Wholesale Markets 6/14/2021 Compiled by Jeffrey Bellant
MONTANA Jake Gertsch, sales manager, Auto Auction of Montana, Billings, Mont.: “We went straight from winter to summer, it seems. We had a snowstorm that closed down roads (in late May) and by June 3 it was near 100 degrees. “We’ve owned the auto auction for 18 years. We have four lanes, but can run double-blocks in two lanes, so we can run six. However, recently we’ve been running four lanes. “Volumes have actually been up. For the last four or five weeks, we’ve been between 550 and 600 (units), so we’re pleased with that. Pre-pandemic we would have been between 600 and 700. “Conversion rates have been good, 75 to 80 percent. That’ll change, but if we can stay close to 500 (sold) we’ll
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be happy. “Online presence has been much stronger because of (the coronavirus). I think a lot of that came when we were open early while other auctions were closed. So, we pulled in some buyers that we didn’t have before. We typically have between 250 and 300 registered dealers between online and on the floor. “Fleets are down. There are no rental cars or lease returns, really. We sell a fair amount of Canadian imports since we’re close to the border. That’s been good for us over the past five or six years. “We also have a GSA sale, which is normally once a month, sometimes twice. But the volumes have been down. “I think the market is going to still be strong because of supply and demand.
“Average price across the block is between $27,000 and $29,000. We’re selling more $60,000 and $70,000 diesel trucks and SUVs.”
NEVADA Joe LeMonds, general manager, DAA Las Vegas, North Las Vegas, Nev.: “Before I came here, I was assistant general manager at Carolina Auto Auction, another ServNet Auction. I took over here in September shortly after the acquisition and merger with the McConkey Auction Group (MAG). “We’re a six-lane auction, but we’re currently running four. “We’ve been able to see significant growth from when we took over in late August and September. “Volumes have been averaging about 300. “We run about 67 percent dealer cars. We have some
pretty strong anchor (dealership) accounts. Lithia has just moved into the Las Vegas market. They just bought three Hyundai stores and MAG has had a strong relationship with Lithia. “The majority of what we’re selling now from the commercial segment are repos. “We’ve had dealers in the lanes since last year. It’s probably about a 60/40 split. There’s that ever-growing segment that has transitioned online and are more comfortable doing that. “The strategy that MAG has positioned itself – as it recently transitioned the ownership in ABS to EBlock – we are committed to our foundational business, the in-lane auction. However, we understand the growth in the future is going to be about leveraging technology for online sales.
“Overall, since MAG has come into Las Vegas, we’ve seen growth in a shrinking market. Our bidder count is up 60 percent from the end of last year. Our sales are up 30 percent. “We’re trying to bring back the personal touch types of things that MAG is known for into the Las Vegas market. It’s something guys haven’t seen in this area for a while. “So, we’re drawing dealers not only from the local market, but we’re seeing a significant growth of regional buyers. “We also just recently opened up a 50,000-squarefoot vehicle intake facility. We’re able to increase our capacity for both dealer growth and consignor growth. We can do CRs, details, photos and mechanical work all, essentially, under one roof.”