New-vehicle retail sales in June are expected to be down from a year ago, according to a joint forecast developed jointly by J.D. Power and LMC Automotive. Retail sales are projected to reach 1,002,600 units, a 5.7 percent decrease compared with the J.D. Power pre-virus forecast and 11.3 percent decrease compared with June 2019. Reporting the same numbers without controlling for the number of selling days translates to a decrease of 14.7 percent over last year. (Note: June 2020 contains one less weekend and one less selling day than June 2019).

“The industry continues to show signs of recovery in June, with retail sales down only 6 percent compared with the J.D. Power pre-virus forecast,” said Thomas King, president of the data and analytics division at J.D. Power. “This represents a significant improvement from May when retail sales were off 20 percent from the pre-virus forecast. The combination of pent-up demand, states relaxing coronavirus-related restriction and elevated incentives are all providing a tailwind for the industry.”

Total sales in June are projected to reach 1,085,600 units, a 25.1 percent decrease compared with June 2019. Reporting the same numbers without controlling for the number of selling days translates to a decrease of 28.0 percent over last year. The seasonally adjusted annualized rate (SAAR) for total sales is expected to be 12.8 million units, down 4.4 million units from a year ago.

Remarkably, in markets like Detroit (one of the most severely affected areas by COVID-19), retail sales are on pace to exceed 2019 levels.

Record levels of manufacturer incentives for the month of June are supporting the sales recovery. Incentive spending is on pace to reach $4,411 in June, the highest ever for the month and an increase of $445 from June 2019. Incentives on cars are expected to be up $459 to $4,031, with trucks/SUVs up $407 to $4,524.

Transaction prices continue to set records and are on pace to rise by 3.9 percent to $34,981, the highest level ever for the month of June. Record prices are being supported by the ongoing shift in consumer demand from cars to trucks/SUVs. Car sales are on pace to account for just 24 percent of new-vehicle retail sales in June, the lowest level ever for the month of June and the third month in a row below 25 percent. As the industry shifts towards more expensive products, SUV mix is expected to reach a record 56 percent.

McConkey Auction Group announced the launch of MAGauctions.com, a website that includes all of its wholesale auction businesses. Prior to its development and June 12 launch, the company had separate websites for DAA Northwest, DAA Seattle, and its motorsports division.

One of the tools magauctions.com provides is a comprehensive sale calendar. Dealers can now view all scheduled McConkey Auction Group (MAG) events in a single online location. “The calendar development was a priority when we began the project,” said Mitzi VanVoorhis, McConkey’s vice president of marketing. “We started working on the new website before COVID-19 hit – the rapid pace of change since then has made the calendar a go-to tool.”

MAG is selling digital-only Weds at 1pm via Eblock
MAG is digital-only auctions Weds at 1pm via Eblock and Edge Pipeline

In addition to the calendar and information about DAA Northwest, DAA Seattle, MAG Now, MAG Motorsports and MAG RVs, magauctions.com provides dealers with entry to both EBlock and Edge Pipeline.

The McConkey Auction Group served as a beta location for EBlock earlier in the year; its MAG Now auctions are powered by EBlock and take place every Wednesday at 1 p.m. (PT). MAG’s weekly DAA Northwest and DAA Seattle auctions are offered via Edge Simulcast.

Future magauctions.com plans include the integration of new dealer tools.

“We are in a time of digital transformation,” said Bob McConkey, president and CEO of MAG. “Our new website is one avenue we have employed to supplement our hands-on, relationship-based service.”

The popularity of online vehicle auctions by HiBid.com has prompted the launch of Cars.HiBid.com, a specialized portal dedicated to vehicles for sale.

HiBid.com has served as the online auction platform for numerous luxury vehicle and exotic car auctions. Noteworthy auction lots include a 1978 Pontiac Firebird Trans Am custom coupe owned by the late actor Burt Reynolds, and 149 classic muscle cars, antique cars, trucks, and other high-value vehicles seized by the United States Marshals Service as part of an investigation into a Ponzi-style scheme in 2019.

Cars.HiBid.com allows bidders to find vintage cars, sports cars, late model trucks, trailers, and many other types of vehicles for sale in auctions worldwide. Vehicles for sale typically accommodate a wide range of budgets and tastes. Site visitors can browse all current auctions, search for specific vehicles, or view all auctions open for bidding. Search results can be limited by auction type, such as webcast, online-only, or auctions allowing internet absentee bidding.

The International Automotive Remarketing Alliance (IARA) announced it will be transitioning its 2020 IARA Summer Roundtable Conference to a virtual platform.

Sources at IARA state, “The 2020 IARA Virtual Summer Roundtable, which replaces the original event that was scheduled for mid-August, will be a quality online event that adds many new and unique features to enhance the attendee experience.”

The new conference is expected to be an all-day event that takes place near the same timeframe as the originally scheduled meeting. The IARA revised its strategy for the 2020 IARA Summer Roundtable Conference due to the COVID-19 pandemic and corporate travel restrictions.

IARA President Paul Seger said, “IARA’s first consideration is the health and safety of its members and guests. The Alliance is stronger than ever, and we aim to keep it that way.”

“With online committee and ancillary meetings scheduled on either side of the main event date, we’ll be able to deliver the quantity and quality of content that Roundtable attendees are seeking. The IARA is primed to provide leadership and content for this very important lifecycle of the remarketing industry.”

The upcoming event will offer a virtual expo hall, showcase opportunities for sponsors, live interaction between attendees, timely topics, and quality keynote speakers, plus there will be bonus materials available to registrants after the conference is over.

“We’ve had very positive feedback about our recent webinar series, ‘The Road to Recovery,’” IARA Executive Director Tony Long added, “but the conference is expected to be a major event that will take us to the next level and reflect IARA’s prominence as ‘The Voice of the Consignor.’

“I’m excited about what the Conference Management Committee and our team are putting together. I encourage everyone to visit IARA.biz regularly for updates.”

Agora Data Inc., a Texas-based provider of data, analytics and liquidity solutions for the buy-here, pay-here automotive industry, has announced its integration with DealerSocket’s IDMS web-based dealer management system (DMS).

This integration will increase dealer visibility into portfolio and loan performance, as well as create access to much-needed capital and cashflow. The addition of DealerSocket further expands the number of Agora integrated DMS partnerships.

BHPH dealers can leverage AgoraInsights to understand the current value of their loans.
BHPH dealers can use AgoraInsights to understand the current value of their loans.

“Access to reliable analytics is the difference between success and failure in today’s market,” said Agora founder and CEO Steve Burke.

AgoraInsights is Agora’s first of its kind portfolio and loan valuation analytics. It empowers BHPH dealers to manage more effectively their most significant asset, their loan portfolio, and confidently manage liquidity negotiations. By combining this technology with DealerSocket’s innovative IDMS, dealers will now have a more holistic picture and greater control of their business operations.

BHPH dealers can leverage AgoraInsights to understand the current value of their loans. Additionally, they gain the ability to compare their underwriting strategies with their industry peers through Agora’s benchmarking analytics.

“The partnership with Agora’s Insights platform provides incredible opportunities for our dealers to be empowered to better manage their business. More importantly, they gain access to capital through various finance channels,” said Jeff McCurry, DealerSocket’s vice president of product.

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