The National Auto Auction Association’s safety committee is working with ADESA and Manheim to develop a “playbook” for auctions on how to safely re-open a physical sale amid COVID-19, as some restrictions begin to loosen.

NAAA aims to distribute the playbook in the next seven to 10 days, chief executive officer Frank Hackett said in a phone interview Monday.

The book guides auctions through the “precautions to take” around social distancing, vehicle pickups on the auction lot and more, Hackett said.

“I think we’re ahead of the game in terms of the playbook. I think it will come out just at the right time and it will really help the auctions, for example, the independents, who will get a chance to see what both Manheim and ADESA are doing,” Hackett said. “And at the same time, it’s Manheim and ADESA sharing their best practices with each other, and so it’s good for the industry.” 

The association also worked with ADESA on a 2-minute COVID-19 Safe T. Sam video that was modified for NAAA, he said. It can be found here.

NAAA continues to meet via teleconference each Monday with leaders from around the auction industry. Following the call this week, Hackett shared a rundown of operational updates from many of the industry’s major players.

At ADESA, Hackett said, all locations are conducting simulcast sales. The company is allowing dealer previews at half of its auctions. Volume has climbed “slightly” for ADESA, he said.

As for Manheim, the company is conducting simulcast sales at all of its locations except for Puerto Rico and Seattle and is beginning to allow dealer previews. Volume is up, Hackett said.

Sharing additional detail, Manheim provided an operational update from president Grace Huang in a statement Friday.

“As government restrictions continue to be lifted state by state, we will now allow limited access to our property, in accordance with enhanced safety measures as outlined by CDC guidelines,” Huang said.

“Starting next week, select Manheim locations will begin providing access for clients to preview inventory on a limited basis,” she said in the statement Friday, referring to this current week.

“These locations are aligned with relevant local and state ordinances to ensure our clients have a safe experience on our lots,” Huang said. “Upon entry, clients can expect to comply with certain protocols to ensure their health and safety.  It is our hope that, we will be able to offer this access at other locations as local and state ordinances allow.”

The statement provided five bullet points on operational updates that Manheim is making. Below is a summary.

Manheim will allow “limited preview periods” on non-sale days for specified days/times, where “strict safety and compliance” measures will be enforced.

The company will keep its auction offices and facilities closed and is continuing simulcast sales as allowed by local/state directives.

Manheim’s digital offerings remain open, and its Remote-Seller tool will handle simulcast sales.

Vehicle pickup and drop-offs will be allowed as permitted by state and local ordinances.

Next up, America’s Auto Auction has simulcast open at all its locations and is allow dealer previews. Continuing to recap that company’s update, Hackett said some states are letting a few customers in the auction lanes, but noted that some customers are cautious about returning to be at a physical sale. Volume for America’s is climbing, he said.

ServNet said five of its auctions have been allowed to run physical sales with limited in-lane customers and XLerate Group is moving cars through lanes in a few locations, Hackett said.

One challenge the auction market has seen is around storage. Hackett said he heard from some auctions that are “running out of room” to store vehicles and are turning to off-site lots.

Having lots of volume at the auction might be “a nice problem to have,” he said, “but at some point, you’re going to have to sell some of them to make some more room.” 

In a similar market update from Thursday, Black Book analysts said: “The latest challenge from the wholesale seller’s perspective are delays in getting their vehicles processed at the auction due to auctions having fewer staff on-site to check-in vehicles, write condition reports, and do photography.

“The expectation is that there will soon be an influx of available units for sale once the auctions are able to catch-up to the increase in vehicle arrivals at their facilities,” they added.