Cable news and economic updates look grim in this era of COVID-19.

But don’t tell Chad Bailey. The president of Akron Auto Auction, known for his energy and enthusiasm, is bringing those traits to defy the pessimism permeating the business world now.

His sale is moving forward while his staff is fashioned in Ohio-sports-themed face masks made by a family member.

It’s been a quick turnaround since the coronavirus outbreak slammed the country, causing Bailey to hit the brakes.

“We just took a deep breath in the first week of April,” he said. “We went home, took a step back and took the week off. We let everybody get their sanity back.

“Then we started to put together a game plan.”

Since then, Bailey’s continued to tweak and modify the game plan so the auction could go from crawling to walking to running again. At the same time, the business continues to focus on safety.

Akron Auto Auction is using all the Center for Disease Control guidelines to protect its workers, Bailey said.

“Obviously, everyone is socially distancing and in the office we have Plexiglass up everywhere,” Bailey said. “We have digital gun thermometers so we can make sure people who come in the building (don’t have a fever).”

Bailey also uses a product called PermaSafe, a vehicle disinfectant, that’s another layer of safety for dealers.

Bailey, board chairman of the National Auto Auction Association, is also implementing a checklist system for when it becomes safe for dealers to come into the lanes. It will allow dealers to fill out online forms in advance to state they don’t have symptoms and follow all the CDC guidelines. It’s one less step they’ll have to do when they come in the building.

“It’s like a pre-screening,” he said. “It allows us to keep a paper trail. We’ve been pro-active.”

The auction had a visit from the Health Department when someone complained they had too many people in the building.

“I’m glad they came,” Bailey said. “They saw how we had everything set up and everything labeled. It’s the best PR I could get. I’m not worried at all. We’ve got nothing to hide. I’ve got deputy sheriffs who work here on sale day. If I wasn’t allowed to be open, they wouldn’t be allowed to be here.”

As result of Bailey’s methodical planning, the auction is gaining momentum.

“We are doing online, all digital, at the moment,”
Bailey said. “We’re using Auction Edge, which is Edge ASI  and Pipeline. We use Velocicast for (simulcast).”

Akron has gone an extra step in allowing dealers to come, check out the cars and test-drive them on Friday and Monday, before Tuesday’s sale.

“We ran every other week, pretty much, for April, because of the uncertainty and trying to get stuff organized.,” he said. “(April 21) we ran 1,130 cars and sold 650.

“It was awesome.”

Going forward, Bailey was planning to hold a sale every week.

“I’ll have probably an 800-car sale on (April 28) without any repos,” Bailey said.

Unlike other states, Ohio didn’t prohibit car sales when the state shut down.

“The governor wouldn’t commit to sales being essential or not,” said Wendy Rinehart, executive director of the Ohio Independent Automobile Dealers Association. “He let the business owners decide for themselves and follow CDC guidelines.”

To protect its drivers – who are typically older retirees – Akron Auto Auction has used-car haulers and repo haulers to pick up cars.

Bailey said since lenders are being discouraged from repossessions, the repo haulers have fewer vehicles to pick up – i.e. less work. Akron hires them to pick the vehicles up that its own drivers would have done in the past.

The game plan seemed to be working at a recent sale.

“My big new-car dealers – between the three of them  –  consigned about 450 cars and were over an 80 percent (conversion rate),” Bailey said.

There weren’t just dumping cars in the lanes, Bailey said.

“They were selling over 80 percent because what they wanted, they got, and even more,” he said.

The values still took a hit in the current market.

The average selling price was $4,550 on April 21, lower than his typical $6,500 block price.

Bailey also has his own floorplan company, which is considered an essential business, allowing him to provide dealers with another service.

He has added some Ohio flair to his safety protocols.

Bailey said two family members –related to his uncle, a former owner of the auction – are connected to a sewing shop.

When the whole issue of face masks came up, Bailey had an idea.

“We have a Jo-Ann Fabrics by us, so I think I ordered enough fabric to cover a football field,” Bailey said. “I got Cleveland Browns, Cavs and Indians (designs) along with patriotic stuff. I shipped them all to (the sewing shop).”

The masks have the elastic bands as well as the metal tabs to form around the nose for safety, he said. They also have the filters that can be replaced in the mask.

“So now everybody is wearing them,” Bailey said. “There are really good things going on at Akron.”

As Auto Dealers large and small are deemed an essential service across the country dealers are turning to online tools to continue to sell and repair cars during the Covid-19 pandemic. Tesla, which was already set up for online buying and delivery has added new social distancing features to protect the buyer and Tesla employees .

Tesla developed two new-vehicle pick-up options: Express Delivery and Direct Drop, for customers on edge about Covid-19 exposure. Tesla Express Delivery uses Tesla's smartphone app and each new car's onboard data connection to avoid handling or transferring any car keys. A buyer still shows up in person to a Tesla delivery center to a scheduled appointment. Using the apps location tracking the buyer goes directly to their new car to inspect and sign documents. All documents are in the car ready for signing. An advisor  collects the documents for review while a technician adds a temporary tag and license plate.

With Tesla’s Direct Drop everything is done digitally, paperwork is e-signed and payment is handled online, the buyer then uses the tesla app to pick a location for drop-off. Tesla drops off the car at the requested stop and the buyer unlocks the car with the tesla app. The whole process involves no physical human interaction at all.

Select Toyota dealers are offering to deliver a new or certified vehicle straight to a buyers door at no extra charge, and owners in select areas can have service performed remotely at their home. Toyota has expanded their internet and call center to allow for better remote communication.  GM dealers are offering a similar shopping experience.

Its not just larger Dealers that are adding successful social distancing buying options for their clients either. Township Chevrolet in Summerside, PE is offering social distancing sales, buy allowing customers to pick a vehicle, set a date and time for a home test drive and then delivering the vehicle to the home for a test drive after being sterilized. They have also made adjustments to allow those who visit the dealership to remain properly distanced.

An issue used car buyers and sellers may run into with selling/buying a vehicle, are inspections from an independent mechanic. Dealers may want to make this easier for their buyers by setting up easy third party inspections where they drop off and pick up the vehicle and certify the vehicle as being disinfected after inspection before it is dropped off to a buyer for a test drive. Paperwork can be left in the vehicle and mailed back to the dealership or completed onlline.

There are currently two major contenders that sell used cars nationwide online.  Vroom and Carvana have been setting the standard for selling cars online across the country for sometime. Vroom vehicles undergo a 126-point inspection before they’re accepted for sale. Carvana vehicles, must pass a 150-point inspection as well as undergo an Experian auto check report. After purchase, customers have the option to test drive their cars for seven days before they can return them. Carsense is offering curb-side delivery in there NY and PE locations and home delivery in other locations .

Adding social distancing options like curb-side drop-off, online paperwork, over the phone sales, drop off test driving, delivering and picking up vehicles for 3rd party inspections and certifying vehicles as disinfected will help normalize car sales during the pandemic . According to Google’s latest stats, 71% of people turn to online searches first to solve their problems. Buying cars is no different , people will be looking for what Dealers are doing to minimize contact with social distancing and protecting the buyers through the whole process of purchasing a vehicle.