Manheim and Ready Auto Transport announced recently their collaboration to launch a new electronic gate pass process at all Manheim locations nationwide.
The delivery time-improving eGate Passes are electronically delivered for all customer vehicles directly to members to streamline the auction pick-up process.
John Blobner, the vice president and general manager for Ready Auto Transport, believes the new process will enhance the experience between his company, its carriers and Manheim buyers.
“We are pleased to help our carriers alleviate some of the obstacles they may have at the auction such as arriving after hours when a gate pass is not available,” Blobner said. “When Manheim buyers choose Ready Auto Transport for transportation, we verify the vehicle is ready and issue the eGate Pass directly to the carrier, eliminating dry runs because they’ll know the vehicle is ready and can avoid the wait.”
Ready Auto Transport and Manheim piloted the process and successfully released more than 3,000 vehicles without any issues at locations at Manheim Ohio, Manheim Detroit, Manheim Pittsburgh and Manheim Statesville.
For more information about Ready Auto Transport and the eGate Pass, visit the site here.
KAR Auction Services already shelled out $30 million to acquire a 50-percent stake in online vehicle remarketing system, TradeRev. And investment analysts wondered if KAR is ready to bring out the company checkbook or credit card again to buy the remainder of Toronto-based wholesale solution firm or another company outside of its current portfolio of ADESA, Insurance Auto Auctions and Automotive Finance Corp.
While also reminiscing about his franchised dealer days when discussing TradeRev, chief executive officer Jim Hallett mainly kept company strategy close to the vest when KAR conducted its quarterly conference call this past Wednesday.
“We do have other deals in the pipeline in our other businesses as well, but nothing that we're in a position to discuss today,” Hallett said during his opening comments of the call that later consisted of plenty of discussion about how TradeRev and ADESA can boost both service for dealers and profits for the company.
Later, Hallett touched on the acquisition issue again when questioned by the investment community, which cheered the company’s overall second quarter performance that included increases in revenue, adjusted EBIDTA, net income and adjusted net income.
“In terms of other acquisitions, I think we're always looking at different businesses, how they fit both from a strategic standpoint, as well as how they might fit from a technology standpoint, and then perhaps the geographic standpoint. We're evaluating these businesses … one at a time,” Hallett said. “We prioritize them. They don't always go down as we think they’re going to go down.
“But at the end of the day, there are a number of businesses that we continue to focus on that would tuck-in very nicely,” he went on to say.
Besides the solution’s wholesale market capabilities, KAR chief financial officer and executive vice president Eric Loughmiller pointed out valuable parts of the TradeRev acquisition deal are the possibility that KAR can acquire the remaining ownership portion as well as keeping the previous management team in place — similar to the strategy when KAR bought OPENLANE.
“We have some rights at the right time to perhaps increase our ownership. And we'll see how that plays out,” Loughmiller said. “And at any point in time, you can always buy the rest of it if they’re willing to sell it at the right price, right? But being part of this it's really important to us in keeping the management team in place, the founders and their technology skills and their knowledge of the market.”
Hallett elaborated about the value of TradeRev’s management, which includes president and founder Mark Endras.
These guys first got started in 2009, so this is technology that they've been working on and developing and have learned a lot of lessons as they’ve developed it,” Hallett said. “And it was really critical for us to keep them in the deal. Keep the founder in the deal, and he kept his entire management team in place. I think that's what they bring to the table,
“From the ADESA side, when you think about our locations and our people and our resources, we can really pour the gasoline on this thing and get it to the market and hurry,” he added.
ADESA already entered into a joint marketing agreement with TradeRev to assist in expanding its footprint in the dealer-to-dealer online space in the U.S. and Canadian markets.
The company highlighted ADESA will be the exclusive provider of certain products and services to TradeRev’s customers. Officials added that ADESA will also leverage its 65 auction locations across North America and the company’s strong online auction presence and dealer network to support TradeRev’s diverse dealer offerings.
“TradeRev is a company that we identified that was operating in Canada. We thought it was a unique business model, and saw that it was focused on what I would call an addressable market that we currently didn't feel that we were getting a slice of. It was just opportunistic that we got involved in conversations, and we ended up acquiring 50 percent of the business. It was really the strategic rationale of bringing this component of the business into the KAR family,” Hallett said.
“I believe that the combination of TradeRev and ADESA will create opportunities to expand our buyer base throughout the entire organization,” Hallett went on to say. “TradeRev creates private, customized network of buyers and sellers to move fresh trades. TradeRev is a solution that addresses the 20 million units to 22 million dealer-to-dealer transactions that don’t currently come to a physical auction. We estimate that as many as half of these vehicles are sold on a dealer-to-dealer basis, and what TradeRev will do is TradeRev will stand in the middle of these transactions much like we do in our online and physical auctions.”
Since Hallett is a former dealer, he also described how TradeRev is a solution geared to make things easier for busy managers. Dealers can get started by scanning the VIN and taking a few pictures with their mobile device. Then, the auction process is in motion.
“Dealers are going to have the ability to close more sales because they're going to have stronger appraisals on these cars. And they're also going to reduce the risk of loss at the time when comes to selling those trade-ins,” Hallett said.
“And I can tell you that, as a former franchise dealer, I would absolutely love to have a tool like this,” he continued. “When I think about my time and the efficiency that I spent calling wholesalers and trying to get bids and trying to get appraisals on cars, and then when I think about the lost opportunities, the number of deals that I wasn't able to close because I wasn't able to get what I would call an accurate appraisal on the car, certainly it prevented me from getting some deals done.
So, with TradeRev, I think this is a good example of the type of strategic growth that we are pursuing,” Hallett went on to say.
As the 2015 model-year Subaru Legacy and Outback models make it onto dealers’ lots, the units will contain even more infotainment options to market to shoppers.
Subaru of America announced the debut of its Subaru STARLINK infotainment system, utilizing Clarion’s Smart Access platform, and available in these two new models.
The new system focuses on cloud connectivity and enables users to connect to the cloud using the Smart Access platform.
The system is designed for both Apple iPhone iOS and Android smartphones.
"We have been working on perfecting our exclusive Smart Access connectivity platform relentlessly for several years in order to assure reliability, safety and distraction-free operation of the system while driving," said Paul Lachner, president of Clarion Corporation of America. "We are thrilled to customize and launch our connectivity platform with Subaru, one of our premier partners, and are excited to provide their customers the ability to connect to the cloud safely and securely using their smartphones and let them enjoy a customized and continually updated infotainment experience."
Users can use the vehicle’s standard Bluetooth or USB ports to connect their smartphones to the cars head unit display and then have the option to access apps and services through their devices.
Vehicle owners can also use iHeartRadio, a free app that is included in the system that offers millions of songs and radio stations. The platform also comes with news and weather information apps.
The system can also automatically push the user's calendar data directly to the vehicle's head unit display.
The Subaru STARLINK app is now available as a free download from Google Play and iTunes app stores, and the technology will be offered on more Subaru vehicle models in the near future, the company said.
"By making STARLINK standard on the all-new 2015 Subaru Legacy and Subaru Outback models, we have given Subaru drivers a highly-accessible driving companion right in their dashboards," said Thomas Doll, president of Subaru of America Inc. "This gateway to the Internet will effortlessly and automatically push relevant data directly where it is needed most."
Reinsurance provider SideCars announced this week the launch of SideKick, its new online reinsurance software platform for dealers. The software, which is cloud-based, allows dealers to monitor their reinsurance companies online by giving access to limited warranties, service contracts, GAP insurance, collateral protection and business risks including cession statements, financial statements, tax returns and more all through one convenient location.
Les Olson, the founder and owner of SideCars, believes SideKick’s launch marks a benchmark for his company.
“This is an exciting time for SideCars clients and agents, who will now be able to manage and monitor their reinsurance companies anytime and anywhere,” Olson said. “After spending the past year exploring additional ventures, I’m not back in the SideCars saddle and back to assisting with the day-to-day operations. Launching SideKick is a key component to this new era for SideCars.”
For more information about SideKick, visit SideCars’ website here.
Cross-Sell Reports, a division of Dominion Dealer Solutions, announced today the release of localized market data and reporting solutions for Arkansas dealers.
The suite of market reports available include Cross-Sell Interactive, Market Analysis, Statewide Dealer and Leinholder Summary, and MarketIntel, the latter of which uses heat mapping to visualize new- and used-vehicle sales as well as liens based on dealership and owner location.
Shane Marcum, Cross-Sell Reports’ general product manager, believes the company’s various offerings will be beneficial to dealers in Arkansas looking sharpen their strategies in their area while also increasing their return on investment within their dealership.
“Through Cross-Sell’s suite of market reports, automobile dealers in Arkansas are given the tools to strategically attack their primary market areas,” Marcum said, “regardless of whether a dealership is in Little Rock, Texarkana, Fayetteville-Springdale-Rogers, Fort Smith, Jonesboro, Pine Bluff, Hot Springs or anywhere else in Arkansas.”
For more information about Dominion Dealer Solutions’ offerings, visit their website. Additional details on Cross-Sell Reports can be found here.
Dominion Dealer Solutions announced this week the release of Priority Page, an added feature for DealActivator, its equity data mining program.
With the new feature, dealers can view equity prospects all on one page, making the program more efficient, which before required dealers to use the manual campaign builder to generate contacts based on specified priorities.
Alan Andreu, the general manager of equity solutions for Dominion Dealer Solutions, believes the added feature will expedite the process for dealers using the DealActivator program to aim at specific customer ranges.
“Our dealers have always raved about DealActivator’s campaign builder features that allow them to target customers they deem most important,” Andreu said. “With Priority Page, this research has already been done for dealers.”
Priority Page itemizes equity prospects that lower the risk for the dealership and ranks the prospects in order of viability.
“Dealers can contact previous customers using personally directed, fully customizable phone scripts, emails or direct mail within Priority Page,” Andreu said.
For more information about DealActivator, you can visit Dominion Dealer Solutions’ website here.
Brake fluid diagnostic purveyor Phoenix Systems announced a new partnership last week to offer the company’s Project Stop Safe system to members of the National Independent Automobile Dealers Association.
The goal of the program, which facilitates Phoenix System’s brake fluid safety inspection, is to give NIADA members the opportunity to equip their dealerships with the materials to advertise and use the company’s brake fluid diagnostic products while increasing the dealer’s revenue and potentially benefit their reputation for caring about safety. The initial step of the project, which offers complimentary brake fluid testing, is designed to drive new and return customers to the dealerships.
According to Phoenix Systems, dealers will receive advertising samples, coupons, brake fluid report cards, email campaigns, word tracks for service advisers, press releases, posters and other required materials, such as the brake fluid test strips themselves, to help aid the process.
Scott Lilja, the senior vice president of member services at the NIADA, believes the Project Stop Safe program is a good compliment to the other benefits the association offers to its members.
“Our partnership with Phoenix Systems aligns very nicely with our member’s focus on community service and customer safety,” Lilja said. “We are very pleased to offer our auto dealer members this outstanding vehicle safety and service program that, for a very small investment, allows them to test and ensure customer vehicle braking systems safety.”
Ben Martinsen, the vice president of marketing and operations at Phoenix Systems, thinks independent dealers will increase profitability and community engagement with his company’s program.
“We saw a need and chose to work with independent car dealers because they already have the necessary equipment if a repair is needed,” Martinsen said. “We have found that most dealers are very community focused and want to do their part in giving back.”
To learn more about Project Stop Safe, click here.
Auto dealer cooperative Wholesale Auto Supply Co. has now begun to offer a biometric-based identification device, for time and attendance purposes, to its members.
The technology, provided by Actual iD, uses fingerprint scanning to identify intended individuals for the purpose of time-keeping, providing access to certain areas, and other uses as determined by the customer.
Andrea Karsian, chief executive officer at WASCO, believes the Actual iD technology is well-suited for the co-op’s members.
“The Actual iD time and attendance product is an ideal fit since it is purpose-built to service the unique needs of auto dealerships,” Karsian said. “We partnered with Actual iD because they have a clear track record of delivering on that value proposition.”
The technology’s primary goal, through identifying specified individuals with something only they can offer, their biometrics, is to save dealerships and other such businesses time and money by working toward preventing time theft and other such time-keeping errors common with manual recordkeeping.
The Actual iD product comes with the applicable software and dedicated live technical support, a service backed by the company’s president, Jeff Crews.
“We are confident that it will provide WASCO’s members with significant operational value and payroll savings that will positively affect their bottom line,” Crews said.
ADESA announced Monday that dealers have another way to utilize its LiveBlock tool — through the convenience of their smartphones.
The company has launched the LiveBlock mobile app, which is available free for iPhone users.
ADESA officials pointed out the move means registered dealers can now participate in live vehicles auctions at ADESA locations across the country
Registered auto dealers can now participate from virtually anywhere in live vehicle auctions at ADESA locations across the country from their mobile devices.
“This app gives dealers easier access to vehicle inventory, even when they can’t make it to an auction or their office,” said Stéphane St-Hilaire, president and chief executive officer of ADESA. “We will continue to develop new technology applications, expand our services and explore new products that enhance the customer experience both online and at auction.”
The LiveBlock mobile app is similar to LiveBlock on ADESA.com, the company said. The tool simulcasts vehicles worldwide via real-time audio and video feeds.
Now, dealers can use their iPhones to search for inventory or browse run lists for upcoming sales. They can also see photos and condition reports, and have the ability to add vehicles to Watch Lists.
“The mobile app also streams live audio so users can hear the auctioneer and the bidding action,” the company said.
And the key is consistency: when dealers purchase and add vehicles to a Watch List through the mobile app, the actions are synced to the users account, and the information will be the same regardless of where the customer logs in.
The LiveBlock mobile app is free to download from ADESA.com/mobileapps or text ADESA to 89800.
Xcira announced the development of a patented handheld condition reporting system that is designed to increase the efficiency and accuracy of the vehicle inspection and condition reporting process.
The latest in a series of technological solutions developed by Xcira is called the ICE (Intelligent Condition Evaluator).
“Xcira continues to define the auction industry with support technology, and we are delighted to announce the addition of the Intelligent Condition Evaluator,” Xcira chief executive officer Nancy Rabenold said.
“ICE is the product of years of research and design by our forward-thinking development team that made the initial patent filing for the system in May of 2005. Their vision has once again resulted in a tool that not only benefits the industry but will have a far-reaching influence on the vehicle inspection process for many years to come,” continued Rabenold, a member of the 2014 class of Women in Remarketing — which is sponsored by Ally Auto Remarketing and is Auto Remarketing’s way of recognizing the leading women of the remarketing and used-car business.
ICE is a robust condition reporting system that is designed to combine ease of use with efficiency, cost-savings and report accuracy, according to Rabenold.
An intuitive and user-friendly system, Rabenold explained ICE can allow inspectors to appraise vehicle’s condition using a handheld device that integrates customized templates, image capture, barcode scanning and voice memos.
“ICE is certain to become an indispensable tool for use in a variety of automotive inspection applications,” Rabenold said.
Rabenold indicated ICE supports multiple platforms. The capture unit can be a smartphone, handheld computer, laptop or tablet. The interface includes predefined screens that minimize typing and can allows the user to quickly complete the condition report and upload information to the main server via Internet connection. The data is then available for reporting, analysis or further processing.
“Whether used for auction check-in, condition report writing, rental return, trade-in or finance lot verification, ICE accommodates complete inspections with ease on a smartphone or other device,” Rabenold said.
“With customizable templates and intuitive interface, users can search items based on a variety of criteria, including a supplied list, serial number, stock number, or make/model and year,” he continued. “ICE generates consistency, reduces costs by reducing the time required to capture the pertinent data and eliminates duplicate entries.”
Rabenold also mentioned that the ICE system interfaces with the grading system from the National Auto Auction Association. The company also plans to integrate ICE with the ASI operating system.
