The latest third quarter data from AutoIMS indicates changing metrics across the board for the wholesale vehicle auction industry as the economy moves into a tougher mode with mixed signals.
"As those trends continue, the metrics this quarter indicate more of a turning point," according to the "Industry View" analysis issued quarterly by AutoIMS, which tracks the performance of 750+ auction operations and 1,200 consignors across North America. It uses the aggregate data to discern the latest remarketing industry trends.
Among notable findings:
- The conversion rate dipped from 67% in 3Q 2021 to 59% in 3Q 2022. The consistently-lower conversion rate all year broke its parallel track against last year by turning downward over the last month, the report concluded.
- In the same 3Q YOY comparison, the average vehicle sale price rose from $15,524 to $15,687.
- Gross sales price as a percentage of floor price: 97.2% in 3Q 2022, down from 99.8% in same quarter last year.
- Average vehicle grade is up to 2.93 last quarter from 2.87 in 3Q 2021.
- Average charge total, the auction fees deducted at sale settlement, rose to $394 from $379, when comparing the two third quarters.
"In context with the appearance of higher grade, later model year, lower mileage vehicles, these turns are more severe than they appear," the report states.
Since this market is also generating higher damage estimates and auction charges, auctions are investing more in recon. With more recon and more vehicles arriving at physical auctions, days-to-sell has bounced from 4.0 in 3Q 2021 to 5.4 last quarter.
"The consensus seems to be that volume is going to trickle back, but remain low for some time, though values will continue to level off/depress compared to what we saw for much of the last two years," said Joe Miller, executive vice president for client success at AutoIMS.
Originally posted on Vehicle Remarketing