Manheim appoints 2 new Southeast GMs


Manheim recently announced it has appointed Noel Kitsch as general manager of Manheim Georgia and Joey Satfield as general manager of Manheim Fort Myers.
Kitsch most recently served as senior assistant general manager at Manheim Central Florida.

He joined Manheim in 2001 as a dealer sales representative before taking on various roles with increasing responsibility, according to the company.

Kitsch’s past roles include acting as both the assistant general manager and dealer services manager at Manheim Orlando as well as serving as assistant general manager at Manheim Dallas.

“Noel’s record of exceeding company goals and client expectations, along with his ability to build strong client relationships and effective teams, make him a terrific fit for Manheim Georgia,” Manheim regional vice president, Southeast Mark Ford said in in a news release.

Satfield most recently worked in partnership with clients utilizing Cox Automotive products and services as assistant general manager at Manheim Kansas City.

He served as dealer services manager at Manheim Orlando prior to his role at Manheim Kansas City.

“In his new role, Joey will help Manheim Fort Myers deliver strong year-end results for Manheim and its clients,” said Tim Janego, Manheim regional vice president, East.

Satfield began his career at Manheim in 2013 as a field sales representative at Manheim Lakeland.

KAR leaders talk hurricanes, acquisition strategy & more

CARMEL, Ind.  - 

It was quite the quarter and it has been quite the year for KAR Auction Services.

The multi-pronged impact from two hurricanes that bear some influence on KAR’s whole-car and salvage auction businesses.

Purchasing DRIVIN and Dependable Auto Shippers, and buying the remaining interest in TradeRev.

All while keeping pace with a dynamic wholesale marketplace that is going increasingly digital, as business unit ADESA’s latest gain in online sales would indicate.

Shortly after KAR released its quarterly earnings, chief executive officer Jim Hallett and chief financial officer Eric Loughmiller talked with AuSM by phone about some of these matters and more.

Salvage impact from hurricanes

In terms of how it affected the company’s operations, Hurricane Harvey’s wrath in Houston — with its extreme flooding — outweighed the impact from Hurricane Irma in Florida.

“For Insurance Auto Auctions, it means getting into the market. It means acquiring additional land, getting the equipment,” Hallet said, including items like loaders, IT equipment, mobilizing the “ground force” and having the tow-truck driver network en route quickly.

“That all takes a lot of effort and a lot of focus, and the IAA team has really done a good job,” Hallett said. “We’ve learned from past experiences and we’ve put together what we call a CAT team. And the CAT team is ready to respond at any given event.

“But then, we’re also able to add resources from across the entire KAR network, where we had a number of employees volunteer to go and work with the IAA team,” he said, saying it was a nice boost for the company.

However, he emphasized that the “the real work starts happening long after the music stops, after the press stops writing about it.”

IAA is beginning to process those storm-impacted vehicles. It had sold less than 1,000 flood vehicles in the third quarter, Hallett said, but more of those cars are going to be sold over next two quarters.

“It sounds like it’s great, we get all this volume. But in order for us to be efficient, process as quickly as possible — which meets the demands of the insurance companies — we incur a lot of costs, so we don’t make any money,” Loughmiller, the KAR CFO, said of the IAA impact.

“It’s not like our normal business. So it’s volume that doesn’t produce profits. In every other major storm, though, the period that follows is typically very good for the industry,” he said. “Because while those cars are being sold, we find that cycle times slow down on collisions and things like that. So it’s historically been good for our business following the period in which we sell those vehicles.

“It will not be a long-term negative in the case of Harvey and Irma, but it will be revenue that won’t generate a lot of bottom-line profit,” Loughmiller said.

Online ADESA volume spikes

Turning to the ADESA whole-car auction side of the business, Hallett said the impact of the storms largely had a boost: “There was some slight shutdowns and slowdowns at ADESA physical auctions, just because the storms kind of brought things to a halt in that area. But overall, there were a lot of cars lost in that Houston market. And again, nobody knows for sure how many cars have been lost. We’ve heard all kinds of numbers.”

Suffice to say, it’s in the hundreds of thousands, Hallett said. “All those cars need to be replaced.”

There are 13 ADESA auctions that are within a couple of hours of Houston, Hallett said, and those were “very active” in the storms’ aftermath.  

“But maybe more active was our OPENLANE technology platform,” he said.

“Because that platform reaches across the entire nation,” Hallett said, “and you don’t have to wait until sale day to buy a car. You can buy a car 24/7, any day of the week. So, those sites were very, very active. They sold a lot of vehicles online. Our online sales were up 34 percent in the quarter, and our physical sales were down 1 percent.”

The 34-percent spike in online volume was “not totally, but heavily impacted” by the storms, Hallett said.

It also was the highest growth rate they had experienced since the first half of 2014, which was early stages of the cyclical recovery, Loughmiller said.

And not only does this illustrate just how much online buying there was, it also speaks to KAR’s strategy of offering “all the venues” wherever dealers want to buy the vehicles, Loughmiller said.

So what else drove such a massive spike?  Loughmiller points out, “that’s where the supply starts (at) what we call the top of the funnel … I don’t know that it was demand-driven.

“If you read what the dealers are saying, they’re actually selling the cars now,” Loughmiller said. “Those dealers in Texas knew they had to start accumulating inventory for when the buyer came to their lot.”

Since the inventory was showing up online first, dealers thought it prudent to buy there because there was a “good chance” it would have been sold before the dealer could have bought it in his or her market.

Loughmiller later added, “And we experienced this when there was a shortage of vehicles; you get the inventory when you can.”

The boost in online sales also as a trickle-down impact in the sense that when online sales go up, so does the need for transportation, Hallett said, which KAR provides in the form of CarsArrive. It also leads to a greater need for additional financing from AFC.

“Even though our cars financed weren’t up, it was still more active than it would have normally been, I believe,” Hallett said.

Hallett went on to note that the storms tend to have far-reaching impacts into other ancillary services of ADESA, including the key-related services of subsidiary HighTech Locksmiths.

Acquisition strategy

In a quarterly and year-to-date earnings slide deck, KAR includes a year-by-by breakout of its strategic investments.

After two years that included, among other investments, a heavy assortment of brick-and-mortar auction purchases, the 2017 acquisitions have included DRIVIN, Dependable Auto Shippers and the remaining interest in TradeRev.

Does that indicate a shift in the strategy?

No, Hallett says.

“I would tell you that I don’t think the strategy has shifted. I think that we’ve identified some new opportunities,” Hallett said. “I would tell you I don’t believe that brick-and-mortar is done, and there’s probably some brick-and-mortar auctions that we would still be interested in if they become available. And we think there’s a balance there.”

He added: “Brick-and-mortar doesn’t just give you the opportunity to sell cars in the physical environment, but it adds to your buyer base, it adds to you online buyer base, it adds to your ancillary services. It’s that network effect, again; it really allows you to build your business in all your different revenue streams.

“Now, with that said, we also recognize that it’s a world that is focused on data and transformation. And our customers were asking us for better information. They wanted us to be able to take our data, along with their data, and as we’ve talked (about) before, turn that into actionable intelligence or predictive analytics to help them make better buying and selling decisions,” Hallett said.

“And I can tell you that’s not a hard product to sell. The customers are lined up. We’re currently in pilot with several major customers who are using our data and our pricing,” he said. “So that was a real need that the customers had. If you think about it, a customer has data on their own vehicles. We have data on millions of vehicles.”

And again, a big piece of that overall strategy includes TradeRev. As Hallett said during the preceding conference call with the investment community, “Clearly, the industry is going more digital and TradeRev creates a digital wholesale venue. I also see the opportunity to expand their total addressable market by getting a piece of the dealer-to-dealer market that has never used auctions.

“And as you know, TradeRev is a tool that allows franchise dealers to sell more new cars, take more trade-ins with real-time money and bottom line, and allows the dealers to make more money overall. This is just another channel for cars to change hands, and I'm truly excited about the opportunities TradeRev provides for KAR, and it's now time to put the full force of all the resources behind the efforts that are going on at TradeRev.” 

Why Black Book and GM Financial see ‘steady’ and ‘stable’ wholesale market


Leaders from Black Book and General Motors Financial recently used the adjectives “steady” and “stable” when describing how the wholesale market is behaving.

The latest Black Book Market Insights report indicated used vehicles across most segments are depreciating at a “steady” rate. Editors determined only two vehicle segments — compact vans and sub-compact luxury crossovers — maintained or increased their value.

“Used-vehicle prices and sale conversion rates at the auctions hold firm. Post-hurricane sales activity continues but is slowing down in the Houston region,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.

GM Financial president and chief executive officer Dan Berce touched on the used-vehicle space when the captive conducted its conference call to discuss its third-quarter performance.

“And a few more comments on the state of the used-car market. Our disposition proceeds on returned leased vehicles compared to estimates at origination in the September 2017 quarter were generally stable both year-over-year and sequentially,” Berce said.

“And based on recent used-car pricing trends that have remained more favorable than previously expected and the temporary impact from Hurricanes Harvey and Irma, we now expect used-car prices to decline less than 7 percent during 2017 compared to 2016, which was our previous guidance. But we do continue to expect the increased supply of used-car vehicles to pressure used vehicles into 2018,” Berce went on to say.

Getting back to Black Book’s latest analysis, editors noticed that based on volume-weighted information, overall car segment values decreased by 0.37 percent last week, similar to the average weekly decrease of 0.41 percent in values they spotted during the previous four weeks.

Black Book pointed out that the sub-compact car and compact car segments were the best performers last week.

Again looking at volume-weighted data, editors noted that overall truck segment values (including pickups, SUVs and vans) softened by 0.21 percent last week, nearly mimicking the similar the average weekly dip of 0.24 percent in values recorded during the previous four weeks.

While minivans declined the most, Black Book mentioned there was renewed demand for compact vans.

Turning next to what Black Book’s representatives shared from the lanes, the rundown began the same as it has since early September with an update on what’s happening in Texas.

“Post-hurricane sales activity continues in the Houston area. Several new buyers from just outside the Houston metro are showing up to purchase inventory at the auctions,” Black Book’s lane watcher in the Lone Star State said.

Where storms also hit, the story is slightly different.

“Older cars seem to be the focus for many dealers in our market. Buyers are being more selective in recent weeks.” Black Book’s representative stationed in Florida said.

Black Book also gathered two other anecdotes from the Southeast.

— From Tennessee: “Nice, clean vehicles with a little age on them continue to thrive. This is especially the situation with the pickup truck market.”

— From Georgia: “A good sale for this time of year, and the prices were consistently solid.”

Two other reports from the lanes originated in locations where the weather already has turned much cooler.

— From Pennsylvania: “Sales conversions and prices continue to hold firm.”

— From Indiana: “Retail remains pretty good here, but prices have slipped a little as has the consignment.”

Barrett-Jackson charity sale raises $1 million for Las Vegas first responders


Barrett-Jackson recently raised $1 million for Las Vegas first responders during its 10th annual Las Vegas Auction at the Mandalay Bay Resort and Casino.

The five charity vehicles featured in the sale included a rare 2007 Ford Shelby GT500 Super Snake owned by Barrett-Jackson president Steve Davis, which sold for $1 million, according to Barrett-Jackson.

“As a former police officer, I understand the incredible heroism that was shown by Las Vegas’ first responders during the recent tragedy,” Davis said in a news release. “This Shelby is an incredibly special car to me, and I’m grateful to be part of the Barrett-Jackson family and show that we are all Vegas Strong. We are all America Strong.”

The 1 million will benefit Las Vegas first responders through the Injured Police Officers Fund.

The organization’s mission is to help lessen the financial burden suffered by first responders, trauma personnel, nurses, police officers and their families in the event of a line of duty injury or death.

“Our hearts go out to the hundreds of families and friends who were victims in October 1st Las Vegas mass shooting,” said Minddie Lloyd, executive director of the Injured Police Officers Fund. “These were our fellow Nevadans, our friends. Like the rest of the world, we mourn with you. In the face of this tragedy, there was so much courage: From first responders charging into the middle of the chaos to everyday citizens who helped remove and get the wounded to emergency care.

“We may never fully understand in this life why we face tragedies of sorrow, pain and suffering; at least over 500 people injured, and 58 innocent lives lost. But it is important to know that we trust in our community and Steve Davis and Barrett-Jackson. From The Injured Police Officers Fund please know we will be by your side. Nevada will not fail you,” she went on to say.

The winning bidder of the 2007 Ford Shelby GT500 Super Snake is Paulette Carpoff, chief operating officer of DC Solar.

“DC Solar is proud to be a part of the Las Vegas community. We want the first responders to know, especially in the wake of the recent tragedy, that we stand with you and we are proud to help however we can,” Carpoff said.

ServNet adds Metro Auto Auction Phoenix

FRANKLIN, Tenn.  - 

The ServNet Auction Group has added another member: Metro Auto Auction Phoenix.

The auction, which opened in 2007, is led by managing partner Tom McDermott and is part of the Berkshire-Hathaway Automotive Group.

ServNet last added an auction in November 2016, when Houston Auto Auction joined the group. In October of last year, ServNet added Louisiana’s 1st Choice Auto Auction as a member.

There are now 21 member auctions of ServNet, based on a membership list on the ServNet website.

“We are very pleased to report that Metro Auto Auction of Phoenix will carry the ServNet banner,” ServNet president Eric Autenrieth said in a news release. “Tom McDermott leads a facility that is a leader in its region, with a long-established and vibrant influence in the Southwest.

“ServNet continues to seek the strongest independent auctions in key markets across the country, and the addition of Metro Auto Auction Phoenix helps to extend the reach of our service from coast to coast, and from Florida to Alaska,” he said.

Metro Auto Auction Phoenix holds its weekly sale each Tuesday, typically offering more than 1,600 units. Its consignors include more than 70 franchised dealers, large independent dealers, Kia and U-Haul. The auction also sells cars for financial institutions, credit units, rental car companies, leasing firms and has a monthly sale for the General Services Administration.

“ServNet has made an indelible mark on the remarketing industry by clarifying the strengths of the independent auction, setting benchmarks in the scope of services that are vital to the auction customer,” McDermott said.

“I have great respect for the bright and experienced business leaders who own the ServNet auctions, and I look forward to collaborating with them to bring the benefits of the ServNet brand to institutional customers as well as the dealer body in our market area,” he said.

Metro Auto Auction also has a sister auction in Dallas, but this specific move just includes the Phoenix auction.

Auction Edge brings on new exec, reaches over 115 EDGE Simulcast customers


Auction Edge announced Friday it has attained over 115 customers running its EDGE Simulcast platform powered by Velocicast and brought aboard new senior vice president Julie Warpool to oversee the augmentation of all the company's auction systems.

“In partnership with the developers behind Velocicast we committed to crafting an unparalleled user experience for auction user, buyer and seller. The volume of vehicles running through the system coupled with tens of thousands of buyers channeled through Edge Pipeline create a truly immersive experience for all parties,” Auction Edge chief executive officer Dan Diedrich said in a news release.

Auction Edge began offering its multi-lane, multi-auction bidding platform fitted with a modern and intuitive interface design earlier this year, according to the company.

“Since changing simulcast providers to EDGE Simulcast powered by Velocicast nearly three months ago, we have experienced nothing but good things,” said Shawn Glatz, general manager at Morton Auto Auction. “We are hearing great back from our online buyers as well as commercial consignors who utilize the online rep capabilities. The ease in which they both can conduct their business is what it is all about. We couldn’t be any happier with the product and the service we are receiving.”

Warpool has been in automotive remarketing for over 25 years, according to Auction Edge. She spent the last 17 years with Manheim/Cox Automotive, where she served in positions as senior director of vehicle solutions, operational excellence, product strategy and technology.

“Julie has a proven history of innovation, but as importantly, execution in our industry. Julie’s skillset, mindset and experience align perfectly with our mission to modernize and deliver the solutions our customers need,” added Diedrich. “Moreover, Julie will assist us in the evolution of all Edge products to help keep auctions relevant, resilient and on the leading edge for years to come.”

Additionally, Warpool is recognized as an architect of enterprise-wide technological and operational solutions.

She has several patents for live-bid event online auction platforms, vehicle inspection/damage estimation and digital imaging systems, according to Auction Edge.

“It’s so exciting to become part of Auction Edge and help carry out the vision of evolving the universe for independent auctions,” Warpool said.

“There are a few things that attracted me to Edge. The first is the opportunity to give back to an industry that I’ve grown up in and unleash a common vision that the Edge team’s share. Second, is the culture and the people. The folks I’ve met are excited to come to work every day and there is a buzz about what can be accomplished. It’s wonderful to see inspirational teams who give their all and think beyond the possible,” she went on to say.

Warpool began her auction career in 1992 at ADT Automotive, which was acquired by Manheim in 2000.

Storm-theme wholesale song plays again in September

CARMEL, Ind., and STAMFORD, Conn. - 

An accomplished musician beyond his analytical chops, KAR Auction Services chief economist Tom Kontos has previously seen a storm-themed song play its familiar tune in the wholesale market.

The company’s latest data showed the melody showed up again in September.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in September averaged $11,046, representing a lift of 0.9 percent compared to August and 2.9 percent relative to September of last year.

“Average wholesale prices in September were up month-over-month and year-over-year, bolstered by dealer demand in the hurricane-stricken regions,” Kontos said. “This impact may be waning and prices are likely to resume the softening pattern seen prior to these catastrophic events.

“In short, Harvey and Irma seem to have resulted in an impact to wholesale prices like that seen in the aftermath of Sandy: A lift of limited duration, geographic scope, and magnitude, but a lift nonetheless,” he continued in his latest Kontos Kommentary that also includes or via the window at the top of this page.

“Another underlying factor is the stop-sale of manufacturer units involved in recalls, which is keeping some of the supply growth, and the inevitable downward pressure on prices, at bay,” Kontos went on to say. “This, too, should resolve itself with time, resulting in a return to the softening price trend seen previously.”

Though truck segments outperformed car segments, Kontos explained prices moved higher for both groups, unlike in previous months when car prices often softened while truck prices climbed. 

“This could be indicative of greater balance in the supply of both groups of vehicles, whereas previously trucks were in relatively short supply,” Kontos said.

Looking again at a specific wholesale segment that’s become a staple of his monthly updates, Kontos pointed out that fleet and lease sales of two particular kinds of vehicles with 36,000 to 45,000 miles produced price climbs on a year-over-year basis in September.

Prices for midsize cars in this space rose by $304 or 2.7 percent to $11,641 while prices for midsize SUVs and CUVS jumped by $710 or 3.7 percent $19,767.

“Last month, when midsize SUV/CUV prices were down in this table, we suggested that prices might turn up in the aftermath of Harvey and strong truck demand in Texas. This appears to have been the case,” Kontos said.

That Texas truck demand also might have surfaced in the latest data from RVI Group, which saw both is real and nominal Used Vehicle Price Index climb on a sequential basis in September.

RVI Group indicated its September real index reading for full-size trucks climbed 2.7 percent month-over-month and 3.6 percent year-over-year.

Analysts found the RVI Used Vehicle Price Index (Real) increased from August to September by 1.8 percent. However, when compared to September of last year, prices were down by 0.4 percent.

Their Used Vehicle Price Index (Nominal) also moved 1.8 percent higher in September when compared to August. When compared to September of last year the index increased by 1.4 percent.

Turning back to ADESA’s September information, Kontos mentioned average wholesale prices for used vehicles remarketed by manufacturers were down 0.7 percent month-over-month and up 4.1 percent year-over-year. 

Prices for fleet/lease consignors rose 0.2 percent sequentially and 3.6 percent annually.

Average prices for dealer consignors ticked up 0.5 percent versus August and 5.7 percent relative to September of last year.

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   September 2017  August 2017  September 2016  Prior Month  Prior Year
 Total All Vehicles  $11,046  $10,947  $10,731  0.9%  2.9%
 Total Cars  $8,777  $8,732  $8,663  0.5%  1.3%
 Compact Car  $6,682  $6,624  $6,495  0.9%  2.9%
 Midsize Car  $7,785  $7,639  $7,518  1.9%  3.6%
 Full-size Car  $7,243  $7,063  $7,608  2.5%  -4.8%
 Luxury Car  $14,007  $14,003  $13,769  0.0%  1.7%
 Sporty Car  $13,930  $13,903  $13,353  0.2%  4.3%
 Total Trucks  $13,182  $13,036  $12,735  1.1%  3.5%
 Minivan  $9,059  $8,777  $8,383  3.2%  8.1%
 Full-size Van  $13,005  $13,009  $13,457  0.0%  -3.4%
 Compact SUV/CUV  $10,673  $10,468  $10,525  2.0%  1.4%
 Midsize SUV/CUV  $11,430  $11,407  $11,655  0.2%  -1.9%
 Full-size SUV/CUV  $13,740  $13,353  $13,255  2.9%  3.7%
 Luxury SUV/CUV  $19,205  $18,947  $18,591  1.4%  3.3%
 Compact Pickup  $9,591  $9,599  $8,608  -0.1%  11.4%
 Full-size Pickup  $16,964  $16,989  $15,878  -0.2%  6.8%

Source: ADESA Analytical Services.

Manheim to host charity auction for NIADA Foundation at NABD event

ORLANDO, Fla. - 

The National Alliance of Buy-Here, Pay-Here Dealers, Manheim and the National Independent Automobile Dealers Association are all rallying during the East Coast BHPH Conference that begins on Monday to help operators still impacted by hurricane damage.

Officials from NABD and Manheim confirmed with AuSM on Friday that a golf cart will be auctioned off by the staff from Manheim Orlando during the conference with the proceeds benefitting NIADA Foundation’s Hurricane Harvey relief campaign.

Officials said the item will be at Manheim’s conference booth, and the sale will take place during Tuesday evening’s networking session.

NABD also highlighted that operators who can’t get away from their stores for all three days of the conference can attend for at least a day. Dealers can gain important training, industry updates and networking opportunities for just $150 on Monday, $250 on Tuesday or $100 on Wednesday. To learn more, call (832) 767-4759.

And in the process, attendees can help NIADA’s philanthropic efforts.

The Disaster Relief Fund was established by the NIADA Foundation to provide a venue for members of the National Independent Automobile Dealers Association and its industry partners to assist fellow dealers and others in the automotive community affected by the recent storms.

The NIADA Foundation is a non-profit 501(c)(3) charitable organization that serves as the focal point of NIADA’s charitable efforts and coordinates the association’s charitable giving.

Perhaps the bidding for this golf cart will generate at least a portion what conference exhibitor gave recently as Spireon contributed $100,000 to NIADA’s charity arm.

The NIADA Foundation will continue to fund hurricane relief efforts in the coming months.

It is not too late to donate. For more information or to contribute, visit .

TradeRev makes 3 executive changes following KAR's purchase of remaining interest

CARMEL, Ind. - 

TradeRev announced three executive changes Thursday, including sales team promotions and additions following KAR Auction Services recent acquisition of remaining interest in the company earlier this month.

In 2014, KAR purchased a 50-percent stake in TradeRev and over the next four years, acquired the remaining interest for $50 million in cash and an additional $75 million.

The company said the new role changes are aimed at both boosting TradeRev’s market expansion and integrating KAR’s capabilities into its buying and selling experience.

TradeRev’s leadership changes include sales and operations executive vice president Keith Crerar, who will take on the additional responsibilities of leading commercial accounts sales and account management for the company's U.S. and Canada markets.

Prior to his current role, Crerar served as vice president of dealer services for ADESA, a business unit of KAR.

Crerar has more than 15 years of automotive industry experience and has been recognized through Nissan’s Club Excellence as one of the top three Sales Managers in the country for five consecutive years, according to TradeRev.

Will Farmer, who most recently served as southeast regional director, managing the southeast sales team and account management for major auto group operations, has been promoted to executive director of dealer sales for the U.S. markets, and will report to Crerar.

In his new role, he will focus on national sales growth and management of TradeRev’s five regional sales teams, according to the company.

Farmer has more than 14 years of experience as a licensed auctioneer, including being president and owner of Farmer Auctions in Virginia. Before heading Farmer Auctions, Farmer worked at ADESA East Tennessee.

Additionally, TradeRev has brought on Vince McNeal to serve as executive director of commercial sales for its U.S. and Canada markets, and he will also be reporting to Crerar.

Since 2013, McNeal has served as executive sales director at ADESA and will continue to oversee a number of KAR commercial clients while serving in his new role, according to TradeRev.

He joined ADESA in 2005 as a dealer sales representative and later transitioned to management and leadership positions, including fleet lease manager and assistant general manager at ADESA Lexington.

Last year, McNeal earned a spot on the Remarketing & Used-Car Industry’s 40 Under 40 list, and Farmer made the list this year. 

When announcing the acquisition of TradeRev’s remaining interest this month, KAR officials highlighted that TradeRev brings mobile and digital technology to KAR’s portfolio of 250 whole car and salvage auctions and floorplan financing solutions.

Auction volume trends entering Q4

CARY, N.C.  - 

Hurricanes Harvey and Irma took a chunk out of auction volumes for late-model vehicles.

According to the latest Guidelines report from J.D. Power Valuation Services, late-model auction volume was down 18.1 percent month-over-month in September. It dropped 9.3 percent year-over-year.

More specifically, auction volume for this age group (vehicles 3 years old or less) was at 213,950 units for the month. That puts year-to-date late-model auction volume at 2.16 million, according to J.D. Power.

On an overall basis (late-model and otherwise) experts were predicting earlier this year that the auto auction industry would set a new sales record of more than 10 million vehicles this year, compared to 9.8 million last year.

Ira Silver, National Auto Auction Association chief economist, said this summer he believes 10 million sales for the industry is on target. Tom Kontos, KAR Auction Services chief economist, said he also believes the industry is tracking to sell “more than 10 million” units this year.

In October, Kontos confirmed that he still believes it will be north of 10 million, indicating that volume might be distributed to the hard-hit areas from places like the Northeast, which have strong off-lease numbers.

However, he doesn’t anticipate the supply itself will be less.

Likewise, in October, Silver confirmed his projection of 10 million auction sales for 2017, saying that October and November would likely make up for the disruptions that happened the prior two months.

Correspondent Arlena Sawyers contributed to this report. 

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