Auction Buzz

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The Mystery Bidder

We started working with a new client this week…..
They need help with the transition from buying all of their auction inventory in person…..
To feeling more comfortable with making purchases online…..
For those who don’t know…..
Every car auction has a pre-sale inventory list available online…..
And a mechanism to bid on each and every one from your phone or laptop…..
Simulcast Bidding…..
As I laid out the pros and cons of the system to our client…..
I decided to pull up listings of upcoming auctions…..
It seemed like the easiest way to show them all the valuable information available on each vehicle…..
-You can see pictures from every angle…..
-You can get a condition report to let you know of any defects…..
-You can get vehicle history reports…..
-You can get MMR’s (Manheim Market Reports)…..
-You can see who the seller is…..
-You can get the vehicle specs…..
-You can get a list of any optional equipment…..
-The seller can add comments they want you to know…..
All the information you need to confidently bid…..
All the information YOU need to appraise the vehicle and decide what you want to pay…..
Except for one problem…..
As I clicked on each listing…..
Going from lane to lane…..
Dealer to dealer…..
NONE OF THE INFORMATION WAS THERE !
Seriously…..
Go look for yourself……
Listing after listing with little or NO INFORMATION about the car…..
No wonder those dealers get no action from simulcast when THEIR cars hit the block…..
WHO WOULD BID ON THEM not knowing anything about them…..
COME ON PEOPLE !
IT”S 2017……
With the number of dealers buying on line growing…..
Why would you want to keep THAT audience from participating…..
Why would you limit the audience to the few who happen to be standing in front of you in the lane…..
Especially here in the Northeast, where weather is a factor in attendance…..
I know, I know…..
It costs money to have all that accurate information available…..
Wait……
No it doesn’t…..
You can add it all for free…..
It costs money to have the auction do a condition report…..
Wait…..
No it doesn’t…..
It pays to have it done…..
Cars and trucks with condition reports consistently do MORE MONEY !
It takes time to add all that information…..
REALLY !
It takes time?
Now you’re just making excuses…..
If you’re unsure what a complete listing looks like….
Go to the major lease company listings…..
See how they do it…..
Pick out an example of say…..
Ford Motor Credit…..
Look at the dealers with the highest simulcast participation…..
Like a R. Hollenshead…..
Or Rechtschaffen Motors…..
Then go back and look at your listings…..
Now do you see why THEIR selling percentages are so high ?
Now do you see why the simulcast screens in your lane never light up ?
 
 
While we’re here talking about auctions…..
Manheim Auto Auction is taking steps to make all of their locations “paperless” …..
Now….
When you make a purchase in the lanes…..
You no longer have to go to the block clerk and sign a receipt …..
It’s all recorded to your bidder number…..
Likewise…..
If you are selling…..
You no longer go to the block clerk and get a receipt for your sale…..
To submit the title to the auction so you can get paid…..
You now can find the information on your phone…..
Through the Manheim Mobile App…..
Or…..
You can print out an invoice in the office at each Manheim location…..
Gate passes can be generated from your phone also…..
An email is sent to a printer of your choice to generate a copy for you to use to remove the vehicle from the sale…..
It is confusing…..
But…..
Personnel at each sale are there to assist you…..
So far…..
We’ve managed to get paid for all that we sold…..
And…..
Titles and gate passes for all that we bought…..
You’ll get used to it.
Our selling percentage for the last 4 weeks is right at 62%…..
There are a number of reasons for that…..
But…..
The biggest one is the quality and desirability of the trades we have been able to buy…..
The clean, correct mileage, cars and trucks are still in demand…..
There just aren’t enough of them…..
We’re still suffering from weak sales of 2009- 2012…..
These model years just aren’t showing up as trade ins…..
Jumbo clock cars (ones with more than 175,000 miles) are becoming extremely difficult to sell…..
Back off on your appraisals if you haven’t done so already…..
The export market has remained unchanged…..
2011 model year and up is where most of the activity is…..
Very few models older than 2009 have any action at all…..
You should limit your search to 2 weeks when appraising using market reports.
The same set of guidelines are true of OVE.Com sales…..
Buyer interest in clean, low mileage, vehicles is strong…..
The desirable export units sell quickly…..
But…..
Cars and trucks with less desirable equipment…..
Or excessive miles…..
Are NOT getting much attention…..
Wake Up Everyday And Know What Any Car Is Worth !
 
– Your Ravenous Market…..
– The Studio….
– OVE.Com every day…..
– The Show…..
 
Our work to bring dealers along in the online world continues…..
We lost some momentum for the last couple of weeks as I found myself virtually flat on my back…..
With a bad back…..
But…..
We tried to use the time as best we could by working on:
The Dealer Hacking Podcast…..
Our Intro Course for anyone daring enough to want to jump in to the Auto Wholesaling business…..
And…..
Dealership Training making Wholesale a profit center…..
I want to thank John Lee Dumas for reaching out to us on Instagram…..
John is the founder and host of EOFire…..
A daily podcast that interviews entrepreneurs 7 days a week…..
The Show was named “Best of iTunes” …..
And…..
Entrepreneur On Fire has featured such guests as Seth Godin, Gary Vaynerchuk, Barbara Corcoran, Tim Ferris, and Brian Tracy…..
With his help, we have been able to gain a keen insight of what it takes to launch a successful podcast…..
So…..
In our field…..
Dealer Hacking Live is taking shape…..
We are putting together a guest list that YOU want to hear from…..
Successful dealers willing to share what they know about the constantly changing Automotive Industry…..
My mentor Henry Kaminski Jr., from Unique Designz has been guiding us through steps we can take to create the programs for those wishing to begin a Auto Wholesaling business…..
We are just about finished with a free 4 video series that introduces you to the process of successfully wholesaling cars…..
And…..
Most importantly…..
Henry is pushing us to get out into other dealerships…..
Where we can work one on one with those who WANT to improve…..
Dealers who WANT to:
– Cut down on marketing costs…..
– Improve their detailing practices…..
– Increase their online selling market…..
– Buy more cars online…..
And…..
Have Auto Wholesaling a profit center in their business…..
Whew !!
It’s gonna be a fun summer…..
 
Out for now,
 
Barry J. Neuman
Member, Manheim’s “Superseller” Club