UCN usedcarnews
3/15/2021
Used Car News Remarketers Alliance Learns to Adapt By Jeffrey Bellant
IN THIS ISSUE:
• NIADA • NADA
Rush - Dated Material
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The International Automotive Remarketers Alliance will hold its 2021 Virtual Conference with a full slate of topics ranging from “Adapting to a Socially Distanced World,” to “Key Trends and Outlooks” to panels on transportation/logistics, consignor challenges and dealer insights. One panel will discuss the perennially controversial topic, “Is Your Condition Report Making the Grade?” Doug Turner, director of asset management for J.D. Byrider, will have a discussion with Matt Arias of America’s Auto Auctions on the issue. Arias was previously director of arbitrations with Cox Automotive. He worked with Turner at America’s Auto Auction, before Turner went back to J.D. Byrider. Turner said the pair want to discuss what is most important in the CR. “What should the CR be in the eyes of the buyer,” he said. “No. 1, you would expect to get ‘cosmetics’ in a CR report, right? That’s the norm. Tell me it’s got a ding; tell me it’s got a dent.” But the pair believes even more important is a better conversation around identifying mechanical issues and anything frame related. Turner’s son works for ACV Auctions, so he’s seen how they do CRs. “They got some really cool CR stuff,” Turner said. “They’ve got a microphone you can put under the hood so you can hear the engine start up when it’s cold and hear when it‘s warm. “They’ve got this virtual lift where you drive over it and it gives you high-def, 3D images of what the frame and structural components of the car look like.” Tools like that go way beyond
whether a car has a torn seat or bad tires. “A few other items on our list to talk about are the value and importance of AutoGrade,” Turner said. “Do people have value in that?” The challenge for buyers is that a 3.0 grade in one buyer’s mind may look a lot different than the 3.0 grade in another buyer’s mind, Turner said. So, the question is whether that grade dominates the view of the CR? Turner said he was at a recent auction where the CRs were pretty good overall, but still had issues. “But we were looking at vehicles that showed they were a 3.8 that looked worse than vehicles that were graded at a 2.5 or 2.8,” he said. “I would just say that the CR has to be more consistent.” But how auctions handle disputes remains critical to the process. “From a buyer’s perspective,” Turner said, “if we know the auction has a good arbitration policy and they are very neutral in their decision-making process, then in my opinion, the buyers are going to take a little bit more risk and pay a little bit more for that car.” If the platform or company that sells the car is taking care of the buyer, at the end of the day, the buyer is going to bid more. “But if they think it’s more risk – or the arbitration policy always tends to sway toward the seller more – you may back off your bid more,” Turner said. He said IARA provides very strong communication for all parties and the conference provides presenters with good operational experience. “Obviously, Paul Seger, being IARA president, does a great job, kind of coaching and guiding us through all this stuff.”
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