ACV Auctions & US Auto Wholesale Market
Former Regional Field Manager at ACV Auctions
inpractise.com/articles/acv-auctions-and-us-auto-wholesale-market
ACV Auctions
Why is this company interesting?
ACV Auctions is an online wholesale auto auction platform that helps dealers source and manage inventory, price vehicles, transfer titles, and finance and transport vehicles.
The company operates in the $230bn US wholesale vehicle market which facilitates the sale of over 22m dealer and commercial vehicles per year. Of the 22m wholesale vehicles sold annually, ~32% are dealer-to-dealer, 22% are off-auctions, and over 30% are from commercial consignors to dealers. ACV operates in the dealer-to-dealer channel and competes directly with KAR Auction’s Backlot Cars and Manheim.
ACV offers buyers more transparency and assurance when purchasing wholesale and sellers and saves sellers time and money relative to using physical auctions. ACV’s fees are ~$360 per vehicle which is about half of KAR or Manheim.
The company has over 18,000 marketplace users and is looking to onboard larger dealers to build on the base of independents. ACV is run by the company’s early angel investor who took over from the two founders in 2016.
ACV Auctions & US Auto Wholesale Market(November 9, 2021)
Susan O'Rourke
Former Regional Field Manager at ACV Auctions
Susan is a Former Regional Manager at ACV Auctions, the leading online auto wholesale auction platform in the US. She was a founding inside sales team member and grew through the ranks at ACV to run outside sales for regions and finally to manage the Mountain West region of the US where she was responsible for signing new buyers and sellers to the platform. Susan is now at A2Z Sync, a SaaS sales solution for auto dealers.
In Practise Notes
- How lane placement works at physical wholesale auctions
- How ACV pitches the proposition to buyers and sellers vs traditional auctions
- Pricing differences between ACV and KAR / Manheim
- Why ACV assurance product is so important and differentiated
- Challenges onboarding buyers and sellers which could pressure ACV revenue growth
- ACV vs Backlot sales conversion
- Why storage is important to dealers
- Challenges for ACV to sign larger dealers who have great deals with KAR / Manheim or their own auction house internally
Interview Transcript
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