Tag Archive | "auto auctions"

KAR Names New Leader for Preferred Warranties

CARMEL, Ind. — Vehicle remarketing and technology solutions provider KAR Auction Services Inc. has named Edmund Field president of the company’s Preferred Warranties Inc. (PWI) business unit, which offers extended service contract plans for pre-owned vehicles and serves independent used-vehicle dealers, small franchise retail automotive, and powersports dealers.

Field will be responsible for leading PWI’s operations and digital and mobile product development and advancing the company’s market growth strategies. He will be based at KAR’s global headquarters in Carmel, Indiana.

“Edmund joins PWI at a time of great opportunity, as the company nears the completion of our nationwide expansion by the end of the year,” said Paul Kramarz, senior vice president of risk at KAR business unit, AFC. “Edmund’s extensive experience and leadership skills will be instrumental in PWI aligning with KAR strategic initiatives and achieving a leading position within the industry.”

With more than 20 years of automotive industry experience, Field joined KAR earlier this year as the director of new product development. Before coming to KAR, Field was at Volkswagen Group and VW Credit Inc., where he supported the areas of insurance, sales and business development, new product development, contact center operations, fleet management and manufacturing.

During his time at VW Credit, Field was responsible for the development and launch of Volkswagen Financial Protection Services as a startup insurance entity selling and administering a full suite of insurance protection products to Audi, VW, and Ducati dealers in the U.S. market. Field also held several management roles at VCI’s customer service center in Libertyville, Illinois.

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First Choice Car Care Launches High-Mileage VSC Plans

TAMPA, Fla. — First Choice Car Care today launched new five-year, 100,000-mile vehicle service contract (VSC) plans for vehicles up to 20 model years old and have up to 150,000 miles on their odometers.

First Choice Car Care is designed to appeal to buyers of older vehicles who desire investment protection at a reasonable cost, according to company officials. It also encourages dealers to retail units profitably they would otherwise wholesale for a loss.

“These plans help us sell an additional 50 to 75 high-mileage units a year, and because of their competitive pricing, they also help me close more subprime deals,” says Angela Barrett, lead finance manager for Jenkins Nissan in Leesburg, Fla. The dealership retails about 150 new and used vehicles a month.

Barrett added that the costs of the plan give the dealership more wiggle room when it comes to trades. “That can make the difference for a prime deal, because now we have a retail outlet for these cars,” she said. “That makes us a reasonable front and back profit on units we’d otherwise have to wholesale at a loss.”

Part of the Consator Group of Companies, First Choice Car Care covers eligible vehicles 20 years and newer and have under 150,000 on the odometer when sold. It also offers five years investment and budget protection, and provides 50,000-, 75,000-, and 100,000-mile coverage options.

The First Choice Car Care VSC covers most domestic brands, including orphans and most luxury and import models. For either vehicle class, consumers can choose either a basic plan for powertrain, turbo/supercharger, and four-by-four and all-wheel-drive transfer case components, or the Enhanced plan. The later adds drive axle, air conditioning, electrical, and fuel system protection.

All programs include wear and coverage, towing, rental, roadside assistance, and trip interruption. And coverages may be transferrable to a new owner should the original purchaser sell the covered vehicle.

The First Choice Vehicle Service Contract program is administered by Allegiance Administrators. First Choice Vehicle Service Contracts are backed by Assurant, which has more than $30 billion in assets and is an “A”-rated carrier with A.M. Best.

For more, contact Lloyd Trushel, president of First Choice Car Care, at email hidden; JavaScript is required">email hidden; JavaScript is required

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Manheim Promotes Four General Managers From Within

ATLANTA — Manheim has promoted four individuals to the rank of general manager at four auction locations across the country, the company announced this week. Trever Enge, John Duplanty, Gus Jones and Maxine Vega will lead Manheim Georgia, Manheim Tucson, Manheim Arizona and Manheim New Mexico, respectively.

“Backed by their experience and passion for the business, these general managers will help Manheim deliver outstanding client service and continuously improve the auction experience,” said Barry Roop, vice president local and mobile Manheim’s Western region. “They are eager to partner with dealers, make it easy for them to work with Manheim and tap Cox Automotive’ s full line of products and services to support client growth.”

Enge has led business and product strategy for Cox Automotive and Manheim since 2012. His recent efforts have supported both organizations’ client success and, specifically, Cox Automotive’s largest commercial clients, the company added.

Before his time with Cox Automotive and Manheim, Enge worked in business development with Ally Financial’s SmartAuction, product development and strategy for Chrysler Group, and served as a product engineer at Borg Warner Automotive.

Duplanty has been with the Manheim organization for 11 years. During that time, he has held various roles. He began his career with Manheim as an intern while attending Arizona State University and worked his way up to general manager of Manheim Arizona, a role he held for two years up until this recent promotion to Manheim Tucson.

Jones began his career with Manheim in 2006 as a dealer sales manager. For the past nine years, the company stated, he has built his leadership skills and relationships as assistant general manager at Manheim Phoenix, volunteering with Habitat for Humanity, Ronald McDonald House Charities and the Hispanic Leadership Forum.

During Vega’s 14-year tenure with Manheim, she served as financial controller for several Manheim locations in multiple states. Most recently, she served as operations manager for Manheim New Mexico.

“Manheim is delighted by this crop of talent and values what they can offer our clients and the industry,” said Mark Ford, regional vice president southeast, Manheim. “We are committed to providing these team members the tools and information they need to succeed in 2017 and beyond.”

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SmartAuction Hits Five Million Sales Milestone

DETROIT — Ally Financial has announced that five million vehicles have been sold on SmartAuction, its online auction platform.

To celebrate the milestone, Ally held a special auction for the five-millionth vehicle, with proceeds promised to the auction winner’s selected charities. Classic Chevrolet of Grapevine, Texas, won the vehicle with a bid of approximately $180,000, which will be divided among ten charities in the Dallas area.

The five-millionth vehicle sale on Ally’s SmartAuction represents fifteen years of evolution for the platform. Since launching in 2000, it has grown into a nationwide network of virtual inventory, bringing together more than 8,000 wholesale buyers and sellers to bid on 22,500 vehicle listings each day. Nearly 1,200 different makes and models of cars, trucks, SUVs, motorcycles and RVs are represented on SmartAuction, and buyers and sellers include auto makers, dealers, banks, fleet/rental and auction companies.

“The key to our success has been utilizing feedback from our dealership community and leveraging our relationships with independent auctions, rental and fleet companies, and other vehicle consignors to create the best experience online,” said Steve Kapusta, vice president of dealership online services and remarketing at Ally. “As buyers and sellers have grown more comfortable with online auctions, we’ve been able to grow the platform, expanding the virtual inventory of vehicles and incorporating new technology and tools that make purchase and sale transactions easier and faster every day.”

SmartAuction holds a daily online auction where users can bid live on thousands of vehicles nationwide, bringing a unique, real-time auction experience to the online channel. On the platform, buyers can create custom search criteria and schedule alerts to help them target specific cars, and then bid on the vehicles that meet their criteria in real time or via a convenient auto bid feature. Sellers can create and manage vehicle listings using SmartAuction’s helpful tools and answer questions from potential buyers during the auctions. Both buyers and sellers are pre-screened and validated to ensure smoother, more professional transactions and inspire trust from the user community.

The SmartAuction app for iPhone and Android was launched in 2013. In just three touches, users can purchase a vehicle and pay for it automatically using their credit line. The SmartAuction app has an average of 22,500 log-ins each month, and usage has doubled between September 2014 and September 2015, officials said.

“Reaching five million sales on SmartAuction is a testament to the performance of the platform over the years, and its ability to generate value for buyers and sellers around the country,” Kapusta said. “Ally is proud to have strong and trusted relationships with dealers and SmartAuction is just one of the many leading products and services that we offer to help them succeed.”

Approximately $180,000 from the 5 millionth auction sale will be presented on behalf of Classic Chevrolet to their selected nonprofit organizations during a celebration event in Grapevine, Texas on November 16. The organizations will include: 6 Stones Mission Network, Christ’s Haven for Children, The Angel Fund of Trinity High School, RISE Adventures, Grapevine Relief and Community Exchange, Food for the Soul, VAST (Valuable After School Time), Christian Community Storehouse of Kelleher, North Texas SNAP and Neuro Fitness.

“Ally’s SmartAuction platform is an important tool for us when buying and selling inventory, so we are pleased to be part of this milestone for SmartAuction,” said Tom Durant, owner of Classic Chevrolet. “We are also incredibly proud that the funds from this auction will help many organizations in our community that make a difference in so many lives — something the team at Classic Chevrolet is honored to support.”

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ADESA Pulls Out of Proposed Multi-Platform System

CARMEL, Ind. — ADESA will not participate in the automotive remarketing industry’s initiative to establish a multi-platform system (MPS) that would allow simultaneous bidding on vehicles listed on multiple online auction sites.

Manheim, ADESA, and other independent auctions began developing the MPS after announcing it at 2014 Conference of Automotive Remarketing. Auction representatives formed a steering committee that engaged Auto Auction Services Corp. (AASC) to build and maintain the hub technology.

ADESA is pulling out of the initiative because of concerns about “the current competitive landscape, technology challenges and expected antitrust issues,” the company said in a Feb. 23 statement.

“After lengthy and protracted efforts to create an MPS, our industry partners have been unable to agree on the best way to execute this solution,” said Peter Kelly, president of the company’s Digital Services Group.

The proposed multi-platform system would cause additional technological requirements and expenditures and could raise “new barriers to entry for smaller industry players,” the company stated.

Mike Broe, president and CEO of AASC, has said the multi-platform system would benefit customers by enhancing competition.

Janet Barnard, President of Manheim North America, responded to ADESA’s decision: “It will be up to each auction to determine whether to join MPS when it is up and running, and participants will make their own choices for their own individual reasons.”

Barnard maintained that the MPS will put more eyes on more cars, adding that competition would increase and benefit everyone involved with an efficient online marketplace.

“MPS has been carefully shaped with relevant legal considerations in mind with an eye toward ensuring full access to all auctions, small or large,” said Barnard.

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Wholesale Used Prices Softened in October, Kontos Reports

CARMEL — Wholesale used-vehicle prices continued to soften during October in all three of the traditional auction industry seller segments (factory, fleet/lease and dealer consignment), according to ADESA Auction’s Tom Kontos.

Prices in October averaged $9,842, an increase of 0.9 percent vs. September and a 0.8 percent increase vs. the year-ago month, according to ADESA Analytical Services’ analysis. Additionally, car prices continued to correct downward and truck prices corrected upward as they reset from high gas prices earlier in 2011, reported F&I and Showroom magazine.

“Wholesale prices appeared to do an about-face as they ceased their sequential and year-over-year decline seen since peaking in April,” said Kontos, executive VP, customer strategies and analytics. “With Fall defleeting in full swing, off-rental units sold by manufacturers and rental companies in the factory and fleet/lease lanes and online made up a higher percentage of total auction volumes in October.”

Kontos added that off-rental units sold in October tended to be late-model, higher-dollar units and, as a result, contributed positively to average prices for the month. “Had the same proportion of vehicles been sold by each of the seller groups in September and October, average prices would have fallen by 2 percent on both a sequential and annual basis,” Kontos said. “Based on this analysis, we would conclude that wholesale prices continued the modest softening pattern described in our previous commentaries.”

Manufacturers registered a 3.1 percent month-over-month price decrease but did record a 5.1 percent year-over-year increase. Fleet/lease consignors experienced a 3.1 percent month-over-month decrease and a 0.4 percent annual decrease.

Dealer consignors experienced a 1 percent average price decrease vs. September and a 3.2 percent increase vs. October 2010.

The company estimates that auction industry inventory levels stood at 30 days at month-end, marking the second month in a row that days-supply of auction inventories matched year-ago levels. “Auction industry inventories had been below year-ago levels from July 2009 through August 2011, by our estimates,” Kontos said. “The rise in inventory levels is primarily a reflection of higher Fall defleeting.”

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