Greater Kalamazoo Auto Auction, an XLerate Group auction, will celebrate its 41st year anniversary on Thursday with a special sale.
In honor of its anniversary, GKAA said it will award more than a total of $15,000 in cash and prizes to a number of potential dealer customers who attend the sale this week.
Each Thursday, the auction holds its dealer sale at 10 a.m., with 600 plus dealers in attendance, according to GKAA.
GKAA was founded in 1976 and currently consists of a 26,000 square foot facility on 65 acres.
The auction also has a 9-bay reconditioning facility, a full-service mechanical repair shop and transportation department.
“By taking advantage of the many services offered by Greater Kalamazoo Auto Auction, each customer expands his own automotive marketing efforts and benefits in terms of time and financial return,” GKAA general manager Daryl DeVries said in a news release.
“Above all, each customer, whether buying or selling, returns time and time again because of the special qualities that set GKAA apart from the rest. We have a strong team of loyal employees that goes the extra mile each and every week.”
IAG names fundraising challenge winners
The Independent Auction Group recently announced the winners of its March Madness bracket challenge, a fundraising effort the group held in collaboration with Dyer Auto Auction last month.
Participants were asked to mail in a dollar for each bracket to be put into a trophy.
IAG's top three finishers for this year were women. The first place title went to Britney Egbert, fleet/lease manager at Dealers Auto Auction of Idaho.
Each year's winner gets to keep the trophy filled with the bills for one year until the next challenge and a new winner is chosen. The funds accumulated are to be used for any charitable effort of the winners choosing.
GAA launches two promotions
ServNet recently announced that auction group member Greenville Auto Auction (GAA) recently kicked off its BB&T/Regional promotion, X-Factor, along with a new promotion that allows its dealers to enter a pool to win a quad.
The newly adopted quad promotion is a three-month event that will end in June.
Additionally, GAA said recently the acution has had a notable number of strong sales, which include its AdrenaLANE Sale, a sale that highlights specialty units such as powersports, sports cars, golf carts, and RV's, according to auction general manager Billy Willis.
“Greenville Auto Auction is eager to continue building great relationships with dealers and is looking forward to the auctions ahead,” GAA said.
ServNet president Kevin Brown recently announced that the group plans to form a Client Advisory Board, which will be made up of 10 to 12 executives who represent key commercial accounts and institutional consignors.
"The formation of a Client Advisory Board is an exciting new element in ServNet's ongoing efforts to build relationships, enhance communications and streamline auction processes for our customers," Brown said.
According to ServNet, the new board will first meet later this year in conjunction with its Fall Owners' Meeting.
"The ability to act as a group and foster meaningful and reciprocal communications with our clients is a key area that sets ServNet auctions apart from the competition," ServNet chief executive officer Pierre Pons said. "Most ServNet auctions have already instituted Client Advisory Boards on a local level with their dealer customers. This new national Client Advisory Board as envisioned by Eric Autenrieth is a logical extension of that practice, involving key commercial accounts who remarket their vehicles across the country."
Brown also announced that ServNet vice president and treasurer Eric Autenrieth, who was instrumental in the implementation of the Client Advisory Board, will serve as president of the independent auction group's Board of Directors in the fall.
ServNet recently announced that Louisiana's 1st Choice Auto Auction (LFCAA) of Hammond, La., one of its auction members, has chosen to promote two of its employees.
Bridget Higginbotham, who has been with LFCAA for 14 years, has moved into the role of new business development director. Meanwhile, Katie Alombro, who has been with the auction for eight years, was promoted to office manager.
In her new role, Higginbotham will be tasked with developing new accounts, both institutional and dealer.
Additionally, Alombro, who most recently served as a title clerk, now is responsible for overseeing titles, payments, collections and the LFCAA office staff.
"Katie and Bridget show pride in their work, innovation and creativity in their jobs, and a willingness to do what it takes to make our customers happy," LAFCAA owner and managing partner John Poteet said. "In short, they are successful, loyal employees and are a representative of the type of people that work here. I am proud of them and their achievements."
Ally honors ServNet member for sales growth
Ally recently recognized Akron Auto Auction, another ServNet member, with its SmartAuction's Greatest Year-Over-Year Sales Growth Award for 2016.
"Our entire auction team is thrilled to receive this SmartAuction award," Chad Bailey, president of Akron Auto Auction said. "Since our first year with SmartAuction in 2010, the online platform has become an invaluable tool for us, allowing us to help customers expand the market for their vehicles and maximize resale values."
Bailey said the auction first posted 100 vehicles to SmartAuction in 2010 and volume has increased steadily since.
Akron Auto Auction strengthened its volume by 254 percent in 2016 over the prior year, according to Bailey.
Ally’s senior account manager of independent auctions Brent Ramels and its director of sales operations Kevin Valimont visited the auction to present the award.
ADESA Remarketing Limited, the UK affiliate of ADESA, announced recently that by way of its successful partnership with Arval, both companies have newly collaborated with Motability Operations to lead the transition to upstream defleet remarketing in the UK.
This move allows ADESA to offer an increased volume of used vehicles on its upstream mobile technology platform built on the TradeRev mobile app, which allows dealers to participate in daily e-auctions with live bidding on a wide range of vehicles.
“ADESA’s ability to offer these much sought-after used cars gives dealers a first opportunity to access a rich mix of quality stock to meet customer demand,” Jonathan Holland, managing director of ADESA UK, said in a news release. “Our model is a proven and credible alternative to more traditional remarketing channels and provides buyers with a cost-effective, convenient and efficient solution.”
Three unique selling propositions the vehicle auction and remarketing services provider now offers in the UK include the following:
- Upstream remarketing provides the earliest possible access to vehicles as soon as a contract ends
- Appraisal services allows vendors to appraise a vehicle and bring it to market in less than 10 minutes
- White label manages rental vehicle buy-back and management car solutions for OEMs
Additionally, in less than 10 minutes, the upstream remarketing platform can both appraise and bring vehicles to market as well as personalize preferences related to the vehicles they view, according to ADESA Remarketing Limited.
KAR Auction Services chief economist Tom Kontos didn’t quote A Tale of Two Cities in his latest commentary about the wholesale market.
But Kontos did make a play on words similar to the novel by Charles Dickens, saying “the tale of two markets resumed in March.”
According to ADESA Analytical Services’ monthly analysis of wholesale prices by vehicle model class, Kontos indicated wholesale prices in March averaged $10,904 — up 2.0 percent compared to February and up 1.0 percent relative to March of last year.
Kontos noted that all but one model class segment (compact pickups) showed month-over-month increases. He reiterated the year-over-year growth in minivan prices is exaggerated by newer models as discussed in January’s report.
The reason for saying March was a “tale of two markets,” Kontos explained in his latest Kontos Kommentary released on Thursday that wholesale prices were below year-ago levels for cars and above prior year for trucks.
“Nevertheless, both groups showed price increases versus February’s unseasonably soft results, as retail sales and wholesale activity showed signs of the traditional spring/tax season market typical for used vehicles,” he continued.
Kontos elaborated about the wholesale market by going back to another of his descriptive words that a good author might use — bifurcated. He use the word meaning a split into two branches to reflect back on nine years ago when $20 often did little to move the needle on your vehicle’s gas gauge.
“In analyzing the current bifurcated market, it seems timely to revisit a study begun during the first episode of $4 gas in 2008, when truck prices softened dramatically and car prices rose,” Kontos said. “At that time, the price gap between full-size SUVs and compact cars had fallen from close to $13,000 in January of 2000, when SUVs were all the rage, to $2,162 in June of 2008, when gas prices hit $4 a gallon.
“In other words, dealers were paying high prices for small cars and low prices for big SUVs at that time, narrowing the price gap between the two,” he continued. “That turned out to be the all-time low for this price gap, which gradually rose to $8,293 by November 2016, as gas prices have fallen and the popularity of SUVs has recovered.
“Per our March data, this gap has dropped to $6,675, perhaps indicating that SUV prices are moderating and compact car prices are recovering,” Kontos went on to say. “We will monitor this going forward.”
ADESA’s monitoring also showed that average wholesale prices for used vehicles remarketed by manufacturers in March rose 1.1 percent month-over-month but softened 1.7 percent year-over-year.
Analysts also noticed prices for fleet/lease consignors climbed 3.8 percent sequentially and 0.8 percent annually.
ADESA went on to point out average prices for dealer consignors increased 2.7 percent versus February and 1.3 percent relative to March of last year.
Breaking the data down by age, analysts found that prices dipped 2.5 percent year-over-year for current and one-model-year-old units —what Kontos said typically are off-rental units — and 2.6 percent for three-model-year-old units —what Kontos noted as a good proxy for off-lease units.
Based on NADA data, Kontos closed by stating retail used-vehicle sales by franchised and independent dealers jumped 9.3 percent month-over-month and 1.6 percent year-over-year.
He also mentioned March certified pre-owned sales moved up 15.0 percent month-over-month, although they were down 0.3 percent year-over-year from last March’s all-time record levels, according to figures from Autodata Corp.
Kontos discussed the market further in the video available here and at the top of the page.
ADESA Wholesale Used-Vehicle Price Trends
| |
Average |
Price |
($/Unit) |
Latest |
Month Versus |
| |
March 2017 |
Feb. 2017 |
March 2016 |
Prior Month |
Prior Year |
| |
|
|
|
|
|
| Total All Vehicles |
$10,904 |
$10,688 |
$10,793 |
2.0% |
1.0% |
| |
|
|
|
|
|
| Total Cars |
$8,921 |
$8,732 |
$9,078 |
2.2% |
-1.7% |
| Compact Car |
$6,732 |
$6,658 |
$7,050 |
1.1% |
-4.5% |
| Midsize Car |
$8,006 |
$7,942 |
$8,107 |
0.8% |
-1.2% |
| Full-size Car |
$8,346 |
$8,092 |
$7,803 |
3.1% |
7.0% |
| Luxury Car |
$13,235 |
$13,015 |
$13,636 |
1.7% |
-2.9% |
| Sporty Car |
$14,131 |
$13,478 |
$14,517 |
4.9% |
-2.7% |
| |
|
|
|
|
|
| Total Trucks |
$12,825 |
$12,650 |
$12,657 |
1.4% |
1.3% |
| Minivan |
$9,012 |
$9,004 |
$7,939 |
0.1% |
13.5% |
| Full-size Van |
$13,009 |
$12,838 |
$12,769 |
1.3% |
1.9% |
| Compact SUV/CUV |
$10,894 |
$10,733 |
$11,065 |
1.5% |
-1.5% |
| Midsize SUV/CUV |
$11,459 |
$11,319 |
$11,311 |
1.2% |
1.3% |
| Full-size SUV/CUV |
$13,407 |
$13,140 |
$13,372 |
2.0% |
0.3% |
| Luxury SUV/CUV |
$18,343 |
$18,258 |
$18,857 |
0.5% |
-2.7% |
| Compact Pickup |
$8,793 |
$8,818 |
$8,614 |
-0.3% |
2.1% |
| Full-size Pickup |
$16,142 |
$15,796 |
$15,773 |
2.2% |
2.3% |
Source: ADESA Analytical Services.
Auction Management Solutions (AMS) announced that earlier this month the firm partnered with Oklahoma Auto Exchange in Oklahoma City for business development consulting.
Oklahoma Auto Exchange started back in 2005, offering a weekly sale every Wednesday morning across four auction lanes, operating in a facility consisting of 128,000 square feet situated on approximately 18 acres of land. The operation currently offers 650 to 700 units weekly.
OKAEX is a full-service auction with full reconditioning, light mechanical services and in-house transportation.
“We are very excited to be a part of the AMS group of auctions,” Oklahoma Auto Exchange owner Mike Clopton said. “We have spent a lot of time building a great base of dealer consignment business over the last 12 years, as well as some fleet/lease and repossession business, and feel that it is time now to start to expand into focusing on national consignors.
“We feel that AMS can be a great help to achieve our goals,” Clopton added.
The focus of AMS is to provide strategic business development services, with an emphasis on business processes and profitability that aid in the growth and success of client/partner businesses.
AMS was started by industry veterans Tom Stewart and Richard Curtis, and provides consulting and recruiting services to the automotive industry that includes independent auto auctions, service providers and vendors.
Adding this location brings the firm’s client list to 16 total locations, which also include:
—KASP Auto Auction
—Columbus Fair Auto Auction
—Greater Quad City Auto Auction
—Rochester Syracuse Auto Auction
—Greater Erie Auto Auction
—DAA Chattanooga
—DAA Murfreesboro
—DAA Memphis
—DAA Huntsville
—DAA Mobile
—Southeastern Auto Auction
—Dealers Auto Auction of Idaho
—166 Auto Auction
—All Valley Dealers Auction
—Central Auto Auction
“We are very excited to be working with Oklahoma Auto Exchange,” Stewart said. “Mike and his son Kyle have built a very strong auction in the Midwest, and consignors are looking for strong independent auctions to partner with."
“One of our goals here at AMS is to focus on providing our customers with the best service we can, while working through a proven sales strategy to help them grow their business,” Stewart added.
Clopton closed by saying, “Tom will be working closely with Kyle Clopton, our director of sales, on continuing to build relationships within the industry.”
For more details, visit www.okaex.com.
Columbus Fair Auto Auction announced that it has been tapped for the second year in a row by Ally Financial to receive its Leadership Auction of the Year award in recognition of its overall sales performance last year.
“We value the Ally Financial relationship and strive to differentiate our auction through process and execution”, Alexis Jacobs, CFAA chief executive officer, said in a news release. “This award is a testament to the entire team and their work effort.”
CFAA was founded by Jacobs’s father, William Jacobs, in 1959.
The auction currently has 11 auction lanes, a reconditioning center, a 48-bay body shop, a mechanical repair center, an on-site test track, and a full-service restaurant, according to the CFAA website.
NAAA revises arbitration policy
In other auction news, the National Auto Auction Association announced on Monday that its auction standards committee has updated its arbitration policy and guidelines.
The committee made several changes, and their edits include the exclusion of previous policy material as well as the addition of new material.
To view each of the committee’s changes, click here.
The parts of the policy the committee has newly omitted is written in red and all new policy content is in green.
NAAA’s final version of its updated policy and guidelines can be accessed via the "Policy" section on www.naaa.com.
While noticing that March wholesale prices rebounded by 1.6 percent, the team at NADA Used Car Guide, a division of J.D. Power, is expecting the market to give back much of that gain in April.
According to the latest issue of Guidelines released on Tuesday, NADA UCG indicated that prices of vehicles up to eight years in age are expected to decline by approximately 1 percent in April. Analysts explained that mainstream car depreciation is expected to be less than last year as compensation for February’s depressed result.
“Conversely, SUV and truck depreciation is expected to be slightly worse due to ongoing increases in supply,” the report said. “Premium segment losses are forecasted to average less than 1 percent, which is about a 0.5-point improvement from April 2016.”
Looking out further, NADA UCG projected that prices are expected to fall by about 2 percent in both May and June before prices deteriorate “slightly more” in the summer and early fall months.
The report went on to mention the overall forecast for the year remains unchanged. Analysts said prices are still expected to decline by about 6 percent in 2017, which is two points worse than the 4 percent softening they noticed a year ago.
More details about March price movement
After declining by an unexpected 1.4 percent in February, NADA UCG reiterated wholesale prices of used vehicles up to eight years old bounced back in March.
Analysts acknowledged this March’s 1.6-percent lift in prices “wasn’t quite as big as anticipated, it was directionally right in line with the period’s 2.3 percent average over the previous three years.”
NADA Used Car Guide’s seasonally adjusted used-vehicle price index fell for the ninth straight month, declining a slight 0.3 percent from February to 110.1 in March. Even though the decline was described as “mild,” the report noted March’s index figure was 7.2 percent below the reading on March of last year, which was 118.6.
The latest reading also marked the index’s lowest level since September 2010.
“March’s recovery in used-vehicle prices can be credited to typical spring season increases, which hinge largely on federal tax refunds,” the report said.
“In March’s edition of Guidelines, we pointed out the negative effect of new laws involving the Internal Revenue Service (IRS),” analysts continued. “Essentially, the laws require the tax agency to withhold all refunds that claim the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until mid-February.
“As a result of meeting this new process, the delay of tax refunds decreased the amount of vehicle purchases for the month, effectively depressing vehicle prices,” they went on to say.
While the number of tax refunds issued continue to lag last year’s figures, NADA UCG pointed out the situation improved significantly in March. Per the IRS, the total number of refunds issued through March 24 was still 3.4 percent lower than the same period in 2016.
While the total number of refunds was down for the year, the amount issued improved by 7.6 percentage points compared to what was reported through Feb. 24, according to IRS information.
Additionally, the IRS data showed the average refund paid out through March 24 reached $2,897, an amount 1.1 percent higher than the same period in 2016.
Larry Dixon, executive analyst at J.D. Power Valuation Services, elaborated about the impact of tax season in a video available here as well as at the top of this page.
The latest installment of Guidelines also highlighted that mainstream used-vehicle segments recovered from February’s unusually soft performance with prices up virtually across the board.
Normal for the period, NADA UCG found that segment level prices in March were especially strong for non-luxury small and mid-size cars.
“Consumers shopping for vehicles in these segments were finally armed with fresh disposable income thanks to their recently acquired tax refunds, which logically played a role in increasing used-vehicle demand over the month,” analysts said.
After declining by 2.1 percent in February, the report showed subcompact car prices rebounded by 3.4 percent, which was the most of any segment for the month.
Analysts added that prices for compact and midsize cars trailed further behind, but still increased by 2.6 percent, respectively.
Matching the industry average, NADA UCG pointed out that midsize van prices jumped by 1.6 percent, followed closely by the large car segment’s 1.5 percent increase.
Remaining non-luxury segment prices increased between 0.6 percent (large pickup) to 1.4 percent (mid-size utility), according to the report, which also stated large utility vehicle prices were flat for the month.
Closing out that monthly update, NADA UCG found that luxury vehicles fared far worse in March than their non-luxury counterparts. As a result, the report showed four out of six luxury segments experienced price losses for the period.
Analysts said declines were the most severe for luxury large utility and luxury large cars. Prices for the two fell by 1.5 percent and 1.4 percent, respectively.
The report also mentioned luxury midsize and luxury compact car declines reached 0.8 percent and 0.7 percent. Meanwhile, luxury compact and luxury mid-size utility prices ticked up by 0.2 percent and 0.3 percent, respectively.
“Overall, luxury segment losses were more severe than what has occurred during March over the past few years,” the report said.
Black Book’s latest recap of bidding activity and price movement showed how aggressively dealers are getting in the lanes either in person or online.
As certain units kept auction ringmen busy, the Black Book Market Insights report indicated 13 out of the total 22 vehicle segments saw an increase in average value.
On the other hand, editors found that the segment with the weakest retention was the sub-compact luxury crossover/SUV, which declined in value by 0.50 percent.
“Sentiment was positive in the auction lanes with most locations experiencing high sale percentages. This higher demand resulted in increased values in most segments last week,” said Anil Goyal, senior vice president of automotive valuation and analytics.
Before going into how dealers behaved, Black Book recapped its volume-weighted data, which showed overall car segment values increased by 0.10 percent last week. In comparison, the market showed similar performance increasing on average by 0.15 percent in the previous three weeks.
All car segments except luxury and premium showed an increase in values, according to editors, which pointed out that the sub-compact car and sporty car segments gained the most at 0.37 percent and 0.49 percent, respectively.
Again volume-weighted, Black Book determined overall truck segment values — including pickups, SUVs and vans — edged up slightly by just 0.05 percent last week. In comparison, editors mentioned truck values depreciated by 0.06 percent during the previous three weeks.
Black Book went on to mention minivan was the best performing segment, whereas sub-compact luxury crossover declined the most among truck segments.
And now those recaps from Black Book personnel stationed at about 60 auctions each week. The most colorful assessment came from North Carolina as the lane watcher reported back saying, “It is amazing how high dealers will bid to obtain the front-line ready inventory that they need. If it is a clean low-mile unit, look out.”
In New Jersey, a similar situation unfolded as Black Book’s representative said, “The auction this week was the best it has been in several months. Anything under $10,000 with curb appeal was especially strong.”
Next door in Pennsylvania, dealers walked the lanes or watched their screens. “Lots of people on the lanes and bidding online today. The dealer lanes I watched were experiencing very high sales percentages and the money was strong,” Black Book’s watcher in the Keystone State said.
Action was active down in Texas, too, with the recap mentioning, “Seemed like the lanes were much busier this week with a lot of strong sales.”
The last two reports Black Book shared came from Ohio and California, where the situation in the Buckeye State was, “Full-size trucks were selling very well with the bids closing out where they should. Average vehicles bringing average values.”
And out West, “Prices were up today. Most of the dealers I spoke with are short on cars for retail.”
Below is a Q&A with Jessica Stafford, vice president of marketing for Cox Automotive Media Solutions Group and a 2017 Women in Remarketing honoree.
Auto Remarketing: What was your path to the automotive industry, and what do you enjoy most about working in the car business?
Jessica Stafford: I started out on the agency-side of marketing, working for several ad agencies in the telecom, hospitality and retail space. The opportunity to come to what was then Autotrader.com, gave me the chance to work in-house on the brand side of marketing. That was important because it allowed me to truly drive business decisions and not just advertising plans.
Autotrader was the first leg of my automotive journey. I've developed a deep love for the auto industry — in which products change frequently and competition is fierce.
As Cox Automotive has grown from a few automotive brands to 25, the car business has become far more than a line on my resume or a stint in my marketing career.
The opportunity to work in a space that's highly entrepreneurial has inspired and motivated me. I love marketing and the work that I get to do each day, but getting to do it within an industry that sits at the very soul of our culture, and see it from every angle — manufacturers, car buyers and dealer retailers — is an extremely unique experience.
AR: How is the remarketing/used-car segment of the business most different from when you first started out?
JS: I would say that the evolution of what car shoppers want has been the most dramatic change. Watching how consumers search according to their lifestyles and needs versus by make, model and location. If a mom can get an SUV that fits three car seats and has storage for a double stroller, then she may not care if the vehicle is a used, certified pre-owned or a new car. It's whatever works best and she and her family can afford!
On the retail side, for dealers, finding ways to keep up with changing consumer demand and stock inventory that answers all of those different consumers' needs has become more challenging. Not only does a dealership have to have the right car at the right price, they have to be able to sell and deliver it wrapped in a great buying experience.
It has been amazing to see how the industry has evolved and adapted to both digital tools and new selling strategies that allow for all of that.
AR: How would you describe your leadership style and approach to problem-solving?
JS: My style: It is all about the team. I strive to lead from a place of inclusiveness and warmth, but I place high expectations on that in terms of effectiveness and innovation. I try to create a very diverse environment where team members are free to share ideas and be creative in all that we do.
For me, the tricky part is always ensuring that creativity delivers value for our business and our clients. My mission every day is to enable the team I lead to empower themselves and each other. To me, Cox Automotive feels like a family. It's an entity that fuels and sustains itself with its own energy.
AR: What have been some of the top keys to your success in the car business?
JS: After 10 years at Autotrader, I can apply my experience on almost a gut-level. However, a key to my success is the ability to challenge those assumptions and my own thinking with new ideas and knowledge from the team around me. And it always helps to put the consumer first.
Understanding how car shoppers think and how they'd like to shop is the bedrock for everything that we do. From there, we build tools and cull information that enables the car industry, automakers and dealers, to match those consumer needs.
AR: Who are some folks, whether in the auto industry or not, that you admire professionally, and why?
JS: I would definitely list my parents at the top of the list of people that I admire professionally. They aren't in the automotive industry. They are in marketing and advertising and taught me to always strive to love what you do and do what you love. My parents set a great example of finding the right balance of professional success and personal happiness that enables the life you want for your family.
I'm lucky to have learned from amazing marketers and business people from inside and outside the company. I look at Mary Barra and see an amazing example of leadership in our space. Impactful, decisive leaders like Sandy Schwartz within Cox Automotive have influenced me and shown me how great leaders can actually create opportunity and change an industry for the better.
AR: When you are able to get away from the office or work, what do you enjoy? What are your hobbies, interests, etc.?
JS: I spend every minute I can with my family. My husband, Pete, and our two boys, Jack (5) and Cole (2). Those energetic boys keep me incredibly busy, from T-ball games to trips to the park, to bike rides in the driveway.
Their love for cars and trucks makes me know they are already obsessed with the industry and destined for great things in our world. I also enjoy traveling, fine arts and exercise, although my time for those things has dwindled these days while chasing around the two energetic toddlers.
