Manheim’s mobile auction program now produces a higher sales rate than the company’s other channels, such as in-lane, mobile and online.
The auto auction company says its clients are averaging 70 percent sales rates through mobile auctions.
“Mobile auctions extend the reach and bring the excitement of the live, wholesale auction experience anywhere there is demand,” said Grace Huang, senior vice president of inventory services at Manheim. “With technology and our state-of-the-art mobile fleet, we are truly able to shape local sales experiences tailored to the seller’s needs at anytime and anywhere and the buyers are responding.”
Initially, Manheim’s mobile auction program was incepted to provide independent and small franchise dealers more convenient ways to buy and sell vehicles.
Since its development, the program has proved to also be a convenient and efficient option for larger franchise dealers, as well as commercial consignors.
The program offers dealers added flexibility, more access to vital vehicle inventory and has led to a 20 percent increase year-over-year on dealer volume, according to Manheim.
Mobile auctions are attractive to dealers because of reduced transportation and travel costs, in addition to offerings such as on-site condition reports and imaging, title transfer and management and sale marketing support.
Currently, Manheim oversees more than 60 sales each month at mobile auction sites in 20 states.
“Our team is developing new and creative ways to utilize mobile auctions and gain efficiencies for our dealer and commercial clients,” said Randy Beil, vice president of mobile at Manheim. “Our commercial clients have responded enthusiastically.”
Typically, compact luxury crossovers/SUVs have retained their values well.
In fact, a graph of Black Book data going back to January 2013 shows that 3-year-old vehicles in this segment have maintained retention above 54 percent in recent years, sometimes as high as roughly 63 percent.
That is, until this autumn.
According to Black Book’s latest Market Insights report, retention for 3-year-old compact luxury crossovers/SUVs fell to just over 52 percent in November, down 3 to 4 percentage points from year-ago levels.
And last week, these vehicles showed the heaviest weekly price downturn of any truck segment in Black Book’s data set (volume-weighted, 2008-2014 model years) with a 0.71-percent dip.
Midsize luxury crossovers/SUVs were second with a 0.52-percent decline.
Market-wide price trends
As far as the overall wholesale market (again, market-weighted and model-years 2008-2014), there was improvement in price last week. The dip in car segment values slowed from an average of 0.62 percent in the preceding four weeks to 0.56 percent, according to Black Book.
Likewise, truck segment depreciation slowed from 0.59 percent to 0.31 percent.
“Sales percentages were reported to have improved slightly last week with both car and truck segment values depreciating less than the trends seen in the recent weeks,” Anil Goyal, senior vice president of automotive valuation and analytics at Black Book, said in the report.
This year, the Manheim Central Florida team launched the Digital Block sale, a bidding experience that uses enhanced imaging and digital tools during live auctions.
“A few benefits of the digital block format are faster sales, enhanced imaging, and more importantly a feel of exclusivity,” Butch Herdegen, general manager of Manheim Central Florida, said in emailed comments. “The dedicated sale space and specialized format really differentiate their sale.”
In a Digital Block sale, no vehicles run through the lanes; a live auctioneer calls the vehicles as they show up on a big screen that provides enhanced imaging and a complete condition report. Online buyers can bid as well via Simulcast.
Buyers also have the opportunity to inspect the vehicles on the lot before or during the actual sale.
“The majority of the feedback has been positive. Online buyers enjoy the enhanced, high-quality images. In-lane buyers enjoy the atmosphere and comfortable buying environment,” said Herdegen. “They like being able to sit and buy cars at a high top table while eating a snack and scrolling through the condition report on their tablet.”
Manheim Central Florida has scheduled a Digital Block sale for each month and reports the seven sales its held this year resulted in an overall sales rate of 96 percent.
“We see great potential for the Digital Block sale format,” added Herdegen. “From standard consignor based sales to special inventory sales, Manheim Central Florida plans on making the most of this great new sale opportunity and we expect other locations will soon be offering this format as well.”
Editor's Note: Updated to change "credit report" to "condition report."
Auction Management Solutions closed out the month by announcing that the firm has partnered with All Valley Dealer Auto Auction in North Hollywood, Calif., for business development consulting.
Tom Stewart and Richard Curtis of AMS now have relationships with 13 total auction locations; a collection that also includes:
— 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
“We are very excited to be a part of the AMS group of auctions,” AVDA owner Victor Soghomonian said. “We have made a considerable investment into focusing on national accounts, and feel that Tom and Richard can be a great help in helping us achieve our goals.
“Tom and Richard will work closely with myself and my sons to identify new business opportunities as well as continuing to solidify existing relationships with our current consignors,” Soghomonian continued.
AVDA was started back in 1986 and is celebrating its 30th anniversary this year. AVDA offers two sales weekly across four auction lanes on more than 30 acres of land. The operation offers more than 1,000 units weekly with sales on Tuesday afternoons and Friday mornings.
AVDA is a full-service auction with full reconditioning, including in-house transportation services and an in-house repossession service. It is located in the San Fernando Valley, just outside of North Hollywood, Calif.
“We are very excited to be working with ADVA,” Stewart said. “Victor and his team have built a very strong auction in southern California, and now with less independent auction options for consignors in that part of the country, there is real opportunity for them to become a real powerhouse in that market.
“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.
Dashing Through the Lanes, Manheim’s holiday campaign designed to increase dealer clients’ sales at the end of the year returned on Monday.
Through Dec. 23, dealers nationwide who attend Manheim’s sales in-lane or on Simulcast are registered to win daily prize package giveaways.
“As this campaign has attracted strong in-lane attendance and positive feedback in previous years, we wanted to again show our support while helping our dealer clients get a great start to the new year,” said Manheim senior director of customer marketing Lisa Farrar. “The campaign is a fun way to let them know that despite the hectic holiday season, we are here to ensure they get the inventory they need.”
According to Manheim, during previous years of Dashing Through the Lanes, dealer clients increased their year-over-year purchase volume and on average saw lane attendance grow 12 percent.
This year, the auction company partnered with Toy for Tots to incorporate a new charitable component to the campaign. Throughout the month-long event, all Manheim locations across the country will serve as a Toys for Tots drop-off location.
“The best part about Dashing Through the Lanes is the opportunity to spread goodwill and holiday cheer in the communities in which we serve,” said Farrar.
As the wholesale industry moved closer to Thanksgiving, both prices — especially for sports cars — and bidding in the lanes noticeably softened as recapped in the latest Black Book Market Insights report.
The report noted an increase in depreciation for nearly all segments across the board as the industry gets deeper into the fourth quarter. Although most segments are seeing accelerated declines, Black Book editors mentioned compact vans stood out by holding their value steady from the previous week.
“Steeper declines, typical in the fourth quarter, continue across all segments. Sporty cars experienced the most, driven by seasonality,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.
Volume weighted, Black Book indicated overall car segment values decreased by 0.69 percent last week, higher than the depreciation rate of 0.59 percent seen in the previous four weeks.
As Goyal referenced, sporty car, premium sporty car and compact sar segments declined the most by 1.22 percent, 0.84 percent and 0.79 percent, respectively.
Volume-weighted, editors determined overall truck segment values — including pickups, SUVs and vans — decreased by 0.66 percent last week, higher than the depreciation rate of 0.51 percent seen in the previous four weeks.
Black Book found that the midsize crossover/SUV, minivan and compact crossover segments declined the most by 1.30 percent, 0.99 percent and 0.77 percent, respectively.
Representatives in the lanes noticed dealer bidding dipped a bit just like prices.
Black Book’s lane watcher in Texas reported, “The retail market around this location has become very mixed which has created lower auction sales rates.”
A similar story unfolded in Tennessee where the representative relayed back to editors, noting, “The market has slowed somewhat in this area but full-size trucks still continue to lead demand.”
In Florida, “Sales have become slower here,” Black Book personnel said. “Dealers still searching for lower mileage clean history units.”
Out West, scene in California was, “Tough sale for high-line units today with many no-sales.”
And finally in Washington, “The market is soft here with four-wheel drive units bringing the most attention.”
Cox Automotive brand NextGear Capital presented its fourth annual Auction Partners Awards during the National Remarketing Conference/National Auto Auction Association Convention at the Red Rock Casino and Resort in Las Vegas.
The awards spotlight independently owned auction leaders in the industry and recognize their years of dedicated service to growing and supporting the overall industry and their communities.
NextGear Capital senior vice president of operations Randy Dohse welcomed award winners, their guests and others from throughout the auction industry for an evening reception.
“These auctions serve as examples for others in the industry to follow,” Dohse said. “As partners in their business, NextGear Capital has seen firsthand their commitment not only to superior customer service but their dedication to best practices and community.”
Three auction partners were honored with the Operational Excellence award, which is given to auctions that demonstrate excellent efficiency, top sales retention, overall operational performance and the most effective response to the needs of NextGear Capital.
NextGear Capital also presented a Remarketing Excellence award to the auction that demonstrated the highest percentage of sales recovered based on percentage of valuation of each vehicle and the best sales follow-up (efficient timing on getting proceeds of sales to NextGear Capital).
The 2016 Auction Partner Award winners included:
• Operational Excellence: West Michigan Auto Auction in Wayland, Mich.
• Operational Excellence: San Antonio Auto Auction in San Antonio
• Operational Excellence: Houston’s 1st Choice Auto Auction in Houston
• Remarketing Excellence: Carolina Auto Auction in Williamston, S.C.
Seven auto auctions from across the U.S. received awards during the National Remarketing Conference/National Auto Auction Association Convention from Chase Auto Finance as the consignor announced its 2015-2016 Chase Cup for Auction Excellence winners.
Officials recapped that the 18th annual Chase Cup award recognizes auctions across the country for their exceptional performance in retention, operational efficiency, expense control, accuracy, sales and service delivery. The consignor reviewed the performance of 30 of the nation’s best auctions with which Chase does business. The review examined data measuring how well the auctions handled preparation, sales, invoice processing, transport requests, title processing and other capabilities.
“Each year, the Chase Cup aims to honor high-performing auto auctions across the country that display operational excellence, outstanding customer service, and strong financial performance,” said Sandra Broderick, head of operations for Chase Auto Finance. “These auctions are the best of the best.”
Manheim Phoenix was named the winner of the Best National Auction Performance. Chase highlighted that Manheim Phoenix distinguished itself among other top competitors throughout the evaluation period with a balanced performance showcasing strengths in vehicle reconditioning, number of buyers, condition report accuracy, and monetary results.
Manheim Phoenix was also honored for Best Regional Performance, Western.
ADESA Kansas City was the Douglas F. Wininger Memorial Award for Best National Performance Service Delivery, an award that recognizes outstanding service in measurable areas such as transportation management, sales, invoicing and other operational measures. ADESA Kansas City also earned Best Regional Performance, Central.
Chase also recognized other auctions’ top performance:
• Best National Jaguar Sales: Manheim Atlanta
• Best National Land Rover Sales: Manheim Pennsylvania
• Best National Mazda Sales: Manheim Seattle
• Best National Subaru Sales: Manheim Seattle
• Best Regional Performance, Midwestern: Manheim Minneapolis
• Best Regional Performance, Northeastern: Manheim Pennsylvania
• Best Regional Performance, Southeastern: Manheim Orlando
Copart has announced the expansion of its location in China Grove, N.C., just outside of Charlotte.
“We are pleased to add additional acreage to our China Grove location,” said Jay Adair, chief executive officer of Copart. “Our recent expansions, specifically in response to Hurricane Matthew, are a testament to the commitment and investment we're willing to make to accommodate our buyers and sellers.”
In addition to China Grove, Copart also has North Carolina locations in Raleigh and Mebane.
Copart proudly supports local communities by joining the local Chambers of Commerce. Copart Raleigh recently hosted an Appreciation Day and Open House Event with the Ewin Chamber of Commerce.
Additionally, Copart offers law enforcement, fire departments and similar government agencies a safe training environment. Copart locations are also used by agencies as a controlled environment to train K-9s to track narcotics and explosive devices. Agencies are encouraged to contact their local Copart location to learn more about training opportunities.
In addition to supporting local agencies, Copart supports various local, regional and national charities. To learn more, visit TeamCopart.com.
The National Auto Auction Association held its annual Presidential Gala on Thursday night during the NAAA Convention/National Remarketing Conference at Used Car Week, where more awards were announced.
The association inducted Patty Stanley of Carolina Auto Auction and Indiana Auction into the NAAA Hall of Fame, recognized the Eastern Chapter for its second straight PAC Cup and announced its 2016 Auto Auction of the Year, while also recognizing its regional chapter winners.
Earning honors as 2016 NAAA Auto Auction of the Year was West Michigan Auto Auction.
Regional winners were as follows:
— Eastern Chapter Auto Auction of the Year Award: ADESA Winnipeg
— Midwest Chapter Auto Auction of the Year Award: West Michigan Auto Auction
— Southern Chapter Auto Auction of the Year Award: Louisiana’s 1st Choice Auto Auction
— Western Chapter Auto Auction of the Year Award: Kansas City Independent Auto Auction
Earlier in the week, Warren Young Fellows designations went to James Walker, Rich Levene and Mike Rohdy.
