Individuals are not buying nearly as numerous new cars nowadays, however at least one part of this vehicular market remains still booming — automobile auctions. Almost 18 thousand vehicles were entitled to the auction block in 2016.
Even though not all these 18 thousand vehicles have been sold, they nonetheless compelled the company past the $($**************************) billion mark and also produced 2016 that the very best year on record, continued five decades of industry development.
Due mainly to bloated used auto inventories, 2017 appears to continue this trend. Volume for 2016 had been up two percent above the year previously and has continued to creep upwards at the beginning of 2017.
The range of real and “projected” used vehicles offered at National Auto Auction Association member websites, that accounts for tens of thousands of national and global auction places, was 5 percent in 9.8 million units in January.
“The 2016 outcomes are extremely supportive,” NAAA principal executive officer Frank Hackett stated in a formal announcement. “The survey results demonstrate the depth and strength of a mature business that has shown its resiliency.
“I am confident we will continue to be an essential and growing portion of the country’s economy as we anticipate celebrating the automobile auction business’s 80th anniversary in 2018,” Hackett says.
However in a recent survey performed by the NAAA, a lot of this success appears to emerge as a consequence of raised repossessions and off-lease vehicles nobody needed to purchase. In reality, fund and fleet vehicles accounted for 40 percentage of the entire quantity of auctioned cars — a 5-percent growth from the prior year. Contemplating that production and fleet sales have been trending down during the past couple of decades, it is safe to presume the vast majority of the growth wasn’t reliant upon them.
The rest origins for auctioned vehicles really diminished in bulk. Dealer consignment vehicles were down out of away from 57 percentage to 52. Automaker sales fell, containing over 7 percent of their auction quantity.
Even though just 252 of this 342 NAAA member celebrations engaged in the survey, that the team claims it is representative of this business as a whole. The data offers some statistics about the NAAA penis auction that is standard. Normally, they’ve got eight lanes, 137 workers, along with a payroll of $4.2 million. Mean annual charity gifts accounted for $($*******************************),000, each place.
Auctioneers are keenly conscious of the changing environment of the automotive sector and claim it is one reason they have started keeping closer tabs on it now.
“As vital participants from the automotive sector, NAAA members have also taken note of numerous changes which are sweeping that sector now, in the growth of freedom services like Lyft into the approaching release of autonomous vehicles,” the association stated of their polls.
“Therefore, NAAA — since the pre-eminent voice of the automobile auction industry — has recently concluded it’s in the best interests of its members to give them knowledgeable and objective research into these and other modifications may influence their future prospects,” it lasted. “Armed with this kind of research, members are going to be more equipped to update and revise their business plans”
(b)From the brief period, the auction company does not appear especially rattled. Even though new auto volume is predicted to drop markedly in 2017, utilized vehicles must stay plentiful. “If you take a close look at the foundation of this survey heading back 20 years, then you see constant increase,” Hackett clarified. “I am confident in what I am hearing concerning mass in the business now and by our associates which we will continue to view that our business grow”
[Image: Steve Snodgrass/Flickr (CC BY 2.0)] [Supply: Automotive News]