America's Auto Auction, ADESA, Manheim, & US Wholesale Auctions
General Manager America’s Auto Auction
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ACV Auctions Inc
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.
Written in December 2021
General Manager America’s Auto Auction
Interview Transcript
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Yes. Which customer segment is easier to work with and more profitable for an auction, in your opinion?
I would say the national lease accounts, including fleet vehicles, are easier to work with and more profitable. We know upfront what the expectations are and they don't change. These vehicles usually come with a pickup fee, simulcast fee, online seller fee, condition report fee, detail fee, and seller fee. This is much more than what we can get from a dealer consignment. There are more ancillary charges with a lease vehicle than with a dealer vehicle. Therefore, I make the most money on the national accounts.
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