Appraisals Prove Biggest Challenge
Auto Auction Services Corp. (AutoIMS) released the results of a survey they conducted about floor pricing, including aggregate findings from over 325 commercial vehicle consignor responses.
Goals of the survey included assessing the preferences held and the challenges faced by the commercial consignor community as it relates to pricing vehicles for auction sale.
Survey responses came from all types and sizes of commercial remarketers, a true cross section of the AutoIMS client base and the industry. While prices continue to soar in the lane, 44 percent of the consignors surveyed still cited their biggest challenge is accurately appraising vehicles. The comments posted in the survey discussed the opportunities to obtain more thorough, accurate, and timely condition reports. Balancing high sale rates with maximum monetary returns was also a concern, ranking second at 21 percent, followed by finding accurate, relevant guide book data at 19 percent.
The companies whose primary focus was to achieve highest monetary return stated they were more likely to send a representative to the auctions to manage the active lane sales. Across all participants, 52 percent said they usually or always send a rep to auctions, and just 10 percent said they never attend auctions in person.
In terms of guide book data preferences, the survey showed that Manheim Market Report and Black Book are used almost equally - about two-thirds of AutoIMS respondents use both guides. Forty nine percent also use NADA Used Car Guide, and 22 percent use various guide book values provided by auctions. West Coast respondents also mentioned Kelley Blue Book, and several northeastern consignors cited Galves. A number of companies factor proprietary, internal data analysis into their valuations as well.
Over a third of consignors use the AutoIMS guide book integration to access guide book values alongside condition report and bid history information, and 49 percent of survey respondents access guide book data directly on the website of the guide book company in question.
Only 3 percent of consignors chose mobile app as their preferred guide book access method.
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