A word from Dan....

Earlier this year, as I attended CAR 2018 and NADA, I noticed how many new faces and new companies are now front and center across the automotive space.  In meeting after meeting with these new and emerging players, I learned much of the potential impact of technology from dealer to remarketing and auction.
 
One of the most interesting discussions was with Frank Hackett (CEO of the NAAA) regarding the recent findings of the “Auction of Tomorrow” study conducted by the NAAA.  The conclusions of that study identify current and emerging changes coming across the automotive space- from the vehicles themselves, to ownership, to sourcing and remarketing.

Our auctions will be addressing these changes and industry shifts consistently over the next several years.  Some of that change will equal real opportunity, while some will become obstacles.

As such, I wanted to get a bit more specific and ask the leadership of our independent auctions to weigh in. With the support of the NAAA and Frank Hackett, I have prepared this independent owners survey to allow our actions to share insight from their point of view.

Does the independent community of auctions collectively agree with the findings of the NAAA survey?  How can we best prepare to remain competitive in the face of rapid change on so many fronts? Are we doing enough to capture the big opportunities?  And if not, what more do we need to achieve continued growth and success?

I urge each of you to review the NAAA study, “Auction of Tomorrow”, and participate in this blind independent auction survey. The collective results will be shared with each of you and highlights of this survey will be shared with the NAAA.

Thank you for your participation and partnership.

Dan
My Auction Today:
Please answer these questions with your auction's current state in mind...

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* 1. What is your role at your auction? (if not one of these 3 positions, please forward accordingly) 

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* 2. How long has your auction been in business?

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* 3. Please select the types of sellers you have today and what percentage of your sale it makes up...

  Percentage
Independent dealers
Franchise dealers
Fleet/Lease
My Online Operations Today:
Please answer these questions with your auction's current state in mind...

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* 4. What percentage of your total inventory receives full condition reports?

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* 5. What percentage of your current auction lanes are simulcasted?

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* 6. At my auction, we typically handle no-sale vehicles by…

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* 7. When I list my vehicles online, I have the best success rates with...

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* 8. What percentage of your vehicles are sold to an online buyer including both simulcast and online marketplaces?

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* 9. Who do you consider to be the most successful non-traditional (non brick-and-mortar) online selling channel for dealers in your area?

My Auction Tomorrow:
Please think of towards the future when answering the following set of questions...

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* 10. Regarding the future of independent auctions, which of the following statements most accurately reflects your views?

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* 11. Auto Industry wide, I am concerned with...

  I am not at all concerned Moderately concerned I am very concerned
Continued consolidation-dealerships, auctions, services.
The size and diversity of the competitive set; CoxAuto, KAR.
The uncertainty of ROI for major investments.
The lower cost of entry and pricing of the mobile and pure online auctions.
Technologists rather than auto/auction professionals driving the change.

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* 12. In order to grow my business, my auction is investing in the following: (check all that apply)

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* 13. In the next five years, I expect my auctions growth to rely heavily on... (check all that apply)

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* 14. As sellers continue to sell vehicles online, over the next 5 years, I expect my auction to...

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* 15. Assuming the industry continues to gravitate towards digital sales, my auction plan is to...

According to the NAAA study, in the coming years, used car volumes will continue to grow and “Dealers will remain a steady source of used vehicles.” But the study also noted shifts.

Franchise dealers-Auctions now see only 30-50% of wholesaled units by franchise dealers Large chains manage internal swaps while smaller franchise groups turn to wholesalers, auctions and “AppCrew”

Independent dealers- source 95% of their inventory from auctions and consign 90% of their wholesale units to an auction.”

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* 16. Do you believe that independent auctions need to have their own platform focused on selling outside the lanes?

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* 17. If there were a platform, potentially provided by Auction Edge, would you plan to participate?

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* 18. To prepare my auction for the future, what I need is...

  Do not need it Do need it
Direction to navigate the potential changes.
New selling channels, products and services that I can offer.
Better vehicle data, condition reporting and photos to fully participate in the current and emerging digital channels.
Facilities upgrades.
Expansion of and Investment in staff to embrace rapidly changing technology.

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* 19. After thinking through the future of our industry, your outlook for the future of independent auctions is...

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* 20. Please let us know if you have any additional comments or feedback.  Remember, this survey is 100% anonymous, so if you would like a response, or would like to discuss further, please enter your contact information.

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