Editor’s Notebook: Auction Simplified another Online Channel, and Other Interesting Stories this Week
By Jon LeSage, Editor, Used Car Market Reports
- Dealer Simplified has launched Auction Simplified, which is now being used by 10 dealers in the Buffalo and Rochester, NY, area. Dealers aren’t paying anything for their used vehicles to be placed on the online auction. Dealer Simplified collects a per-vehicle fee of $25 to $120 from the buyer and gives $20 of anything over $25 to sellers to help cover costs of holding the public viewing prior to auction. ADESA and Manheim have their offerings in online auctions, as do regional chains. AutoAxess works with 55 franchised dealers in northern California, though its buyers come from all over the state; Carphonia says it has about 100 new car and independent used car dealers in its network.
- Auto Remarketing has started up a new certified pre-owned newsletter, called CPO Weekly. Stories from this week included a look at statistics shared by TrueCar on now much momentum is building in the CPO business. Another analyzed comments from JD Power’s John Humphrey during the NADA/JD Power Automotive Forum in New York on where lease maturities went last year and where they’re expected to go this year – and how CPO helps with it.
- Lexus and Subaru dealerships had the highest average consumer ratings among luxury and mass-market brands on DealerRater over the past 12 months. Lexus beat out Mercedes-Benz and Porsche among the top three ranked luxury brands; Subaru nudged past Mini and Honda among mass-market brands, according to DealerRater CEO Gary Tucker.
- Lease credit approval volatility has been apparent over the last six months, with every other month surging above or below Swapalease’s healthy margin of 70% approvals, according to Scot Hall, Executive Vice President of Swapalease.com. Lease credit approvals tumbled to 60% of lease transfer applicants in March, below the 2015 average of 63.4%. “When the overall volume of applicants continues to rise, it’s not uncommon to also find an increase in credit declines in the secondary market,” Hall said. “Much of this activity is the result of car shoppers turning to the secondary market after their initial and unsuccessful attempt to lease at the dealer.”
- Black Book Market Insights reported that smaller car segments had an especially good period last week. Compact Cars (+0.52%), Entry-Level Cars (+0.45%) and Entry Mid-Size Cars (+0.15%) help keep overall car segments stable and relatively unchanged. The car segment with the largest decline comes from the Prestige Luxury Cars, with -0.64% for the week.Crossovers have also done very well lately. “Combining spacious cabins and better fuel economy, crossovers have satisfied the American driver’s thirst for versatility in a vehicle,” said Anil Goyal, Vice President of Automotive Valuation and Analytics for Black Book.
- ADESA has seen a few enhancements lately to be more user friendly to its audience. ADESA Assurance enables customers to quickly view off-lease and rental vehicles eligible for a 30-day, no-questions-asked return guarantee; Watch List has new filtering menus on the website and the mobile-optimized site with search enhancements, including making salvage units searchable using free-form text search.