Manheim says that its introduction on Wednesday of personalized vehicle suggestions within its Manheim Market Report valuation tool means time savings for dealers, who will see “highly relevant and immediately available inventory” on a page that they use daily.
Manheim says that dealers are seeing more of a need to use smart technology in making the best buying and selling decisions during a time of what it describes as “growing margin compression and uncertainty in the market.” The company is introducing the personalized vehicle inventory to help dealers accomplish this.
M LOGIC, a Manheim group of advanced decisioning products that the company launched earlier this year to bring Cox Automotive data to the remarketing industry, drives the suggestions.
Manheim says tens of thousands of dealers use the Manheim Market Report each year as a source of wholesale vehicle values to research which vehicles to buy and how much to pay for them. When dealers seek MMR valuations for a given vehicle, they will see — in a carousel-style format — up to 12 similar vehicles available for sale.
To access detailed information about the vehicle, dealers can click on a specific similar vehicle. Or, they can choose to view additional similar vehicles for sale within the Manheim Marketplace. Manheim says that by using those features, dealers can find and compare relevant vehicles quickly. That allows them to make more informed buying and selling decisions, Manheim said.
Using millions of vehicle transactions, along with vehicle data, MMR values vehicles given their specific mileage, condition, exterior color and region. The digital site displays the base MMR and adjusted MMR values and also includes AutoCheck and Carfax quick links. Manheim said that places important decision-making information at clients’ fingertips, on mobile and desktop channels.
The company says the addition of M LOGIC suggested inventory to MMR “raises the bar in wholesale valuation tools.” According to the company, it gives Manheim’s clients an edge in bringing success to their businesses.
“Personalized vehicle inventory is our latest innovation from the M LOGIC suite of decisioning products and is live today for all MMR users,” M LOGIC associate vice president Ben Flusberg said in a news release.
Flusberg added, “Our MMR digital site receives 75 million valuation requests each year, so we know it’s a tool that dealers regularly use to complete their research. At the same time, a common theme we hear from dealers is that it’s hard to find the right inventory, especially within digital channels.”
He also noted, “By presenting relevant vehicles at the moment dealers are doing their research on MMR, we're bringing the right inventory to them at the right time. It's part of Manheim’s commitment to continually help its clients become more efficient and profitable. And based on the strong digital engagement we've seen so far, we know this new feature is really helping them."
As a wholesale vehicle valuations tool, MMR uses millions of vehicle transactions and vehicle data to value vehicles given their specific mileage, condition, exterior color and region, according to Manheim. The digital site displays the base MMR and adjusted MMR values and also includes AutoCheck and Carfax quick links. That, according to Manheim, places important decision-making information at clients’ fingertips over mobile and desktop channels.
Dealers will experience this new functionality by logging into Manheim Market Report and using their Manheim credentials.
With millions of used vehicles changing hands each year and millions of individuals changing addresses, the task for finding vehicle owners who have a model subject to a recall can be incredibly daunting.
To help, LexisNexis Risk Solutions rolled out a new tool on Tuesday aimed at helping automakers reach vehicle owners to get critical repairs completed at franchised dealerships.
The provider of data, analytics and technology for automakers and insurers launched LexisNexis Recall Clarity, a solution that can assist manufacturers in the owner identification process for safety-related recalls. According to the National Highway Traffic Safety Administration, more than 1,000 recalls were issued in 2018, affecting more than 35 U.S. million motorists.
In the event of a recall, customer outreach teams are tasked with getting vehicles repaired by finding recalled vehicle owners and leading them to the dealership for service. LexisNexis cited two reasons why this process has become increasingly more difficult due to changes in vehicle ownership on secondary markets.
With more than 40 million used cars sold in the U.S. each year — compounded by the fact that more than 45 million people move each year — the technology company said the need for an efficient way of notifying the owner of a recall, “which in some cases can be life-threatening,” is crucial.
By combining propriety linking technology and unique identifier LexID, Recall Clarity can leverage billions of records from over ten thousand data sources to provide valuable data and insights to help recall customer outreach teams identify, locate and contact the right owner of those hard to find recalled vehicles.
LexisNexis added there are an estimated 57 million unrepaired vehicles on American roads today, so the benefit of increased clarity will ultimately serve as a measurable result when examining repair completion rates.
“Identifying a driver with an outstanding recall is no longer a convoluted process where outreach teams have to combat data latency along with data decay among the older vehicles still out on the road,” said David Nemtuda, senior director of connected car at LexisNexis Risk Solutions.
“Consumers who rely on their cars every day also rely on being properly notified in a timely manner if their vehicle has a component currently under recall,” Nemtuda continued.
Nemtuda added that the solution can aid in the reduction of organizational risk of non-compliance, while helping automakers increase efficiencies when analyzing campaign costs. Recall Clarity can meet the specific campaign outreach needs of an automaker by offering options around email addresses, mobile phone numbers and secondary home data.
Leveraging a high level of scalability over 280 million unique identities across all 50 states, Recall Clarity also can enable dealer-based campaigns to support automaker efforts regarding current safety and recall campaigns reinforcing a strong brand message of safety across the board.
“The cascade of benefits that this solution brings will notably come down to those directly impacted by recalls, the consumer,” LexisNexis said.
“By having a more robust contact database that connects OEMs with owners, the improved rate of meaningful contact by outreach centers can lead to increased completion of repairs, safer owners, safer roadways and peace of mind for auto manufacturers, dealers and their customers,” the company went on to say.
For more information including a case study about LexisNexis Recall Clarity, go to this website.
In a few special editions of the show, we’re sharing some of the panel discussions and keynote presentations from the recent Automotive Intelligence Summit in Raleigh, N.C. First up is our dealer panel, featuring four members of the North Carolina Automobile Dealers Association and executive director Robert Glaser.
The full discussion can be found below.
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According to data compiled by the National Automobile Dealers Association, the average amount of total expenses at a franchised store climbed by nearly $400,000 between 2016 and 2018 to above $6.8 million.
During the span, the Federal Reserve raised interest rates eight times.
While “Money and Smoke” might seem like the clever title for the next Hollywood production about the financial world, leaders from KAR Auction Services and Cox Automotive with those names explained how the Fed’s action involving interest rates might help dealers with those costs.
To recap, the Federal Reserve cut the target range for the federal funds rate by 25 basis points to 2% to 2.25%, marking the first downward move by the Federal Open Market Committee (FOMC) in 11 years.
It wasn’t a unanimous decision, but Fed chairman Jerome Powell led the charge of the seven of nine FOMC members voting for the cut. The other two members wanted to leave the metric unchanged as has been the case following the Fed’s previous four opportunities this year to make an adjustment.
“As the year began, both the economy and monetary policy were in a good place,” Powell said during a press conference on Wednesday. “The unemployment rate was below 4%, and inflation had been running near our 2% objective for nine months. Our interest rate target was at the low end of estimates of neutral.
“Over the first half of the year, the economy grew at a healthy pace and job gains pushed unemployment to near a half-century low,” he continued. “Wages have been rising, particularly for lower-paying jobs. People who live and work in low- and middle-income communities tell us that many who have struggled to find work are now getting opportunities to add new and better chapters to their lives. This underscores for us the importance of sustaining the expansion so that the strong job market reaches more of those left behind.
“Through the course of the year, weak global growth, trade policy uncertainty, and muted inflation have prompted the FOMC to adjust its assessment of the appropriate path of interest rates. The committee moved from expecting rate increases this year, to a patient stance about any changes, and then to today’s action,” Powell went on to say.
Policymakers turning aside from a continued path of rising interest rates should please dealers, according to a blog post compiled by Cox Automotive chief economist Jonathan Smoke.
“The biggest immediate beneficiary of lower short-term interest rates in the auto industry will be dealers, as they should see an immediate reduction in the interest expenses they pay for carrying inventory and for capital for infrastructure investments,” Smoke wrote.
“Dealers saw investment expense rise with each Fed increase last year, and they have been contending with a perfect storm of higher costs across every major expense from inventory to interest to labor,” he added.
Although NADA’s data was limited to new-vehicle metrics, the association indicated that franchised dealers watched their floor-plan interest costs per new model retailed jump $61 per unit year-over-year in 2018.
While captive finance companies sometimes provide the funding for franchised dealerships to stock new inventory, stores still need financial resources for their used inventory. And that’s where AFC, the floor-planning division at KAR Auction Services comes into play.
AFC president Jim Money shared his reaction with Auto Remarketing about what the Fed’s actions this week could mean.
“Because the interest rate cut announced by the Federal Reserve was only a quarter of a percent, we feel the impact will be very minimal to our business. However, if there are additional cuts, we would anticipate more volume opportunity from our dealer customers in order to meet the consumer demand,” Money said.
You have to go back to when the U.S. economy unraveled into the Great Recession to find the last time the Fed cut interest rates frequently. Powell cut off a questioner during his press conference Wednesday when asked if the FOMC is poised to make more cuts later this year.
“Let me be clear. What I said was it’s not the beginning of a long series of rate cuts,” Powell said. “I didn’t say it’s just one or anything like that. What I said is when you think about rate-cutting cycles, they go on for a long time and the committee’s not seeing that, not seeing us in that place.”
Fueled by multiple funding rounds totaling $10 million, Joydrive also expanded its dealership client base by recently forging a relationship with the Findlay Auto Group and Gee Automotive.
The online vehicle marketplace not only added Findlay and Gee as dealer members, but the groups also joined Joydrive’s advisory board.
Joydrive said it raised $6 million in multiple recent funding rounds to go with previous rounds for a total of $10 million in investment.
“We’re excited to partner with Joydrive to provide a complete online experience,” Findlay chief financial officer Tyler Corder said in a news release.
“More and more customers want to enjoy a car buying experience without visiting the dealership,” Corder continued. “Joydrive gives our customers the opportunity to complete the entire transaction online, including arranging financing and completing the trade-in process. This is the evolution of the car business and we’re proud to be at the forefront of retail innovation."
Gee Automotive chief executive officer Ryan Gee added in another news release, “Joydrive is not only a successful e-commerce solution for individual dealerships, but the nationwide marketplace it has created is the only answer to countering the potential entry from the country’s largest online retailer.
“For the first time ever, we’ve joined forces with our competition to pool our resources and meet the demands of our customers for an easy, intuitive and seamless online shopping experience,” Gee went on to say.
Consumers can use Joydrive to sell their vehicle or shop online for new and used cars, with free delivery and other perks through a national network of dealerships in Alaska, Arizona, California, Florida, Idaho, Nevada, New York, Oklahoma, Oregon, Tennessee, Texas, Utah, Virginia and Washington.
Joydrive explained it is bringing a Hulu-style platform to continue the industry’s ongoing digital transformation and meet the demands of the e-commerce driven buyer. Here is how the platform is designed to function:
• Buy online: The entire process can be completed online from vehicle selection to delivery. After securing a vehicle with a $199 fully refundable deposit, a user-friendly dashboard can show all details of the transaction including trade-in, vehicle service contracts, financing options and delivery schedules. Of Joydrive's completed transactions, approximately 40% included a trade-in, and 60% included financing.
• Home delivery: Communicating through the dashboard, customers can coordinate the vehicle delivery date and time with their licensed dealer representatives. Because vehicles are located on dealer lots, delivery can occur as fast as one day.
• Five-day return period: Because buying a vehicle can be the largest transaction customers make, Joydrive and dealer members offer a five-day return period or up to 250 miles to ensure customers love their purchase. Customers can drive the car how they will actually use it. To date, less than 1% of Joydrive’s transactions have been returned, according to the company.
“Like Hulu, Joydrive is unique in that it breaks down the individual properties together into one easy to navigate and user-friendly process to sell your car or buy any brand of new or used car," Joydrive founder and chief executive officer Hunter Gorham.
“Just like you aren't watching a show on ABC tonight, you’re watching Hulu, a car buyer isn't eagerly heading out to sell or shop several local Toyota and Subaru dealers but shopping for and buying any brand from Joydrive,” Gorham added.
Joydrive has more than 30,000 units currently available for purchase, lease, financing and delivery.
Black Book’s Used Vehicle Retention Index for June showed how the impact from the spring market still left its mark even as summer began.
Editors released the June index reading on Tuesday, noting that it ticked up 0.6% from the previous month to land at 115.0.
Black Book explained the strong spring season continued into the first month of summer with a majority of segments strengthening in June. Editors pointed out full-size vans (up 1.43%) and premium sports cars (up 1.25%) performed exceptionally well.
“The uptick in the seasonally-adjusted index shows that the strength of the used vehicle values is steady,” Black Book executive vice president of operations Anil Goyal said in a news release.
“The strength is broadly seen across all mainstream vehicle segments, while luxury brand segments registered a decline,” Goyal continued.
The Black Book Used Vehicle Retention Index is calculated using the firm’s published wholesale average value on 2- to 6-year-old used vehicles, as a percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition.
The index dates to January 2005 when Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1% while during 2016, the index fell by just 6.4%.
During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.
To obtain a copy of the latest Black Book Used Vehicle Retention Index, go to this website.
To continue the momentum started by our Women in Remarketing and Women in Auto Finance franchises, Auto Remarketing has launched Women in Retail, an awards program that specifically recognizes leaders on the retail side of the auto industry.
This inaugural class of honorees is spotlighted in the July 1 issue of Auto Remarketing, which includes Q&As with each recipient of the award.
Next up is Vanisha Palanivel, who is internet sales director at AutoNation Volkswagen Mall Of Georgia
Auto Remarketing: What was your career path to the retail auto industry? Did you always see yourself in this line of work?
Vanisha Palanivel: I started in the auto business as a business development center representative at a local Toyota dealership in Jacksonville, Fla. Fast forward four years later, I am a 22-year-old Internet sales manager for AutoNation in Atlanta! When I look back, I can’t believe the things I have been able to achieve. I have always had a love for cars; I am a pure JDM (Japanese Domestic Market) girl. Never did I imagine I would have a career in this industry, especially not one I couldn’t see myself leaving. I am a political science major and an avid debater. My path did not show any signs of being where I am today, but I’m in love. Don’t people do crazy things when they are?
AR: What’s a typical day like in your job? (if there is such a thing as “typical!”)
VP: You are right! Not a typical day. I am currently the internet sales manager at AutoNation Volkswagen Mall of Georgia. My team consists of five internet sales associates and three BDC representatives to help with the volume of opportunities we receive. My day begins and ends with doing everything in my power to help every one of them succeed.
Beyond simple traffic management I have a knack for getting subprime deals approved. I love the brand, and I truly love working for AutoNation; the pride for my job goes beyond my position. I truly love to see our store exceed every goal set.
AR: What accomplishment or moment in your career are you most proud of?
VP: My proudest moment was being promoted to a BDC manager merely at the age of 19. I could not believe it. I was well over my head, but had a person — my mentor, rather — who believed in me. I will never forget him. He gave me every tool I needed to succeed today, but beyond just being my boss, he helped me mature as an individual. The things he taught me will carry me through every position I take and every meeting I hold. He gave me a chance when most would have turned.
AR: What do you enjoy most about working in the auto industry?
VP: Personally, I enjoy the pace of the business. There is nothing more exciting than literally never being on top of anything. It seems crazy, truthfully — you must be a special kind of crazy to work here! Yet, it is refreshing to know that you will always have something to look forward to, a new change, a new program or even just a simple update. I am constantly on my toes. Four years in and I still have about maybe 10% of what I do down. There is never a monotonous day; never a down moment.
AR: What advice would you have for someone just starting out in retail automotive?
VP: Have fun, and never stop learning! It seems like a rather simple concept. However, starting out as young as I did, that was my mantra. This business, as any, has its ups and downs, but for the most part, it has been one of the most rewarding experiences I have encountered, thus far.
The ability to constantly learn an ever-shifting business, to understand the economics, the culture, as well as the people within it, has been a delight. Don’t forget what drew you in, what kept you going and what has you working those long hours. It is not for all, but it has an everlasting impression on the few that stay.
To continue the momentum started by our Women in Remarketing and Women in Auto Finance franchises, Auto Remarketing has launched Women in Retail, an awards program that specifically recognizes leaders on the retail side of the auto industry.
This inaugural class of honorees is spotlighted in the July 1 issue of Auto Remarketing, which includes Q&As with each recipient of the award.
Next up is Robin Hill, who is client adviser at Hendrick Lexus Charlotte.
Auto Remarketing: What was your career path to the retail auto industry? Did you always see yourself in this line of work?
Robin Hill: I have a degree in Biblical Studies. I was ordained to minister/counsel in 1993. I ran a private Christian Academy for 14 years; built it from K-4 to 12th grade within two years.
I relocated to Charlotte in 2007 to help build another ministry. I needed immediate income to support my family. I decided to find employment at a dealership. When I applied, they hired me on the spot. My goal was to do it just for the summer. However, I found that my experience, my genuine care for people and temperament fit right in. Surprisingly, I discovered my niche. I have been in the automotive business for 12 years now and have been very successful.
AR: What is a book you have read that has influenced or helped your career?
RH: Deepak Chopra’s “The Seven Spiritual Laws of Success” and John Maxwell’s “The 21 Irrefutable Laws of Leadership” are the two books that have influenced me in my line of business.
AR: What do you enjoy most about working in the auto industry?
RH: I mostly enjoy the glistening eyes and the smiling face of a satisfied client. I get a high from that. It is so rewarding to bring happiness to others via great advice and excellent customer service. I also enjoy that no day is the same. It reminds me of the famous statement of the great philosopher, Forrest Gump.
“Life is like a box of chocolates; you never know what you are going to get.” That is so true in the automotive business. I like change and diversity. The automotive business is that way every day.
AR: What aspects of the retail car business would you change?
RH: I would make it universal that a dealership closes at 7 p.m. Monday-Friday. Saturday the dealership closes by 5 p.m. and closed on Sundays. Family time is important and should be a priority with leadership. The trust ratings for salespeople is not very high. I have found because of being truthful and transparent, people like, trust and buy from me. I would offer training nationally to help get our trust ratings much higher. I am in the process of drafting a training manual that is like no other.
AR: What advice would you have for someone just starting out in retail automotive?
RH: If you do not care much for people, rethink your career choice. If you do not serve in excellence, you will operate from a level of mediocrity. If you are not a team player, single handedly you will stunt your growth. If you think it will be easy, that thought will fail you. If you are in it for the money, you will find yourself lacking. If you think you cannot, you will not. If you think you can, you will. Have a teachable heart, and mark mature examples before you. Be confident in your true potential, and compete only with yourself. Most importantly, manage your positive energy — void of excuses.
To continue the momentum started by our Women in Remarketing and Women in Auto Finance franchises, Auto Remarketing has launched Women in Retail, an awards program that specifically recognizes leaders on the retail side of the auto industry.
This inaugural class of honorees is spotlighted in the July 1 issue of Auto Remarketing, which includes Q&As with each recipient of the award.
Next up is Nikole L. Reed, who is senior manager of Infiniti used/CPO at Infiniti USA.
Auto Remarketing: What was your career path to the retail auto industry? Did you always see yourself in this line of work?
Nikole L. Reed: I would venture to say that most of us are doing something completely different than what we envisioned for ourselves at a young age. I wanted to be a lawyer, doctor and a backup dancer for Janet Jackson! Nevertheless, I started my automotive career as a temp employee at a large OEM while still in college. I suppose I impressed my superiors enough that I was hired as a full-time employee six months into my role and without a degree. When I finished my degree, I was approached with an opportunity to take a sales role that would include face-to-face interactions with dealers.
I was terrified at the thought, as all of my experience had been in office or HQ (headquarter) settings. However, the individual who approached me was a seasoned executive who told me that he saw great potential in me for a sales path. I trusted him and went for it. Eighteen years later, I lead a national sales team, and I couldn’t be happier. The takeaway for me was to begin interacting more with leaders and to gather mentors. These individuals have the experience to help you steer your career and often times see potential in you that you may not see in yourself.
AR: Who is a leader, outside of the auto industry, that you admire and why?
NLR: Serena Williams. She is a clear leader in her field, and I admire her for so many reasons. On her journey to becoming the “GOAT” of the tennis world, she faced obstacles that would have broken most people, and she did it with grace. She was treated unfairly and paid unequally because she was a woman and an African American. She was called names, suffered injuries and other health issues, but she never complained or called people out. She gracefully kept walking onto courts where she was not wanted and walking off with trophies. As a woman in any male-dominated industry, you will experience judgments, and people will question why you’re there or how you got there, but you have to brush it off, stay focused on your goals and believe in yourself. People will always talk so I choose to act with grace and let my work speak for itself. That can never be questioned.
AR: What accomplishment or moment in your career are you most proud of?
NLR: Something that I’m very proud of is the mentoring that I do both inside and outside of my company. I have quite a few mentees (too many to count) and new requests all of the time. I’ve been told that I probably have too many, but I don’t feel that way. It can sometimes only take 15-20 minutes to chat with someone and really help them. I do have some formal mentoring appointments, but most of them involve a cup of coffee, lunch or a quick phone call. I feel honored when I’m asked and feel an obligation to help the next generation and provide insight and perspective where I can. They look at me and see what they want to become, and that makes me really proud of the example I am setting and my career accomplishments. Asking someone to be your mentor takes guts, so I make time. I will always make time for someone who asks me for help.
AR: What do you enjoy most about working in the auto industry?
NLR: There are many things that I enjoy about the automotive industry, and I specifically enjoy the fact that it provides cross-functional opportunities that allow you to learn countless aspects of the business. This allows you to grow and be challenged as well as become very well-rounded from a business perspective.
Those opportunities are limitless, if that is what you want. I also enjoy the fact that it is a relationship driven industry, and the networking opportunities are endless. Working one-on-one with dealers, vendors, competitors and peers has helped me grow both professionally and personally. Successfully building relationships is a critical skill in any industry as it can aid you in moving the business forward as well as set you up for advancement in your career. You may also make some great friends along the way.
AR: What advice would you have for someone just starting out in retail automotive?
NLR: Traversing corporate America can be tricky, so the first piece of advice I would give is to seek out and develop relationships with mentors … both men and women. Having more than one mentor is crucial, because everyone has different perspectives to lend to certain situations. They have been where you are and know how to navigate your specific corporate landscape.
These individuals are also able to provide insight that can help you determine what the next move is for you or your overall career path. Be strategic with your moves, and always position yourself for growth. I would also encourage readers to find ways to set yourself apart from your peers and make yourself stand out in a positive way. Lastly, always bet on the home team, and believe in yourself and your ability. If you don’t, no one else will.
While movements aren’t regaining spring-market strength, Black Book is seeing wholesale prices being supported by Fourth of July demand.
According to the latest Black Book Market Insights report, car depreciation decelerated while truck prices landed near the four-week average.
“Used-vehicle demand remains relatively strong as we approach the Fourth of July weekend. Truck values continue moderate stability, while car depreciation has decelerated,” Black Book executive vice president of operations Anil Goyal said in the latest report.
According to volume-weighted data, editors determined overall car segment values decreased by 0.21% last week. That’s a little more than half of the four-week average that Black Book pinpointed at 0.39%.
Among cars, editors found the values of prestige luxury and midsize cars decreased the most, sliding by 0.48% and 0.40%, respectively. All car segments except one — premium sporty cars — had smaller depreciation rates than the prior week.
Again based on volume-weighted information, Black Book discovered overall truck segment values (including pickups, SUVs, and vans) declined by 0.17% last week. The four-week average truck price decline was 0.13%.
Within trucks, the values of compact luxury crossover/SUVs and sub-compact luxury crossovers declined the most at 0.72% and 0.51%, respectively.
Turning next to what Black Book representatives noticed in the lanes at nearly 60 sales nationwide, the anecdotes covered an array of topics, including:
— From Pennsylvania: “While they are popular all of the time, the $10,000 price range units are in extremely high demand.”
— From Illinois: “I spoke with three different remarketers at the auction and they all agreed that the used-vehicle market remains good. However, they did state that the higher-price vehicles are becoming a challenge to remarket.”
— From Massachusetts: “The rental and lease lanes sold almost everything, but their reps reported that trucks have become a struggle to get the money they were a few months ago.”
— From Michigan: “Our market seems to be trending downward, especially at the upper end of the truck market where vehicles are priced around $60,000.”
