to Auction123’s solutions, visit www.auction123.com.
The DS360 Guarantee from DealShield has been integrated with the EDGE AuctionOS platform from remarketing technology provider Auction Edge.
This means that more than 100 independent auction partners of Auction Edge can now tap into the services of DealShield, which is a Cox Automotive brand providing wholesale inventory risk management.
The first independent utilizing the integration of DS360 with EDGE AuctionOS — one of several tech platforms offered by Auction Edge to independents auctions — is Central Auto Auction in Hamden, Conn.
“We’re excited to be the first AOS auction to offer the DS360 guarantee, and as always the EDGE folks stepped up to make it happen,” Central Auto Auction president Peter Saldamarco said in a news release. “DealShield brings substantial value to our Simulcast and OVE buyers and will no doubt help generate additional business for us.”
Through the DS360 guarantee, should a subscribing dealer buy a wholesale car at a participating auction then decide he or she does not want it — for any reason — the dealer can bring the vehicle back to any auction in the DealShield network and receive a full refund.
DealShield says there is no arbitration and no questions asked.
The original window to return the vehicle was 21 days, and that is still being offered. But if dealers wish to upgrade, they can now have 30 days to return the vehicle, as reported here by Auto Remarketing last month.
“We launched DealShield in 2012 with one simple premise — to give dealers more peace of mind in the wholesale market,” said Stu Dressler, interim leader and senior director of operations at DealShield. “Six years later, we are excited to reach even further across the industry in conjunction with Auction Edge, a leader — and great partner — in the independent auction space.”
Auction Edge has partnered with DealShield since 2017. At that time, auctions using the EDGE ASI platform (another Auction Edge offering) were given the opportunity to join the DealShield network, and since then, more than 35 independents on that platform have done so.
And now, auctions using the EDGE AuctionOS platform can join the DealShield network.
“This partnership answers the desire of independent auctions to fully participate in the growing purchasing power of DealShield dealers,” Auction Edge chief executive Dan Diedrich said in a news release. “Coupled with great training and support, our independent auction network will have a seamless solution for their buying audience.”
No, that’s not a typo in the headline of this report.
On Monday, Copart announced that it has opened its third location in Germany. The facility is located at Bruchmühlbach-Miesau, near Mannheim, Germany.
Copart indicated the first vehicle auction at the new Mannheim location will be on Tuesday.
“Our buyers’ appetite for vehicles in Germany is huge. I am excited that we’re opening a location near Mannheim,” said Alain Van Munster, managing director of Copart Germany.
“It will be an important asset in supporting the Copart business model in Germany, increasing proximity to certain buyers, as well as reducing our logistics costs,” Van Munster continued.
Eligible buyers can join auctions and bid on inventory through the Copart.de website or via the Copart Mobile App for iOS and Android devices.
“With this third Germany location in Mannheim, alongside facilities already established near Hannover and Leipzig, Germany, the U.K., Ireland, Spain and Finland, Copart is truly extending its strong platform in Western Europe,” said Nigel Paget, the company’s chief executive officer for Europe and the Middle East.
Copart chief executive officer Jay Adair hinted about what’s to come for the company in Germany.
“We are committed to building our network of locations in Germany, and we look forward to announcing additional locations before year end,” said. “I am proud of the Copart team and their effort to make Copart the number one solution for salvage in Germany.”
To learn more about Copart Germany, visit www.copart.de/en/.
With the industry still sifting through units impacted by Hurricanes Florence and Michael, Carfax shared new information on Thursday, highlighting how many vehicles damaged by flooding remain operation.
Compared to this point last year after Hurricanes Harvey and Irma hit the U.S., Carfax reported 478,000 flooded vehicles on the road; a figure that represents a 47-percent spike year-over-year.
Carfax indicated Texas, Florida, Pennsylvania, Kentucky and Louisiana are the states where flood-damaged vehicles are most prevalent.
Carfax added that the specific cities where the highest penetration of flooded units remain in operation include Houston, New York, Miami, Philadelphia and Dallas.
“Flooded cars rot from the inside out, likely causing safety, health and financial problems for unsuspecting buyers of these waterlogged wrecks,” Carfax said.
This summer, U.S. Senate Minority Leader Charles Schumer delivered a letter to the Federal Trade Commission to outline his significant concerns about what the New York lawmaker dubbed, “hurricane cars.”
Schumer fears scores of vehicles damaged during previous hurricanes currently are in dealership inventory. Therefore, the powerful Senator wants the FTC to increase the regulatory capability of the Used Car Rule already in place in an effort to keep flooded vehicles from being retailed.
“While the FTC has been sounding the alarm on ‘hurricane cars,’ consumers are still at risk of being duped and burdened by a financial road of ruin if they unknowingly buy one,” Schumer said in a news release distributed back in July. “That’s why the FTC needs to drive forward with more than a consumer warning and hit the gas on a plan that uses the ‘Used Car Rule’ already on the books to ensure that the sticker slapped on every used car in a lot details a robust ‘flood check.’”
To help dealers spot flood-damaged vehicle, AutoCheck Auctions offered more than a dozen recommendations after Florence deluged the Carolinas in September.
Before Michael ripped through the Florida Panhandle, Georgia and other parts of the Southeast, Cox Automotive estimated at least 20,000 units likely were damaged.
Used-car managers looking for high-line units now potentially have more options via DealersLink.
On Wednesday, DealersLink announced it has launched Sixt Remarketing inventory within its marketplace. Sixt is adding more than 1,000 off-rental vehicles to the national dealer-to-dealer marketplace.
And to help stores find just what they need to satisfy a customer request, Sixt’s nationwide inventory will be available on the DealersLink.com and SixtDirect.com one week earlier than some other auctions.
Sixt is known for its high-class inventory featuring luxury models with higher trim levels than vehicles offered by other rental companies. The company operates more than 2,200 locations worldwide and more than 50 premium locations in North America.
DealersLink has been eliminating wholesale transaction fees for more than 13 years, with $1 billion of used inventory available 24/7. Members use the Marketplace daily to stock their lots with clean reconditioned units, locate hard-to-find vehicles for their customers, sell inventory without incurring wholesale losses, and arrange book-for-book trades.
Members pay only a monthly fee to participate, and never pay per-vehicle auction fees.
“Offering our premium inventory on DealersLink’s Marketplace complements our existing sixtdirect.com service while opening our inventory to more potential buyers,” said Mark Kach, vice president of remarketing North America for Sixt.
DealersLink chief executive officer Mike Goicoechea added, “We are absolutely thrilled to deliver Sixt inventory to our DealersLink members with no transaction fees.
“Sixt inventory caliber is second to none. Mark and his team really know how to properly equip their vehicles for retail buyers, and they typically sell vehicles with lower than average miles,” Goicoechea went on to say.
To learn more about Sixt, visit www.sixtdirect.com.
For more information on DealersLink, visit www.dealerslink.com, call (844) 340-2522 or send a message to [email protected].
Normal things you see in October are here: Children excited about Halloween around the corner, homecoming football games and leaves turning into a brilliant array of colors.
And along with those things, even more good news for dealers: Wholesale prices are behaving typical for October, according to the latest edition of Market Insights from Black Book.
“Used-vehicle values are finally experiencing normal depreciation trends for this time of the year, after being unusually strong since spring,” said Anil Goyal, executive vice president of operations for Black Book.
Volume-weighted, editors indicated that overall car segment values decreased by 0.44 percent last week. In comparison, Black Book noted the market values for cars had decreased by only 0.30 percent on average during the prior four-week period.
Within cars, Black Book found that the near-luxury car segment experienced the biggest drop, sliding by 0.81 percent or $126.
Again volume-weighted, editors determined overall truck segment values (including pickups, SUVs and vans) softened by 0.39 percent last week. In comparison, Black Book pointed out the market values had dipped by 0.17 percent on average during the previous four-week stretch.
In the truck space, Black Book said the midsize crossover/SUV segment performed the worst, dropping by 0.57 percent or $88.
Turning next to what Black Book representatives at sales nationwide observed, the opening anecdote mimicked how happy a child might be for getting extra candy at Halloween.
“A buyer for a new-car store was elated that he can finally acquire vehicles at lower prices at the auction,” Black Book’s lane watcher in Illinois reported.
Check out the other four observations Black Book shared to see how they compare to what you’re experiencing:
— From Michigan: “The only vehicles still pulling the strong money are trucks and all-wheel-drive SUVs.”
— From California: “No-sales have been incrementally higher each week for the past few sales.”
— From Georgia: “The conversion rates were good. In fact, most of the vehicles that didn’t sell seemed to have unrealistic floors.”
— From Tennessee: “The consignment was down and there were a lot of no-sales, producing just an OK sale.”
