Some bad numbers in February created a mild panic about wholesale values, but result since then show the major drop might have been a fluke.
However, the downward trend remains unstoppable as off-lease volumes pour into the lanes.
The Manheim Used Vehicle Value Index came in essentially flat in March, but chief economist Tom Webb said prices rose in the first 15 days of April.
Other measures that showed that big fall off in February improved in March.
The NADA Used Vehicle’s measure of values dropped 1.4 percent in February, a month prices usually improve.
However, the NADA Index rose 1.6 percent in March.
David von Paris, senior automotive analyst for J.D. Power Valuation Services said that “wasn’t quite as big as originally anticipated.” However, “it was directionally right in line with the period’s 2.3 percent average over the previous three years.”
Tax refunds drove these swings.
Paris said the number of tax refunds issued improved significantly in March. However per the IRS, the total number issued through March 24 was still 3.4 percent lower than during the same period in 2016. While the total number of refunds was still down for the year, the amount issued improved by 7.6 percentage points compared to what was reported through February 24.
Anil Goyal, senior vice president at Black Book, said the delay in refunds was made worse because many creditors were tightening at the same time.
Tom Kontos, chief economist for KAR Auction Services Inc., also saw prices in March.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in March averaged $10,904, up 2 percent compared to February and up 1 percent relative to March 2016. All but one model class segment (compact pickups) showed month-over-month increases.
However, Kontos said the downward pressure remains too strong to keep prices from declining.
“It’s best to brace for more softening,” he said.
Still, the industry has held up fairly well, Webb said.
“Although used vehicle values have declined in five of the last six months, it has not been the collapse that many analysts have warned of for more than a year due to increasing wholesale supplies,” he said.
KAR Auction Services Inc. announced that industry veteran Richard Howse has joined the company as chief commercial officer.
Howse brings more than 30 years of automotive industry leadership to the role, which will focus on developing customer solutions that integrate KAR's capabilities and businesses. Howse will report to Don Gottwald, chief operating officer for KAR.
Prior to joining KAR, Howse served as senior vice president of marketing and business development at Volkswagen Credit, where he was previously the director of remarketing. He has also served in senior finance roles at GMAC and GE Capital and leadership positions with JD Power, Audi of America, Honda and General Motors.
Manheim and ADESA control about 80 percent of the auction market in the U.S. But the two giant chains want to touch even more of the units wholesaled in this country.
They have both been rolling out products to do just that.
Manheim is increasing its service to smaller dealers by opening up a series of smaller facilities it calls “local sales.”
These are three- to five-lane operations that often operate in former dealerships or closed public auctions.
There are more than 45 of these local auctions in operation with plans to add more. Grace Huang, Manheim’s senior vice president of inventory services, said it takes about three months to get one running.
Both the mobile and local auction strategies were created with dealers in mind, she said.
“We’ve increased the number of points where people could do business with Manheim,” Huang said.
At ADESA, touching more cars means investing in new platforms, such as TradeRev.
TradeRev is an online automotive remarketing system where dealers can launch and participate in real-time vehicle auctions at any time from their mobile devices or desktop. It allows dealers to obtain instant bids while the retail customer is sitting in the showroom by providing a private, customized network for buyers and sellers.
TradeRev founder Mark Endures said ADESA realizes the system can be viewed as competition to the traditional auctions, but ADESA knows the future of car sales includes a much larger role for online transactions.
Keith Crerar, TradeRev’s senior executive vice president, said the real goal is getting the cars that don’t go to auction.
“The’re some cannibalization, but in the U.S. there 20 million cars that get sold dealer-todealer that no auction touches,” Crerar said. “We’re after those twenty.”
Cox Automotive has named Amy Mills senior vice president of strategy.
In this role, Mills will work with Cox Automotive's executive leadership team to identify, execute and sustain strategic initiatives to increase the company's growth and profitability. Mills previously served as vice president of global strategy, where she drove corporate strategic planning and business portfolio management.
Mills joined Cox in 2001 as assistant marketing manager for Cox Automotive's Manheim brand. She served in a variety of marketing roles before assuming the role of vice president, product strategy for Manheim, where she focused on the development of new product innovations for the brand's product portfolio. She was promoted to vice president, strategy, Cox Automotive, in November 2013.
Mills' career includes roles in brand strategy, advertising and marketing at Addison Whitney, a corporate brand consulting company in Charlotte, N.C., and Vanguard Media, a full-service advertising agency in Salt Lake City.
Mills replaces Joe George, who was promoted to senior vice president, Manheim Vehicle Solutions.
A group of Milwaukee-area veterans will soon take a memorable trip to Washington, D.C., thanks to Manheim Milwaukee Auto Auction’s initiative to support Stars and Stripes Honor Flight, an organization that flies World War II, Korean War and terminally ill veterans to visit their memorials.
The Manheim Milwaukee team, along with its dealer and commercial clients, raised $16,000 – exceeding their initial goal of $8,000 – and enough to send 32 veterans on the Honor Flight.
Fundraising opportunities came in many forms - from donation circles on the wall, change collection in the cafeteria and direct money contributions.
Manheim Milwaukee team members contributed more than 105 donations equaling $3,600. Full-time employee contributions were matched up to $250 through the Cox Automotive match program.
Eight dealer groups and two commercial groups made donations based on cars sold in their lanes – New Look Auto and Millennium Motors, which made a $2,000 contribution, and Toyota/Lexus Financial Services, which donated $3,000.
MONTEREY, Calif. — The 2016 classic car auctions in Monterey, Pebble Beach and Carmel - the extravaganza of highly-prized, highly-priced cars held here each August - reported sales of some $340 million.
That’s a lot of money and vehicles changing hands in the space of a week.
Beautiful cars selling for seven- and eight-figure prices pushed the sales total for the Gooding & Company to a respectable $129,789,000. The top three sellers were Ferraris: a 1959 250 GT Competizione brought $18,150,000; a 1960 250 GT short wheel base Berlinetta sold for $13.5 million., and a 1950 Ferrari 166 MM went for $5,445,000.
Bonhams, with 115 cars listed for sale at its chic Quail Lodge site in Carmel, had sales of over $33 million. Its top seller: 1931 Bugatti Type 51 Gran Prix Racer at $4.0 million.
RM-Sotheby’s reported $117.9 million in total sales with 82 percent of cars sold. Top seller this year was the 1955 Jaguar D-Type, winner of the 1956 24 Hours of Le Mans, which brought in a total of $21,780,000 - an auction record for a British automobile, RM said.
An elegant 1939 Alfa Romeo 8C 2900B Lungo Spider drew a price of $19,800,000 and made the record books as the most valuable pre-war automobile sold at auction, RM said. A Shelby Cobra CSX 2000 sold for $13,750,000, an auction benchmark for an American car, according to RM Sotheby’s.
Mecum sales in Monterey totaled $50 million and Russo and Steele reported proceeds of $10.9 million.
In August, the NAAA Executive Committee approved an additional $10,000 to be awarded to the 2016 NAAA Auto Auction of the Year, bringing the total prize to $25,000.
The four Chapter auction winners receive $5,000 each for the regional win, and the final auto auction champion for 2016 will be announced and awarded in November at the 2016 NAAA convention with an additional $20,000 to be donated to a charity or charities of their choice.
Chapter winners: Eastern Chapter, ADESA Winnipeg; Midwest Chapter, West Michigan Auto Auction; Southern Chapter, Louisiana's 1st Choice Auto Auction, and Western Chapter, Kansas City Independent Auto Auction.
KAR Auction Services Inc. announced that Stacey White has been promoted to senior vice president of enterprise optimization.
White will continue to report to David Vignes, KAR’s executive vice president of enterprise optimization.
In addition to her other responsibilities, White will now oversee transportation at the corporate level. She will continue to oversee the company’s procurement and sourcing strategies, while still leading the team charged with standardization of operations and processes at all newly acquired auctions.
White joined KAR Auction Services in 2008 as an operational compliance auditor. Since then, she’s held a variety of positions, including director of process improvement and cost management and, most recently, vice president of enterprise optimization.
Cox Automotive announced that Shane O'Dell has been named president of financial solutions.
O'Dell will oversee NextGear Capital. He will report to Mark O'Neil, chief operating officer of Cox Automotive and will begin his new role effective October 1. O'Dell will be relocating to Carmel, Ind.
O'Dell currently serves as the senior vice president of vehicle solutions at Manheim responsible for setting and executing key business strategies around Manheim's third-party logistics, including vehicle transportation, reconditioning, imaging, purchase protection and inspections in addition to focusing on Ready Logistics, the company's transportation company.
Prior to joining Manheim, O'Dell was chief operating officer for NextGear Capital, overseeing the execution of day-to-day operating activities and providing strategic direction on revenue growth and risk mitigation. O'Dell was one of the founding members of Dealer Services Corp. in 2005 and became chief operating officer in 2010.
DSC merged with Manheim Financial Services to become NextGear Capital in 2013.
Manheim has promoted John Eriksen to general manager at Manheim Baltimore-Washington, from assistant general manager at Manheim Orlando.
Eriksen joined Manheim in 2007 as a sales representative at Manheim Orlando and continued in various leadership roles within the organization.
In each role, he demonstrated an ability to lead teams and drive solutions for growing business. He returns to the Virginia/Maryland area, where he previously lived while working at Manheim as General Sales Manager for the Mid-Atlantic region.
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