Automotive News - June 30, 2008 - (Page 30)

30 • JUNE 30, 2008 remarketing Auctions, not dealers, will pay for better access Arlena Sawyers asawyers@crain.com Average wholesale used-vehicle prices, May Average price May 2008 Average price April 2008 Average price May 2007 % change vs. April 2008 % change vs. May 2007 Operators of a service that enhances dealers’ access to auto auctions have dropped a plan to charge dealerships and individual buyers for the system. Instead, auction companies will pay to maintain the service. In March, AutoTec LLC said it would charge dealerships $100 a year to use the system, called AuctionACCESS. Individuals would have paid $40 a year. The service previously was free. About 190 auctions accept AuctionACCESS identification cards. AuctionACCESS enables dealerships to manage auction accounts online and keeps track of authorized auction buyers. The proposed fees were intended to help cover the cost of system improvements. But AutoTec CEO Chuck Redden now says Manheim, ADESA Inc., Auction Broadcasting Co., ServNet Auto Auction Group, a group of independent auctions and other companies have agreed to subsidize the initiative. About 190 auto auctions accept AuctionACCESS identification cards. “It’s a great deal for the dealers, and we’re still going to accomplish the goal of having AuctionACCESS mem- bership,” Redden told Automotive News. “It’s good for the whole industry in identifying who’s who.” Mike Broe, Manheim’s executive vice president of operations, said the largest U.S. auction company wants to give its customers “one less thing to worry about, especially during these challenging economic times.” Redden said dealerships and individual buyers should renew and update their business information, such as dealer license number and credit data, by July 31. Once dealers register that information, they can use AuctionACCESS cards at any auction that accepts them. At participating auctions, users insert the cards into kiosks, which print badges allowing authorized dealership employees to buy vehicles that day. Dealers and buyers who already have paid the fee can get a refund by requesting a rebate form from a participating auction or by downloading the form at www.auctionaccess.com.c Cars Small and midrange Sporty Traditional Upscale Total car Light trucks Small pickups Full-sized pickups Minivans Full-sized vans Lower midrange SUVs Large SUVs Other SUVs Total light truck TOTAL WHOLESALE $8,490 12,361 10,815 12,657 $9,364 $7,259 9,343 7,459 7,119 9,446 11,271 13,936 $9,868 $9,619 $8,379 12,617 11,026 13,236 $9,373 $7,563 10,397 8,171 7,681 10,384 12,383 14,166 $10,583 $9,985 $8,262 13,520 10,552 13,476 $9,283 $7,706 11,879 8,274 8,216 10,817 14,038 15,016 $11,191 $10,195 1.3 –2.0 –1.9 –4.4 –0.1 –4.0 –10.1 –8.7 –7.3 –9.0 –9.0 –1.6 –6.8 –3.7 2.8 –8.6 2.5 –6.1 0.9 –5.8 –21.3 –9.8 –13.4 –12.7 –19.7 –7.2 –11.8 –5.7 Note: Based on approximately a half million AuctionNet wholesale vehicle transactions a month *Includes standard and premium crossovers and small, upper midrange and premium SUVs Source: ADESA Analytical Services based on AuctionNet data and Automotive News market classifications Used prices rise for small cars, plunge for trucks Arlena Sawyers asawyers@crain.com GM, Chrysler, Lexus turn to eBay Auction site lists dealers’ certified used vehicles Arlena Sawyers asawyers@crain.com General Motors, Chrysler LLC and Lexus Division are using a new feature of the online auction eBay to promote their dealers’ certified used vehicles. The eBay Motors Certified PreOwned Showroom launched this month. It lists more than 70,000 factory-certified used cars and trucks for sale by more than 5,000 dealerships, said Rob Chesney, eBay Motors vice president. The listings are free to dealers. The company says eBay Motors attracts 12 million unique visitors each month. Certified sales are “holding up pretty well in this economy,” Chesney told Automotive News. “We thought it Rob Chesney of eBay Motors: New site lists more than 70,000 vehicles for sale by more than 5,000 dealerships. was important to aggregate as much of that inventory as we could and bring it to our buyers.” The new site offers dealers templates to post vehicle data and photos. The site links to eBay Motors’ home page, www.ebaymotors.com. Lexus is the site’s sole advertising sponsor. Matt Kaleba, Lexus’ national certified pre-owned manager, says the luxury brand’s dealers will list 5,000 to 6,000 certified vehicles on the site at any time. “We thought it would be a great opportunity for us to educate consumers about our certified pre-owned program and give dealers more visibility for their inventory,” Kaleba says of the eBay site. Mark Mathews, General Motors’ director of used-vehicle activities, says he expects GM dealers to list about 60,000 certified vehicles at a time on the site. Sharing the site with other automakers will draw a bigger audience, he predicts. “It will naturally draw Internet customers,” Mathews says. “People like to go to one place to one-stop shop.” Lisa Way, Chrysler’s senior manager of certified pre-owned vehicles, says the company’s dealers offer about 15,000 certified vehicles on the site. “To be successful in today’s efficient used-car market, you’ve got to put your vehicles online,” Way says. Last month, the industry sold 163,553 certified vehicles, a 5.1 percent increase from May 2007. From January through May 2008, the industry sold 740,631 certified cars and trucks, a 4.4 percent increase over the year-ago period.c While wholesale prices of big used trucks continued their free fall last month, prices of smaller cars increased, the nation’s two largest auction companies report. But those boosts were not enough to prevent overall used-vehicle prices from dropping 5.7 percent in May from year-ago levels. According to ADESA Inc., used small and midrange cars sold at auction last month for an average price of $8,490 — 2.8 percent more than in May 2007 and 1.3 percent more than in April 2008. The small-car segment includes cars such as the Toyota Corolla. The midrange segment includes cars such as the Pontiac G6. Used traditional cars, such as the Buick Lucerne, sold last month for an average price of $10,815 — 2.5 percent more than in May 2007 but 1.9 percent less than in April 2008. At the same time, used full-sized pickups sold in May for an average price of $9,343 — a 21.3 percent decline from the year-ago month and a 10.1 percent slide from April 2008. Among all used light trucks, the average wholesale price was $9,868, an 11.8 percent decline from May 2007. Manheim’s Tom Webb: Fears of $5-a-gallon gasoline have depressed prices of used trucks. Sharp drops in used-truck prices spell trouble for automakers and their captive finance companies that leased pickups and SUVs when they were new three or four years ago. Tom Webb, Manheim’s chief economist, said fears that U.S. gasoline prices could soon increase to $5 a gallon have depressed used-truck prices. “Dealers know there are a lot of (trucks) on the wholesale market,” Webb told Automotive News. “The attitude is: Why buy this week when next week they might be cheaper?” In May, Manheim’s Used Vehicle Value Index fell to 107.5, its lowest point since October 2004. The index stood at 114.7 in May 2007 and 108.4 in April 2008. The index measures changes in used-vehicle prices, adjusted for model mix, mileage and time of year.c BUY A CAR. ONLINE. ANY TIME. Any make. Any model. From anywhere. Now you can ﬁll your inventory 24 hours a day, 7 days a week just by clicking on ADESA.COM. Give it a try and see just how easy it is. Log on to DealerBlock today. ©2008 ADESA, INC. http://www.auctionaccess.com http://www.ebaymotors.com http://ADESA.COM http://ADESA.COM http://ADESA.COM

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Automotive News - June 30, 2008

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