AUCTION GROUP SOLICITS DEALERS

Auctions want more small dealers.

February 2, 2004—As a first step to boost outreach to dealers, the National Auto Auction Association (NAAA) will host a dealer review panel at its conference in April, the group announced at a press conference today. Later it will form dealer advisory boards in different parts of the country

The initial panel will be made up of dealers who regularly use auctions as well as those who rarely do, said NAAA president Tony Long. The 2003 NAAA survey found that bigger dealers are much more likely to use auctions, and the group wants to find out why small and medium-size dealers use them less.

The association also would like to let dealers know about the nonsale services it offers. “Most dealers don’t think twice about outsourcing paintless dent repair or windshield repair” to outside vendors, said Long, but they’re much less likely to think of auctions as a source for those services or for reconditioning and title work.

While the average price of wholesale vehicles sold at auctions has dropped in the past year, unit sales rose by 460 million, mostly because of dealer consignment, said NAAA chief operating officer Michael Hayes.