What Black Book representatives heard dealers say in the lanes going into the Fourth of July holiday reinforced the latest data editors uncovered.
The midsummer holiday version of the Black Book Market Insights report showed how smaller and midsize car segments are continuing to lead with some of the largest depreciation rates seen in a while. Editors indicated subcompacts, in particular, have demonstrated significant depreciation over the last four weeks, sliding by 2.87 percent.
“Fuel prices moved down slightly, and truck and SUV demand remains high. Nonetheless, weekly depreciation rates are weighed down by ample wholesale volume and seasonality,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.
Meanwhile in Pennsylvania, Black Book’s lane personnel spoke to dealers and relayed, “My sources tell me that SUVs and trucks are where it’s at. Says no one cares about the price of gas at the moment.”
Volume-weighted, Black Book determined overall truck values decreased 0.37 percent last week — the same movements as the prior week. Editors also pointed out that’s two consecutive weekly high depreciation rates in the last three months.
Black Book added that compact luxury crossover/SUV, compact van and midsize luxury crossover/SUV segments received the high weekly depreciation rates at 0.79 percent, 0.70 percent and 0.67 percent, respectively.
On the car side looking at the volume-weighted information, Black Book noticed overall car values decreased 0.54 percent last week. That’s the highest overall weekly deprecation rate since the first week of 2016.
Editors mentioned the compact and midsize car segments received the highest weekly depreciation rates at 0.83 percent and 0.81 percent, respectively.
As previously noted, Black Book determined that in the last month the sub-compact segment led depreciation rates at an accumulative adjustment of 2.87 percent, followed closely by compact cars at 2.83 percent and midsize cars at 2.39 percent.
Along with lane chatter in Pennsylvania, dealers in Michigan were also looking for vehicles that drink more fuel as the Black Book field personnel reported, “There is a lot of interest for trucks and SUVs below the $10,000 range at this location.”
Not far away in Minnesota, Black Book noticed, “Strong internet activity today, especially on low-mileage, clean-condition units.”
Moving South, representatives in Texas recapped that, “This is a strong import market here with very few no-sales today.”
And out West, Black Book found in Nevada that “the buyers were a bit more aggressive this week compared to last,” while in Arizona, it was a “good sale today with prices overall dropping just slightly.”
Specialty markets update
As they do on a monthly basis, Black Book editors shared their latest assessments of the specialty markets in conjunction with the Fourth of July.
—Collectibles: The collectible vehicle market continues to be “very healthy,” according to Black Book, “with several recent auctions enjoying record attendance and strong results.
—Powersports: Editors indicated prices are up again this month, most likely reaching their peak levels for the year for the street bike segments. “Similar to trends we have seen over the past year and a half, they are up by smaller amounts than their historical averages.”
—Recreational vehicles: Black Book determined the wholesale market was mixed last month, with motorized units adding to their impressive run and approaching an all-time high, while towables took a break and declined a bit, although they are still as high as they have been in the past several years.
—Heavy-duty trucks: At auction, editors mentioned late model, heavy duty, over the road and regional tractors made a better showing in June to an almost mirror image of April. “With several buyer levels bidding, this rally, so to speak, was probably a factor of replacing old equipment to help weather the heat of summer plus some really nice late models showing up at auction,” they said.
—Medium-duty trucks: This past month, Black Book said it saw a smaller rate of decline in the medium duty truck wholesale market. This past month, the 4- to 11-year-old models came down on average $203 or 1.1 percent.
Since 1988, I have enjoyed working with the operating side of auction software systems.
I recall the time when Bob Bruno, then a key factor in Manheim’s tech team, worked with me at what was then Manheim Phoenix to integrate the first handheld check-in device in the industry.
Let’s all keep in mind, folks, that in that period, auctions ran everything manually, including paper invoices on each block — yes, I am that old.
Since that period, we have made substantial progress in adapting technology to the auction process with computers handling the office and accounting aspects of our industry, but we never took a greater leap forward operationally than when Simulcast was made effective with the growth of the Net and related broadband width.
But with all our software and hardware solutions, independent auto auctions had limited access to true operational software that would allow them to create a mobile solution that increased productivity and communications exponentially.
That, however, has finally changed.
Pushing me into the next generation was my general manager Stephanie Gingras, a Women in Remarketing honoree and an IARA Certified Remarketer.
Together, 18 months ago, we took the leap to convert to a very flexible and leading-edge system.
Can I say that the transition was seamless? Hell no. Was the beta testing worth it? Absolutely.
What can I do now that I couldn’t before, you might ask?
— Those old handheld check-in devices and cameras for imaging are gone, replaced by iPads that allow my staff to check in, image and CR units and seamlessly upload to AutoIMS and my website.
— Every lane leader has a tablet, and changes to those lanes and communications to that staff no longer require phone calls, physically walking out to the lot or carrying paper run lists — most of which were antiquated right after they were printed.
— Every one of our key lot staff has an email address and a company mobile device. Customers can literally bypass our phone system to contact them about any unit or request additional photos.
— Communication with the operating staff is instantaneous and broad-based with limited, if any, two-way radio communication.
— Lane leaders can immediately see changes to lane numbers, cancellations and announcements from DAASW.com as they make their inspections. Sales and marketing review is also seamless in that regard.
— We have apps that reflect all of a dealer’s information and our run lists and automatically assign a bidder number as you enter the building. No one wants to wait in line anymore to get a paper bidder badge or print one from a kiosk and then stick it on themselves somewhere. Just show your bidder badge on your mobile device to the ring man when you buy something.
— Our simulcast product functions beautifully on mobile devices as well as PCs.
But the key for independent auctions is what is coming this year; it’s not enough to just scan the VIN as a unit leaves the lot, how about imaging the driver’s ID, as well, for added security?
It’s not enough to have reduced the size of invoices and stored them on the cloud; how about texting and/or emailing them to our customers on a virtual block?
Welcome to no more filing of invoices. Welcome to less paper. Welcome to increased communications and less hardware costs. Welcome to hardware that is interchangeable in all areas and upgradable along with the software.
For years we have been stuck in an IT no man’s land, so it was a thrill to work in a new flexible, if challenging, system that has now expanded our operating side abilities to match our accounting and data side.
We can only thank Integrated Auction Solutions and its great management team of former NAAA president Alexis Jacobs, Greg Levi and Peter Levy along with Mark at AWG and Kelly at Auction VCommerce for integrating high-tech mobile solutions to operating issues that independent auction owners could cost effectively utilize.
As always, just one man’s opinion.
Editor’s Note: Jim DesRochers is vice president at Dealers Auto Auction of the Southwest. As with any contributed content, the opinions expressed in this and other editorial columns are solely that of the author’s and do not necessarily reflect those of Auto Remarketing or its parent company.
ADESA Indianapolis recently hosted two charity events that together raised more than $34,000 for the Juvenile Diabetes Research Foundation, an advocacy group for people with Type 1 diabetes.
“This is a cause that is close to my heart,” said ADESA Indianapolis general manager Dave Emerson, a past corporate chairman of the local Indianapolis Walk to Cure Diabetes, which benefits JDRF. “I’m overwhelmed each year at the generosity of our customers, and I thank them for their continued support.”
One of the charity events was the seventh annual car show, which attracted 71 cars and motorcycles from the local community and beyond. It also featured a silent auction of all donated items. New to this year’s event was a petting zoo, face painting and the addition of Salsa Verde restaurant. The event brought in more than $18,000.
The second event was a wine tasting, attended by 150 people and raising more than $16,000. More than 15 Indiana wineries donated wine for the wine pull, and Mallow Run Winery of Bargersville, Ind., provided the wine tasting. Indiana artist Nicholai Shaver created a one-of-a-kind painting of the tasting as it was happening, which was then auctioned off during the live auction. The painting sold for $3,200 and will be on display at the ADESA Indianapolis auction.
“My team unites every year to host the car show and make it an entertaining and festive event,” Emerson said. “They really outdid themselves this year by adding the petting zoo and the wine tasting. Our customers thoroughly enjoyed both events.”
Tom Stewart of Stewart Enterprises and Richard Curtis of RW Curtis Consulting announced they have combined their companies to create one new service organization.
The new organization is called Auction Management Solutions (AMS), a firm the pair says is designed to provide comprehensive consulting services to the automotive industry that include independent auto auctions, service providers and vendors.
“In this newly created company, AMS will utilize our many years of expertise and relationships to benefit our business partners,” Stewart said. “Bridging the relationship between consignors and our clients to show that independent auctions can provide all the services consignors have come to expect.”
Stewart, who has more than 20 years of industry experience, started his automotive career working for Anglo American Auto Auctions. He later went on to become the director of remarketing for KeyBank out of Cleveland. He spent the past 15 years working on various consulting projects as a partner with TPC Management Co., and held the position of executive vice president of sales for the ServNet Auction Group.
Curtis has more than 40 years of industry experience, including 18 years as general manager of auto auctions located in Washington, Louisiana and Texas, and six years as general manager of franchised dealerships. Curtis spent the last 16 years consulting as a partner with TPC Management Co.
For more information about Auction Management Solutions, contact Stewart at [email protected] or Curtis at [email protected].
Copart has announced an expansion of its Orlando auction location.
“We are excited to expand our existing Orlando location in order to accommodate our growth,” chief executive officer Jay Adair said in a news release.
Online auctions for Copart Orlando happen at 10 a.m. Thursdays. The Copart Orlando team invites the community to come by, meet the team and preview the inventory in person at 307 East Landstreet Road.
The global online vehicle auction company’s inventory is not limited to vehicles and includes a wide array of boats, RVs, ATVs, motorcycles and more.
With 12 locations throughout Florida, Copart is a proud partner to local communities in the Sunshine State. Copart offers local law enforcement, fire departments and other first responders a safe training environment. The Jacksonville Police Department conducts a bimonthly accident investigation training and life-saving drills for new police officers at Copart. The Miami South Copart location also regularly hosts events with the Bureau of Alcohol, Tobacco and Firearms and Explosives (ATF), as well as with U.S. Marshals who train their K-9s on finding explosives.
Manheim has appointed two new general managers. Emily Decker will serve as GM of Manheim Indianapolis, while David Aguilar will have that role with Manheim El Paso.
Decker, a 20-year veteran of Manheim, started as a dealer registration administrator and took on various roles with increasing responsibility at Manheim’s Tampa, St. Petersburg and Lakeland Locations. She most recently was assistant GM at Manheim Statesville.
Decker is engaged in company leadership programs including Manheim’s Guiding Coalition, the Cox mentor program, Women with Drive and the prestigious Cox Leader’s Edge program.
“Emily is a powerful addition to our GM ranks,” Tim Janego, regional vice president, east, said in a news release. “Our clients and the Indianapolis team will benefit from her deep knowledge, insight and commitment.”
Aguilar joined Manheim in 2013 as a human resources manager and quickly transitioned to reconditioning manager for the Manheim San Antonio and Dallas locations. His strong background in operations, acquired while serving in the U.S. Marine Corps for eight years and working in operations for the city of Austin, Texas, for 12 years, laid the foundation for his roles with Manheim.
“David’s quick rise at Manheim is a testament to his strategic focus and ability to help dealers move inventory in a market filled with discriminating buyers,” said Barry Roop, regional vice president, west. “His no-nonsense approach and collaborative style makes him ideal for this position.”
Officials highlighted on Wednesday that CDK Used Lot Intelligence now will offer live auction capability for dealers as part of a new relationship with TradeRev, a mobile vehicle appraisal and auctioning system for dealers.
The companies explained the new integration can enable dealers to efficiently and effectively receive instant, live bids at the point of vehicle appraisal.
Additionally, dealers can have the ability to auction aged inventory from wherever they are from the palm of their hands.
“Dealers want the ability to have a seamless integration to a virtual auction platform during the appraisal,” said Scott Johnston, director of operations at CDK Global.
“The integration through CDK Used Lot Intelligence gives dealers the flexibility to launch auctions quickly, and start receiving bids within minutes,” Johnston continued. It also provides the dealers with the ability to quickly and profitably move a trade-in or lease return through to auction."
By bringing together two discrete workflows into an efficient process, CDK Used Lot Intelligence and TradeRev can provide buyers with easy access to bids through a custom bidding network established by the dealer or via the open network even before the retail deal is done. All post-sale auction services are provided through TradeRev’s partnership with ADESA, a business unit of KAR Auction Services.
“Since we launched in 2011, TradeRev has been changing the way dealers do business, and we are continuously innovating and looking for new and unique ways to improve our solution and better serve our customers," said Mark Endras, chief executive officer and founder of TradeRev.
“Integrating with CDK Used Lot Intelligence allows us to provide our customers with an even more powerful solution, and we look forward to unlocking new opportunities with this integration,” Endras went on to say.
CDK Global insisted it is the only DMS provider to offer this integration through its Used Lot Intelligence solution.
To learn more about the integration, visit go to www.cdkglobal.com/used-lot-intelligence.
On the same day but some 2,800 miles east of the 68th CarMax Auction’s grand opening in the San Francisco Bay Area, dozens of dealers gather under and around a garage-like structure on Tuesday morning.
Much like the soggy weather here in the capital of North Carolina, the exterior of this building is gray.
But the mood inside this one-lane auction arena couldn’t be more different.
The only thing moving faster than a vehicle’s stay inside the arena is the chant of the auctioneer, who squeezes in a “good to see you” or an occasional quip — like the sports car he cheekily explains is a “Corvette, not a Chevette.”
Auto Remarketing is here to check out sale day at the CarMax Auction in Raleigh, getting a guided tour from auction services manager Jay Bostain.
This facility is one of 68 CarMax Auction locations in the country (the latest being the Pleasanton, Calif. location that opened Tuesday), with four more on tap for fiscal 2017.
It is located on a gravel lot, just a stone’s throw from CarMax’s retail location on one of Raleigh’s busiest and most well-known thoroughfares. The Raleigh auction location, which can hold up to 225 vehicles, is one of three CarMax Auctions located off-site; the rest are held at the retail stores.
The vehicles here are trade-ins from retail customers; the dealers are mostly independent and mostly local to this neck of the woods.
Some may venture an hour-and-a-half to two hours away across the South Carolina or Virginia borders, Bostain said.
There’s another building on the lot, which takes care of administrative needs for the dealers, who pop by to check in before the sale and come back to settle up on their purchases. Or as Bostain called it, a “one-stop shop for customer service.”
It has a boutique feel to it. Dealers are called by their first names; the Dunkin Donuts and coffee are as plentiful as the cars.
But what’s just as noticeable is the speed.
Auctions, by nature, move quickly — be it the speed of the auctioneer’s chant or the cars moving through the lanes. But this seems fast even for an auction.
All 154 vehicles up for sale on Tuesday (151 of which went through the lane; three were no-runners) are sold in a matter of 82 minutes, by Auto Remarketing’s count.
That’s about 32 seconds per car.
And they might not even stay in the lane for half of that. We clocked the entry-to-exit times of many cars at 15 seconds or less. (Bidding doesn’t necessarily start when the car enters the lane, nor does it end when the car exits. Or as CarMax explains to dealers, “You’re bidding on taillights,” Bostain said.)
The 100-percent sale rate isn’t some wild anomaly. In fact, CarMax Auctions hit a 97 percent average auction sales rate in fiscal-year 2016.
“That’s all, guys and girls,” the auctioneer says as the 154th and final car is sold, winding the sale down at 10:24 a.m. (ET), less than an hour-and-a-half after it began.
Dealers head to the customer service building to pay for their cars and get the keys. There will be CarMax staff sticking around for the rest of the day and the next.
Dealers will have until end of business Wednesday to bring the car back should any problem pop up during the test drive after the sale, with arbitration being held at the same arena.
And some will head a couple of hours north to Richmond, Va., just in time to catch CarMax’s auction sale at 2 p.m.
Or maybe it's back to the dealership for another day's work.
On to the next one.
See more photos from Tuesday's visit to the Raleigh CarMax Auction location in Auto Remarketing's Facebook gallery.
The XLerate Group has purchased the EPI-El Paso auction from the McConkey Auction Group. With the addition of EPI, XLerate now has Texas auctions in Austin, Dallas and El Paso, plus its locations in California, Florida, South Carolina, Michigan and Wisconsin.
“EPI is the latest step in XLerate’s plan to grow our business, footprint, and its service offering by acquiring quality independent sales. Formerly part of the McConkey (Auction) Group, EPI is highly respected and will be a nice complement to XLerate’s Dallas and Austin-area auctions,” XLerate’s chief executive officer Cam Hitchcock said in a statement.
“This acquisition broadens XLerate’s presence in the robust Texas market and augments our capabilities to service fleet/lease and financial institution customers. We are honored that Luke Pidgeon and his staff will join XLerate’s operating management team,” Hitchcock said. “I expect that the XLerate Group will benefit from EPI’s and Luke’s experience in providing best-in-class service execution to both area dealers and marquis national consignors.”
Pidgeon, who is GM at EPI, said: “Joining the XLerate Group is exciting for me, and for the EPI auction family. A geographically diverse group of sales like XLerate will provide a wide range of growth opportunities for our employees.
“I also want to thank Bob McConkey and Greg Mahugh for their support and the opportunity they have provided all of us here in El Paso. In a relatively short time, EPI has been built into a leading West Texas sale. We intend to continue to build on this legacy of trust and success as part of the XLerate Group.”
Former National Auto Auction Association president Gregg Kobel passed away Thursday at age 67, NAAA said in a condolences message Monday.
Kobel was the 2007-2008 NAAA president and also served as president and director of the Midwest Auto Auction Association, NAAA said.
NAAA also recognized Kobel with its annual Industry Pioneer Award at last year's convention in Orlando, Fla.
Visitation is Tuesday from 3 p.m. (CT) to 9 p.m. at the Richard J. Modell Funeral Home in Homer Glen, Ill. Funeral services are at the same location at 9:45 a.m. on Wednesday, with a 10:30 a.m. Mass at St. Bernard church in Homer Glen.
In lieu of flowers, donations to the Alzheimer’s Association are encouraged at www.alz.org.
Kobel joined the auction business in 1969 when Auction Way Auto Auction opened in Crestwood, Ill., eventually becoming general manager and vice president for that auction and Greater Chicago Auto Auction. Both were subsequently purchased by General Electric (1987) and then Manheim (1991); Kobel would remain GM throughout, the association said in its statement.
In 1996, Kobel and Tom Crane bought an auction in Crestwood and renamed it Tri-State Auto Auction.
Kobel eventually moved over to South Bend Mishawaka Auto Auction, where he was GM and vice president. He was named executive VP of that auction in 2011.
