Auctions

Dealers Auto Auction Group highlights efforts to send more than $122K to charities

FRANKLIN, Tenn. - 

Dealers Auto Auction Group has a long history of giving back to the community as DAAG supports many local charities throughout the course of the year.

Collectively, the group’s recent efforts have led to more than $122,000 being awarded to a wide array of organizations.

DAA of Huntsville just celebrated its 14th anniversary sale with more than 1,000 units consigned and more than 60 percent sold, raising more than $15,000 for the Make A Wish Foundation. 

DAA of Huntsville equally has raised more than $55,000 for the local YMCA and American Cancer Society in 2018.

Giving back is something that is very important to chief executive David Andrews, who said, “We are so blessed with being able to be a part of so many amazing organizations. We really believe that supporting these local groups is the right thing to do.”

Roger Fields, general manager of DAA of Huntsville added, “It has amazed me what a group of dealers will do on a Tuesday morning at 10 am. In addition to opening their wallets with money contributions, these men and women have donated automobiles and numerous other items for our charity auctions.”

Dealers Auto Auction Group, which has seven locations in the Southeast, holds special events at each of their locations, including:

— DAA of Memphis has raised over $8,700 for organizations like the Boy Scouts of America, St Jude, American Cancer Society and a local food bank.

— DAA of Murfreesboro supports Mission Forces and has raised more than $33,000 in the past year.

— DAA of Chattanooga has raised over $10,000 for Toys for Tots, Forgotten Child and the American Red Cross.

— DAA of Mobile has raised $600 for Team Focus, a local youth organization.

“Dealers want to help support these local organizations” said Scott Keener, director of operation for DAAG.  “They really believe in giving back.”

Dealers Auto Auction Group was started back in 2001 with its first auction in Horn Lake Miss. For more information, visit .


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Dealers continue to face wholesale challenge of finding clean, affordable units

LAWRENCEVILLE, Ga. - 

Perhaps not as difficult as finding that needle in the proverbial haystack, Black Book’s latest anecdotes from the lanes again described how dealers are having difficulties finding clean vehicles at the auction without completely depleting their floorplan funds.

Before getting into bidding activities, this week’s edition of Black Book Market Insights showed how prices aren’t softening like how dealers typically experience during the summer.

“The used-car market stays strong with mainstream car brand values depreciating at a low rate for this time of the year,” said Anil Goyal, executive vice president of operations at Black Book.

Volume-weighted, Black Book reported that overall car segment values decreased by 0.27 percent last week. In comparison, the values had decreased at a higher rate of 0.34 percent per week during the previous four weeks.

Among car segments, editors noticed sporty cars showed a seasonal lift in values last week, rising 0.24 percent or $37.

Again volume-weighted, Black Book determined overall truck segment values — including pickups, SUVs and vans — softened by 0.34 percent last week. In comparison, the values had declined at a lower rate of 0.26 percent per week during the previous four weeks.

Within truck segments, editors found that full-size vans and full-size luxury crossover/SUVs decreased the most last week, dipping by 0.66 or $101 and 0.62 percent or $204, respectively.

Be it a car or a truck, dealers are having trouble finding units that do not need a significant amount of reconditioning at a price that fits their particular store retail model. Here’s a sampling of what Black Book noticed at nearly 60 sales nationwide:

— From Indiana: “Business is good and dealers are holding onto their trade-ins. Nicer vehicles are scarce as are trucks.”

— From Wisconsin: “Active bidding and selling in most lanes even as dealers complain about high prices.”

— From Florida: “The older cars continue to struggle, but buyers are paying premium prices for cleaner and newer vehicles.”

— From Texas: “Our consignment has been low which has kept the values up. Bidding is quite good on most vehicles.”

— From Michigan: “Some trucks have seen a price rise during the last couple of weeks, which is unusual for our market in July.”

COMMENTARY: Addressing the national truck driver shortage

ST. LOUIS - 

Those in the vehicle logistics industry have known for a while that a shortage of long-haul truck drivers in the United States over the last several years has impacted costs and delivery times. According to a report from the , the U.S. had a shortage of 51,000 truck drivers at the end of 2017. That number is expected to balloon to 63,000 by the end of this year, and 174,000 by 2026 if current trends hold.

Beyond vehicle transport, that shortage is now impacting costs in other areas as well, including consumer goods. Companies like General Mills, Tyson Foods, Hormel and John Deere have all cited higher shipping costs for price hikes in their products.

Rising transportation costs will certainly impact our nation’s economy as well. By revenue, trucks move 82 percent of the freight in the United States. Logistics and transportation account for about 10 percent of every dollar in the national economy, so an increase in transportation costs will likely increase inflation.

The causes

So, what exactly is causing this shortage of truck drivers?

Experts say truckers are aging out of the industry and not enough younger drivers are joining. The Bureau of Labor Statistics estimates that the average age of a commercial truck driver in the U.S. is 55.

Truck drivers earn an average of $23.99 per hour. Despite that, the industry is losing young workers to jobs with more steady hours and a better work-life balance, like construction or energy. The long work hours (up to 70 hours a week for many) and weeks away from home are definitely seen as detractors, especially in a healthy economy with plentiful job opportunities.

Additionally, some drivers are weary of new federal safety regulations that monitor how long they are on the road, and that mandate electronic logging devices (ELDs) on all trucks with an engine model year of 2000 or later.

As retired truck driver Robert Sanders told Business Insider magazine, “No one wants to be gone for weeks at a time while being monitored 14 hours a day for a ridiculously low wage while performing a stressful and dangerous job. Might as well do a job where you are appreciated and paid better after your eight-hour shift.”

While driverless cars and trucks are still years away from being widely accepted, some foresee that the long-term prospects for the truck driver profession are not good.

Looking for solutions

While there is no surefire cure-all for the truck driver shortage, several developments can help attract and retain more drivers.

I believe the solution will require an industrywide push. Our nation’s economy is dependent on the ability to move products. The government should have some skin in the game and actively work to address the issue.

Following are just a few of the proposed solutions:

  • Offering higher wages, signing bonuses and frequent raises
  • Offering shorter hours
  • Congress is considering lowering the interstate truck-driving age from 21 to 18
  • Promoting to younger drivers the advanced technology used in the industry
  • Promoting professionalism, and removing the negative stigma of being a trucker
  • Identifying and actively marketing to targeted populations like military veterans and women
  • Incentivizing companies that promote drivers’ work-life balance
  • Creating value-added tools that enhance the work-life balance of drivers

The truck driver shortage could deliver a double whammy to auto dealers: both in higher transport costs and higher inflation in the general economy. Executives in the auto industry would be wise to monitor the shortage, and work collaboratively with lawmakers, regulators, vocational schools and transport companies to lessen the economic impact and develop viable industrywide solutions.

Susan Moritz is vice president of business development with ACERTUS ().

PODCAST: Joe Nieman and George Chamoun of ACV Auctions

LAS VEGAS  - 

AuSM president Bill Zadeits is back on the mics for this one, interviewing Joe Nieman and George Chamoun of ACV Auctions during NADA Show 2018 in March.

They talk about the capital growth at ACV, how the idea for the online auction company started and more.

To see how much the company has grown since this late-March discussion, be sure to check out this feature, where Chamoun talks about ACV's milestones and market expansion so far this year.

Bill's full discussion with the ACV leaders at NADA Show can be found below.

Download and subscribe to the AuSM Podcast on  or on . 

You can also listen to the latest episode in the window below.

Catch the latest episodes on the AuSM Podcast homepage and on our .

Please complete ; we appreciate your back on the show!

Lane watch: Consistent trends stretch back 4 weeks

LAWRENCEVILLE, Ga. - 

As typical as fans running on high speed above the auction lanes this time of year, Black Book is seeing that the wholesale market currently is demonstrating expected seasonal depreciation trends with car prices falling slightly more than trucks, SUVs and CUVs.

“Depreciation rates have remained consistent during the last four weeks for both car and light truck segments. The used-vehicle market is relatively strong for this time of the year,” said Anil Goyal, executive vice president, operations, at Black Book. 

According to the latest Black Book Market Insights report, volume-weighted, overall car segment values decreased by 0.34 percent last week. In comparison, the values had decreased at a similar rate per week during the previous four weeks.

Among car segments, compact cars, sporty cars and premium sporty cars depreciated the least last week, with declines ranging from $10 to $38.

Again volume-weighted, editors determined overall truck segment values (including pickups, SUVs and vans) decreased by 0.25 percent last week. Just like cars, truck values had softened at a similar rate per week during the previous four weeks.

Within the truck segments, compact vans, minivans and compact luxury crossover/SUVs decreased the most last week, dropping by 0.81 percent or $74, 0.55 percent or $71, and 0.45 percent or $88, respectively.

The truck discussion continued with some of the anecdotes from the lanes Black Book collected from representatives stationed at nearly 60 sales nationwide. Two truck tales surfaced in the Midwest, including

— From Michigan: “Trucks have seen a price rise in the last couple of weeks, which is unusual for our market in July.”

— From Indiana: “Business is good, and dealers are holding onto their trade-ins. Nicer vehicles are scarce as are trucks.

One other observation also originated in the Midwest as the Black Book representative in Wisconsin added, “Active bidding and selling in most lanes even as dealers complain about high prices.”

The two other anecdotes Black Book shared might mimic what’s happening at your local sale.

“Our consignment has been low which has kept the values up. Bidding is quite good on most vehicles,” the lane watcher in Texas said.

A Black Book observer in Florida mentioned, “The older cars continue to struggle, but buyers are paying premium prices for cleaner and newer vehicles.”

Alliance Auto Auctions launches campaign to aid victims of human trafficking

DALLAS - 

Alliance Auto Auction Group believes in giving back and selects a charity to support every year. 

Chief operating officer Christopher Dean and chief executive officer Tim Adams set out to find a local charity, one that had an impact on abused and exploited children. After attending a benefit dinner, and hearing about the Poiema Foundation, they knew they had found the charity to support.

Alliance Auto Auctions has partnered with the Poiema Foundation to help raise money for victims of human trafficking.  The Poiema Foundation is a local nonprofit that rescues sex trafficking victims, helps them with their healing and restoration journey and educates the public to raise awareness to help prevent sexual abuse, sex trafficking and other methods of sexual exploitation.

For every vehicle the auction group sells in 2018, it will donate a portion of the proceeds to the foundation.

“The goal is to raise $50,000 this year,” Adams said.  “In the first quarter, we were able to donate $15,000.

“On June 20th, we held a charity auction at our Dallas location and raised over $11,000, bringing the total to $26,000. We are very excited to see what our second quarter donations come in at,” Adams continued.

Dean added, “I am inspired by the generosity of our dealer partners who want to help and support this local organization. 

“This is an epidemic that is very real right here in Texas, and the support that we have received from our dealers including donated items for our charity auction, has been incredible,” Dean went on to say.

Founded in Texas in 2011, the Alliance mission was to establish personal and trusted relationships with all customers. Alliance is a rapidly growing family of auctions providing vehicle remarketing services to wholesale dealers and for commercial consignors.

A mantra of “Customer Service to the Extreme” is igniting the company’s expansion into new markets, including Abilene, Dallas, Longview and Waco. 

For more information, visit .

Black Book’s June index reflects wholesale market’s ‘resilience’

LAWRENCEVILLE, Ga. - 

Black Book described how the wholesale market is showing its “resilience” based on recent movement of its Used Vehicle Retention Index.

Late Thursday, Black Book released its latest index reading, highlighting that it increased 0.4 percent during June to come in at 113.3. That’s up from the May reading of 112.9.

Editors tabulated that the index has risen 0.3 percent over the last 12 months (113.0).

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition.

Black Book recapped that June saw several car and truck segments make a splash during the month with small cars and SUVs providing the biggest impact to the overall index. Editors indicated that segments making the largest gains included:

— Sub-Compact: up 1.4 percent
— Sporty: up 1.2 percent
— Premium sporty: up 0.7 percent
— Compact: up 0.7 percent
— Compact crossovers: up 0.5 percent

“The used car and truck market continues to show its resilience with several segments continuing to serve as the catalyst in driving overall increases to the Black Book Vehicle Retention Index, long after the spring market has ended,” said Anil Goyal, executive vice president of operations at Black Book.

“We believe that the used-vehicle market strength is reaching its plateau and will return to its pattern of accelerating depreciation as we get deeper into the calendar year,” Goyal continued.

The index dates back 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 percent while during 2016, the index fell by just 6.4 percent. 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.

The index 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 Wholesale Value Index, .

Black Book pinpoints the wholesale segment to watch

LAWRENCEVILLE, Ga. - 

Black Book executive vice president of operations Anil Goyal suggested that dealers watch one particular vehicle segment closely as editors continued to see stability in the wholesale market.

“The used-car market has remained relatively stable overall,” Goyal said in this week’s Black Book Market Insights report. “However, recognizing consistent weekly trends may keep you ahead of the game. Keep an eye on luxury segments.”

Volume-weighted, Black Book reported that overall car segment values decreased by 0.3 percent last week, matching the average decrease for the past five weeks.

Among car segments, editors determined near-luxury cars had the steepest depreciation rate at 0.46 percent or $73.

Again volume-weighted, Black Book indicated that overall truck segment values (including pickups, SUVs and vans) softened by 0.25 percent last week; a bit more than the average of 0.20 percent recorded during the previous four weeks.

Within truck segments, midsize and full-size luxury crossover/SUVs decreased the most last week, sliding by 1.13 percent or $236 and 0.91 percent or $302, respectively.

Meanwhile, the anecdotes Black Book collected from its representatives stationed at nearly 60 sales showed a wide array of activities happening in the lanes. Two of the more informative stories surfaced in the Midwest.

—From Indiana: “Consignment was down, so most everything sold well. New cars have slowed, so dealers are concentrating more on the used side of their business.”

—From Michigan: “The market has shown some softening the last few weeks as high mileage and/or poor condition vehicles have drawn fewer and fewer bids.”

Up in Massachusetts, Black Book’s lane watcher also noticed it was difficult for the hammer to drop on rougher units, relaying, “The market was a little softer this week regarding sold prices. The older vehicles were definitely a challenge.”

Moving South, a recap out of Georgia detailed an upbeat scene as the representative said, “The highline sale was better than expected for a June sale. The values on the sold units were appropriate for the vehicles condition.”

Finally out West, dealers evidently aren’t rolling the dice in the lanes as Black Book’s observer in Nevada stated, “A typical summer market here in Las Vegas as selective mid-size and mid-range valued vehicles prevailed.”

Update on specialty markets

As they do at the beginning of each month, Black Book editors shared their observations of what’s happening in the specialty markets. Here are their thoughts:

—Collectibles: To paraphrase Mark Twain, editors said, “The reports of the demise of the classic American muscle car have been greatly exaggerated. Although muscle cars’ values declined for about a year or so beginning in the summer of 2016, they have since rebounded and are on a yearlong winning streak.”

—Recreational Vehicles: Black Book reported the average selling price of motorized units at auction last month jumped by nearly 10 percent, which equates to roughly $4,000.  

—Powersports: Editors recapped the Powersports market has reached its traditional high point for wholesale values this month, and prices reflect that for most segments.

—Heavy Duty: During June, Black Book noticed heavy duty auction activity surged with more buyers and trucks, while the mileage on the trucks continues to increase and the wholesale values continue to decline.

—Medium-Duty: In June, editors determined that older units (from model year 2007 through 2014) dropped by an overall weighted average of $70 or 0.4 percent, which is $47 less than the adjustment they saw in May. “We did not see too much movement in the older units at auction from Class 3 through Class 6 in June,” editors said.

Kontos highlights 2 factors that kept May wholesale prices from dropping significantly

CARMEL, Ind. - 

KAR Auction Services chief economist Tom Kontos pointed out two specific reasons why May wholesale prices registered only a “modest” move lower year-over-year.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used-vehicle prices in May averaged $11,114. That figure was flat compared to April and down a “modest” 0.2 percent relative to May of last year, according to Kontos.

The latest installment of the Kontos Kommentary released on Monday also mentioned that average prices softened on a year-over-year basis for both cars and trucks, with mostly month-over-month declines for cars and mostly month-over-month increases for trucks.  Kontos spotted a notable exception among the truck classes was the compact SUV/CUV segment, “which showed a seasonal decline perhaps reflective of the fact that these vehicles are starting to return to the wholesale market in larger numbers after several years of strong new-vehicle sales.”

Kontos also recapped that average wholesale used vehicle prices registered their third consecutive year-over-year price decline in May.

“However, prices were again seasonally strong, and retail used vehicle sales were solid, especially for independent used-vehicle dealers,” he said. “Wholesale prices remain strong for off-lease vehicles, which, as noted last month, is testimony to the effectiveness of upstream sales in preventing oversupply of these units at physical auctions.”

To reinforce that assessment, Kontos again shared metrics for two specific segments that are 3 years old with less than 45,000 miles.

When holding constant for sale type, model-year age, mileage, and model class segment, prices were up on a year-over-year basis for both midsize cars and midsize SUV/CUVs. Midsize car prices rose 3.5 percent or $408 to $11,943, while midsize SUV/CUV prices climbed 2.6 percent or $538 to $20,858.

“As noted last month, this analysis indicates that wholesale values for off-lease units are holding up well despite the overall softening market trend and is evidence of the effectiveness of new remarketing approaches in redistributing supply into various sales channels and geographically,” Kontos said.

Kontos relayed other ADESA information from May that showed average wholesale prices for used vehicles remarketed by manufacturers were down 2.0 percent month-over-month and up 5.7 percent year-over-year.

Prices for fleet/lease consignors ticked up 0.8 percent sequentially and 6.8 percent annually.

Average prices for dealer consignors dipped 1.5 percent versus April and 3.2 percent relative to last May.

Finally, Kontos closed with data from the National Automobile Dealers Association that indicated retail used-vehicle sales by franchised dealers slipped 1.5 percent year-over-year in May but climbed 2.4 percent for independent dealers.

He added that May certified pre-owned sales were up 12.5 percent from the prior month and up 4.8 percent year-over-year, according to figures from Autodata.  On a year-to-date basis, CPO sales are up 2.2 percent versus last year.               

Kontos elaborated more about the wholesale market in a as well as at the top of the page.  

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   May 2018  April 2018  May 2017  Prior Month  Prior Year
           
 Total All Vehicles  $11,114  $11,116  $11,1401  0.0%  -0.2%
           
 Total Cars  $8,662  $8,778  $8,955  -1.3%  -3.3%
 Compact Car  $6,483  $6,562  $6,836  -1.2%  -5.2%
 Midsize Car  $7,626  $7,701  $7,967  -1.0%  -4.3%
 Full-size Car  $7,845  $7,753  $8,395  1.2%  -6.5%
 Luxury Car  $13,304  $13,474  $13,767  -1.3%  -3.4%
 Sporty Car  $14,453  $14,625  $14,310  -1.2%  1.0%
           
 Total Trucks  $13,200  $13,139  $13,247  0.5%  -0.3%
 Minivan  $9,939  $9,901  $9,117  0.4%  9.0%
 Full-size Van  $13,636  $13,807  $13,360  -1.2%  2.1%
 Compact SUV/CUV  $11,051  $11,096  $10,877  -0.4%  1.6%
 Midsize SUV/CUV  $11,449  $11,425  $11,860  0.2%  -3.5%
 Full-size SUV/CUV  $14,291  $13,878  $14,077  3.0%  1.5%
 Luxury SUV/CUV  $18,678  $18,645  $19,321  0.2%  -3.3%
 Compact Pickup  $9,422  $9,407  $9,368  0.2%  0.6%
 Full-size Pickup  $16,278  $16,137  $16,778  0.9%  -3.0%

Source: ADESA Analytical Services.

Dealers Auto Auction Group acquires another Tennessee facility

FRANKLIN, Tenn. - 

Dealers Auto Auction Group continues to spread its reach throughout the Southeast.

The company announced that it has purchased Tri-Cities Auto Auction in Bluff City, Tenn. A news release indicated the auction will be renamed Dealers Auto Auction of East Tennessee. 

The facility operates with four lanes along with detail and mechanical departments and offers more than 250 units every Wednesday starting at 10 a.m. ET.

The company added that Gary Montgomery will continue as general manager.

“We are very excited with the acquisition of Tri-Cities Auto Auction into the DAAG family,” Dealers Auto Auction Group chief executive officer David Andrews said.

“We feel that this location is a good fit within the overall footprint of our auctions and will be able to offer our customers another outlet to buy and sell their vehicles,” Andrews continued.

With the purchase of this operation, Dealers Auto Auction Group now possesses seven locations. Dealers Auto Auction Group was started back in 2001 with its first auction in Horn Lake, Miss. The company portfolio now includes:

— Dealers Auto Auction of Jackson
— Dealers Auto Auction of Memphis
— Dealers Auto Auction of Murfreesboro
— Dealers Auto Auction of Chattanooga
— Dealers Auto Auction of Huntsville
— Dealers Auto Auction of Mobile
— Dealers Auto Auction East Tennessee

Scott Keener, director of operations for DAAG added, “DAAG has a business growth plan to expand our footprint over the next five years, and this acquisition is one of many more to come.”

For more information, visit .

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