Manheim highlighted on Monday that dealers seeking tools to help them leverage the “mountain” of available data in the buy/sell process are reporting increased efficiency and improved in-lane sales with Manheim’s Seller Dashboard.
The company noted its clients are rapidly adopting the online tool — released this spring — that can deliver real-time sales statistics and historical data that help sellers make educated decisions before and during a sale, remotely and on the block.
To date, more than 2,000 clients have registered to use Seller Dashboard. This tool is growing in popularity with clients, as more than 680 run lists have been printed and some 12,046 floor prices have been updated across all Manheim locations.
“Manheim’s digital offerings are focused on helping our dealers, sellers and buyers, develop more economical operations expand their buying radius, increase vehicle access and mitigate risk,” said Derek Hansen, vice president of Manheim’s Digital Inventory Solutions. “Seller Dashboard is a key tool to help drive seller success.”
James Bingham with Hendrick Automotive mentioned, “We are now making better decisions based on real-time information.”
And Luben Mitevski of VW Credit estimated that the digital service saves him 30 to 40 percent of his time.
“It’s exactly what we need to maintain our momentum during a sale, and keep a few steps ahead of everyone else,” Mitevski said.
Offered at no additional cost to Manheim clients, Seller Dashboard can allow dealers to:
• Access a comprehensive snapshot of all their registered vehicles across Manheim channels
• Acquire current vehicle information such as national and regional MMR, floor, age days and times run
• Get key stats including gross and percentage sales, total run, sold, IF sales, no sales and floor variance
• Obtain an auction run list and block summary
• View and update floor pricing
• Generate, print and export customized reports that can be shared with others
“The accurate and timely information available from Seller Dashboard equips our clients with a clear picture of how their current sale inventory is performing,” Hansen said. “This value-added offering enables sellers to be smarter negotiators and decision makers, regardless if they are on site or across the country.”
To access Seller Dashboard, clients log in at manheim.com, click on the “Sell” dropdown menu and select Seller Dashboard. The application is optimized for desktop and laptop computers, tablets and smartphones, giving dealers anytime, anywhere access to vital information.
Once connected, Manheim clients can identify their account and choose a view of the block or the pre-sale run list. The block view can present live sales performance stats and details about the vehicle currently on the block. The run list view can produce a block summary to support pre-sale work and post-sale review.
Tom Stewart and Richard Curtis keep adding to the client roster of their new business development consulting firm, Auction Management Solutions (AMS). The newest partner to come aboard is Southeastern Auto Auction in Savannah, Ga.
“Our auction is in its 20th year of operation,” Southeastern Auto Auction vice president of operations Bill McCready said. “Recently, we have experienced significant growth and to continue this growth and get to the next level, it was an obvious decision to retain the services of AMS.
“Our national remarketing manager, Katie Rushing, will work closely with Tom and Richard to achieve this,” McCready continued.
Southeastern AA offers more than 1,000 units every week. The auction was started in 1987 by Wayne DeLoach, Tommy Childs and Danny Williams.
Southeastern AA marks the seventh auction to join AMS’ client list, along with 166 Auto Auction in Springfield, Mo., Dealers Auto Auction of Chattanooga, Dealers Auto Auction of Memphis, Dealers Auto Auction of Murfreesboro, Dealers Auto Auction of Mobile and Dealers Auto Auction of Huntsville.
“The focus of AMS is to provide business development services, with an emphasis on national account business that will aid in the growth and success of client/partner businesses,” Stewart said.
“It is our intent to keep our clients on the forefront of the automotive industry by maintaining a comprehensive and competitive alternative,” he went on to say.
Auction values for used 1- to 3-year-old vehicles declined 3.6 percent, or about $671, in the second quarter, according to analysts at Kelley Blue Book.
The average used-car value at the end of the second quarter finished just 1.5 percent, or $272, lower than it did at this time last year.
Year to date, the average auction value for 1- to 3-year-old used cars has declined by 4.9 percent, or about $900, compared to a decrease of 1.8 percent, or $327, in 2015.
Playing into the decline is the fact that auction volume is at an all-time high (despite a quarterly decrease). “Vehicle values decrease when the market is oversaturated,” KBB analyst Sean Foyil said in a news release for the latest Blue Book Market Report, “so this indicates that automakers and rental companies may not be sending all of their off-lease vehicles to auction in an effort to keep values stable.”
While vehicles values saw an unusual decline in the first quarter, analysts note that the second-quarter decline was less drastic than they had anticipated.
Historically, the first quarter sees an uptick in vehicle values due to seasonal trends, the report indicated. Rather than contributing to a steeper decline in the second quarter, vehicle values compare similarly to the declines in previous years (3.6-percent dip in Q2 2015 and 2.5-percent drop in Q2 2014).
Looking at individual segments, sports cars are the vehicles to have increased in value — by 1.5 percent — year to date. The top performers in the segment include the Nissan 370Z (up 3.5 percent), the Ford Mustang (up 3.3 percent), the Dodge Challenger (up 3.2 percent), the Mazda MX-5 Miata (up 2.9 percent) and the Subaru BRZ (up 1.4 percent).
Among 2015 model-year vehicles, midsize pickups continue to outperform all segments, with an average value retention rate of 87 percent. Leading the segment are the Toyota Tacoma at 97 percent retention and the Chevrolet Colorado at 82 percent.
SUV and crossover segments (with the exception of subcompact SUVs and crossovers) are outperforming the segment average retention rate of 68 percent for 1-year-old vehicles. By segment, the top-performing SUVs/crossovers are:
— Compact SUV/crossover: Jeep Wrangler, 96.9 percent
— Midsize SUV/crossover: Toyota Highlander, 83.5 percent
— Full-size SUV/crossover: Chevrolet Suburban, 77.5 percent
— Subcompact SUV/crossover: MINI Countryman, 70.8 percent
From a year-over-year perspective, only four segments have increased their retained value: full-size SUV/crossover (up 7 percent), minivan (up 1 percent), full-size car (up 2 percent) and electric vehicle (up 2 percent) segments.
On a brand basis, Subaru is tops for retained value in 1-year-old vehicles (78 percent) among luxury brands, while Porsche is tops among luxury brands at 86 percent. At the other end of the spectrum in the non-luxury category are FIAT (48 percent) and, in luxury, Volvo (58 percent).
Looking at brands from a year-over-year perspective, all but one saw decreases in their retained value; MINI, in the non-luxury category, saw no change.
Two ServNet members — Bel Air Auto Auction and DAA Seattle — each highlighted new developments happening at their operations this summer.
BSC America president R. Charles Nichols announced that industry veteran Tommy Rogers has joined Bel Air Auto Auction as general manager of its Clayton Station Auction Center. As part of the BSC America management team, Rogers will also perform regional oversight for Tallahassee Auto Auction, working closely with Tallahassee’s general manager Doug Rodriguez.
Clayton Station is located in Edgewood, Md., near Bel Air, and sells run-and-drive/scratch-and-dent rental vehicles, repossessions and donations each Thursday morning. The Clayton Station Auction Center is also home to BSC America’s specialty division, which includes power sports, boats and RVs and monthly truck and equipment auctions.
“BSC America’s Clayton Station has expanded over the past three years, and we know that Tommy will be instrumental in continuing to build our position and influence the weekly Thursday auctions and the specialty sales markets,” Nichols said. “He will lead their operations and sales to the next level of technology and service, and we are proud to welcome him to our family of auctions.”
Rogers explained why he took this new position.
“It goes without saying that I am thrilled to be a part of the BSC America family. I have followed their progress for almost 20 years and have seen the growth and innovation that has contributed to their continual success,” Rogers said.
“I cut my teeth in the auction business with one of the leading independent auto auctions in the Southeast, Carolina Auto Auction,” he continued. “I am thankful for the opportunity to join with the Nichols family as they incorporate the newest ideas and most up-to-date features with their new 175-acre facility expansion to the new site.
“It is an exciting time to be a part of BSC America, and I believe the best is yet to come,” Rogers went on to say.
Clayton Station’s auction arena features double blocks and accommodates theater-like seating for customers as they bid on vehicles and specialty assets. Located at 1300 Business Center Way in Edgewood, Clayton Station is just a few miles away from the main auction campus and includes more than 15 acres for storage.
“Clayton Station produces our power sports and truck and equipment sales, as well as the damaged, rental wrecks and inoperative auction sale operations,” BSC America vice president Michelle Nichols-Neff said.
“The depth of experience that a recognized industry leader like Tommy Rogers will bring to our organization is invaluable, and we welcome Tommy to the BSC team,” Nichols-Neff added.
BSC America, headquartered in Bel Air, Md., operates several full-service companies including Bel Air Auto Auction in Maryland and Tallahassee Auto Auction in Florida, both of which are members of the ServNet auction group and the National Auto Auction Association.
DAA Seattle growth fuels expansion
Management recently highlighted DAA Seattle's growing national account lineup now includes American Honda Finance Corp. (AHFC), Ally Auto Remarketing and GSA.
The auction's inaugural GSA Public Auction took place on June 24, while AHFC made its debut in the lanes and online on July 15.
Ally’s initial sale will be held Aug. 5.
The three national accounts join ARI, Enterprise Holdings, PAR North America, Element, ROA and others as DAA Seattle's featured national accounts.
“We’re excited to provide this expanded offering to the Puget Sound marketplace,” DAA Seattle general manager Dave Blake said. “Our auction is now in its fourth year. Our team is solid, and we are rolling.”
Blake mentioned the increase in volume has warranted an expansion of DAA Seattle's lot.
The auction broke ground on eight additional acres adjoining its current facility, which will increase its paved and secured consignment parking capacity to include 1,300 more units. The project will be completed in September.
Together with DAA Northwest and KCI Kansas City, DAA Seattle is a member of the McConkey Auction Group. All three locations are ServNet auctions, powered by Auction Edge.
A record 9.7 million vehicles will likely be sold at auction this year, with 10 million sales expected next year, according to National Auto Auction Association chief economist Ira Silver.
The previous record (9.6 million) was set in 2004.
“What’s the major driver there is the commercial consignment,” Silver said during a webinar Thursday. “Because dealer consignment growth is slowing down, because new-vehicle sales are slowing down.”
However, commercial consignment growth is still moving higher, he said, because it tends to follow new-vehicle sales trends from prior years — which, in this case, were stronger.
Dealer consignment, meanwhile, more immediately reflects the new-car sales environment.
And current new-car sales are “topping out,” though not “collapsing,” he said.
“Past strength in light-vehicle sales support continued growth in total auction volume. And that’s commercial consignment,” Silver said. “So, for the next couple of years, we’re going to have volume growth out there. That’s pretty much no matter what happens to new auto sales.”
Dealer consignment may decline, he said, but it won’t be enough to counteract the impact from volume-heavy commercial consignment.
“Those cars are out there,” he said, referring to commercial consignment. “They’ve got to come back sooner or later — and they will. And there’s enough of them out there to offset the small decline in dealer consignment that I expect.”
As for current numbers, auction volume this year is outpacing 2015 by 11 percent and is at a record high, according to Kelley Blue Book. But there was a bit of a sequential slowdown in the second quarter, the company said in a news release accompanying its latest Blue Book Market Report.
“Despite what we know about the increase in lease returns for the foreseeable future, it’s interesting to note that Kelley Blue Book Field Analysts are seeing a decrease in auction inventory from last quarter,” KBB analyst Sean Foyil said in the news release.
“While year-over-year auction volume is up 11 percent, in the second quarter, we saw a 2-percent decrease in the number of vehicles running through auction lanes from the first quarter of 2016. With auction volume at an all-time high for 2016, it is unusual that the overall average decline in auction values matched last year’s pace,” he said. “Vehicle values decrease when the market is oversaturated, so this indicates that automakers and rental companies may not be sending all of their off-lease vehicles to auction in an effort to keep values stable.”
Alliance Inspection Management (AiM), a national independent third-party inspection company, has hired Scott Reedus as the national sales director for major dealer group accounts.
Reedus will lead and oversee AiM’s sales growth and retention within major dealer groups, focusing on developing and fostering relationships with current and potential clients to maintain and grow revenue in their respective sales channels.
He will report to Eric Widmer, senior vice president of sales and marketing.
“Scott is well-respected with auto dealerships across this country and a great addition to the AiM team,” Widmer said in a news release. “He will provide expertise and support for AiM products and services, including MarketConnect — which helps dealers move wholesale inventory faster through multiple online marketplaces.
Reedus has more than a decade of experience with major dealer groups while working for brands including ADESA, Manheim and Autotrader. AiM highlighted that he is adept at identifying customer needs and creating solutions and processes that support them, as well as recognizing and capitalizing on market opportunities to drive revenue growth.
AuctionACCESS continued to expand its floor plan platform by successfully integrating with Manheim, according to an announcement distributed this week.
Officials highlighted this integration will enable participating finance companies to centralize and automate the transmission of credit availability to Manheim locations through AuctionACCESS.
In addition, Manheim auctions can electronically transmit floor plan loan originations to participating lenders.
“We are thrilled to partner with Manheim on our floor plan platform,” AuctionACCESS vice president of business development Charlie Adams said. “This integration makes it easier for both dealers and wholesale lenders to transact business at Manheim locations.”
AuctionACCESS works with wholesale finance companies throughout the United States to centralize and automate the transmission of data necessary to floor inventory at physical and online auctions.
AuctionACCESS continues to grow the number of finance companies and auction locations that are integrated with this platform and is committed to creating a standard process for all its subscribing auctions to securely and efficiently communicate floor plan transactions.
“Manheim continues to implement innovative ways to improve the customer experience at our locations,” said Doug Keim, senior vice president of client experience at Manheim. “The AuctionACCESS platform will create a more efficient lending and purchasing process for our dealer and finance partners.”
As part of its commitment to support local community efforts, Manheim Pennsylvania Auto Auction this weekend will once again host Be Responsible and Keep Everyone Safe (B.R.A.K.E.S.), a safe driving course geared toward teens.
Auction management highlighted that two four-hour sessions featuring hands-on defensive driving education for nearly 160 teens throughout Lancaster County will be offered from 8 a.m. to noon and from 1 to 5 p.m. Saturday and Sunday.
“We’ve been proud to support this meaningful event for the past four years, and each year the turnout exceeds our expectations,” said Joey Hughes, vice president and general manager of Manheim Pennsylvania.
“As a leader in the auto industry, we want to do our part to contribute to practices that promote education, awareness and safe driving,” Hughes continued.
The intensive driving school is open to young drivers age 15 to 19 who possess a valid learner’s permit or driver’s license and have at least 30 hours of driving experience. Parents are also included in this program, which teaches enhanced levels of concentration and vehicle control under the tutelage of highly skilled professional instructors.
Training consists of a half-hour classroom lecture followed by five hands-on exercises, including accident avoidance, off-road recovery, distracted driving, panic stop and skid control.
“B.R.A.K.E.S. is dedicated to helping teens make safer decisions while on the road and preparing them for the hazardous conditions they will inevitably face,” said Doug Herbert, founder of B.R.A.K.E.S.
“Working with partners like Manheim, we look forward to bringing the training back to Lancaster County as well as to new cities in an effort to reduce teen driving accidents nationwide,” Herbert went on to say.
Manheim Pennsylvania AA management added that the program is free; however, since space is limited, a $99 refundable deposit is required to reserve a spot.
For more information about B.R.A.K.E.S. or to register a teen for the course, visit www.putonthebrakes.org.
The event at Manheim Pennsylvania AA is the latest safety initiative orchestrated by the wholesale industry. Auto Remarketing highlighted the latest developments in a two-part series that included this feature story as well as this follow-up report.
In addition to opening a new Retail Solutions Center in the Detroit area, Manheim has bulked up staffing on its inventory solutions team with two new vice presidents.
Derek Hansen was named vice president of Digital Inventory Solutions — earning a promotion from an interim post to which he was named in January — while Angela Babin was named to the newly created position of vice president of Retail Solutions.
Hansen will head up Manheim’s digital operations and reports to Grace Huang, senior vice president of inventory solutions; Babin will be “responsible for executing a strategy designed to maximize market return and deliver optimal client service,” the company said in a news release. She reports to Shane O’Dell, Manheim’s senior vice president of Vehicle Solutions.
Before joining the Manheim team, Hansen was Cox Automotive’s senior director of strategy. Babin held leadership roles with Pep Boys, Central Parking System, Enterprise Rent-a-Car, Affirmative Insurance and zag.com before joining Manheim.
In other news from this side of Manheim’s operations, the company opened its latest Retail Solutions facility. The center — which will be overseen by Manheim Detroit — is located in a 50,000-square-foot renovated facility in Flat Rock, Mich. (The rest of the renovated property will continue to be used as marshaling yard).
“By bringing together other Cox Automotive brands, Manheim’s Retail Solutions is in a unique position to deliver end-to-end services that clients value,” Huang said in a news release. “It’s a natural extension of our wholesale auction activities, and dealers have told us that the service choices help with their inventory readiness and logistics needs.”
Manheim Detroit general manager Mandy Savage added: “This new operation exemplifies Manheim’s commitment to be a strong business partner and area employer. It feels amazing to be part of something that will create business opportunities and jobs, positively contributing to the comeback of this region.”
This follows the most recent addition of a Retail Solutions facility in Darlington, S.C., which Auto Remarketing visited in May.
Additional locations are slated to open at Manheim Orlando, Manheim St. Louis and Manheim Houston by the end of 2016.
Insurance Auto Auctions Inc., a business unit of KAR Auction Services with more than 170 locations throughout North America, announced the expansion and improvement of three of its facilities in Texas.
An expansion at IAA Corpus Christi brought the facility to about 12 acres. This location, which became officially operational as of May 1, was chosen for expansion based on space demands and to assist in potential future catastrophe (CAT) situations.
In keeping with IAA’s environmental philosophy, reclaimed asphalt was used in the development of the new acreage.
IAA Houston, the company’s largest branch, recently completed a building extension to accommodate an additional fourth lane for the popular live IAA Run & Drive segment of the auction. With more than 1,200 units sold per week at the Houston location, expanding the Run & Drive capabilities and hiring another auctioneer should further accommodate the high volume in one of IAA’s largest growth markets.
As of July 1, IAA McAllen opened a new live Run & Drive lane to increase the pace of vehicle sales at the facility and increase capacity for IAA’s growing buyer base.
“Our advancements in Texas serve to successfully provide customers with the additional storage area and capabilities needed to meet demand, while also providing greater inventory of vehicles to choose from,” John Kett, president and chief executive officer of Insurance Auto Auctions Inc., said in a news release.
“These improvements illustrate our commitment to anticipating market needs and strategically expanding our locations accordingly to ultimately enhance our buyers’ and sellers’ auction experience.”
IAA Corpus Christi is located at 4701 Agnes St. in Corpus Christi, with auctions on Wednesdays.
IAA Houston is located at 2535 W. Mt. Houston Road in Houston, with auctions on Wednesdays.
IAA McAllen is located at 900 North Hutto Road in Donna, with auctions on Tuesdays.
Auctions at all three locations begin at 9 a.m. Central Time.
