Manheim Pennsylvania won the 2022 Most Valuable Auction of the Year and five regional Auction of the Year winners were also announced. These awards are part of GM Financial’s annual Auction of Excellence program recognizing the nation’s highest-performing auction locations.

Bob Winn, senior vice president of Remarketing Solutions at GM Financial, said, “The auctions we work with have spent the past few years navigating many obstacles and going to great lengths to help GM and our purchasing dealers achieve success.”

“With several macroeconomic concerns and a few unique to our industry, these top performers stepped up, prioritizing strong vehicle sales and bettering dealer relationships,” Winn said. “Congratulations to these outstanding auctions and thanks for your hard work.”

Selection criteria for these honorees included performance in retention, operational metrics, presale activities and overall auction operations.

2022 Regional Auction of the Year Winners:

• America’s Auto Auction Columbus Fair — Obetz, Ohio
• Southern Auto Auction — East Windsor, Conn.
• America’s Auto Auction Lone Star Lubbock — Lubbock, Texas
• Manheim Statesville — Statesville, N.C.
• Manheim Denver — Aurora, Colo.

“Being named GM Financial’s Most Valuable Auction for a fourth consecutive year speaks volumes about our team’s ongoing commitment to serve clients and deliver the results they need and expect,” said Joey Hughes, Manheim Pennsylvania vice president and general manager. “I could not be prouder of our team at Manheim Pennsylvania and their focus on delivering all-around top performance to help our clients achieve their business goals.”

National Auto Auction Association (NAAA) member auctions remained resilient during 2022 amid challenging economic conditions and reported more than $110 billion in actual and projected vehicle sales.

According to NAAA’s 2022 annual industry survey, nearly 11 million vehicles were offered for sale at NAAA member auctions with 6.6 million units sold for a sale rate of 60.3%. The average price per unit reached $16,747, up 4% from 2021, which represented an all-time high according to prior NAAA Industry Survey data. 

Dealer consignment vehicles represented the largest number of units sold at 61%, followed by finance and fleet (lease, fleet, repo) with 33%, manufacturer (factory) vehicles at 5%, and 0.5% from other sources. 

As inventory and supply chain issues continued during 2022, the number of units entering the lanes dropped 7% from the previous year, and the number of units entering the lanes that were sold dropped 4%. 

The 2022 survey data illustrated how NAAA member auctions are not only vital components of the automotive industry, but they are also key contributors to their local economies. In 2022, NAAA member auctions employed an average of 104 people per auction, and an additional average of 33 people were employed as temp or contract workers. In total, member auctions employed an estimated 44,000 full-time and part-time workers in 2022. Collectively, NAAA member auctions contributed an estimated $4.5 million to charitable causes for an average charitable contribution of more than $13,000.

The independent firm of Robert A. Casey Consulting of Burke, Virginia conducted the survey for NAAA. The survey provides the most accurate picture available of the wholesale auto auction industry. The response rate for the survey was 63%, representing 214 member auctions. The reported total vehicles entered and sold, and the related gross values are projected to estimate the totals for all 342 NAAA auctions.

“It’s clear from the 2022 Industry Survey results that our member auctions continue to represent the Gold Standard of the wholesale auto auction industry,” said NAAA Interim Executive Director Paul Lips. "The last several years have been challenging for the auto industry, but our members time and again prove that they are adaptable, innovative, and dedicated to advancing our great industry.” 

Average wholesale used vehicle prices rose for the second consecutive month in February and well into March, according to the Kontos Kommentary, prepared by Tom Kontos, chief economist of ADESA Auctions.

Certified pre-owned (CPO) sales also rose in February despite short supplies of late-model vehicles, as OEMs have expanded their programs to include older models and consumers look for ways to fight inflation, the report stated.

According to ADESA U.S. Analytical Services’ monthly survey of auction industry used vehicle prices by vehicle model class, wholesale prices in February averaged $15,311 — up 3.9% compared to January, down 5.7% relative to February 2022, and up 42.1% versus pre-pandemic/February 2019. All model class segments showed average price increases for the month with the exception of full-size vans, which were modestly down.

Late-model price growth in part reflects strong demand for CPO-eligible units. Average prices for this group of vehicles have also continued to increase in March and stood at $26,054 for the week ending March 19.

CPO sales have improved this year despite wholesale supply shortages of late-model used vehicles eligible for certification. This improvement in sales is partly the result of expansion by OEMs of their certification programs to include older units. In addition, many inflation-sensitive consumers are substituting new vehicle purchases with less-expensive CPO buys.

Manheim reported wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 1.8% from February in the first 15 days of March.

The mid-month Manheim Used Vehicle Value Index rose to 238.6, which was down 2.1% from the full month of March 2022. The seasonal adjustment minimized the gains. The non-adjusted price change in the first half of March was an increase of 3.8% compared to February, while the unadjusted price was down 2.6% year over year.

Over the last two weeks, Manheim Market Report (MMR) prices increased by an aggregate of 1.6%. Prices usually increase in the first two weeks of March, as the average price change for these weeks in the six years from 2014 through 2019 was an increase of 1.2%. Over the first 15 days of March, MMR Retention, the average difference in price relative to current MMR, averaged 100.5%, indicating that valuation models are below market prices. The average daily sales conversion rate of 68.3% in the first half of March increased relative to February’s daily average of 63.8% and was above the March 2019 daily average of 65.3%.

Seven of eight major market segments saw seasonally adjusted prices that were again lower year over year in the first half of March. Pickups had a 0.9% increase, while only midsize and compact cars lost less compared to the overall industry in seasonally adjusted year-over-year changes. The remaining segments lost between 2.4% and 7.7%, with luxury cars faring the worst. Seven of eight major segments saw price increases compared to February, with gains ranging from 0.1% to 2.4%. Sports cars were the lone exception, with a 2.4% decline from February.