Barrett-Jackson will bring its show to enthusiasts worldwide with its premiere online-only auction beginning on May 8. Featuring approximately 75 premium, hand-selected collector vehicles and more than 250 pieces of authentic automobilia, the Barrett-Jackson Online Only May 2020 Auction will be run on the online auction platform, Proxibid.

“Barrett-Jackson was the first collector car auction company to introduce live internet bidding to the industry in the early 1990s,” said Craig Jackson, chairman and CEO of Barrett-Jackson. “Today, that same innovative spirit has led to our new online auction platform that will deliver the same level of trust digitally as we do in person. All of our bidders will be carefully pre-screened and our vehicles reviewed with the same care as at our live events.”

The Online Only May 2020 docket will include collector vehicles and genuine automobilia pieces that appeal to collectors of all interests. Included in the car auction is an exceptional 1969 Ford Mustang Boss 429 in Candy Apple Red that was one of the first 150 examples built, as well as a custom 1963 Chevrolet Corvette Split-Window Coupe built by Jeff Hayes Customs and powered by a GM LS3 540hp with a Hot Cam engine.

Barrett-Jackson’s Online Only May 2020 Auction will also feature automobilia with an offering of more than 250 genuine, authentic automotive Americana pieces, the majority sold with No Reserve.

 

An official from the Small Business Administration confirmed auto auctions are eligible for SBA loans under the CARES Act relief package signed into law this month.

National Auto Auction Association President Laura Taylor recently hosted a teleconference with SBA official R. Gregg White, in conjunction with the Independent Auction Group and she moderated a Q&A with White, the district director in Taylor’s home state of South Carolina.

White told the group that the $2 trillion relief package contains $377 billion in aid for small businesses like auctions.

Auto auctions can apply for the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).

PPP provides loans that will be fully forgiven when used for at least 75 percent of payroll costs, as well as interest on mortgages, rent, and utilities. EIDL advances will provide up to $10,000 of economic relief for working capital needs to businesses that are currently experiencing temporary loss of revenue and will not have to be repaid.

Other aid programs that are available are the SBA Express Bridge Loans, and the SBA Debt Relief offers a financial reprieve to small businesses during the pandemic.

 

The recession in the wake of COVID-19 could resemble the “curve” discussed by the Coronavirus Task Force, according to Tom Kontos, KAR Global chief economist.

Kontos, in the recent edition of his Kontos Kommentary, looked at the current economic shutdown in light of past economic downturns.

“Because the last 10 years have represented the longest expansion on record, one must go back to the Great Recession of 2008-09 and the 9/11 timeframe to find downturns and shocks to the economy that negatively affected wholesale values for a sustained period of time,” wrote Kontos, providing a chart to illustrate his point.

 

 

Kontos said the post-9/11 recession lasted between March and November but had a “short-lived effect on wholesale values.”

The continued price declines after October were “due primarily to an influx of off-lease volume and high new vehicle incentives even as the economy rebounded. The downturn in average prices after 9/11 continued for 20 months until May of 2003, which I described as an ‘inflection point’ in the wholesale market at the time,” Kontos reported.

He said the more dramatic fall in wholesale prices during the Great Recession from Dec. 2007 to June 2009  was followed by a quick recovery.

Kontos compared those downturns with the forced stoppage of economic activity in much of the country now.

“The recession that this has induced will likely follow a pattern that mirrors the ‘curve’ of the pandemic often talked about by Dr. (Anthony) Fauci in his press briefings,” Kontos stated.

Kontos said that just as the pandemic was likely to worsen before it got better, when auctions resume some semblance of pre-March level of sales and conversion rates then used vehicle prices are likely to fall by the same double-digit year-on-year levels we saw both post-9/11 and during the Great Recession.

“So, the duration of the decline will likely correspond to the length of the current recession, which again depends on the timing of resumption of social and economic interaction as the pandemic is contained,” Kontos said.

“And, it’s best to expect that upticks in used vehicle values are several months down the road, though strong demand for used vehicles in tough times, supportive government fiscal and monetary policies, and low oil prices should help limit the damage.”

 

 

Watch February 2020 Kontos Kommentary, Tom Kontos, Chief Economist at KAR Global, provides his insight and updates regarding the current used vehicle market conditions.

Research from Cars.com found that while many dealerships are experiencing historically low foot traffic and many have closed showrooms completely, tens of millions of people are still actively engaged in car purchases online.

Despite the shutdowns caused by COVID-19, data demonstrates that nearly 80 percent of Cars.com visitors are searching and viewing inventory with high intent to purchases. The research revealed three key trends impacting the automotive sector driven by the COVID-19 outbreak:

  1. Car shoppers are looking to connect digitally. Shoppers are also interested in handling price negotiations (48 percent) and financing (42 percent) online.
  2. Cleanliness concerns are swaying nearly one in five consumers toward car purchases and it is also affecting ride-sharing. The coronavirus pandemic has pushed 17 percent of survey respondents to now consider purchasing a car. The main reasons for increased urgency include a desire to stop riding public transportation (43 percent) and distrust in the cleanliness of others’ cars (28 percent). Furthermore, of the consumers who plan to buy a car, 1 in 3 have decided to speed up their timeline due to the outbreak.
  3. Auto dealers are ramping up digital and home-delivery capabilities. As consumers look to connect digitally with dealers across the country, there is an increased desire for more digital services and home delivery options. Among dealer survey respondents, most are ramping up their digital retailing capabilities such as online financing (57 percent) and online estimates for trade-ins (40 percent), while others are focused on online chat options (36 percent) and offering local home delivery of vehicles (49 percent)..

KPA a software and consulting company is offering free CoVid-19 resource training for the workplace. KPA has over 30 years of experience in the areas of environment, health, and safety and workforce compliance. The company has free webinars and training courses to help businesses address coVid-19 in the workplace and help keep their employees and customers safe.

 They are offering five free training courses:

  • CoVid-19 Awareness
  • Health and Wellness
  • Hazard Communication
  • House Keeping
  • Basic First Aid Awareness

They cover How Employers Can Manage Coronavirus Anxiety and Safety on their blog. A topic weighing on the minds of many dealerships and shops that do repair work.

As well, they have developed a CoVid-19 Content Package. The content pack includes:

  • A CoVid-19 Workplace Prevention and Hygiene Training Packet
  • Two Checklists covering facility and personal hygiene and preparedness.

 KPA says it works to create “safer work environments for employees.”

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