GWC Warranty has partnered with the Commission on Economic Opportunity (CEO) to sponsor a Food 4 Kids van.
CEO's Food 4 Kids Summer Program makes nutritious food more available to at-risk children in northeastern Pennsylvania by delivering healthy meals and snacks to parks, playgrounds, libraries and other community sites throughout the summer months when at-risk children are not receiving meals at school. The van sponsored by GWC Warranty makes deliveries five days a week throughout Luzerne and Lackawanna counties.
The Food 4 Kids summer program served more than 64,000 meals in 2016 to children at 82 community sites throughout the region.
Copart Inc. announced the expansion of its locations in Candia, N.H., and West Warren, Mass.
The Candia auction, located at134 Raymond Road, hosts sales every Tuesday. The West Warren auction, located at 600 Old West Warren Road, hosts sales every Wednesday.
All sales are online, with bidding kiosks available at each location.
In addition to conducting online salvage auctions, Copart supports local communities.
In December, for example, the Copart location in nearby Lyman, Maine, hosted its local fire department for rescue training. About 15 cars were staged to give the first responders practice with the department's new survival equipment.
Manheim has acquired Pacto São Paulo, a large auction operation in Brazil.
Besides the acquisition of Pacto São Paulo, Manheim is part of a commercial and technological partnership with Pacto North and Northeast and Leilomaster. In the coming years, Manheim technology will be implemented into local businesses, meaning they will use the same level of facilities as Manheim’s existing auction center in Guarulhos and its newest auction in Ibaté.
Manheim will work with six additional auction centers as part of the partnership, in order to boost the logistics and support networks in Brazil. Manaus, Belém, Fortaleza, Goiânia, Brasília and Salvador will open in August.
Bruce Beam has returned to Dealers Auto Auction of Oklahoma City (DAA OKC) as the auction's general manager.
Beam held the post of general manager when he left DAA/OKC in 2012 to work for Express Credit Auto, one of the largest buy-here, pay-here operations in Oklahoma.
Beam returned to the auction in April.
The auction's owner, Gary Smith, is Beam's father-in-law, and Beam's wife, Nicki, continues to work at the auction as controller.
Beam got his start in the auction business shortly after he graduated from Kansas State University in 1992. He responded to an ad for an officer manager at DAA/OKC. Beam became assistant general manager to Smith in 1994, and was promoted to general manager in 1998.
LAS VEGAS –Changes in the market – from vehicle supply to increased competition to credit availability – offer independent dealers both challenges and opportunities.
Tom Kontos, chief economist for KAR Auction Services, partnered with Joe Keadle, CEO for Automotive Finance Corp., to present an analysis of the market at the recent National Independent Automobile dealers Association conference.
“In the U.S., the retail market for used cars is about 30 million,” Kontos said. “It’s roughly split evenly between independent dealers and franchise dealers.
Independent dealers sold 574,000 more used cars in 2016 than in 2015, a 4.3 percent increase.”
Year-to-date, used-car sales still favor franchise dealers. New-car stores use more inventory management tools to seek out the higher grosses that come from the used-car side of the business, Kontos said.
They benefit form the trades they take in new-car sales. About 50 percent of all new-car sales involve a trade-in.
“They are increasingly trying to hold on to those trades,” Kontos said.
Keadle said those are cars that independents used to buy at auction, presenting a challenge for independents to find alternate sources, like upstream wholesale channels.
Independent dealers should explore upstream opportunities, Keadle said.
“So much of the inventory liquidation from the manufacturers off-lease vehicles are in that upstream channel,” he said. “You do have access to upstream, but you have to make sure you can dig it out.”
There are more off-lease vehicles coming back than franchise dealers can handle, Kontos said.
“Prices are going to be softening,” he said.
One threat independents face is that, despite so many cars coming into the wholesale stream, they may not be the ones in demand.
Kontos said during the last cycle’s leasing boom, many of those vehicles were cars and smaller vehicles because of the concerns over gas prices.
That trend will eventually reverse itself a few years from now as new-vehicles sales today are falling mainly within the truck classes.
Repossessions are another big source of inventory for independents Kontos said.
“Typically, the repos we get at the auctions are vehicles that were financed as used vehicles to begin with,” he said. “They were maybe sold as a three-year old vehicle, now they are four- or five-year old vehicle brought back as a repo.”
Kontos is seeing more of those vehicles showing up in the Southeast.
In terms of repos, he doesn’t see a steep rise in delinquency and default rates, but even that can be misleading if dealers look at supply.
But there are over $1 trillion of outstanding auto loans and leases –the highest it’s ever been.
“So a 1-percent default rate results in more repos (because of the larger number of outstanding loans),” Kontos said.
Keadle said the used-car business is coming out of a period where inventory was scarce and independents had to fight for it. It caused some poor habits, he said. A dealer could keep that car for a longer time on the lot, knowing that he could always wholesale out of it and get a good price.
“That’s about to change,” Keadle said. “That vehicle you have on the lot now? There’s about 500 more coming down the pipeline.”
Dealers can afford to be more selective to find a car with leather, navigation and a sunroof, instead of buying one without those features.
“We just encourage you to be dialed into the market,” Keadle said, “so that you know what you should be stocking and how long you should be keeping it.”
The credit market also poses both threats and opportunities for independents.
In the fourth quarter of 2016, the non-prime, subprime and deep subprime numbers dropped compared to the prior year, Kontos said.
“That’s an indication that lenders are backing away from the subprime tiers,” Kontos said. “I think they identified that they were a little overexposed in those areas.”
Of course, this creates an opportunity for buy-here, pay-here dealers to actually get a better buyer, Keadle said.
The average price of a used vehicle for model years 2012-16 decreased in value 1.3 percent in June, slightly more than the 1.2 percent change in May, Black Book reports.
Cars overall dropped 1.8 percent and trucks dropped 0.8 percent in value during June. All vehicles are averaging a 12-month depreciation of 16.7 percent.
In June, small pickups had the lowest monthly depreciation at 0.1 percent. Vehicles in this segment finished June with an average price of $21,328.
Subcompact cars saw the largest depreciation during the month at 2.8 percent. Vehicles in this segment finished June with an average price of $6,554.
KASP Auto Auction named Michele Pierog as vice president of national sales.
An industry veteran with over 15 years of experience, Pierog started her career running dealer registration at Auto Auction of New England. She was promoted to the sales and marketing department where she spent over a decade in various roles ranging from sales support to director of sales and marketing.
During the latter part of her career, Pierog has served as director of national sales working with both dealer consignment and commercial accounts.
She became a certified automotive remarketer in 2015 and has been active in several committees including the certification committee with the International Alliance of Automotive Remarketers.
KASP is the largest independent auto auction in Kentucky and is part of the Auction Management Solutions affiliated group of independent auctions.
Average wholesale prices in June were down versus May but up on a year-over-year basis.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in June averaged $11,067. That is down 0.7 percent compared to May and up 4.7 percent relative to June 2016.
Compact and full-size pick-up trucks and minivans showed significant average price gains for the month, while most other model classes registered month-over-month declines or modest increases.
Average wholesale prices for used vehicles remarketed by manufacturers were down 1 percent month-over-month and down 1.9 percent year-over-year. Prices for fleet-lease consignors were down 1.1 percent month-over-month and up 3.2 percent year-over-year.
Average prices for dealer consignors were up 0.9 percent month-over-month and up 7.7 percent year-over-year.
Cox Automotive, in partnership with the National Association of Minority Automotive Dealers, is awarding its Rising Star Award to Wadette H. Bradford of Martin Kia Bowling Green, Ky.
In a release, Cox said Bradford was recognized for her strong leadership and commitment to the automotive industry and her community. Nicole Ashe, senior vice president for talent, diversity and culture at Cox Automotive, was to present the award to Bradford at the NAMAD annual meeting awards dinner in Miami.
Martin Kia’s parent company, Martin Automotive Group, was founded by Cornelius A. Martin in 1985 with the purchase of an Oldsmobile-Cadillac dealership.
The family-owned company operates dealerships in Kentucky, Ohio, South Carolina, Tennessee and West Virginia. In addition to Kia, Martin Automotive Group sells Audi, Chevrolet, Dodge Jeep Chrysler, Ford, Honda, Hyundai, Mitsubishi, Subaru and Volkswagen.
Bradford's work has been instrumental in growing and expanding brand recognition and profit margins for both new and well-established dealerships. As general manager of Martin Kia, Bradford has increased inventory turns, developed digital marketing campaigns and increased service gross profit.
The McConkey Auction Group has formed an executive team to oversee the strategy, operations, national sales, finance and marketing of its auctions in the Spokane, Wash., Kansas City, Kan., and Seattle markets.
The new team includes auction general managers David Pendergraft of DAA Northwest, Doug Doll of KCI Kansas City, and Dave Blake of DAA Seattle. Additionally, Greg Mahugh has been named senior vice president of operations; Jennifer Leocardi, vice president of national sales; Jerome Rauen, vice president of finance, and Mitzi VanVoorhis, vice president of marketing.
The EXECUTIVE TEAM will be charged with instituting best practices, nurturing and growing the group’s unique culture, vision casting, goal setting and mentoring the organization’s next generation of leaders.
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