Mid-Year Report Reveals Strong Market and Thriving Sales Environment at ServNet Auctions
by Eric Autenrieth
It has been an interesting, though positive market in 2018. Tax time took hold early and never stopped, with the dip we generally expect to see following the refund checks not really materializing this year. The economy is performing well, and we are seeing higher conversion percentages across the board. In addition, volumes are stable: while dealer inventory is a bit light, we're making up for that in institutional business which is keeping the lanes full of vehicles. Dealers who report that they're short on supply are looking for cars on all platforms, which has resulted in strong pricing and strong conversions.
KCI Kansas City Recognized by NAAA for Public Service
KCI Kansas City has been named the National Auto Auction Association's 2018 Western Chapter Auto Auction of the Year for its outstanding public service. The auctions was chosen for its fundraising and volunteer efforts to help meet the needs of the most vulnerable members of the community: disadvantaged children and their families.
"As we celebrate National Auto Auction Week it's my privilege to announce Kansas City Independent Auto Auction (KCIAA) is our nominee for Auction of the Year," said NAAA Western Chapter President Tim Bowers. "While there were many strong candidates in the Western Chapter committed to inspirational charitable giving, KCIAA rose to the top with the depth of its support for a diversity of organizations that all serve disadvantaged children and their families. We congratulate KCI, its staff and customers for their commitment to community service."
Over the past six years KCI Kansas City has raised more than $1 million in donations to advance the work of four local nonprofits:
Camp Quality Greater Kansas City, where children with cancer can experience camping;
Jackson County CASA, Court Appointed Special Advocates for abused, neglected children;
Family Promise of the Northland, which provides food, clothing and shelter to homeless families in northern Kansas City
Sheffield Place, a treatment and supportive housing program for homeless mothers and their children.
In addition, the auction's employees have volunteered with the agencies, conducted drives for immediate needs, adopted client families for the holidays, and contributed their skills.
KCIAA was also a finalist in 2016, the first year NAAA established the annual awards to recognize the many charitable acts auctions perform and to encourage even greater volunteer involvement.
Missouri Auto Auction Announces Leadership Changes
Missouri Auto Auction Owners, Gregg and Dagmar Boswell, have announced a change in the management and ownership structure at the auction. In conjunction with the reorganization, Justin Brown assumes duties as the auction's General Manager, as previous managing partner Kevin Brown leaves the company to pursue other interests. The Boswells also report that as part of the transition, Cody Boswell and Candice Boswell-Bray will assume greater oversight responsibilities and play more strategic roles in the next generation of leadership at Missouri Auto Auction.
"This is an exciting time for us at Missouri Auto Auction," said Gregg Boswell in making the announcement. "We wish Kevin well, and appreciate his efforts over these many years in helping to build the auction. He has overseen the many physical improvements made to the facility and has been instrumental in developing vital relationships in the industry. His departure marks a new focus on the next generation of leadership, and we look forward to an exciting future as Cody, Candice and Justin devote their energy and skill to our business."
Justin Brown has worked for Missouri Auto Auction since 2006, beginning his career with the company as a sales representative and working for the past several years as the auction's Sales Manager. Under the leadership of Gregg Boswell and Kevin Brown, he has advanced within the company, learning all aspects of operations over the 12-year span prior to his appointment as General Manager. He is a recent graduate of Auction Academy.
Cody and Candice both have over a decade of auction management experience, learned firsthand from their work at the auction and from their parents, who have been in the auction business for more than 40 years. Also a graduate of Auction Academy, Cody is an auctioneer at Missouri Auto Auction.
Says Gregg Boswell:"Both Cody and Candice share a depth of knowledge about the auction and the industry that will serve them well in their leadership roles as Missouri Auto Auction continues to grow. I have great confidence in Justin'ss move into the senior role as General Manager overseeing the day-to-day operations. This next generation in leadership will serve our auction and our customers well."
Missouri Auto Auction has experienced solid continual growth since its founding 18 years ago in 2000. Today, more than 500 vehicles are offered for sale each week at a greatly enhanced and more advanced facility.
"Much of Missouri Auto Auction's success can be attributed to a supportive employee culture and belief in promoting from within," notes Justin Brown. "Our staff has always been and will continue to be the distinguishing factor that sets Missouri Auto Auction apart, playing a pivotal role in building the lasting relationships that contribute to our ultimate success.
Louisiana's 1st Choice A/A Rolls out New Event
Known for its creative and exciting sales, Louisiana's 1st Choice Auto Auction will celebrate National Cheeseburger Day on September 18th. Rachael Younger, Marketing Coordinator, and Jacob Warren, General Sales Manager, put their heads together to create a new event to further celebrate the tailgating season.
Rachael explains, "We were looking for something fun and different, and cheeseburger day just seemed like the perfect fit".
The auction expects to offer 700+ vehicles in the lane at the sale, which will be highlighted by a burger-eating contest and grilling themed prizes. The winner of the cheeseburger contest will receive a $100 Amex Gift Card, a trophy and bragging rights. Dealers will also have the opportunity to "Build a Burger" for a $200 Amex Gift Card. To build a burger, dealers must purchase a unit in each of the six lanes: Lane 1-Bun, Lane 2-Cheese, Lane 3-Patty, Lane 4-Lettuce, Lane 5-Tomato, and Lane 6-Bun.
Louisiana's 1st Choice Auto Auction, located in Hammond, Louisiana, has served the dealers of the Gulf Coast and surrounding states since 2002. Their experienced and friendly team are eager to assist you with your remarketing needs. Experience their signature Lagniappe every Tuesday and get a front row seat to the growth and action. Auction day is Tuesday at 8:45am with 600+ dealer trades and bank repos and several special event sales throughout the year with 1000+ consignment. All vehicles are available online. Visit www.lafcaa.com for more information.
Akron Auto Auction Hosts NAAA Training Program
In July, Akron Auto Auction hosted the National Auto Auction Association for its two-day Auction Standards Training Program.
"With the ever-growing importance placed on high quality condition reports and spot-on post sale inspections in the auto remarketing industry, Akron Auto Auction staff members as well as visitors from auctions all over the country were eager to increase their knowledge and improve their skills in these respective areas," said Chad Bailey, President of Akron Auto Auction and NAAA President-Elect.
Led by Matt Arias, Director of Arbitration for Manheim, the class provided an abundance of critical insight into two significant topics – vehicle damage analysis and arbitration.
The first day was dedicated to vehicle damage analysis and how to successfully and effectively identify vehicle conditions to produce high-quality inspections. Through in-class discussions, videos, and various hands-on training exercises, Arias broke down what inspections do and do not cover, vehicle information, prior repairs, structural and interior damage, ways to streamline without sacrificing quality, and ways to measure effectiveness.
On the second day, the focus shifted gears to Arbitration-related topics. The importance of successfully resolving disputes among buyers and sellers as well as the mitigating future incidents was stressed throughout the presentations.
"Akron Auto Auction staff members were not only thrilled to host the standards training classes, but to take part in the learning experiences from one of the industry's finest," said Bailey.
Akron Auto Auction is a member of the ServNet Auction Group and has played an important role in the market for seventy years, incorporating service, commitment and innovation to produce superior results for its customers. The auction includes six auction lanes, and four separate buildings on 30 acres. The facility has a full transportation department, reconditioning department, inspection department and floor planning services.
Promotions Fire Up Lanes at Greenville Auto Auction
August has started off strong for Greenville Auto Auction. The auction kicked off its new promotion that allows BB&T/RAC buyers the opportunity to win $300. During this promotion, buyers are entered for every vehicle that they purchase. The drawing takes place at the beginning of the following BB&T/RAC sale. If the dealership drawn is not in attendance during the drawing, the drawing resumes the following BB&T/RAC sale for an additional $300. The auction looks forward to having five sales this month and will finish the month serving breakfast to their dealers at their Five Alive Sale!
GAA has also begun construction on its new detail, condition report, online and marketing facility. The auction is excited to use the new space to better meet their dealers' needs. With four lanes in the new building, GAA will be able to detail and CR vehicles more efficiently and effectively. The new structure also will have the space and technology to provide the best support for online customers. The building is projected to be completed this December.
Indiana Auto Auction Holds 10th Annual Hog Roast and Car Sale
The crowning event of the summer nears at Indiana Auto Auction, as it prepares for its 10th Annual Hog Roast and Car Sale. This year the auction is "shakin' the bacon" with a pig pickin' breakfast featuring pulled pork, toast and eggs to start the day.
After breakfast, 7 action-filled lanes will feature some of the best dealer trades that Fort Wayne has to offer. The event will also include two lanes full of institutional vehicles including Exeter, VRS, Fiserv, and UAC.
Following the sale, the auction will hold prize drawings for all dealers buying or selling vehicles at the event,giving away two electric wood pellet smoker/grills. The highly collectable Hog Roast T-shirts were give away on August 9th, but customers who missed it can ask at the front counter for "leftovers" when they arrive for the big event on the 23rd.
Indiana Auto Auction will begin its Spooktacular event in September with great costumes, cars, cash prizes, and candy.
DAA Northwest Breaks Records with Rock & Roll
Two-day event brings record consignment, record sales and John Fogerty to Spokane
DAA Northwest smashed all previous Rock & Roll Sale records last week with 5,047 consigned units, 3,612 sold and an average sale price of $18,750. With gross sales at $67mm and 1,750 dealers in attendance, business in the lanes was brisk.
McConkey Auction Group (MAG) president and CEO Bob McConkey credits all three MAG auctions with the success.
"Ramping up for volumes like this takes collaboration and hard work," he says. "Our Spokane team worked diligently for weeks and even months in advance to prepare for the Rock & Roll Sale. Last week, we were joined by staff from our Seattle and Kansas City auctions as well."
Employees from DAA Seattle and KCI Kansas City assisted DAANorthwest's staff with condition report writing, block clerking, ringing in the lanes, checking-in guests and more.
"We are a team, and we share the same core values of Integrity, Excellence, Professionalism and Fun," says McConkey. "I am blown away by the talent and the hard work our people bring to the market every week--not just during the Rock & Roll Sale," he adds.
This year's Rock & Roll Sale at DAA Northwest Smashed All Previous Records
According to DAA Northwest's general manager David Pendergraft, "...bringing classic rock legend John Fogerty into the middle of things generated tremendous excitement and record consignment."
The auction's Wednesday sale featured 2,000 units from Ford Motor Company, Ford Credit, Toyota Financial Services, Lexus Financial Services, Kia Motors America, Hyundai Capital, Honda Remarketing, Acura Remarketing, Avis Budget Group, Ally Auto Remarketing, Harley-Davidson Financial Services and more. As soon as the 82% sale concluded, crews swept through the auction, transforming it into a festival-style concert venue complete with complimentary buffets, a variety of food trucks and bars. Dealers and their guests returned to the auction that evening as its house band, The Cronkites, opened for Rock & Roll Hall of Famer John Fogerty. Prior to the concert, national account executives and industry guests enjoyed networking in a hospitality tent provided by AutoIMS and TPC Management.
"This event gives our industry colleagues an opportunity to network and enjoy themselves in a casual, fun environment," says Pendergraft.
As Thursday's Rock & Roll Sale began, DAA Northwest treated customers' spouses to a special "Sweetheart's Day on the Town" event. Over 50 guests enjoyed a day of shopping complete with a private luncheon and fall fashion preview at Nordstrom before returning to the auction that afternoon. The sale culminated with $75,000 in post-sale prizes.
Reflecting on the event, McConkey quoted Mick Jagger by stating "I know it's only rock and roll, but I like it!"
Carolina Auto Auction Prepares to Shake the Bacon
Carolina Auto Auction joins its sister auction, Indiana Auto Auction, in "Shakin' The Bacon" all month long. Dealers receive free t-shirts on the first sale in August along with weekly grill giveaways including multiple Big Green Eggs, combo grills, and pellet grills. Dealers can play "Squeal or No Squeal" just before the sale for cash and enjoy one very large pig-pickin' breakfast on August 22 at Carolina Auto Auction. The auction expects 1100 vehicles every week during the month.
Carolina Auto Auction kicks off its Caropoly sales event in September complete with $40,000 in prizes for over 600 winners. This event will be unique in that for every vehicle a dealer buys or sells he will receive a scratch off ticket that could earn him a property piece on the board or be an instant winner.
Carolina Auto Auction is part of the Stanley Autenrieth Auction Group and is a proud member of the ServNet auction group.