ServNet has expanded in California with the addition of All Valley Dealers Auto Auction, which is located in the North Hollywood neighborhood of Los Angeles.
The Soghomonian family owns and operates AVDAA, which was built in 1986 by Victor Soghomonian, who continues to run the auction with his sons.
Justin Soghomonian is vice president and Brandon Soghomonian is online director and controller.
AVDAA holds sales on Tuesday afternoons and Friday mornings and averages 800 vehicles consigned per week. Its consignors include CPS, Mechanics Bank, Exeter and franchised dealerships in the Los Angeles area.
“ServNet continues to expand its national footprint, and we are happy to announce the addition of All Valley Dealers Auto Auction to our roster of the country’s premier independent auctions,” ServNet president Chad Bailey said in a news release.
“AVDAA commands an impressive sector of the market in the Southwest distinguished by a superior location in the heart of Los Angeles,” Bailey said. “We admire the Soghomonian family for their dedication to the business and devotion to their customers, and pleased to include them in the ServNet family.”
Justin Soghomonian added: “ServNet auctions are known for the strength of their leadership, the quality of their employees, and the superior services they offer. It is an honor for us to carry the ServNet banner. We look forward to an exciting future for us and our customers as we expand our presence in this market and take our place in ServNet’s national network.”
ServNet recently added Great Lakes Auto Auction, as well.
That auction, formerly Wolfe’s South Bend Auto Auction, was sold to Ryan Clark and Chad Anderson, who operate Greater Rockford Auto Auction.
“I join with all the ServNet owners in welcoming All Valley Dealers Auto Auction and Great Lakes Auto Auction as our newest auction members,” said Bailey. “Both auctions have established reputations for their dedication to their customers, high standards of service and commitment to the industry. The addition of these two strong auctions further strengthens ServNet’s position in the marketplace and brings the benefits of ServNet’s network to more customers in all parts of the country.”
In the wholesale market, prices are climbing from January, and a stronger percentage of vehicles are selling.
In fact, it has been 14 years since February wholesale vehicle prices have shown this large of a sequential gain.
But prices continue to come down from …
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The new year is always an exciting time to reflect on the past and look ahead with optimism to a fresh start full of opportunities.
For the automotive industry, 2022 was another turbulent year. In the wholesale space, it included tight used vehicle supplies and unprecedented declines in used vehicle values. In fact, the Manheim Used Vehicle Value Index ended the year down 14.9%, the largest one-year decline in the series’ history.
The good news is that while the last three years have been challenging, all indicators point to it reaching equilibrium in the second half of 2023.
Notably, we are also seeing digital-only retailers purchasing auction facilities, a move that reinforces the importance of physical auto auctions despite the acceleration of digital transactions. As evidence, a large majority of our dealers continue to prefer digital channels to conduct business with 75% of vehicle purchases being made by digital buyers. Having both a digital and a physical presence is going to be vital for delivering the type of experiences dealers will require in the future.
The growing digital adoption was accompanied by other marketplace changes last year, such as the convergence of wholesale and retail, the demand for more accurate vehicle information, the need for integrated data to make better decisions, and the importance of having highly efficient transportation logistics. Here are three key areas I believe offer the greatest opportunity for the wholesale industry to prepare for what lies ahead.
1. Vehicle Information
As digital buying accelerates, dealers are requiring more vehicle information than ever before. This includes enhanced online images that allow them to zoom in on key details such as dents and scratches to make more informed purchase decisions. We are also seeing a rise in dealers using alternative channels to source vehicles beyond physical auctions.
And yet, as these types of digital transactions continue to climb, they will never truly replace the physical in-lane experience. That is why Manheim is focusing on solutions to deliver a digital buying experience that is as good as seeing it in person, including technology that leverages artificial intelligence (AI) and machine learning capabilities.
For instance, AI-driven fixed imaging tunnels can take high-res images of a vehicles while it’s in motion. Not only does it capture still images from the video, but it also understands the vehicle in three dimensions to assess its condition using AI. In addition, undercarriage imaging technology can give dealers a more comprehensive view of the vehicle to increase their confidence and trust when buying online.
Our industry also needs to prepare for a growing EV market with Cox Automotive data projecting new EV sales in 2023 will exceed 1 million units. Facility and process improvements are a must for sharing battery health information and charging performance data with buyers. And with the battery pack representing up to 40% of the cost of an EV today, having battery diagnostic technology and expertise is critical to properly servicing EVs and accurately assessing their value.
2. Actionable Data for Decision Making
We all know the business adage: Data rules! And, while more information is always better, I believe it is also important to give buyers actionable data and solutions to help them make more informed decisions across their wholesale and retail operations.
What does this look like? It means helping dealers source inventory more effectively, enabling the ability to search across nearly every wholesale marketplace all in one place. And by equipping them with critical insights, they can efficiently determine each vehicle’s value in their local market. In a variable market, dealers need solutions driven by data science that allow them to maximize the profit potential of each individual vehicle.
3. Transportation and Logistics
Transportation and logistics have become increasingly important in the wholesale marketplace as dealers continue to embrace digital buying, with more vehicles being sold offsite from physical auctions. This move significantly impacts the historic supply chain that was set up to bring cars in and out of auctions in bulk.
Creating a seamless supply chain management system can improve overall delivery time (SLAs), enrich business intelligence and analytics, drive cost effectiveness and minimize the impact of external forces, such as fuel and inflation. This approach will also help dealers prepare for the future of online selling, where consumer deliveries will become more commonplace. All of these supply chain capabilities will give dealers a competitive advantage by simplifying their worlds and allowing them to focus on selling vehicles.
As our industry continues to evolve, solutions like these create opportunities to give buyers what they need, when they need it, to be successful in their businesses.
Grace Huang is president of the Inventory Solutions business unit at Cox Automotive. Last month, she joined Cox Automotive chief economist Jonathan Smoke on his Q4 Manheim Used Vehicle Value Index Call to discuss what lies ahead for the wholesale automotive market in 2023 and how Manheim and Inventory Solutions are preparing for that future.
Dealers Auto Auction Group said Monday it has promoted Stacy Brown to serve as the group’s vice president of digital sales.
In this role, Brown will lead a team to drive growth in the DAAG digital platform across the U.S.
Brown has been in the industry for more than 24 years and returned to her hometown auction of DAA Jackson in 2020.
DAAG currently has 10 auctions throughout the Southeast, including such markets as Atlanta; Chattanooga, Tenn.; Columbia, S.C.; Johnson City, Tenn.; Memphis; Jackson, Miss.; Mobile, Ala.; Huntsville, Ala.; Little Rock, Ark.; and Murfreesboro, Tenn.
In a news release, DAAG CEO David Andrews said, “Since Stacy has been part of the DAA team she has proven her abilities over and over. With Stacy in this new role, sharing her talents, leadership, experience and approach to building a digital presence will greatly enhance DAA’s presence in the Southeast United States and into new markets, adding additional value to our long standing and new dealer relationships.
“Dealers Auto Auction Group looks forward to replicating Stacy’s success and contributing to the growing digital economy, while supporting and promoting a valued employee,” Andrews said.
America’s Group has added to the management team of its America’s Auto Auction Charleston and America’s Auto Auction Savannah locations, announcing that Bo Baxter has returned to be the marketing and sales manager for the two auctions.
Baxter was the marketing and sales manager for what was then Charleston Auto Auction between 2003 and 2008, before starting his own print and marketing company.
In the new role, Baxter will head up a call center and marketing department supporting both Charleston and Savannah, while also leading outside sales for both auctions.
“It is great to have Bo back on our team. He has a passion for customer service that fits in perfectly with America’s AA’s values,” Bill McCready, who is general manager of both locations, said in a news release.
“Bo is an important part to standardizing services and leveraging the synergizes of both auctions. These improvements will give our dealers more options, make the auctions more efficient and increase the level of customer service.”
National Auto Auction Association CEO Tricia Heon has resigned, the trade group said Thursday, and Paul Lips will serve as interim executive director.
Heon had been with NAAA a dozen years and previously was its chief operating officer.
“With the deepest of gratitude for her many years of commitment and contributions, the Board of the National Auto Auction Association (NAAA) has accepted the resignation of Tricia Heon,” NAAA’s executive committee said in a statement.
“Tricia’s contributions through her 12 years of service are countless, but notable achievements include establishing the NAAA PAC, increasing Board involvement, leading workforce and educational initiatives, and a relentless pursuit of member advocacy, engagement, and support,” the committee said. “In short, Tricia made the NAAA better.”
Heon was named CEO of NAAA in July 2021, replacing Frank Hackett, who retired from that role after 17 years in the position.
Heon was the first woman CEO in NAAA’s 73-year history.
She had been with NAAA since 2011, when she joined as legislative director and operations manager, and became COO in 2019.
Lips was NAAA president in 2013 and spent 25 years with ADESA and KAR Global.
“As an NAAA Past President, an experienced auction executive, and a tireless contributor to the NAAA through his 25 years at ADESA and KAR Global, Paul is the absolute best choice to lead the NAAA and its dedicated team through this transition period,” the executive committee said.
“We thank Tricia for her service and look forward to Paul’s leadership. See you in Dallas for Total Access 2023!”
Though digital technology puts buying and selling of vehicles at dealers fingertips virtually anytime and anywhere, the demise of physical auctions and its hands-on approach is greatly exaggerated.
That’s according to Jason McClenahan, a trained auctioneer and chief executive officer of E Inc., the Canadian retail tech firm that operates the EBlock digital wholesale marketplace. E Inc. gives its customers the option of doing business online or in-person at physical auctions or a combination of those venues.
“I’m a big believer there’s always going to be physical auctions, but in the future …
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Next week, the National Auto Auction Association will to celebrate the annual Auto Auction Week, which is designed to raise awareness of the wholesale auto industry and importance and to pay thanks to team members and customers.
“NAAA is proud of the resilience and hard work of our members and customers that have kept the wholesale auto auction industry thriving,” 2021 NAAA president Charles Nichols said in a news release.
“We hope everyone has a great Auto Auction Week, and we thank everyone for their dedication and service to our industry,” he said
NAAA is encouraging auctions to visit this link to download celebration materials to use on social media and at their respective locations.
“During our member auction visits throughout the year, I have seen firsthand from our members the energy, commitment, and willingness to adapt that have positioned the auction industry for sustained success well into the future,” NAAA chief executive officer Tricia Heon said in the release.
“We look forward to Auto Auction Week as a chance to spotlight the success of our members, customers, and industry partners,” she said.
Heon, Nichols and incoming NAAA Garrison Hudkins recently joined the Auto Remarketing Podcast to talk about the upcoming National Auto Auction Week and the annual NAAA Convention.
They share a sneak peek at the convention's agenda, including a look at the show's country concert and a session on "Politics in America."
To listen to the conversation, click on the link available below, or visit the Auto Remarketing Podcast page.
Download and subscribe to the Auto Remarketing Podcast on iTunes or on Google Play.
The ServNet auction group has a new executive director.
Officially taking on that post is Chris Angelicchio, whose background in the industry goes back 20 years and whose family has been in the auto auction business for generations.
Angelicchio’s auction career dates back to 2002, when he joined his family’s Pittsburgh Independent Auto Auction in dealer sales. He eventually became general manager of that auction and assisted at his family’s Winchester Auto Auction.
ADESA purchased the Pittsburgh auction in 2015, and he managed that location for six years.
“The auction business more than just my profession: it’s an integral part of my life,” said Angelicchio. “I watched my grandparents, parents, aunts and uncles pour their hearts into their family owned auctions and those lessons of hard work and devotion have stayed with me.
“Growing up in an independent auction family provided the foundation for a strong work ethic, the belief that there are no tasks beneath anyone, a passion for customer service and a love for the auction industry,” he said.
John Brasher was executive director of the group from January 2020 through April 2021, before moving on to become chief operating officer of EBlock.
Brasher and Robert Sullivan, who is ServNet’s director of administration, had succeeded Pierre Pons — who had been the group’s chief executive officer for 12 years — as ServNet’s executive leaders.
In a news release, Chad Bailey, who is the group’s president, said: “It is with great pleasure that we welcome Chris Angelicchio as ServNet’s executive director. His many years as an auction owner and operator, coupled with his standing in the industry make him uniquely qualified to lead the ServNet auction group.
“He will play a pivotal role in continuing to build and strengthen ServNet in this rapidly evolving industry,” Bailey said.
Angelicchio added: “My years in the industry have also taught me the vital role that ServNet’s independent auctions play in this business. Because of the drive and vision of ServNet’s auction owners, ServNet has been ahead of its time, developing and embracing technology that has changed the auction landscape.
“But ServNet also remains firmly committed to the customers and the relationships that have been developed over the years. While customers have been reduced to numbers in other areas of the industry, ServNet auctions are committed to the people they work for and work with, making sure that every customer has a white glove experience, whether at the auction or online,” Angelicchio said.
“ServNet will continue to shape the industry, and I look forward to working with the group to determine ServNet’s road map for the future. Using all the resources we have at our disposal, ServNet will continue to lead in the marketplace as we focus on meeting and exceeding our customers’ expectations.”
The slowdown in sales at auto auctions in 2020 was not “completely unexpected,” amid a year that saw the remarketing industry and others like it adjusting to challenges from COVID-19.
But several bright spots had the leadership of the National Auto Auction Association optimistic as the trade group released its 24th annual membership survey on Tuesday.
Here are some of the high-level statistics that NAAA shared from its survey, which was conducted by Robert A. Casey Consulting and included responses from 244 NAAA members (72% response rate).
The projected gross value of units sold at NAAA-member auto auctions last year was $100.1 billion, a 10% drop from the $111.1 billion reached in 2019.
There were just under 13 million units that entered auctions last year, down from about 16.5 million in 2019. The number of units sold fell from 9.82 million to 7.85 million.
The percent sold was up from 59.5% in 2019 to 60.6 % in 2020.
Within that percentage sold figure, NAAA also broke that down by consignor type. Dealer consignment had a 54.2% sales rate, finance and fleet was at 69.1%, manufacturer was at 60.7% and “other” was at 70.0%.
Projected average price per unit was also up, climbing 12.6% from $11,316 to $12,741.
In supplementary data, NAAA said online-only auctions had an average vehicle price of $15,777 last year, with simulcast units commanding a price of $12,921.
“Given the lockdowns, disruptions, and uncertainties of an unprecedented public health crisis, some weaker numbers for 2020 were not completely unexpected,” NAAA chief executive officer Tricia Heon said in a news release.
“I think it’s encouraging that we saw some positives, such as the continued rise in the average vehicle price, and the slip in value of units sold still remained at a level modestly higher than five years ago,” Heon said.
The new NAAA CEO would later applaud member auctions for how they adjusted to the challenges of 2020.
“Our ability to adapt to change through innovation, flexibility, and teamwork has always been the strength of our industry and our organization,” said Heon. “Those qualities displayed by the dedicated auction owners, their hard-working staff, the loyal consigners and buyers, all standing together in tough times helped us meet this challenge, and will keep us moving forward.”
Heon was named CEO of the association earlier this month, replacing Frank Hackett, who retired from the position after 17 years. Heon had been chief operating officer since 2019 after joining NAAA in 2011, and she is the organization’s first female CEO.
NAAA is set to hold its annual convention Sept. 28-30 in Chicago, resuming the live, in-person event.
As such, Auto Remarketing’s September issue will spotlight the NAAA and the auto auction industry at large, including a roundup of High-Performance Auto Auctions and an Auction Life photo spread, along with features about the incoming NAAA president, Heon’s news role as CEO and much more
