How Much of the Used Vehicle Market Remains for Traditional Auctions? – Expert Panel Discussion

Used Vehicle Market - Expert Panel Discussion

How much of the used vehicle market will traditional auctions be left with after disruption? Is “after disruption” even a point in time?

These are the primary questions we seek to discuss on this month’s Used Car Marketing Dealer Strategy Session, brought to you by Vehicle Acquisition Network. Sign up now to be part of the conversation.

According to an Assessment & Analysis of the Current Used Vehicle Market by Michael Pochan, CEO of Edgewood Systems published on AutomotiveDigest.com, this is the situation:

  1. Auction Sales Volume Dropping as much as 40%
  2. Finding the Cars Customers Want online
  3. Auction Channel is Now migrating Online
  4. Mercedes-Benz Credit selling off-lease vehicles directly online

Sign Up to Participate

Come be part of the discussion, either as a Panelist or an Attendee, on Thursday July 11th at 2 PM Central (US & Canada).

  • Sign up with this link, or view the live stream right here on AutoConverse.

Get Involved – Post Your Comments Below

Let us know your thoughts and questions ahead of time by placing your comments below. Even if you aren’t able to make the live panel discussion we will bring them on during the conversation.

About this Session

This Expert Panel Discussion is brought to you by Vehicle Acquisition Network – Connecting Dealers with Private Sellers. For more information about VAN go to www.autoconverse.com/van


About the Author

Ryan G
Ryan Gerardi is Chief Editor of AutoConverse Magazine and Executive Producer and Host of the AutoConverse Podcast and Live Weekly Broadcast. He is also Founder & CEO of AutoConversion with nearly 20 years experience in the automotive industry. Ryan concentrates his efforts today on exploring people, ideas, and technologies related to how we get around and how we are connected.

1 Comment on "How Much of the Used Vehicle Market Remains for Traditional Auctions? – Expert Panel Discussion"

  1. I won’t be able to be a part of this week’s panel, here are some of my views on the topic.
    Yes auctions sales have been going down and I see that trend to continue for the next few years, maybe longer and there are a few reasons and they are all connected.

    Wholesalers:
    Big part of sales at the traditional auction comes from wholesalers, their numbers have been very low and this is affecting the sales at the lane. Wholesales will be seeing more difficulties. Some of them are realizing that they need to turn some of their business into retailing in order to stay in business. The reason for wholesalers to be doing bad is in the next point.
    2. Higher interest rates, fewer new cars sold, increase in the used vehicle market:
    NEW car sales are hitting new lows and USED car sales are increasing. After the recent /the last couple of years/ increase of interest rates retail car dealers started selling fewer new cars and the market for pre-owned vehicles was growing. We have seen an increase in used vehicle prices. Because of that dealers are becoming more aggressive in order to fill in used vehicle inventory and not allowing w/sellers to buy and resale as many vehicles at the auction.
    3. No pride of ownership among younger people, increase in ridesharing usage:
    Fewer and fewer younger people who are entering the workforce own vehicles. We see a lot of younger people use ridesharing apps. Fewer younger people have Drivers License. All that affects new car sales. Bottom line is the fewer new cars sold the fewer vehicles for sale at the auction.
    4. Numerous buying services with lower buy fees:
    There are more and more services /some of them of course provided by the big players/ for purchasing vehicles directly from other dealers. SmartAuction, TradeRev, BackLot… this is also affects the traditional auction sale. All these services have much lower internal expenses and are able to provide lower buy fees.
    5. Increase of peer to peer sales:
    Peer to peer sales. One of the leaders in peer to peer sales currently is Shift. A few years ago they were backed by Goldman Sachs and a few other big holdings. Last year Lithia motors invested a big chunk of money in the company as part of strategic partnership with them. I’m surprised they do not have a market in Nevada yet, since Nevada does not charge sales tax on private automotive sales, and this can be a big benefit for the company. That can provide big savings for the average customer resulting in higher sales.

    Let me know your thoughts.

    Marty Vass

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