May 28, 2023
Wholesale (43)
Ritchie Bros. Rebrands to RB Global
Staff Writer
May 11, 2023
RB Global is the new name for Ritchie Bros. Auctioneers, following the company’s successful acquisition of IAA Inc. RB Global’s common shares will continue to be listed for trading on the New York Stock Exchange and on the Toronto Stock Exchange under the ticker “RBA.”
RB Global will go-to-market and do business with customers under the Ritchie Bros. and IAA, Rouse and SmartEquip brands, among others, reflecting the brands’ strong heritage and significant brand equity.
RB Global operates an omnichannel marketplace that provides value-added insights, services and transaction solutions for buyers and sellers of commercial assets and vehicles. Through its auction sites in 14 countries and digital platform, RB Global serves customers in more than 170 countries around the world across asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, commercial accessories, agriculture, among others. “The RB Global name signifies the transformation of our business into a premier global marketplace and more closely aligns with our strategy,” said Ann Fandozzi, CEO of RB Global.
“The IAA acquisition accelerates these efforts, adding significant scale, reach and capabilities. As one company – RB Global – we have a unified vision for success and value creation.”
KAR Global Rebrands as OPENLANE
Staff Writer
May 04, 2023
KAR Auction Services is rebranding to reflect the company’s transformation to a more asset-light, digital marketplace company. OPENLANE signals a new simplified, customer-first approach to used vehicle remarketing.
OPENLANE will serve as both the parent company brand and the go-to-market brand for the company’s digital marketplaces in the U.S., Canada and Europe.
Consolidating platforms, offerings and operations into OPENLANE will help focus the company’s strategy and investments, accelerate innovation and simplify the overall customer experience. The company’s corporate name will change to OPENLANE Inc. effective May 15, 2023. The company’s common stock will continue trading on the New York Stock Exchange under the ticker symbol “KAR.”
“Our vision is to build the world’s greatest digital marketplace for used vehicles, and we are advancing that vision by bringing together all of our sellers, buyers and vehicles under OPENLANE,” said Peter Kelly, CEO. “Over the past decade, we’ve built and acquired some of the leading digital platforms in our industry. Combining the best features and functionality from this technology and unifying our supporting operations will help us create the fastest, easiest and most active digital marketplace available. With flexible sale formats and thousands of cars offered each day—including exclusive, first access to a significant majority of North America’s off-lease inventory—customers will be able to list, bid and buy anytime, anywhere.”
In 2022, the company’s marketplaces facilitated the sale of approximately 1.3 million vehicles, with a gross merchandise value of over $23 billion, across a network of more than 50,000 franchise and independent dealers, OEMs, financial institutions, rental and recovery companies and fleet operators.
The first OPENLANE branded marketplace will be launched in Canada where the company will combine the existing ADESA and TradeRev platforms beginning in June 2023. In the U.S., the company successfully integrated CARWAVE into BacklotCars in 2022 and is currently rolling out the new live-auction format on a national scale. Once completed, the company will focus on integrating its U.S. dealer-to-dealer and off-lease platforms into a new, combined marketplace. And in Europe, the company has completed its consolidation of the ADESA Europe, ADESA UK and GWListe dealer-to-dealer technology into a single, consolidated marketplace that is expected to also adopt the OPENLANE brand.
“KAR catalyzed the digital transformation of remarketing through our acquisition of OPENLANE in 2011. So, it is fitting to anchor the next era of our company—and our industry—on the OPENLANE brand,” Kelly said. “From CPO-ready off-lease cars to higher-mileage older vehicles, to fleet, rentals, recoveries and everything in between, OPENLANE will have the right car for every lot in every geography. And with thousands of unique users engaging on our marketplaces each day, sellers can have confidence they’re receiving the best, most competitive market price available.”
ServNet Celebrates Industry Awards
Staff Writer
May 04, 2023
ServNet auctions have again emerged as some of the country’s top performers in the remarketing community. In assessing auction results for 2022, national remarketers recognized ServNet auctions in both national and regional standings, with scores based on operations, customer service, retentions, and leadership.
”ServNet auctions are consistently recognized in the auction industry for the exceptional level of service offered to their customers,” said Chris Angelicchio, ServNet’s Executive Director. “As national remarketers tallied their results for 2022, ServNet auctions once again emerged as leaders among their industry partners, evidence that ServNet auctions continue to perform at the highest standards, providing consistent, outstanding results for their customers.”
For the second year in a row, Bel Air Auto Auction was named Retail Auction of the Year in the Northeast Region by Santander Consumer USA.
Merchants Fleet recognized three ServNet Auctions for superior service in 2022. For the third year running, North Bay Auto Auction was singled out as the fleet company’s top overall auction in the country. Leading for Merchants Fleet in their regions were Indiana Auto Auction (Midwest Region) and Bel Air Auto Auction (Mid-Atlantic Region).
For the 10th year in a row and the 12th time overall Missouri Auto Auction was named Regional Auction of the Year for Holman (previously ARI). This year Missouri Auto Auction was joined by DAA Seattle on the Holman award podium, also receiving the 2022 Auction of the Year in its region.
Three ServNet auctions were cited by Exeter for their performance in 2022. Carolina Auto Auction and DAA Seattle were among the best for Exeter, leading their regions for the remarketer in 2022. Both received the Exeter Auction eXcellence Award. In addition, Akron Auto Auction was named Exeter’s Most Improved Auction for 2022.
Remarketing by Element cited two ServNet auctions in 2022, naming Indiana Auto Auction its Truck Sale of the Year and recognizing DAA Northwest with its Above and Beyond Award for the Western Region. DAA Seattle received Ford Credit’s ASAP Award for 2022.
“These industry honors are part of a tradition of excellence that has characterized ServNet auctions for decades,” Angelicchio concludes. ”ServNet auctions share a determination to offer the best auction experience for its customers, and that determination is evidenced by consistent, superior award-winning performance.”
Tony Long will resign his position as Executive Director of IARA effective May 5, 2023. “We thank Tony for his many contributions to the organization and his overall commitment to the auto industry,” said IARA President Jeff Bescher. “Since becoming the third Executive Director of IARA nearly ten years ago, Tony has helped drive IARA’s growth and membership, overseen the implementation of our CAR and ACT industry leading training initiatives, and has been a significant part of making our annual Summer Roundtable meetings an industry standard. “We are grateful for Tony’s dedication to the mission of IARA and his many contributions to our success, and we wish him well as he navigates his next opportunities in a long and successful remarketing career.”
Bescher noted that in addition to being the executive director of IARA for nearly 10 years, Long is a past president of the National Auto Auction Association (NAAA), former president and fellow of the NAAA Warren Young Scholastic Foundation, and he received the highest award given to non-dealers when he was inducted into the National Independent Automobile Dealers Association (NIADA) Ring of Honor in 2021. Currently, the IARA Executive Committee is beginning to work on a strategic plan to fill the void left by Long’s departure, in addition to the day-to-day operations of the IARA.
IARA’s Nikki Jones-Wenger will continue to be a point of contact for members and others during the transition.
NIADA Partners with SecureClose
Staff Writer
April 28, 2023
SecureClose LLC, which provides an automated avatar loan closing system for a legally compliant, consistently transparent closing every time, along with e-sign and electronic vault, has been selected by the National Independent Automobile Dealers Association as its newest bronze National Corporate Partner.
Amos “Ace” Christian, the founder and CEO of SecureClose, has been a BHPH dealer for 27 years. Based on real-life experiences, Christian developed the SecureClose Avatar to provide a consistent, transparent customer experience, by combining a recorded avatar presentation of legally compliant disclosures, with electronic document presentations, E-Signature, and secure UCC Article 9 compliant cloud vault document storage.
SecureClose LLC is based in Mesa, Ariz., and is managed by Christian and President Stan Heintz ‑ both with extensive experience in BHPH operations.
“SecureClose was created to eliminate the ‘he said, she said’ that dealers face with consumers, who then go to regulators and attorneys with complaints,” Christian said. “Just this year, Jan 1 to Mar 31, consumers filed 1,681 complaints with the CFPB related to vehicle loans. That’s an 18.3 percent increase quarter over quarter and a 43.7 percent increase year over year. I want dealers to have proof, when these regulators come knocking, that they were transparent and compliant during their interaction with the consumer.”
Sales documents, finance contracts and other state-related documents are imported from the dealer’s DMS or CRM software. A recording (video and audio) of the closing is created as an avatar explains each document as if an attorney was in the room with the customer. Once the consumer confirms that they fully understand and agree to the content of each page, they digitally sign each document. Upon completion, the dealer’s “Authoritative Original” Retail Installment Contract and other documents automatically transfer into the SecureClose Vault along with the video recording. The customer also receives copies of the e-signed documents by email and can review the video closing for 10 days.
IAA Boosts Holdings in Three States
Staff Writer
April 28, 2023
IAA Holdings, LLC (IAA), a Ritchie Bros. Auctioneers Incorporated company and global marketplace for insights, services and transaction solutions for commercial assets and vehicles, announces that it has made strategic real estate investments in New York, Indiana, Connecticut and Delaware.
The IAA Staten Island (N.Y.) and IAA Fort Wayne (Ind.) branches have opened to accommodate growing demand in these busy markets. IAA also has bought out the leases at two existing branches in Connecticut and Delaware to secure its presence at prime locations in those states.
“As demand for capacity steadily increases, our flexible real estate strategy continues to allow us to provide space for inventory management where it is needed most,” said Scott Guenther, senior vice president of North America operations at IAA. “Our physical presence and cutting-edge technology allow us to drive operational excellence and continue to lead the industry in customer service.”
Hagerty Offers First Online Private Collection Sale
Staff Writer
April 26, 2023
Hagerty Inc., an automotive lifestyle brand and a specialty insurance provider, announced the first private collection sale of the Hagerty Marketplace online auction. The recently launched platform allows members and enthusiasts to buy and sell automobiles through a trusted, easy-to-use system. The Retro Motors Collection comprises over 30 cars largely from the 1950s through today, with a focus on American muscle and high-powered European sports cars.
The Retro Motors Collection will launch on Hagerty Marketplace online auctions beginning Monday, May 15 in a rolling format, with a handful of cars opening for bidding daily and closing five days following each launch. Each car from The Retro Motors Collection has been inspected and cataloged by a Hagerty Marketplace specialist.
Tanner Litowski has been named the national remarketing manager at Central Auto Auction in Connecticut.
Born and raised in Canada, Litowski moved to the U.S. in 2011. He brings over 12 years automotive experience with him, most recently running a domestic franchise dealership sales department, that also included performing all trade appraisals, selling wholesale units and chasing inventory across the country from auto auctions and internet-based platforms.
“Tanner’s strong sales and internet skills are just what we need at Central Auto Auction as we continue to improve our grow our sale” said Anthony “AJ” Jasiak, Central Auto Auction General Manager.
Litowski said he is excited to bring his experience to Central Auto Auction.
“I believe that my knowledge of working on the dealer side of the business will help me succeed with improving the auction’s volume of inventory from both the dealers and commercial consignors,” he said.
Central Auto Auction was founded in 2006 and operates on approximately 12 acres, offering 3 lanes, full reconditioning services, including mechanical, transportation, title services, Auto IMS and Velocicast.
Oklahoma Auto Exchange Retains TPC Management Co.
Staff Writer
April 26, 2023
Oklahoma Auto Exchange, located in Oklahoma City, has retained TPC Management Company for strategic consulting in business development.
The auction was founded in 2005 and is headed by the father/son team of Mike and Kyle Clopton, now auction co-owners.
“From the beginning, Kyle and I have worked to develop the premier independent auction in this market, marked by a customer-focused auction operation,” said Mike Clopton. “We’re proud of what we have accomplished over the past 18 years, and feel the timing is right to expand our business as we work with Pierre Pons, Jiles Wanna and the team at TPC. We envision great possibilities as we strategize our future development and build our connections with the decision makers among the national commercial accounts”.
The auction offers up 700 vehicles including Dealer Consignment and Commercial Accounts every Wednesday in four lanes. The facility is completely enclosed to protect vehicles and customers from Oklahoma’s unpredictable weather. The physical footprint includes 125,000 square feet of indoor storage and auction space, situated on 18 acres of land. The auction has a six-bay detail and reconditioning shop, offers light mechanical services and in-house transportation, and includes a 2,500 square foot dealers’ lounge where customers enjoy free meals and a relaxing environment to look over sale lists. “The Cloptons have a passion for the auction business and are the ultimate competitors who put their customers first,” said Pierre Pons, president of TPC Management. “They have a large and loyal customer base among the new and used car dealers in the Midwest, and they have added a number of commercial accounts as well, several of which have recognized the auction for operational excellence and customer service over the years. As a matter of fact, the Cloptons were on the award podium again at the CAR Conference in March.”
Wanna, vice president of client services for TPC, celebrated the new partnership. “The motto at Oklahoma Auto Exchange is worthy of note: ‘If we don’t serve you, we don’t deserve you,’” said Wanna. “At the core of the auction is a commitment to the customer that is evident the moment a car arrives at check-in or a dealer sets foot in the door. It is exciting for us to work with an operation of this caliber to build its connections in the marketplace.”
DAAG Acquires OKI Cincinnati
Staff Writer
April 17, 2023
Dealers Auto Auction Group has expanded into the Cincinnati, Ohio market with the acquisition of OKI Cincinnati Auto Auction.
OKI founder, Lee Schoenling, has over fifty years’ experience in the auto industry and opened the auction in 2000. The auction began selling in one lane, offering roughly 75 units weekly. After a year in business, the Schoenlings moved to a larger facility in Reading, Ohio. As the auction continued to grow, it moved to its current address at 120 City Center Drive, Cincinnati and currently runs hundreds of units each week.
Tony Schoenling started in the auto industry in 2001, working at the auction while also attending college. After graduating in 2005, Schoenling assumed greater responsibilities within the auction and earned his way into an ownership position. Schoenling will continue as an invested member of DAA Cincinnati and will serve as general manager.
“David Andrews is a person I trust to help grow this market,” Schoenling said. “David and the Dealers Auto Auction Group team are a great fit for my team, me, and the car industry. The timing of this acquisition is great for dealers and commercial clients looking for an auction offering high-level, personalized service in the Ohio River Valley and beyond markets.”
Andrews said the company is thrilled to enter the Cincinnati market.
“Tony is a smart operator, and the Schoenlings have a great history of serving their customers,” he said. “As the fourth largest auction group in the country, DAAG listens to our customers.”
Warren Byrd of Keyscore Consulting was instrumental in putting this deal together. Byrd, a veteran auction industry advocate, has spent decades negotiating acquisitions and building auctions.
“I am pleased to play a part in their expansion northward into a major market in the Midwest,” Byrd said. “This is Keyscore’s third acquisition with the Dealers Auto Auction Group in the past two years.”
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Vehicle Acquisition Network Rebrands
Staff Writer
April 15, 2023
Vehicle Acquisition Network (VAN), a private party acquisition solution for automotive dealerships, has announced the rebranding of its suite of solutions to better reflect their capabilities and provide room for growth. The VAN suite of solutions now includes Fuel, Converse, Engage, and Navigate.
VAN Fuel offers an advanced private seller inventory market scan software, constantly monitoring a dealership’s market area for predefined vehicles being offered for sale. Fuel updates from over 18 providers in the United States and Canada, providing a more comprehensive market view than any other provider. Fuel also removes salvage, dealer, and other undesirable vehicles before they ever make it to a dealership’s results.
VAN Converse is a party acquisition solution that provides in-application communication with private sellers. Converse offers text messaging and click-to-call telephone connection capabilities, all within the vehicle details page, so users can reference all the vehicle information while conversing with private sellers.
VAN Engage is a full-featured Seller Relationship Management system within the application. It allows dealerships to move past leads and begin developing relationships with consumers in their market. Engage has follow-up and appointment setting features that can be planned into custom tasks, and it keeps track and provides reporting on contacts, offers, appraisals, and acquisitions, every step in the funnel.
VAN Engage offers a Google Chrome Extension that enables dealers to work with the VAN solutions without leaving the listing provider page.
VAN Navigate allows users to update notes, add seller information, and open a new tab to transfer to vAuto for appraisals, all without toggling back and forth between tabs. Navigate also allows users to source vehicles in the locations they choose while retaining the efficiency and scalability of the Fuel platform.
NIADA Offers BHPH Training
Staff Writer
April 11, 2023
NIADA’s comprehensive BHPH General Management training promises to help current and prospective general managers learn the critical operational drivers necessary for running a successful BHPH dealership.
Senior 20 Group Moderator Ben Goodman will spend two days training management for BHPH/LHPH dealers during a session in Irving, Texas. The 12-hour course over two days is April 26 and 27. The cost is $549 for NIADA and 20 Group members, with a discounted group rate of $495 per person. For non-members, the class is $695.
“The management training is for existing BHPH owners, general managers and services managers,” Goodman explained. “We’re going to go into specific BHPH internal processes and operating guidelines, how to recruit, train and develop people, and sales.”
Goodman has spent nearly 30 years training and leading high-achieving sales teams in the subprime and BHPH markets, including 11 years with the nation’s largest BHPH franchise.
Attendees will develop a playbook for:
• Talent acquisition and retention
• Reducing reconditioning costs and shop inefficiencies
• Improving portfolio performance while reducing policy and warranty costs by effectively managing the post-sale customer service experience
• Coaching and motivating sales associates to develop leads; installing and managing a sales and underwriting process that will increase sales volume
• Recognizing red flags in your portfolio; turning your collectors into problem resolution managers; and compliance.
“It’ll cover the entire process from the general manger perspective. Anyone who is a general manager will profit from this class,” Goodman said. “I’m excited. It’s going to be a good class.”
Barrett-Jackson Offers Brian Kelly Collection
Staff Writer
April 11, 2023
Barrett-Jackson, the “World’s Greatest Collector Car Auction,” is offering nine spectacular vehicles from the Brian Kelly Collection, all with No Reserve. The 2023 Palm Beach Auction will be held April 13-15 at the South Florida Fairgrounds. Among the highlights is an iconic, one-year-only body-style 1963 Chevrolet Corvette 327/360 Split-Window Fuelie (Lot #733) that is one of only 2,610 equipped with a fuel-injected engine in 1963.
“Astute collectors worldwide turn to Barrett-Jackson when looking to sell their prized vehicles, and the Brian Kelly Collection is one of several head-turning groupings being offered at our Palm Beach Auction later this month,” said Craig Jackson, chairman and CEO of Barrett-Jackson. “From beautifully restored vintage Americana such as his 1954 Skylark convertible (Lot #684) to modern muscle like a 2022 GT500 Heritage Edition (Lot #762) with just 10 miles on the odometer, Brian’s collection of vehicles selling with No Reserve in Palm Beach will be immensely popular among our bidders.”
In addition to the 1963 Chevrolet Corvette 327/360 Split-Window Fuelie (Lot #733) with its matching-numbers engine, the Brian Kelly Collection also features professionally restored C1 and C3 convertibles: a stunning example from 1959 in Snowcrest White with silver coves (Lot #675) and a sleek 1970 model in Classic White with a black soft-top (Lot #371). The 1959 convertible is powered by its original matching-numbers 283ci engine (one of just 1,417 Corvettes so-equipped), which is topped with dual-quad carburetors and backed by a 4-speed manual transmission. The 1970 Corvette has only 34,301 actual miles and is powered by a 350ci V8 engine rated at 300 horsepower, with a 4-barrel carburetor and a 4-speed manual transmission.
A 1954 Buick Skylark convertible (Lot #684) received a professional frame-off nut-and-bolt restoration that earned it Best in Class awards at multiple Concours d’Elegance events. One of just 836 examples built for the 1954 model year, this Buick is powered by its matching-numbers 322ci Fireball V8 engine mated to a Dynaflow automatic transmission. This Skylark is finished in Arctic White with red wheel wells and a black convertible top over a red leather interior.
Wholesale Used Prices Increase
Staff Writer
April 10, 2023
Wholesale used-vehicle prices (on a mix, mileage, and seasonally adjusted basis) increased 1.5% in March from February. The Manheim Used Vehicle Value Index (MUVVI) rose to 238.1, down 2.4% from a year ago. March’s increase was moderated by the seasonal adjustment. The non-adjusted price change in March increased by 3.5% compared to February, moving the unadjusted average price down 2.9% year over year.
In March, Manheim Market Report (MMR) values saw increases that were stronger than normal to start the month but below normal to end the month. Over the last four weeks, the Three-Year-Old Index increased an aggregate 1.6%. Over the month of March, daily MMR Retention, which is the average difference in price relative to the current MMR, averaged 99.8%, meaning market prices were slightly below MMR values. The average daily sales conversion rate increased to 65.4%, which was a normal average for the time of year. For context, the daily sales conversion rate averaged 65.3% in March 2019. However, the conversion rate declined as the month progressed, which indicates the month started with conditions favoring sellers, but by month end, conditions were starting to shift.
Seven of eight major market segments continued to see seasonally adjusted prices that were lower year over year in March. Pickups showed a 0.6% increase. Compared to last March, midsize and compact cars lost less than the industry, at 1.4% and 2.2%, respectively, while luxury cars lost 8.0%, and the remaining three segments declined between 2.7% and 3.8%. Six of eight categories showed gains compared to February of between 0.5% and 2.1%. Vans were flat, and sports cars lost 1.6% versus last month.
