Auctions Archives | Page 96 of 133 | Auto Remarketing

April average wholesale price stays near $11K

ADESA chief economist Tom Kontos dipped into his vast vocabulary to arrive at an adjective to describe what the company’s latest data indicated about the wholesale market. Kontos came up with a word that might be in your child’s next spelling bee — bifurcated.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in April averaged $10,881 — up 0.8 percent compared to March and up 1.7 percent relative to April of last year.

Kontos said the wholesale market remains “bifurcated,” meaning split or forked, as he pointed out that car prices were lower on both a month-over-month and year-over-year basis while truck prices were higher.

“The traditional spring tax-season market appeared to wane in April, as average wholesale prices rose only modestly on both a sequential and annual basis,” he continued in his latest Kontos Kommentary. “As in previous months, drilling down into the data reveals softness due to supply growth that is not as evident in the top-line numbers.

“On a positive note, retail used vehicle sales rebounded from the March Easter holiday impact, continuing their healthy pattern of absorbing the growing supply without dramatic deterioration in prices,” Kontos added.

ADESA determined that average wholesale prices for used vehicles remarketed by manufacturers softened by 2.8 percent month-over-month and 5.4 percent year-over-year.

Analysts also noticed prices for fleet/lease consignors dipped 0.9 percent sequentially and 3.1 percent annually.

Kontos noted that only dealer consignors saw increases in average prices, registering a 2.7-percent increase versus March and a 2.2-percent uptick relative to April of last year.

Kontos closed by mentioning data from the National Automotive Dealers Association showed a 6.7-percent year-over-year increase in retail used vehicle sales by franchised dealers and a 3.4 percent increase for independent stores in April, and both were up significantly up month over month as sales rebounded from the Easter holiday impact in March.

He added that April certified pre-owned sales were down 4.6 percent month-over-month but were up 8.3 percent year-over-year, according to figures from Autodata Corp.

Kontos shared more assessment of the wholesale market in the video available at the top of this page.

Source: ADESA Analytical Services. March revised.

Auction volume dips in April, while ’14s continue to outsell ’15s

The number of vehicles up to 8 years old sold at auction fell by 5 percent to 360,700 over the four-week period ending April 25 compared to the four weeks prior, according to NADA Used Car Guide's monthly used-car update.

While sales of 2016 units increased by 46 percent to 12,500, sales for other model years fell over that same period. Of note, however, was a large increase in 2015 model-year sales during the last week of April, which jumped by 24 percent compared to the previous three-week average, bringing the total to nearly 21,000 vehicles.

As had been previously noted, sales volume of 2015 model-year vehicles, most of which are off-rental units, has been running at a deficit relative to 2014 volume last year. Interestingly, however, registration data shows that more 2015 units were sold into rental fleets over a similar period than 2014 units.

“On a cumulative basis, we’ve still seen more 2014 vehicles go through auction than 2015 vehicles,” said Larry Dixon, senior manager for market intelligence at NADA Used Car Guide. 

This increase in sales of 2015 models recorded over the last week of April could indicate that rental companies are finally set to exceed last year’s 1-year-old sales by remarketing larger numbers of 2015 units of the coming weeks.

How will this affect pricing?

“Without a commensurate rise in demand, a concentrated rise in higher auction volume would lead to softer prices … not just for the 2015 model year, but for other model years as well to varying degrees,” Dixon said, noting that there should be a logical relationship between pricing across model years.

Dixon pointed out that while 2015 model-year auction sales were up in the last week of April, they leveled off in the first week of May. (Week 2 data is not yet available.)

Sales at auction of late-model vehicles (up to 3 years old) climbed to 887,700 units through the end of April, a 10-percent increase over last year.

Sales of large pickups were up the most over a four-month period (41 percent), followed by subcompact cars and compact utilities, for which sales were 30 percent higher.

Midsize van, large car and luxury car sales fell by 22 percent to 29 percent.

Sales volume share was dominated by midsize cars (19 percent), compact cars (16 percent) and compact utilities (12 percent). Combined, those segments accounted for 47 percent of late-model auction sales year to date.

3 rare units on tap for Barrett-Jackson’s first Northeast Auction

Barrett-Jackson is heading to Connecticut’s Mohegan Sun casino next month for its inaugural Northeast Auction, an event that will feature a broad range of vintage, customs, supercars and late-model vehicles.

“We’re set to make our debut Northeast Auction at Mohegan Sun one of the most exciting automotive experiences on the East Coast this year,” said Craig Jackson, chairman and chief executive officer of Barrett-Jackson.

“Clientele and enthusiasts from the Northeast and Canada have asked us to host an event in this region, and we found Mohegan Sun to be the perfect venue,” Jackson continued. “From a robust docket of vehicles to new exhibitors and exciting activities, the Barrett-Jackson experience at Mohegan Sun will be one you won’t want to miss.”

Among the highly anticipated bidder favorites is an exceptional one-of-one custom 1967 Ford Mustang known as “Obsidian.” What Barrett-Jackson called “a true head-turner,” every inch of this car has been customized with more than $1.3 million invested in the car’s research, development and build.

This unique pony car features a fuel-injected 392ci V8 with twin Rotex superchargers that produce 847 horsepower and 750 ft/lbs of torque. Additional features include a pair of air-to-air intercoolers integrated into the hood and a Tremec TKO 600 5-speed. With a 0-60 time of just four seconds, this masterpiece has everything a true performance enthusiast could want.

Also crossing the block at Mohegan Sun will be a rare, matching-numbers 1970 Plymouth HEMI Superbird. One of only 77 HEMI automatics, this 426ci Superbird puts out 425 horsepower with two four-barrel carburetors, and features power steering and power disc brakes. The vehicle is highly documented with the original Broadcast Sheet and original owner’s manual as well as a 20-page in-person visual inspection by Galen Govier verifying that it has the original drivetrain components.

An original, matching-numbers 1968 Shelby GT500 KR Convertible will be another highly anticipated vehicle to cross the block at Mohegan Sun. This Highland Green 4-speed convertible includes the original, matching-numbers motor and transmission, as well as the original sheet metal and fiberglass. A Deluxe Marti Report and an original dealer invoice verify this Shelby’s originality and are included in the sale.

Highlighting the European marques on the Mohegan Sun auction docket is a concours-ready 1966 Porsche 911 finished in Irish Green and upholstered in tan leather with plaid seat inserts. Like all 1966 Porsche 911s, a 2.0-liter Flat 6 powers this vehicle. As the 911 production began just one year earlier in 1965, the company said this vehicle is among the earliest examples of the iconic model. Also included is a Porsche Certificate of Authenticity.

The inaugural Northeast Auction at Mohegan Sun will be conducted on June 23-25 and will be broadcast live on Velocity and Discovery Channel.

“Over the years Barrett-Jackson has become a household name among automotive enthusiasts and collector car fans alike,” Barrett-Jackson president Steve Davis said. “We’re creating an event for our fans in the Northeast that will allow them to fully experience the Barrett-Jackson lifestyle. I’m confident our Mohegan Sun auction will deliver on their expectations.”

For more information on becoming a bidder, go to www.Barrett-Jackson.com/bidder/home.

Donlen names top auction award winners

Donlen, a provider of financing and management solutions for the fleet industry, announced the 2015 recipients of its Top Auction awards.

“The partnership we form with auction partners is a vital component of our remarketing program and its success,” said Dan Powers, director of vehicle remarketing for Donlen. “By consistently meeting, and in many cases exceeding our performance goals, this year’s auction partners have demonstrated their commitment to our customers and to Donlen’s world-class remarketing program.”

The winners are:

Auction of the Year – Carolina Auto Auction

Central/Northeast Region – Manheim Milwaukee

South/Southeast Region – Orlando Longwood Auto Auction

West Region – ADESA Portland

Best Days to Condition Report – ADESA Kansas City

Best Retention Dollars – ADESA Cincinnati

Best Days to Sell – Orlando Longwood Auto Auction

Best Expense Control – ABC Bowling Green

Several of the recipients are repeat winners. Carolina Auto Auction has won Auction of the Year the past four years; Manheim Milwaukee has won the Central/Northeast Region for the past three years; Orlando Longwood Auto Auction has won the South/Southeast Region for the last three years; and ADESA Portland is a three-time West Region winner.

Donlen is a wholly owned subsidiary of The Hertz Corp.

ADESA elevates Dudash to VP of dealer services

ADESA continued its recent string of personnel moves on Thursday by promoting Steve Dudash to be vice president of dealer services.

In this role, the business unit of KAR Auction Services explained Dudash will lead ADESA’s more than 300 dealer sales professionals across the country to ensure best practices and standardized processes are implemented nationwide to deliver a premium customer experience. This dedicated team focuses on serving dealers’ wholesale auction needs and providing business support, analytics and training.

“It is critical that we have the right leadership in place to lead our dealer services division, and Steve’s experience and impressive track record are a perfect fit,” said Stéphane St-Hilaire, chief executive officer and president of ADESA. “For nearly 20 years, he has worked on both the buying and selling sides of the spectrum in the wholesale remarketing industry and understands the unique needs of our dealer customers.”

Dudash has been with ADESA since 2002, where he has held a number of management roles for ADESA and OPENLANE, including dealer sales professional, director of dealer services, director of dealer sales and director of strategic accounts.

Prior to joining ADESA, Dudash worked for Neron Broadcasting and Flow Automotive Companies. He has a bachelor’s degree from Florida State University.

NAAA Foundation awards $52,000 in scholarships

The NAAA’s Warren Young Sr. Scholastic Foundation has awarded $52,000 in scholarship money to 12 students.

The National Auto Auction Association established the nonprofit foundation in 2004 and named it in honor of industry pioneer Warren Young Sr.

Winners are selected on the basis of academic success, leadership skills, honors, goals, work experience and community involvement. Awards range from $3,000 toward tuition at a two-year college or vocation-technical school or $5,000 at a four-year college or university.

Applicants must be full-time employees of NAAA-member auctions or corporate offices, their children or grandchildren, and plan to enroll or be enrolled in full-time undergraduate study at an accredited institution for the entire upcoming academic year.

Mike Browning, general manager of Manheim San Antonio and current NAAA president, said he was proud to be a part of an organization that highly values the education of young people.

“The foundation has grown to more than $2.5 million and is now permanently self-sustaining. It’s a testament to the giving nature of our association members, and the emphasis we place on helping others,” he said.

He noted that the Scholastic Foundation has helped 144 students in its 12 years.

“We’re certain many of these individuals have gone on to complete their higher education and have become productive members of our society,” Browning added. “Many of the recipients were and have remained full-time employees at our member auctions, helping us to improve our industry for the future.”

Scholarship recipients are:
Anne W. Dabroski, State Line Auto Auction Inc. (student sponsor), Ruth Hart-Stephen Memorial (scholarship award)
Douglas Dabroski, State Line Auto Auction Inc., Carolina Auto Auction
Jake Dennie, ADESA Inc., Black Book
Molly Dennie, ADESA Inc., Midwest Chapter
Carissa Doemland, ADESA Inc., XLerate Group
Nina Emmick, KCI Kansas City, Western Chapter
Alyson Lindsay, Greensboro Auto Auction Inc., Black Book
Nicholaus Nazarenkov, Manheim Auctions, Manheim
Michael Parisi, Auto Auction of New England, Auction Broadcasting Company
Lauren  Simoneau, KCI Kansas City, Western Chapter
Logan Swofford, America’s Auto Auction-Austin/San Antonio, Auction Insurance Agency.

Charleston auction, dealers open hearts, wallets for homeless high-schoolers

Charleston Auto Auction has teamed up with dealers to help provide homeless high school students with a place to live.

So far, more than $6,000 has been raised for the H.O.M.E. Project at Stall High School, which is seeking to purchase a house to be used as a shelter.

“I have heard some stories that would just break people’s hearts … you know, kids sleeping on benches at the mall,” said Kim Wilson, principal. “Kids asking, ‘Can you find me a place to stay? I don’t have any place to go.’”

Currently, 21 students at the North Charleston school are homeless.

After hearing about a similar school program in Missouri, Wilson formed a committee to explore the purchase of a house near her school. It will be for upperclassmen and will be run by surrogate parents.

“The initial response has been outstanding,” said Laura Taylor, general manager of Charleston Auto Auction. “In addition to cash donations, dealers have agreed $5 to $100 per vehicle” bought or sold.

To donate to the Stall High School H.O.M.E. / Charleston Auto Auction event, call (843) 719-1900 or mail donations to Charleston Auto Auction, Attention: Stall High School H.O.M.E. Project, 651 Precast Lane, Moncks Corner, S.C. 29461.

What current industry leaders could learn from past alliances

The auction industry has a strong history of cooperation that has led to visionary and long-term successes.

AutoCheck, simulcast, AutoIMS and AuctionNet being typical examples, along with the NAAA, our long-term and solid association.

Past leaders looked at the broader picture that would create strength across the entire industry, which would then provide a solid competitive landscape upon which all auctions could build on and enhance the value of the industry on a national scale.

As I watch today's leadership, I see a completely different dynamic: an industry that uses price versus service as a marketing tool, directs data from positive industry enhancements to arbitrage, and attempts to sell the “one-size-fits-all-remarketing-needs” model.

I suggest that today’s leaders look beyond their individual companies and begin to work on industry-centric enhancements that could strengthen the industry for decades.

I suggest some of the following might be a good start.

Political action committee work with a goal of changing the issues in used-vehicle exports across our Mexican border. Currently we have new vehicles being built in Mexico and empty rail cars crossing the border and coming back full, but the flow of used into Mexico has been chocked off with restrictive fees and limited years as Mexico protects its new-car industry.

We need to create a southern market again that assists us in increasing the returns of our consignors by reopening the Mexican market. If we do not, we are not offering full service to our consigning partners.

We need to look at the conundrum we have created by diverting our revenue streams from a balanced equation to a system that, driven by low-price market share tactics, has loaded the cost factors to the buyer side, driven through rebates and other items such as free transportation.

We need to create a system that values our marketing side, which over the past decade has decreased on every level, even against inflation.

We need to value and enhance vehicle history data streams and use them effectively to provide a totally transparent sales transaction, along with recall and other data that will fairly evaluate the vehicle’s condition and thus create market pricing that reflects the true and complete condition of the car.

Industry leadership needs to take a consolidated and proactive approach to creating CFPB guidelines, using the NAAA as the focal point, and not let the agency dictate through our consigning partners, who are making a variety of different requests to the industry based on how they perceive the agency’s requirements. More importantly, IARA needs to take a stance beyond dictating auction requirements in its white papers going forward.

Leadership requires both inward and outward focus, and key industry leaders are indeed doing an incredible job driving their companies to new highs into vertical and horizontally integrated dynamics. Creating the external dynamics in which both their companies and others can strive is another issue all together. Everyone might consider going back to the great days of an industry conference where all general managers, industry executives and their significant others attended, created cross-company friendships and strengthened an industry beyond its territorial borders.

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.

Manheim promotes 3 to general manager positions

Manheim has promoted three people with a combined 55 years of experience with the company to general manager positions.

Kevin Cook (Manheim North Carolina), Jesse Nelson (Manheim New York) and Bonnie Williams (Manheim South Houston) assumed their roles on May 2.

“These new general managers know the ins and outs of the dealer business, after serving in progressive Manheim positions for at least a decade,” Mark Ford, regional vice president for the Southeast, said in a news release. “As industry leaders, they are prepared to bring fresh, creative solutions to their clients.”

Cook joined Manheim in 2000 as a controller at Manheim Nashville. He later worked in several roles including assistant general manager and market reconditioning manager. As assistant general manager, Cook was responsible for about 300 team members for all customer-facing departments, including dealer sales and services, marketing/promotions, front office, arbitration and commercial accounts management. He was lauded for consistently growing transactions and increasing dealer revenues.
 
Nelson began his career with Manheim Tucson as the arbitration manager in 2003. After that he joined the sales team of OVE — Manheim’s 24/7 Bid or Buy Now wholesale vehicle marketplace — where he found his niche working with clients to take their wholesale strategy online. This led to additional roles of increasing responsibility within the organization throughout the West, including a stint as Manheim Tucson’s GM from 2012 to 2014. Most recently, he was the regional sales director for Manheim, where he worked to grow transactions and increase dealer revenues in the Southwest and Texas regions.

Williams joined the company in 1990 as a bookkeeper for Manheim Metro Dallas. She progressed to the role of general manager in 1999 and led the location until its consolidation in 2011. As GM, she delivered year-over-year revenue growth while improving customer service. Most recently, Williams served as senior director of transportation logistics for Ready Logistics, supporting the South territory as the business line integrated with Manheim.

“The general manager role at Manheim is critical to building relationships with dealers and identifying strategies that increase their speed to market and profitability,” said Matt Trapp, RVP, Northeast. “With the addition of Kevin, Jesse and Bonnie, we’ve rounded out our powerful team and are ready to take market operations to the next level.”
 

Copart opens its 2nd Colorado location

Copart, an online vehicle auction company with more than 150 locations throughout the U.S., has opened a site in Colorado Springs.

The 20-acre venue, the company’s second in Colorado, will hold its first auction Wednesday featuring 430 vehicles.

"We are excited to announce the opening of our second location in Colorado to help us accommodate our rapidly growing inventory across the country," chief executive officer Jay Adair said in a news release. "Opening this location, along with the recent addition of two Texas locations totaling 100 acres, allows us to continue carrying out our mission of creating value and opportunity through vehicle auctions and exchange.”

"The Colorado Springs community has been so welcoming to us. We have already had members in the area visiting to check out vehicles prior to the auction," said Jason Leue, general manager of Copart Colorado Springs.

The new location will hold auctions every Wednesday at noon.

Founded in 1982, Copart provides vehicle sellers with a range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. The company operates in numerous countries through its multi-channel online platform.