NAAA Acquires IT Firm for Aid in Structural Damage Disclosure


The latest expansion move and membership services upgrade for the National Auto Auction Association came Thursday: NAAA announced it has acquired an information technology company known as Kink Or Bend LLC that can help auction members determine if they need to disclose quarter panel replacement on a vehicle.

The company’s specialty is in developing online resources for auto structure types, and it has compiled all OEM information into one database.

As such, Kink Or Bend has built a search engine on its website based on integrated statistics on 500 vehicle frame parts.

This data is now being offered to NAAA’s more than 300 members for free. NAAA is providing this information to members to help them comply with the structural damage disclosure policy.

The site can be accessed via or .

The decision to make a structural damage announcement is not one to take lightly, given how it can lead to branding the vehicle’s history report permanently and high costs for the seller. In fact, Kink Or Bend research indicates that a structural damage announcement costs a seller an average of $2,500.

“Because it can have a direct impact on vehicle values we wanted to provide our members with an efficient tool for making the decision on structural damage disclosures,” said NAAA president Jack Neshe. “Kink Or Bend offered a search engine that streamlined the process, making it faster and easier to comply.”

With a recent revision of the NAAA Structural Damage Policy regarding quarter panels, an announcement of such damage is only required if it is deemed structural per the OEM.

Otherwise, NAAA said, no disclosure is needed.

“And finding out you don’t have to make that announcement can result in significant savings,” Neshe noted.

NAAA chief executive officer Frank Hackett said NAAA is currently transferring the data and website administration to Auto Auction Services Corp. (known as AutoIMS).

“The website will shut down later this year and the data will be managed by AutoIMS — the No. 1 supplier of inventory management systems to commercial accounts and auctions in North America,” Hackett added. “We’re working closely with AutoIMS to make the transition seamless and will make a joint announcement at the NAAA Convention in Boston next month.”

Also clarified and defined within NAAA’s Structural Damage Policy are the various terminology associated with structural damage. It also specifies the seller’s disclosure requirements for cars up for sale at NAAA affiliated auctions.

The intent of the policy is to provide the buyer adequate disclosure so he or she can make an informed purchase decision, and it also intends to limit arbitrations for the seller, NAAA said.

“We’d been discussing the idea of creating a service to help our members with meeting the structural damage disclosure requirements but the cost of assembling a database and building our own search engine from scratch was substantial,” Hackett explained.

“So after months of negotiations, we finalized the purchase of Kink Or Bend,” he added. “It was the right thing to do because we couldn’t have duplicated all their work for the amount we paid and the wealth of information we could make available to our members almost immediately.”

1 Week Until Auction Life Photo Deadline

CARY, N.C. - 

For any NAAA-member auctions interested in participating in AuSM’s “Auction Life” feature — which is part of our annual National Auto Auction Association Convention Issue — the deadline to submit photos is one week away. 

This special section of our NAAA Issue will include photos from auctions across the country, sharing bits of the day-to-day life from the past year at these outstanding businesses.

These photos can run the gamut: We want to see everything from the daily business operations and sales days to the life and fun that occurs at your auction (for example: cookouts, special events, holiday parties, team-building activities, etc.)

They will need to be in high-resolution, JPG format. Please send captions, if they are available, as well. And while we strongly encourage these photo submissions, we won’t be able to print every photo.

Once again, as a bonus, we will also be running some photos in our digital version of the magazine as an Online Extra.

Not sure what kind of photos to send? Look to the Auction Life magazine spread from last year — which starts on page 36 of our  — and the online extra slideshow from last year (digital button at upper ) to spur those ideas!

Thank you very much for your assistance with this project. The entire AuSM team is very excited to see what your auction has to share!


Auction Volume Continues to Climb


Auction volume in July was up nearly 4 percent year-over-year, as was year-to-date volume, according to the latest Economic Dashboard prepared by Ira Silver, the chief economist for the National Auto Auction Association.

More specifically, against comparable weeks of 2013, auction volume was up 3.7 percent for July, with year-to-date numbers up 3.9 percent.

Used auto sales fell 1.9 percent in July, but are 0.5 percent ahead year-to-date through July. New-car sales climbed 4.5 percent in July, with yearly figures up 4.3 percent.

Looking at how the auction market has trended in recent years, there were increase in both the number of units that have entered auction lanes and the number of units sold in 2012 and 2013. That is according to the 2013 NAAA Annual Review, which is part of the 2014 Used Car Industry Report from the National Independent Automobile Dealers Association.

Specifically, here is how those numbers played out, as illustrated in the NAAA data:

2011: 13.8 million units enter lanes, 7.7 million sold
2012: 14.5 million units enter lanes, 7.9 million sold
2013: 15.2 million units enter lanes, 8.2 million sold

Conversion rates dipped modeslty from 55.8 percent in 2011 to 54.2 percent in 2012, but they held steady at 54.2 percent in 2013, according to the report.

Manheim Tampa to Host 25th Anniversary Sale

TAMPA, Fla. - 

In an effort to recognize its customers and celebrate a significant milestone, Manheim Tampa will host a 25th anniversary sale on Thursday.

More than 2,500 units are expected for the regular weekly consignment sale at Manheim Tampa beginning at 9 a.m. ET on Thursday. The auction will be giving away rock ''n' roll gift baskets, iPads, large screen TVs, Xbox systems, Hard Rock Cafe gift cards and more prizes during Thursday’s sale.

On Wednesday night, the auction will host a “social hour” from 6 p.m. to 7:30 p.m. at the auction with live entertainment for dealers and commercial clients. 

“We would like to thank all of our employees for their dedication to our auction,” Manheim Tampa general manager Mark Willey said.

“I also want to extend appreciation to our loyal customers who continue to buy and sell vehicles at our operating location,” Willey continued. “We want to pay special tribute to our customers this week.”

Manheim Tampa, which opened in 1989, is located at 401 S. 50th St., in Tampa, Fla. It is among 78 auctions in North America that are part of Manheim. The auction features 14 lanes, a paint and body shop, and offers mechanical shop and reconditioning services.

The Tampa location employs 187 people.

New Manheim eGate Pass Process Launched

GILBERT, Ariz. - 

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 .

National Auto Auction Week is Upon Us


National Auto Auction Week, a celebration of the auction industry and a time of thanksgiving for facilities across the country, kicks off Monday and runs through Friday.

In a letter to National Auto Auction Association members posted to the organization’s website, NAAA president Jack Neshe reflected on what this week means for the industry and shared the various accomplishments auctions have achieved as of late.

“I know you and I share an enthusiasm and pride in being part of the auto auction industry, along with a sincere appreciation of those who help make our business a success,” Neshe wrote in . “National Auto Auction Week is a time to say ‘Thank You’ to our customers, employees, family, friends and neighbors whose support makes all our achievements possible.”

Among those achievements was a banner year in 2013, one where Neshe notes that NAAA members sold 8.2 million cars — a sum of gross revenue totaling $75.7 billion.

But it’s not just the economy that auctions benefit, Neshe points out.

“In addition to that major economic impact, auto auction members like you contribute to the wellbeing of individual communities across the continent by generously sharing your success through public service and philanthropic activities,” he wrote.

“As NAAA president, I'm proud of the positive role we play in making a difference in both the national economy and the local community,” Neshe added. “National Auto Auction Week is a time to show our gratitude to those who contribute to the success of our auctions.

“I am truly grateful for all you and your staff do to make our association and industry what it is today. I look forward to seeing you at the convention in Boston next month!”

AuSM will have full coverage of the NAAA Convention both online and in print, including our annual Special Convention Issue on-site. Stay tuned for more coverage of National Auto Auction Week. More information can also be found at .



Get Your Auction's Photo in AR's NAAA Issue

CARY, N.C. - 

AuSM’s annual National Auto Auction Association Convention Issue is just around the corner, and we are once again inviting NAAA-member auctions to participate in our “Auction Life” feature.

This special section of our NAAA Issue will include photos from auctions across the country, sharing bits of the day-to-day life from the past year at these outstanding businesses.

If you would like to submit photos of auction(s) to be included in this special section, please email them to AuSM editor Joe Overby at [email protected] no later than 5 p.m. EST on Thursday Aug. 28.

These photos can run the gamut: We want to see everything from the daily business operations and sales days to the life and fun that occurs at your auction (for example: cookouts, special events, holiday parties, team-building activities, etc.)

They will need to be in high-resolution, JPG format. Please send captions, if they are available, as well. And while we strongly encourage these photo submissions, we won’t be able to print every photo.

Once again, as a bonus, we will also be running some photos in our digital version of the magazine as an Online Extra.

Not sure what kind of photos to send? Look to the Auction Life magazine spread from last year — which starts on page 36 of our  — and the online extra slideshow from last year (digital button at upper ) to spur those ideas!

Thank you very much for your assistance with this project. The entire AuSM team is very excited to see what your auction has to share!

Dealer Groups' Used-Car Initiatives May Actually Boost KAR


With over 200,000 off-lease vehicles set to hit the remarketing channels this year, KAR Auction Services has much to look forward to, both in its online and physical auction channels — an environment company management said is “full of opportunity” during the company’s presentation at the J.P. Morgan 2014 Auto Conference.

But others in the industry are eying expanding used supply, as well, such as the publicly traded dealer groups, some of which have made significant moves into the used-car space lately.

For example, Sonic has been reaping the benefits of its in-house Sonic Inventory Management System (SIMS), as well as its standalone used store concept One Sonic-One Experience.

And Asbury announced back in April the launch of the standalone used Q Auto brand.  

During the Q-and-A portion of the KAR presentation, investors were curious as to whether these pushes would have any impact on KAR Auction Services, since some of the initiatives include bypassing the traditional auction and exchanging inventory between dealerships.  

Eric Loughmiller, executive vice president and chief financial officer at KAR Auction Services, said that these initiatives, in fact, have the potential to boost the company’s performance rather than hinder it.

“Of course they (pre-owned initiatives from public dealer groups) may have some kind of impact because they are exchanging cars between dealers, but the potential impact for us anytime there is movement of cars between dealerships is positive for our industry,” he said.

Loughmiller explained that KAR is still garnering revenue, even as dealers are “moving inventory around amongst themselves.”

“The reason is there is a lot of things we do that enhance that service. Look at the fee structure, it’s fairly nominal. We are getting $680 at auction when vehicles move from one dealer to another. And when you cut it down to online only for open-sales, its $300,” he said. “And guess what, with that fair value you create price discovery even amongst the individual locations within a national retail group.”

He also touched on the fact that many general managers rely on fair auction pricing for acquiring and selling inventory.

“As you know their general managers are compensated on local store performance. So it is very important that there is an accurate price when they turn inventory around,” Loughmiller said.

Jonathan Peisner, treasurer and vice president of KAR, chimed in, noting KAR has had a hand in the dealer-to-dealer selling space in the past, as well — an area that may hold more opportunity in the future when looking at the used initiatives of many of the publicly traded dealer groups as of late.

“We participate in the dealer-to-dealer selling space, as well. We put out a release for Prestige Auto Group in terms of helping them trade inventory among their various stores,” said Peisner. “So that’s another opportunity.”

KAR management also sees used superstores as a great boon to the company’s business, as more dealer groups launch standalone used stores similar to the CarMax model.

“The used superstores are great for us because it focuses on people who are retailing and marketing used cars to the consumer, and they have to get their inventory somewhere," Loughmiller said.

And even though many of these standalone used stores will be using newly developed inventory systems, such as SIMS, Loughmiller said this won’t put a damper on KAR sales.

He explained this assertion has a lot to do with the trade-ins these standalone used stores may be receiving.

“We absolutely know there is no inventory system that can generate the same quality of trade-in when you sell a retail used car every time. If you are selling a 5- to 7-year old used car, what are you getting in trade on those? A 10- to 12-year-old car,” Loughmiller said. “If that’s not your market, then the 10- to 12-year-old car becomes a wholesale transaction that we get an opportunity to be involved in.”

Overall, Loughmiller said KAR sees any increased focus on used cars as a positive, “though there is an element risk to it when they (dealer groups) do more on their own.

“At the end of the day, there is such a high value proposition of what we do, that we think we have a great selling proposition and have the opportunity to participate in both scenarios (standalone used stores and more dealers exchanging inventory) laid out there,” he concluded.

Editor’s Note: See the Sept. 15  NAAA issue of AuSM for more analysis KAR Services’ 2014 performance as well as strategic plans for the coming years.

ADESA Auctions Aid Fight Against Juvenile Diabetes

CARMEL, Ind. - 

ADESA announced this week that is has raised $157,856 via several of its auction locations to donate to JDRF.

Formerly known as the Juvenile Diabetes Research Foundation, JDRF is a non-profit charitable organization dedicated to eradicating juvenile diabetes while leading the funding for type 1 diabetes research.

Auctions in five different locations worked with Ford’s Global Action Team during the two-month campaign to bring awareness to JDRF.

Tom Caruso, the chief client officer of KAR Auction Services, was proud of the charitable donations raised from the ADESA events in Indianapolis, Boston, Phoenix, Buffalo and Los Angeles.

“Thanks to the overwhelming generosity of our dealers and our employees, we were able to raise funds for this worthy cause,” Caruso said. “For the past three years, Ford and ADESA have partnered to support JDRF. We couldn’t be more proud that our team was able to exceed our goals and make such a significant contribution.”

Ford, who has partnered with many organizations such as ADESA, has invested more than $45 million in funding for JDRF’s research.

Manheim Enters Brazil with New Acquisition

SAO PAULO, Brazil - 

As part of its long-term growth strategy to invest in emerging markets, Manheim announced Tuesday that it has purchased a majority stake in CarBizz, an auction operation based in Sao Paulo, Brazil.

The company highlighted this investment in Brazil — what executives consider to have one of the fastest growing automotive markets — supports Manheim’s plan to expand its global footprint, while providing dealers with greater access to its broad range of remarketing services.

This deal marks Manheim’s first move into the Brazilian market.

Owned by SGC Investments, CarBizz specializes in the vehicle remarketing of used trucks and large fleets. CarBizz employs a staff of nearly 50 people and will be operated by Carlos Domingues, who will serve as general manager.

Domingues comes to CarBizz from Manheim Portugal’s Porto operating location, where he has served as auction manager since 2007. He has 15 years of auction experience, including the past seven with Manheim Portugal.

Domingues previously served as north sale manager for SLV, a Portuguese auction company acquired by Manheim International in 2007.

“We are excited for the opportunity to enter the Brazilian and South American markets,” said John Bailey, president of Manheim International within Cox Automotive.

“As a global vehicle remarketing leader, Manheim welcomes the opportunity to extend our brand and deliver results for our customer base,” Bailey added.

Manheim Statesville to Host Car Raffle In Support of Relay For Life

In the spirit of giving back to the local community, Manheim Statesville employees have formed a team to participate in the local American Cancer Society Relay For Life.

In addition to participation in the annual Relay For Life, the employees have organized a raffle that will also raise funds to benefit the charity.

“We are so pleased that the employees of Manheim Statesville have dedicated their time and resources to support Relay For Life and the American Cancer Society,” said Brooke Moose, senior manager for the Relay For Life in the South Atlantic Division of the American Cancer Society.

“With so many worthy charities in greater Charlotte and North Carolina, we are honored to receive their commitment,” Moose continued. “This fundraiser will support services and programs for individuals with cancer and their caregivers along with cancer research.” 

An American Cancer Society fundraiser, Relay For Life events are organized, overnight community fundraising walks that teams of people participate in as team members take turns walking around the track.

Relay For Life events in the Statesville, N.C., area are held annually during the third weekend in May.

Since 1985, Relay For Life participants have raised more than $5 billion, according to officials, who added more than 1.7 million participants and 150,000 teams are projected to raise $305 million this year.

The American Cancer Society said this year’s funds are expected to help save more than 250,000 lives in 2014.

As part of the fundraiser for Relay for Life, a 2011 Chevrolet Aveo LT will be awarded at the conclusion of the raffle. Tickets are available at a cost of $20 for one, $100 for six and $200 for 13 tickets.

Contact Luann McLeod at Manheim Statesville at (704) 876-1111 or [email protected] to purchase tickets with cash, check or credit card. The drawing will be held at Manheim Statesville on Aug. 29 at noon ET.

“We are extremely proud to continue our partnership with the American Cancer Society and Relay For Life,” Manheim Statesville general manager Joey Hughes said. “I am proud of our employees for continuing this tradition in support of this worthy cause.”

Manheim Statesville employees first began supporting Relay For Life last year and participated in Relay For Life held at the Iredell County Fairgrounds in Troutman, N.C., in May that raised $13,644.  

6 Classic Sports Cars on List at Manheim PA’s Next Public Sale

As a part of the auction’s public sale of vehicles offered by the Commonwealth of Pennsylvania, Manheim Central Pennsylvania plans to run a half dozen classic sports cars down the lanes that might pique dealer interest.

Among the classic vehicle included in the lineup of 400 units are:

— 1966 Chevrolet Corvette 427 Convertible

— 1968 Chevrolet Camaro SS Clone

— 1987 Buick GNX

— 1988 Ford Mustang Convertible

— 2005 Mercedes-Benz CLK500

— 2006 Chevrolet Corvette Z06

The public sale also includes of variety of compacts, midsize cars, trucks and SUVs from Ford, Chevrolet, Dodge and Chrysler.

The event is set to begin at 10 a.m. on Aug. 19 with preview days running from 10 a.m. to 4 p.m. on Aug. 15 through Aug. 18.

For more details, Manheim Central Pennsylvania at (717) 469-7900.