12 • September 16, 2019
USED CAR NEWS
WHOLESALE MARKETS Compiled by Jeffrey Bellant MONTANA Jack Gertsch, sales manager, Auto Auction of Montana, Billings, Mont.: “My family bought the auction in 2002. “We have four lanes, but we’re set up to run doubleblocks in two lanes. So, we’re able to run six lanes. “We’ve been averaging about 600 consignments each week. I think we might be a little higher than this time last year because we’ve been starting to see more rentals. It was a busy rental season. “We’ve been hanging right at 60 percent (conversion rates). In recent weeks we’ve been between 60 and 65 percent. We’ve been happy with that. “We have mostly dealer consignment. “We have one fleet/lease lane that typically has anywhere between 150 to 180 cars. That’s part of the 600 total units. We usually have that many each week. That’s pretty steady and similar to this time last year.
“Repos have been steady. Some of the bigger (accounts) we run are Wells Fargo, GM Financial, ARI and LeasePlan. “We also run in-ops, but we’ve started to sell them just on video and online. We don’t run them through the auction anymore. “Typically, we’ll have between 220 and 280 dealers registered and online. So, we’ll have 150 to 200 dealers live on the floor. “It seems like summer was pretty steady. Normally, the lower-end cars in the summer take a little dip. But everything else stayed steady. “We have a GSA sale and, sometimes, run it twice a month during the summer months when the volume is bigger. “Our Sept. 18 GSA sale will run about 80 units. Volumes and attendance have been good. That GSA volume kind of (thins out) by November. “We use Online Ringman as our online system, but we do link with Edge Pipeline, so people can buy online
with us as well. “Online is a big deal for us simply because of (geography). If you look at the black hole for Verizon, that’s where we’re at. We probably sell 30 percent online. “Our average price in the lane is about $17,000. We sell a lot of trucks and SUVs. “I’m feeling good about the fall. Typically fall is a good market. Retail is usually good. I think it will be that way again.”
TEXAS Wayne Cook, president, Greater Tyler Auto Auction, Tyler, Texas: “It’s hotter than a two-dollar pistol down here. I think it’s 98 today. “We’ve been in business 18 ½ years and we run four lanes. It’s a 5 p.m. sale. “We’ve had some mixed – up and down – volumes. I think the really nice stuff has been a little (scarce). But now we’ve got some new consignors on board that are really bringing some nice stuff out here. It’s pretty
much all dealer consignment. “We do get some repos through some banks and loan companies. It’s probably 5 to 10 percent of volume. “If a sale is near a holiday, it’s never that great. “But business is pretty good now. Average volume would be about 300 to 350. Conversion rates have been close to 60 percent. “I think the average price (coming across the block) is something like $5,500. “We use Auction Pipeline and we’re getting more and more online bidding. It’s picked up considerably. We’re working to take more and better pictures. We also try to do the very best we can in our post-sales inspections. “We’ve been getting some really nice pickups lately. Typically, in our part of the country, we’ve got some Ford, Chevy and GM dealers here that sell trucks, so they also trade for trucks. Years ago, you didn’t seem to see too many four-wheel drives. But it seems like
four-wheel-drives are a lot more popular and a lot more common today than twowheel-drive trucks. I mean, there are people that drive four-wheel-drive trucks just because they like the way they look. They drive a little higher or whatever. But they never stick them in four-wheel drive. Now you can get a four-door pickup and take your whole family out in it. Trucks are multipurpose vehicles and they’re probably safer to drive. “My grandson went and took his driver’s test in a Dodge dually. That was his truck. The DPS officer who administered the test passed him. He said, ‘I have to tell you, young man, you’re the first person I’ve seen take a first-time driver’s test in a standard-shift Dodge dually.’ “The job market is pretty good right here. I think we’re going to be OK. Everybody would like to have more. “If you try to treat your customers right and take good care of them, they’ll take good care of you.”
2019 NAAA Midwest Chapter Auto Auction of the Year
Columbus Fair Auto Auction “By supporting our employees and surrounding companies, we can lift up central Ohio as a whole to make it a stronger place to live, work, and raise a family. This is a goal that has been close to my heart since I took over for my father here at CFAA 37 years ago.” - Alexis Jacobs, Owner and CEO