ADESA, Manheim, & US Wholesale Auto Auctions
Former Director at KAR Global
inpractise.com/articles/adesa-manheim-acv-kar-openlane-evolution-of-the-us-auto-auction-market
ADESA, Manheim, & US Wholesale Auto Auctions(November 16, 2023)
Former Director at KAR Global
The expert is a seasoned executive with 32 years of experience in the used car market. He currently holds a senior VP position at a C2C online platform for peer-to-peer used car sales. Previously, he served as the Director of Dealer Accounts at KAR Global, managing relationships with major used car dealers.
Interview Transcript
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Buyers could easily move from one auction to the next, and cars could be shipped as well.
Dealers usually have a policy to only keep a car for a certain number of days. Especially larger dealer groups are very pragmatic in their operations. They don't allow emotions to interfere. Even if they can't understand why a perfect car that's priced right is still there at 88 days, they know that at 90 days, it has to go. This goes into the auction system regardless.
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Could you provide some insight into the competitive intensity in terms of buying fees and selling fees at these digital auctions compared to traditional auctions? I'm trying to understand how much I would need to lower my price to win business in either scenario. I'm also interested in the differences between the buy side and the sell side.
Buyers don't have much leverage in negotiating a buy fee because the items are already sold before they even hit the auction. We know they're going to sell, so there's no need for us to cut a buy fee.
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