NextGear Capital announced recently that it has enhanced its website by adding more tools and resources that help dealers manage their vehicle and business needs.
NextGear said its site now delivers more convenient access to information. The newly enhanced site connects dealers to increased educational resources, lending products and auction sites that accept NextGear lines of credit, according to the company.
“With dealers’ ‘need for speed’ in mind, and in response to requests for easier access to information, we revamped our website to better meet their needs,” Shane O’Dell, president of Cox Automotive Financial Solutions, said in a news release. “We are always looking for ways to help our dealer clients grow their business and retain cash flow.”
The updated site offers two key new features that make it an easy-to-use resource hub, NextGear said.
It’s new Auction Finder tool allows dealers to quickly find auto auctions that take NextGear lines of credit. Auctions can be found locally or anywhere in the country just by entering a name and state or location into the search mechanism.
A new Dealer Resources tab offers access to Cox Automotive data and research, shopper insights, best practices, research and market reports, and more.
“The new tools on NextGear Capital’s website and app help us make quicker, better decisions,” Keith Yamanaka of Chicago Cars Direct said. “We have peace of mind about our choices knowing what vehicles are moving in the marketplace and the going rates.”
Additionally, its website now offers greater visibility of the company’s product offerings along with a rotating banner that displays any of its latest updates.
The American International Automobile Dealers Association reported that average length of time a new model sat on a dealer’s lot hit 70 days in March — the longest stretch of time since July 2009. Edmunds contends current new-vehicle inventory levels haven’t been this high since 2004.
Cox Automotive chief economist Tom Webb sees the assertions from AIADA and Edmunds stemming from franchised dealers starting both February and March with more than 4 million new units in stock as a headwind for both used- and new-vehicle sales.
Webb explained that hefty incentives were applied to that new-model inventory — a move that eventually places pressure on used-vehicle values — and the industry achieved a seasonally adjusted annual selling rate (SAAR) of 17.5 million in February. The strategy repeated in March, but the new-model SAAR fell to 16.5 million — the lowest reading since February 2015.
“Last month’s weak sales pace, plus less-than-needed production cuts, has left dealers with still too much new metal on the ground,” Webb said.
During his last quarterly conference call, Webb elaborated about where he thinks a healthy new-vehicle sales pace can be that leaves the used-vehicle segment with plenty of retail room to maneuver.
“I think if you look at it from a very long, long trend what you might term the underlying demand for new vehicles — the current vehicles in operation plus scrappage — I don’t think it’s that much north of 16 million going longer term. So the SAAR at some point has to move down below 17 million. But again it’s dependent upon what real retail demand there is out there,” Webb said.
“The fact that dealers have 4-plus million new vehicles in stock is the pressure on used-vehicle values. Obviously that’s too many,” he reiterated.
While used-vehicle production certainly can be attributed to situations such as trade-ins and off-lease returns, Webb acknowledged automakers have difficult challenges in managing factory production.
“A production adjustment has to be made with the sales pace in March being a disappointment,” Webb said. “We didn’t make a lot of the progress in terms of getting new-vehicle inventories in line. There’s still an overhang. To the extent the manufacturers produce to demand, then you don’t have that downward pressure on used-vehicle values. To a certain extent, I’m still hopeful that is what they will do.
“I’m somewhat surprised they’ve left their dealers holding that much inventory for such an extended period of time now rather than adjust,” he went on to say. “I know some of it has to do with imbalances and production schedules etc. But still, it is not a good thing for them since they also hold the residual values on 10 million leases out there.
“It’s not good for the manufacturers and it’s certainly not good for the dealers,” Webb added.
Update on rental-risk prices & volume
Manheim reported the average price for rental risk units sold at auction in March remained down 3 percent year-over-year. Webb explained prices were up relative to February, but less than the normal seasonal pattern would indicate.
Webb went on to note that a straight average of auction pricing for rental risk units in March represented a 3.5-percent rise from a year ago, “reflecting a better mix of market classes and lower mileage.” He added that SUVs and CUVs accounted for 33 percent of rental risk sales in March of this year versus only 25 percent last March. The share accounted for by compact cars fell from 29 percent to 25 percent.
Manheim also pointed out that average mileage for rental risk units in March (36,800 miles) decreased by 10 versus a year ago.
“Rental risk volumes sold at auction in the first quarter were up considerably, even compared to last year’s high level,” Webb said. “Unlike last year when dispositions were being driven by a high number of new units’ entering the fleet, this year’s off-rental volume was more the result of fleet rationalization. As such, off-rental auction volumes may weaken later in the year.”
Webb also touched on how the best of off-rental units aren’t necessary being skimmed off by rental car companies and being wholesaled other places than having those units come down the lanes.
“There was fear as the rental car companies used non-auction channels — direct to dealer sales and retail customers — that the auctions would end up with the higher mileage poor condition vehicles, the less desirable vehicles. But that has not been the case,” Webb said.
“I watch it very closely with the types of vehicles that come through our auctions and the condition levels. We’re not skewed in any way along those lines so that’s heartening,” he continued.
Meanwhile as those new-vehicle inventories pile up, Webb pointed out that OEMs aren’t falling back into previous practices by sending more units into the fleet space. Manheim determined that the combined rental, commercial fleet and government purchases of new vehicles decreased by 13 percent year-over-year in March, with the “all-important” rental segment down the most at a 14 percent decline.
“Granted, that was relative to a very high level a year ago,” Webb interjected.
“Certainly in the way past, basically when you had a lot of program cars, that was an avenue,” he continued. “Even when the manufacturers had ownerships in the rental car companies, you could use that as an avenue to keep factories open.
“Given the restructuring i.e. the bankruptcies that occurred during the recession, the manufacturers have a lot more flexibility in terms of production and in terms of making labor a more variable cost than a total fixed cost,” Webb went on to say. “To that extent, there’s less of a need to do that. Certainly they got burned in the past doing it. So to a large extent, most have not done that.”
And what about rental car companies working deals with the automakers?
“You look at the rental car companies and they’ll tell you they’re not getting that great of a deal in terms of the pricing,” Webb replied. “Certainly there’ll be a manufacturer of a particular model that will put a little pressure on the rental car company to take some of those units to even things out. But in the overall scene, they’re not overly pushing the market, which is a good thing.”
TradeRev will no longer require monthly subscription fees from U.S. car dealers and its mobile app has been fitted with brand-new personalized “Title Concierge” and “My Account” tools that provide added transparency and organization, the tech startup announced on Wednesday.
“We’re constantly listening to user feedback and evolving our technology to improve the buying and selling experience for dealers,” Keith Crerar, executive vice president of TradeRev U.S., said in a news release.“With no monthly subscription fees, TradeRev will further expand and empower our broad national marketplace of participating dealers. And our enhanced post-sale services will help finalize transactions more quickly, easily and accurately.”
Now, dealers only pay TradeRev a fee for any completed transactions.
The new “Title Concierge” service on the mobile app was created to build trust between participating dealers and aims to ensure buyers receive titles from sellers promptly, according to TradeRev. It now opens a direct line of communication between both parties by contacting sellers right after a vehicle is sold and keeping buyers updated on title status until it is received.
To help customers stay organized, TradeRev said it added the mobile app’s new “My Account” feature, which lets customers view a summary of their entire TradeRev accounting history. The tool also tracks all transactions and automatically posts in real time.
“We’re confident these new features will further streamline the buying and selling process for dealers seeking new ways to increase sales and profitability,” Crerar said. “By removing subscription fees, we’re encouraging every U.S. dealer to test-drive TradeRev and feel the full power and benefit of our revolutionary mobile app technology.”
Additionally, while sellers were once required to download and send back Vehicle Release Forms (VRF) via email of fax, they can now submit them directly from their mobile devices.
TradeRev said that it has digitized and accelerated the process by allowing submission and review on the mobile app with the touch of a thumbprint.
On Tuesday, Copart announced the opening of a new location in Betim, Minas Gerais — the company’s sixth location in Brazil.
Copart's Betim location is in the metropolitan area of Belo Horizonte and will offer a wide selection of salvage and used vehicles, according to the company.
"The new location in Betim supports us with our current growth in volume," Copart Brazil president Adiel Avelar said in a news release. "We're very excited to celebrate our first opening outside São Paulo state."
Weekly auctions are held at the Betim location at 10 a.m. UTC-3 and up to 4,000 vehicles can be stored on site.
“The opening in Betim adds to Copart's strategic network of locations across Brazil, servicing a growing buyer base and adding more storage and sales capacity to meet growing demand from vehicle sellers,” the company said. “The increase in locations, auctions and vehicles primes Copart to provide greater convenience to all customers, which enhances and improves their experience.”
Copart currently operates in the United States, Canada, the United Kingdom, the Republic of Ireland, Brazil Germany, the United Arab Emirates, and Spain
For additional information regarding Copart Brazil, visit www.copart.com.br.
Perhaps with Passover and Easter at hand, the spring market truly is happening if the latest information contained in the latest Black Book Market Insights report is an indication.
The report released on Tuesday showed the car segment as a whole increasing its value by 0.15 percent. Although the truck segment did not retain or increase its value, editors pointed out it was not far behind, only depreciating by 0.04 percent.
Black Book highlighted that two vehicle segments — compact cars and full-size pickups — performed the best this past week, increasing their values by 0.41 percent and 0.43 percent, respectively.
“Entry-level cars show seasonal strength in value, driven by demand from tax season buyers, while the luxury segments show some weakness. Pickups are also seeing renewed improvement in values,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.
Volume-weighted, editors reiterated that overall car segment values increased by 0.15 percent last week. In comparison, the market showed similar performance increasing on average by 0.15 percent in the previous two weeks.
Black Book determined the compact car, sub-compact car and sporty car segments gained the most by 0.41 percent, 0.25 percent and 0.26 percent, respectively.
Again volume-weighted, editors noticed overall truck segment values — including pickups, SUVs and vans — edged lower by just 0.04 percent last week, less than the depreciation rate of 0.07 percent spotted during the previous two weeks.
Black Book indicated the full-size pickup, small pickup and minivan segments ticked up the most by 0.43 percent, 0.28 percent and 0.16 percent, respectively.
Turning next to Black Book’s representatives in the lanes, reports back to headquarters covered the spectrum.
First out in California, the watcher said, “Lots of action; almost everything seemed to be selling well with trucks and SUVs leading the way.”
Next door in Nevada, a similar scene unfolded as Black Book heard: “Dealers are trying to keep their lots full with a lean toward older, lower-price vehicles.”
And continuing out West, the report out of Colorado was, “Good sale but short on vehicles this week. The vehicles that were there sold well however.”
In the Southeast, dealers appeared to back off a bit. In Georgia, Black Book’s auction visitor said, “Inventory and attendance was way down, but prices were stable overall.” And in Florida, the report indicated, “Sellers were holding out for higher bids today, creating more no-sales.”
The last two auction recaps came from the Midwest and Northeast. In Michigan, Black Book’s representative gathered an inkling about how units are turning by reporting, “Dealers are saying that late models are under pressure in the retail world, but the market seemed to stabilize at the auction today.”
And over in Pennsylvania, the action was, “Most of the buying at the high-line sale was done online, while the regular sale was a stark contrast with crowded lanes. Sales percentages were good for both sales.”
Cox Automotive announced that on Monday, the company will launch Flash Forum, a new complimentary educational webinar series created to instruct dealers on how to improve results and successfully grow their wholesale and retail operations.
Cox Automotive’s client education services team and subject-matter experts from the company’s various brands will host the 30-minute webinars.
The virtual education program’s content will cover topics such as sales, marketing, service and inventory as well as customer handling, consumer behavior, inventory acquisition, operations and digital retailing, according to Cox.
Dealers interested in the program can view event details and register via the Cox Automotive Flash Forum event calendar here.
Flash Forum’s upcoming webinar event dates and topics include:
Advertising That Works!
o Monday, April 10 9 – 9:30 a.m. ET
o Monday, April 10 1 – 1:30 p.m. ET
o Friday, April 14 11 – 11:30 a.m. ET
Level the Playing Field: Independent Dealer Case Study on Online Marketing
o Monday, May 8 9 – 9:30 a.m. ET
o Monday, May 8 1 – 1:30 p.m. ET
o Friday, May 12 11 – 11:30 a.m. ET
Break the Chains Binding Your Supply Chain: 6 Ways to Speed Up the Wholesale Process
o Monday, May 15 9 – 9:30 a.m. ET
o Monday, May 15 1 – 1:30 p.m. ET
o Friday, May 19 11 – 11:30 a.m. ET
During his last quarterly conference call on behalf of Cox Automotive, chief economist Tom Webb on Friday covered a wide range of used-vehicle topics, including an update on the Manheim Used Vehicle Value Index.
Webb explained that wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) declined 0.5 percent in March, relative to February. The dip brought the index reading to 124.1, which represented a 1.3-percent increase from a year ago.
“Naturally, wholesale prices were up in March relative to February before the seasonal adjustment,” Webb said.
“On a year-over-year basis, the same story holds: All car segments down, all truck segments up,” he continued.
Specifically, Manheim reported that pickup prices led the way with a 6.7 percent rise year-over-year, followed by van prices at 3.9 percent and SUV/CUV prices at 1.4 percent.
By edging only 0.9 percent lower year-over-year, Webb pointed out prices for compact cars “showed some relative strength.” The two other vehicle segments Manheim tracks each month — midsize cars and luxury cars — both produced price softening at about the same reading at 1.6 percent and 1.8 percent, respectively.
“Although used-vehicle values have declined in five of the last six months, it has not been the collapse that many analysts have warned of for more than a year due to increasing wholesale supplies,” Webb said.
“And, in fact, what weakness we have seen is probably more a result of excessive new-vehicle inventory, not used,” he continued. “At retail, the used-vehicle market remains healthy, and dealers have needed only a modest decline in auction pricing to maintain acceptable inventory turn rates.”
About his retirement
Cox Automotive announced back on March 30 that Webb would be retiring this year, officially departing the company on June 30. Before taking questions for nearly an hour on Friday, Webb expressed gratitude for individuals and companies involved in his professional career that dates back to the 1970s.
“As many of you know, I will be retiring shortly from Cox Automotive. This will be my last quarterly call,” Webb said. “But after following this industry for 43-plus years, it is unreasonable to assume that I can completely go cold turkey, so I look forward to remaining in contact with many of you.
“I also look forward to formally or informally, remotely or in person, to introducing you to the team at Cox Automotive that have been assembled to take over everything I do, plus a whole lot more,” he continued.
“From that perspective, this relationship that we’ve developed over the past 17 years with Manheim, the sharing of insights and opinions, has truly been mutually beneficial, and I hope you feel the same,” Webb went on to say.
After tackling questions about off-lease volume, rental-risk units and more, Webb reiterated his appreciation at the close of Friday’s conference call.
“Technically the next call should be July 10. And as I said, I won’t be hosting that call, but I might listening in. They might even let me ask a question,” Webb said, almost chuckling. “Thank you again for your insights and friendship.”
Editor’s note: Webb covered several segments of the used-vehicle industry during his final conference call with Cox Automotive. Look for more of Webb’s analysis and commentary contained in upcoming reports from Auto Remarketing, SubPrime Auto Finance News and BHPH Report.
Copart on Friday launched the newest version of the Copart Mobile App, available for Apple iOS and Android devices. The Copart Mobile App is designed to give buyers the ability to attend Copart’s live auctions from anywhere.
With this new update, Copart said buyers will enjoy a faster, easier user experience.
“Each new iteration of the Copart Mobile App provides another level of value to our buyers in more than 150 countries and territories using the app,” Copart chief executive officer Jay Adair said in a news release.
“We are seeing tremendous usage rates, with more than 80 percent of those who download the app using it every three days, and the majority of those using it daily,” Adair continued.
With the Copart Mobile App update, Copart buyers get access to the following features:
—Upload licenses using the Copart license uploader
—Scan bar codes using the new lot scan feature to get vehicle details at Copart locations
—Choose a preferred language with new multi-language options available in the app settings
—Access updated search filters with the Copart smart search tool
—View vehicle videos and extended notes now available in the app
In 2013, Copart launched its first iPhone app as well as its first iPad-optimized app, providing Copart buyers with a convenient tool to view vehicles, join live online auctions and place bids. In 2015, the company launched the Android version, expanding its reach to an even broader digital audience.
Since then, the app continues to be a product of innovation and refinement. In addition to updating its mobile app, this year Copart launched an updated, mobile-responsive version of its website, Copart.com. The enhanced website is 10 times faster than the previous version.
“Through buyer surveys, website feedback forms and app store reviews, we can pinpoint our buyers' needs and update our app and website to stay ahead of the game,” said Michelle Hoffman, Copart’s vice president of marketing.
To learn more, go to at Copart.com/mobile.
America’s Auto Auction is growing again with its second major acquisition announcement so far this year. The company added two more auction locations: West Michigan Auto Auction in Wayland, Mich., and Interstate 94 Vehicle Auction in Parma, Mich.
Both facilities were sold to America’s Auto Auction by Carl Miskotten, who will stay on as general manager of the two facilities, according to a news release sent to Auto Remarketing late on Wednesday.
Ben Lange, president and chief executive officer of America's Auto Auction, indicated the official date of the acquisition was April 1. The company emphasized this move solidifies its position as the third-largest and fastest-growing auto auction company in the U.S., now with 21 locations.
Back in January, America’s Auto Auction acquired seven auctions from the Auction Broadcasting Co. Owned by management and private equity firm Trinity Hunt Partners, America’s Auto Auction has rapidly grown into one of the industry’s leaders since its launch in 2006 with four auction facilities.
“We are very pleased to expand our regional base into the upper Midwest with the addition of the West Michigan and I-94 Auto Auctions,” Lange said. “But even more important to us than the auction facilities, are the two tremendous groups of auction employees who will be joining the America’s Auto Auction team.
“Led by industry veteran Carl Miskotten, the staff members at both locations are all experienced, dedicated auction professionals who not only operate two award winning auction facilities, but have also nurtured strong, unwavering relationships with their customer,” Lange continued.
Lange went on to express his high regard for Miskotten, a veteran of the auction industry who is known for his pioneering efforts in developing 14 green field sites since his first foray into the business in 1984 when he and Chuck Frauhiger founded Fort Wayne Vehicle Auction.
Miskotten worked for Anglo American Auctions (later ADT Auctions) in charge of specialty auctions and helped expand the location map for ADESA before it became a publicly held company, adding locations in New Jersey, North Carolina, Florida, Massachusetts, and Montreal in the early 1990s.
After buying West Michigan Auto Auction in 1997 with Trent Knox, Miskotten joined forces with Mike Hockett to start Auction Broadcasting Co., working with him to develop six auction facilities and implement ground-breaking technology, including the Online Ringman Simulcast technology.
“I have been very blessed since the beginning of my auction career, and I am excited about the future with America’s Auto Auction, both for myself and for the great people I work with at the West Michigan and I-94 auctions,” Miskotten said.
“Being part of America’s Auto Auction will be a phenomenal benefit to all of us, allowing us to draw on the company’s influence and resources while maintaining the personality and distinction that we’ve worked so hard to develop at both locations,” he went on to say.
Miskotten has operated the I-94 Vehicle Auction since 2007. Serving the market area of Lansing, Jackson, Kalamazoo and Grand Rapids, the I-94 Vehicle Auction holds a sale on four lanes every Wednesday, running an average of 450 dealer trades and credit union repos each week.
The West Michigan AA has operated under Miskotten’s guidance since 1997. It became an ABC Auction three years later, but was purchased again by Miskotten in 2008. With an average weekly consignment of 1,300 vehicles, West Michigan AA welcomes up to 1,000 dealers to the auction lanes every Friday.
Last year, West Michigan AA was singled out as the NAAA Auction of the Year, an honor that Miskotten attributes to the extraordinary efforts and dedication of the auction’s employees.
“We are building a great company in a great industry and are excited to include Western Michigan Auto Auction and I-94 Vehicle Auction,” Lange said.
“Success in our business is all about the team, our employees, our people,” he added. “As our team grows, we pledge to demonstrate the best service and support to all those who work so hard at the auction level, knowing that they will in turn provide the best service to our auction customers.”
Additional information on all of the America’s Auto Auction facilities can be found at www.americasautoauction.com. Lange can be reached at (214) 736-7901 or [email protected].
KAR Auction Services announced on Wednesday that it has brought on Thomas Fisher to oversee the company’s information technology strategy, operations and activities as executive vice president and chief information officer.
Fisher was most recently senior vice president of cloud operations and general manager of Genesys, a global leader in customer experience platform solutions.
Working across KAR’s end-to-end remarketing platform, in his new role Fisher will design and implement an enterprise strategy that aims to optimize KAR’s various technology assets in order to promptly deliver the company’s data-driven customer insights and product solutions, the company said.
“For nearly two decades, Tom has been at the forefront of designing and implementing technology solutions that improve the customer experience,” Jim Hallett, chairman and chief executive officer of KAR, said in a news release. “His proven track record of success across multiple international industries makes him uniquely qualified to lead the next stage of KAR’s digital transformation. Tom’s addition to our organization and leadership team is a huge win for our company and our customers.”
Fisher, a digital and cloud computing pioneer, according to KAR, has two decades of customer-focused technology strategy, operations, sales and product development experience.
“KAR’s commitment to leading technology innovation in the wholesale used-vehicle marketplace is recognized well beyond their industry,” Fisher said. “They’ve invested strategically and built an impressive portfolio of assets and capabilities. I am eager to advance the next phase of this progressive agenda, and accelerate the delivery of first-of-their-kind solutions and insights to KAR’s customers around the globe.”
Prior to joining Genesys, Fisher served as chief services officer and led an international team of more than 1,000 employees for Interactive Intelligence, an Indianapolis-based software and cloud developer that has been recently acquired by Genesys.
At Interactive Intelligence, Fisher also previously served as vice president of global sales operations and engineering and systems engineering director.
He began his career at as an IT analyst with Andersen Consulting and an applications consultant for Cisco Systems; he graduated from Ohio University with degrees in biology and communications systems management.
As executive vice president and chief information officer, Fisher is a member of KAR’s senior leadership team, and he will report to Hallett.
