Auctions

Upcoming Wholesale Webinars & Manheim’s Volume Campaign

ATLANTA and ALEXANDRIA, Va. - 

Manheim is currently hosting a national promotion, titled “Pump Up Your Volume,” that is aimed at aiding dealers in their inventory building efforts to prepare for the impending selling season. 

The national promotion, expected to drive traffic at all of Manheim’s 79 wholesale auctions, will include offers from DealShield and Ready Auto Transport via a national email campaign. The promotion will also include daily prizes, including a grand prize — a guitar signed by Aerosmith.

The campaign started Monday and runs to May 3.

“We want to promote the message to dealers that Manheim is where you’ll find the right inventory to win at your lot,” said Stephen Smith, senior director of customer marketing at Manheim. “We are the go-to source for both the volume and the variety of vehicles that dealers need to drive traffic to their lots and ultimately sell more vehicles.”

More information can be found on the .

Upcoming Wholesale Webinars

  • The National Auto Auction Association will host its webinar on the 2015 Arbitration Policy Updates on two different dates:  (at 2 p.m. EST) and  (also at 2 p.m. EST). Each webinar will last approximately 45 minutes, featuring Matt Arias, the auction standards committee co-chair at NAAA, who will review the updates to the NAAA Arbitration Policy that take effect on May 4. Registration links are above; to review the updated arbitration policy, click .
     
  • AIADA and ADESA will host a free webinar, “Buy and Sell Wholesale … Without Leaving Your Desk!” on Tuesday, April 21 at and again at . The webinar is designed to provide an in-depth overview of “real life” wholesale inventory management solutions. To register, click the corresponding time you are interested in above.

Dealers & Auctions to Benefit from Classic Car Demand

NEW YORK - 

Auctions and dealerships that have a strong business interest in how classic cars are moving on the wholesale and retail fronts should be pleased to hear the upbeat projections from IBISWorld, which said the industry appears “to be back on the right track.”

The firm’s latest report showed that revenue is estimated to increase during the next five years, including a “robust” jump this year.

“Classic cars are highly discretionary purchases; therefore, demand for the industry is extremely elastic among most U.S. consumers and depends on prevailing levels of per capita disposable income,” IBISWorld economic analyst Nick Petrillo said.

When per capita disposable income levels fell and investor uncertainty increased during the recession, Petrillo explained that fewer consumers purchased classic and antique cars.

“Although per capita disposable income has gradually returned from its historic lows, many middle-class consumers have yet to resume purchases of industry vehicles due to depleted savings and relative disinterest in spending money on such high-priced assets,” Petrillo said.

With the economic recovery likely to yield greater purchases on classic cars from both wealthy investors and the general public, IBISWorld anticipates industry revenue to steadily grow over the five years to 2020.

Analysts projected demand for classic cars of all makes and models is anticipated to grow, although budget classics and American muscle cars are most poised for growth.

The IBISWorld report also highlighted dealers will benefit from higher demand for classic cars, which will likely push up auction prices on many of the industry’s most popular models.

“Higher auction prices will ultimately boost industry profit margins over the next five years as a result,” Petrillo said.

Nevertheless, Petrillo acknowledged long-term industry growth prospects will be limited by external competition from many individuals throughout the United States who own and sell classic cars amongst themselves.

“Independent sales of automobiles are extremely common and represent an increasing threat to the industry, particularly as consumers gradually increase their use of online classifieds to advertise their automobiles to a national audience,” Petrillo said.

“New-car dealers will also represent a major source of competition for industry dealers as major manufacturers have begun a trend of modernizing classic models and retailing them as modern, state-of-the-art collectibles,” he went on to say.

IAA Rolls Out Vehicle Assignment Feature for Android

WESTCHESTER, Ill. - 

Insurance Auto Auctions on Friday launched the vehicle assignment feature for Android as part of the CSAToday by IAA mobile app.

This development follows the feature’s successful November launch on iOS devices, which can enhance the CSAToday customer experience by offering "anywhere" access to begin an assignment with IAA. The feature also enhances the application's capabilities through GPS location services.

Other key user features and benefits for vehicle assignment include the following:

— A streamlined, "five swipe" workflow focused on required fields only

— Built-in mobile technology, such as camera functionality for vehicle identification number (VIN) scanning and GPS for location entry, to reduce manual effort

— Assignment confirmation via Android-supported share options including text, email and print

“IAA is continuing to lead in the industry for integrating mobile into our customer offerings.  We are now delivering on our plans to share this feature with Android users after great success with our iOS launch last year," said John Kett, chief executive officer and president of Insurance Auto Auctions.

“IAA continues to value innovation and our customers know that we are committed to investments in technology — no matter how big or small — that improve their experience,” Kett continued.

Vehicle assignment is one of many features available on the CSAToday by IAA mobile app. The mobile app is available for download in the Apple iTunes store and on Google Play.

A video demonstration of the vehicle assignment feature can be seen at the top of this page.

Manheim Forms Alliance with AiM

ATLANTA - 

Manheim and AiM have formed a strategic alliance that includes an investment in developing inspection technologies, the two companies announced Friday.

The alliance aims to “create greater consistency in the inspection process,” they said in the announcement, as well as “provide products, services and best practices that will effectively and efficiently support both wholesale and retail activities.”

The announcement also notes that AiM will continue its independent operations.

“I’m excited that Manheim will be a part of expanding our capabilities and reach,” said Jim Yates, AiM president and chief executive officer. “We look forward to taking advantage of Manheim’s leadership and expertise in this area to address the industry’s vehicle information challenges.

“Our goals are to work toward a more flexible and consistent inspection process that will result in a common condition report, which we hope will become the gold standard of quality,” he continued.

Shane O’Dell, senior vice president of Manheim Wholesale Services, added:  “Manheim is committed to investing in areas that improve the buying and selling experience for customers, and based on their back, improving the quality and consistency of vehicle inspections standards is at the top of our list.

“Working with AiM, we believe we can accelerate this effort and deliver more effective products, services and solutions to customers and the industry,” O’Dell said. |

The companies called the alliance a “natural fit,” given the respective projects each are doing independently in the vehicle information arena: AiM’s MarketConnect multiplatform solution, which is said to be “driving positive change toward more effective remarketing practices for the industry,” and Manheim’s AutoGrade vehicle ratings system, which the company has made available to the remarketing industry.

An increasingly online wholesale marketplace underscores the importance of accurate and consistent vehicle information to both buyers who aim to get the most value and sellers who want a quick turn time.

“With Manheim’s help, and the support of others in the industry, we can get a better understanding of the cradle‐to-grave lifetime brand value of cars,” Yates said. “We can better assess normal brand and model depreciation, condition and damage, as well as the impact of multiple transactions on a vehicle’s value, and we want to empower customers with that information.”

Dealers Need 'Clear and Accurate' CRs

LAS VEGAS  - 

For dealers, time is more important than money, Kraig Quisenberry said, in the sense that dealers often are more concerned with having a car that is front-line ready than the price they’re going to pay for the vehicle.

And that ties directly into condition reports said Quisenberry, the director of sales at DCH Auto Group.  

Dealers don’t always have time to inspect every inch of a car that comes through the auction lane, he said; thus, the condition report becomes necessary, not only to increase confidence but save time, as well.

“Dealers want a clear and accurate condition report. That is critical. Information, to us, is more important — more important than price, more important than anything,” Quisenberry said last week during a presentation to auctions and consignors at the NAAA/IARA/CAR Conference in Las Vegas.

“If the car comes through the lane, and there’s no condition report, we don’t even look at it,” he would add, referring to dealers in general.

But if there is one, it can sell much quicker.

For instance, Manheim’s “Selling in the Zone” promotion — which began Feb. 23 and runs through Sunday — touches on this very notion.

In last month’s announcement of the program (which help customers market their vehicles better and boost buyer confidence and conversion rate) Manheim senior director of customer marketing Stephen Smith shared this:

“As part of this promotion, we share best practices on how to help dealers increase buyer interest and confidence. It’s important that we make sure dealers know the right strategies to sell their vehicles. For instance, we know that vehicles with condition reports are three times more likely to be sold at auction than vehicles without CRs.”

Manheim's 2015 Used Car Market Report also addresses the importance dealers place on having the right information, including what they gather via CRs.

“Successful used-car dealers know more about the cars they buy and sell than ever before, a necessity due to the significant increase of information available to consumers via digital and mobile channels,” the report indicates. To stay ahead of the curve, dealers need to better understand everything about the vehicle they are buying in the wholesale environment.

“In a world where time is money, it is vital that dealers have easy access to all available vehicle information to efficiently make purchasing decisions. This information needs to be accurate, complete, and consistent,” it continues. “The more information sellers supply, the better: Studies have shown that transparency leads to increased sales conversions, bids per vehicle, and increased sales price while decreasing average days to sale and arbitration. This ultimately impacts the seller’s bottom line.”

The report goes on to mention five products/tools that allow for this efficiency, with CRs being one of them: Condition reports provide unbiased documentation of the current state of the vehicle. This gives the dealer vital information on what the 'all-in' cost of the vehicle will be prior to offering it at retail.

And as one might imagine, the condition report can become especially critical in online sales.   In an interview with AuSM on site at CAR, ADESA president and chief executive officer Stéphane St-Hilaire discussed the focus his company has put on condition reports, particularly as it relates to the online sales environment.

“There’s no doubt condition reports have been, and continue to be, very important to (dealers), and we invest heavily into condition reporting technology,” St-Hilaire.

“That’s where it all starts when it comes to selling a car upstream and private-label programs; we see it as a perfect fit,” he added, also emphasizing the importance of this technology at the physical auction.

ADESA continues to invest in the inspection business, St-Hilaire said; in fact, its subsidiary inspection company — AutoVIN  — signed a definitive agreement to purchase the vehicle inspection business of DataScan Field Services earlier this week.

The two combined companies plan to provide all major leasing companies and auto lenders with inspection services.

 “AutoVIN’s field inspectors provide peace of mind for our clients who want a professional, competent experience for their customers and business partners. And, our geographic reach ensures their portfolios are inspected and processed in a timely manner,” St-Hilaire said in the announcement.

“This acquisition will provide an unmatched offering by combining DataScan’s innovative technology for capturing vehicle information and communicating customer data with AutoVIN’s vehicle inspection

Last but certinaly not least, don’t forget about that condition report writer.

That was one point of emphasis made by Mike Hockett, founder and chief executive officer of the Auction Broadcasting Co., during his keynote address at CAR.

“We have to be better at writing CRs,” Hockett said. “I know we have a grading system on CR, but it still depends upon that CR writer. Are we doing everything (we can) for that CR writer? Are we paying him right?”

 

More Auction Awards & Manheim Charity Event

LAS VEGAS and MANHEIM, Pa. - 

Kia Motors recognized two auctions at the 2015 NAAA/IARA/CAR Conference in Las Vegas earlier this month.

Kia presented the “High Performance Auction Award” to Kansas City Independent Auto Auction for maintaining a high level of excellence in every facet of auction operation.

Kia also recognized Manheim Riverside  with its “Auction of the Year Award” for not only maintaining a high performance record, but for also posting top numbers for vehicle sales, retentions, percentages of vehicles sold online and buyer attendance ratios.

In addition, the International Automotive Remarketing Alliance recognized Tom Adams Jr., the president of Auction Insurance Agency, with the IARA Circle of Excellence Award. According to Dave Alfonso, Kia’s remarketing manager and IARA’s charter board member and awards and recognitions committee chairman, the honor is given annually for a lifetime of professional excellence in a facet of the auto industry that impacts the remarketing and auction industries.

In other award news, Westlake Financial Services also announced today its top regional auctions for 2014:

  • Western Region: ADESA Phoenix
  • Midwestern Region: Kansas City Independent Auto Auction
  • Eastern Region: Rawls Auto Auction (Leesville, S.C.)

"We have an exceptional group of auction partners and are proud to recognize these top performers for 2014," said Bill Walters, Westlake Remarketing's vice president. "They have done a great job creating an exceptional sales environment and providing reliable service."

In other auction news, Manheim Pennsylvania raised $137,000 for the Save A Warrior program during its recent two-day Xtreme Spring Event held March 19-20.

The non-profit organization supports all branches of the military, veterans, law enforcement and first responders deal with the effects of post-traumatic stress.

“Our organization is grateful for this support from Manheim Pennsylvania, its leaders, staff and customers,” said Ronald “Jake” Clark, founder & executive director of Save A Warrior. “We know their history for supporting veterans, so we are extremely honored to receive this support. This donation will truly help us provide the support and services our veterans need.”   

More information about the Save A Warrior organization can be found . 

ADESA to Buy DataScan’s Car Inspection Business

CARMEL, Ind. - 

ADESA subsidiary AutoVIN has signed a definitive agreement to purchase the vehicle inspection business of DataScan Field Services.

The closing of the deal — which is subject to conditions — is projected to happen within 60 days. The two combined companies plan to provide all major leasing companies and auto lenders with inspection services.

This news comes less than a week after ADESA announced it was purchasing Pittsburgh Auto Auction.

 “AutoVIN’s field inspectors provide peace of mind for our clients who want a professional, competent experience for their customers and business partners. And, our geographic reach ensures their portfolios are inspected and processed in a timely manner,” said Stéphane St-Hilaire, president and chief executive officer at ADESA.

“This acquisition will provide an unmatched offering by combining DataScan’s innovative technology for capturing vehicle information and communicating customer data with AutoVIN’s vehicle inspection expertise and ADESA’s renowned customer service,” he continued.

The move would allow DataScan to be “singularly focused on the wholesale finance industry,” said DataScan president Brent Sergot.

“This transaction with AutoVIN presents the best possible solution for our clients and our associates. With their reputation for delivering exceptional service to their clients and for treating their employees with the same level of dedication, we knew the best home for the business was with AutoVIN,” Sergot said.

“This is a strategic business decision for DataScan to now be singularly focused on the wholesale finance industry in order to continue to build upon our position as the leading provider of floorplan accounting software and inventory verification solutions,” he added. “We are dedicated to growing our market share, finding ways to continually do it better and positioning our core businesses to operate at peak performance.”

NAAA: 'Good News' in Store for Auctions

LAS VEGAS  - 

Through two months of the year, auction volume is up 8 percent against comparable weeks of 2014, according to the latest prepared by Ira Silver, the chief economist at the National Auto Auction Association.

For the month of February, auction volume jumped 5.2 percent year-over-year, the report indicated. January auction volume climbed 10.7 percent.

And those increases aren’t expected to stop any time soon, as NAAA president Ellie Johnson emphasized during a presentation at last week’s NAAA/IARA/CAR Conference in Las Vegas.

Citing Silver in her speech, Johnson said that, “there is good news ahead for the auctions. We can expect that the auction unit growth that began in 2012 will continue throughout 2015 and also 2016, for the longest string of yearly gains in the history of the data, which goes to 1997.”

She also noted that while commercial consignment will make up the lion’s share of the increases, expect dealer consignment units to climb each year, as well.

“On the business level, auctions will need to be prepared for more unit volume and to take advantage of this extended good business environment,” Johnson said.

More Data Points on Volume

In its for March, NADA Used Car Guide said that February auction volume for vehicles between 1 and 8 years old was steady on a month-over-month basis at just under 323,000 units.

Off-rental-heavy 2014 model-year volume was down 2 percent, coming in slightly above 65,000 units. This marked the first decrease in over six months, NADA indicated.

“However, volume for the more off-lease-laden 2012 and 2013 model years increased by an average of 7 percent to 62,000 and 51,300, respectively,” NADA Used Car Guide’s Jonathan Banks explained in the report.

“Conversely, waning off-lease supply led to a 9-percent drop in 2011 model-year volume, while the number of remaining model-year units fell by an average of 4 percent,” Banks continued. “Although auction supply fell relative to January, the month finished with volume almost 5 percent higher than it was last February, thereby pushing the year-to-date change in volume up to 6.6 percent.”

 

GM Recognizes Auction of the Year

MINNEAPOLIS - 

Joining several others announcing annual awards in March, General Motors has recognized ADESA Minneapolis as its 2014 Auction of the Year.

The auction — a first-time winner of this award — was chosen out of the 34 GM Sponsored Auctions throughout the U.S. and is recognized for “its unwavering commitment to providing customers with the highest-quality vehicles and experience through reconditioning, repairs and great customer service,” GM said.

“GM is proud to present ADESA Minneapolis with this award. With nearly 60 percent of their vehicles selling online, it is very apparent that our customers trust ADESA Minneapolis to provide them with high-quality vehicles and service,” ” said Dan Kennedy, GM remarketing manager.

“This auction also is one of the leaders in providing the GM Frontline Ready and Sponsored Plus vehicles to our GM dealers. Both programs are part of GM and the auction’s commitment to providing the highest-quality vehicles to our customers,” he continued. “Since ADESA Minneapolis teamed up with GM in 2010, the auction has had an unwavering commitment to providing exceptional customer experience.”

ADESA president and chief executive officer Stéphane St-Hilaire added: “It is always an honor to receive an award from one of our customers, but even more so when it recognizes the hard work and dedication of an entire auction team.

“Congratulations to everyone at ADESA Minneapolis for continually striving to provide the best possible customer service experience every day.” 

GM is the latest of many to announce annual auction winners. For more, check out our three rounds of auction winners from last week:

Round 1: Ally, ARI, FCA, CPS, Santander 
Round 2: OVE.com Winners
Round 3: Avis Budget, LeasePlan, NAAA/IARA/CAR Awards 
 

Round 2 of Annual Auction Awards: 19 OVE Honorees

LAS VEGAS  - 

Nineteen independent auctions were honored Tuesday night by Manheim during the OVE.com Awards Ceremony at the CAR Conference in Las Vegas.

Manheim’s vice president of digital services, Jenifer Eggert, said: “Manheim wants to thank all these independent auctions for setting a great example for the industry. Congratulations to all of the winners.” 

Those winners were as follows, as listed by Manheim, which based these awards on the auctions’ 2014 performances:

  • Highest Overall Volume: Southern Auto Auction (East Windsor, Conn.). It is the auction with the most sales, regardless of segment or mix in 2014.  Norwalk Auto Auction, which won the award the previous three years, received honorable mention.
     
  • Highest Commercial Mix Volume: Southern Auto Auction. It is the auction with the most sales based on the greatest number of commercial accounts. Greensboro Auto Auction in North Carolina received honorable mention.
     
  • Highest Dealer Volume: Columbus Fair Auto Auction in Ohio. It is the auction that sold the most dealer inventory.  Akron Auto Auction in Ohio, which won the award the previous three years, received honorable mention.
     
  • Highest Overall Volume Growth: Bel Air Auto Auction in Maryland.  It is the auction that has shown the greatest year-over-year percentage in growth from 2013 to 2014. Charleston Auto Auction in South Carolina received honorable mention.
     
  • Most Innovative: Tallahassee Auto Auction in Florida. It was the auction that leveraged the OVE.com platform beyond conventional methods to grow its business online with an out-of-the-box strategy. Receiving honorable mention was 166 Auto Auction of Springfield, Mo.
     
  • Online Buyer Confidence Award: 166 Auto Auction. It is the auction that had the lowest un-buy percentage. Jacksonville Auto Auction of Florida received honorable mention.
     
  • Highest Commercial and Deal Mix Volume: Columbus Fair Auto Auction. It had the most net transactions in 2014 based on segment and mix. It was the second consecutive year Columbus Fair won the award. Bell-Air received honorable mention.
     
  • Highest Commercial Volume Growth: Southern Auto Auction. This auction showed the greatest year-over-year commercial sales percentage growth from 2013 to 2014. Bell-Air received honorable mention.
     
  • Highest Dealer Sales Volume Growth: Columbus Fair. It showed the greatest year-over-year dealer sales percentage growth from 2013 to 2014. ABC Lancaster of East Petersburg, Pa., received honorable mention. 
     
  • Customer Experience: Akron Auto Auction had the least amount of arbitrations based on volume.

“It’s a pleasure to recognize the accomplishments of these independent auctions,” says Peter Lavallee, senior director of sales, independent auctions at Manheim. “We are a sales organization dedicated to supporting non-Manheim locations by leveraging OVE.com to sell products and services.”

 

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