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August 20-21, 2013 Hyatt Regency
Dallas, TX
SUMMER ROUNDTABLE
Thank you to our SPONSORS
Lead Sponsor
Thank you to our SPONSORS
Platinum Sponsors
Thank you to our SPONSORSGold Sponsors
Thank you to our SPONSORS
Silver Sponsors Bronze Sponsor
Thank you to our SPONSORSGeneral Sponsors
Benefits of Belonging to the IARA
Bottom line – when you belong to the IARA, you become a better remarketer; a professional that learns and understands all facets of remarketing and how it will positively affect your company’s financial performance, as well as your value to your clients.
Benefits of Belonging to the IARA
Here are a few ways that IARA membership will assist you in increasing your financial performance: • Education and specific training
courses resulting in a remarketing certification.
• Network with other remarketing professionals to learn best practices and benchmarks in your market segment.
• Learn about opportunities for improvement, problem solving, and other issues that may hinder your business.
• Have input on industry changes (before they happen) on standards, such as arbitration and certification.
• Participate in discussions about dozens of topics including: – Maximizing net returns.– Education/training your
remarketing staff. – Auction performance.– Transportation.– Upstream remarketing.– Vehicle inspections.– Exporting techniques.– Guidebooks.– Reconditioning issues.– Vehicle history reports.– Vehicle sourcing.
Opening Remarks
Robert WagnerPresident
Thank You!
A Long, Long Time Ago – 6 Years
• 6 Years Ago – IARA was at 56 members• 6 Years Ago – Only 3 Certified Automotive
Remarketers• 6 Years Ago – IARA was still sorting out its
financial viability• 6 Years Ago – IARA was 6 Years Old• 6 Years Ago . . .some thought that IARA
might not make it . . .maybe just maybe . . .
Then just like that –
• 5 Years Ago – I became a Second VP for IARA
• 2 Years Ago – I became President & Levi McCoy V.P.
• . . .just maybe . . .
Ten Year Anniversary
• Then just like that it was here in Dallas, 2011. It was Cowboy Stadium.
• It was . . . Just like that . . .
• IARA HAD ARRIVED!
• A Decade . . .
Enhanced Conference Registration
Then just like that – here we are 2013.
• Today – Canada Committee – comes along with 24 new members
• Today – IARA has $$$$$ in it Financial Statement, VERY SOLID INDEED!
• Today – CAR is over 64 STRONG!
Tomorrow . . . Soon, Levi is President!
just maybe, just maybe – IARA!
2013 Accomplishments• Creation and growth of IARA Canada.• Auto IMS improvement recommendations.• Integrating with NAAA on critical Industry issues.• Working with NAAA to improve Policy Guidelines for Arbitrations & Online Purchases.• Working with NAAA Standards Committee to standardize Auction Announcements &
Disclosures.• Partnered with the NAAA the present survey results to improve language in Vehicle
History Reports.• Published an industry position paper on the future vision for Multiple Online Selling
Venues.• Initiated initial audit template to be used for a Standardized CFPB Audit Process.• IARA Analysis to improve Remote Rep features.• Tremendous growth in CAR Certification enrollments & Certification Graduates.• IARA website FORUM BLOG created.• Twitter and Facebook presence created for IARA.• Strengthening of IARA Financial position.• Growth in Membership• Standard membership fees of $1,250 for all members to be billed out annually in January.
Membership
IARA 2012-2013 New U.S. Members
• 166 Auto Auction
• America’s Auto Auction
• Auction Edge
• Capital One
• Caprock Auto Remarketing
• Complete Auto Services, Inc.
• Dealer’s Auto Auction of the
South
• DEKRA Inspections
• Diversified Vehicle Services
• FLD, Inc.
• Grow Financial Credit Union
• Harley-Davidson Financial
• Hearst Business Media• Hyundai Motor America• Liquid Motors, Inc.• Motor Lease Corp.• Porsche Cars North
America• RSA-FiServ• Southeastern Auto
Auction• Statewide Auto Auction
Canadian Committee Update
IARA Summer RoundtableAugust 2013
Canadian Committee
• Drive change to strengthen the Canadian Remarketing industry• Co-Develop industry guidelines for corporate performance
standards• Conduct educational and training programs • Discuss and develop industry best practices• Provide a networking forum for remarketers• Assist international growth and exposure• Support and participate in industry events & seminars
Canadian Committee Meetings & Events
On track to hit our goal of hosting 3 annual IARA Canadian Committee Meetings in Canada
Proposed & Planned Events in 2013
March CAR Conference - Las VegasApril Auto Remarketing Canada Conference – Toronto
IARA General Meeting IARA Canadian Remarketing Remarketer of the Year Award
June Canadian Committee Meeting – Toronto Standardizing Condition Reports – Panel Discussion Disclosures & Declarations – VHR Panel Discussion
August IARA 2013 Summer Round Table - DallasOctober Canadian Committee Meeting – TorontoDecember Canadian Committee Meeting – Toronto
AutoRemarketing Canada Conference
• AutoRemarketing Canada Conference in Toronto – over 700 attendees!– Hosted an IARA Canadian Committee meeting with over 100 in attendance– Presented our current IARA Canadian initiatives, conducted a membership drive– 7 new prospective members approached us after meeting– Hosted our first “Consignors Only Meeting”
• IARA Canadian Committee Award Presented at AR Canada Conference
John Carere – National Remarketing Manager – RBC Automotive Finance (ALLY)
IARA / AR Canada – Remarketer of the Year Award 2013
Canadian Committee Accomplishments
• Met our goal of hosting three Canadian Committee meetings in Toronto in 2012 and are on track for 2013.
• Each meeting / event hosted record attendance!• Hosted 2 “Consignor Only” events• Continue to host monthly Canadian Committee conference calls.• Canadian committee leads are joining U.S. Committee conference calls.• Created a NEW membership enrollment process.
Canadian Sub-Committee Teams•
Education and CertificationJohn Paonessa – Lead (GM Financial)Gerry Corcoran - Pattison LeaseClaudio De Angelis – FossSteve Langdon - ADESABrent Burpee - CarFaxDave Sutton
Membership DevelopmentDoug Collis – Lead (Ford)Marty Meadows - CarProofStu Ralph - North TorontoKathy Ward – Canadian Black Book
Press & PRJosh Bailey – Lead (Canadian Black Book)Stu Ralph – North TorontoRemy Rousseau – Rousseau Publications
Industry Recognition and RewardsAlex Johnston – Lead (Hyundai)Larry Shred – Canadian Black BookRichard Pasta – Kia Canada
Technology and StandardsVolunteer Needed!!!!Don Wallace – Co-Lead (Manheim)Kim Thomson - PorscheBernard de Souza - NissanLarry Shred – CBBLisa Scott – ADESA / Openlane - NAAA
Current & Completed Canadian Initiatives
• Post Sale Inspection standardization– Recent panel discussion
• Disclosure & Declaration standardization– Recent VHR panel discussion
• Monitor/provide industry input into pending provincial MVDA legislation– NS, SK and MB updates
• Central Repository for OEM Build Data– New Initiative
Current/Completed US/Cdn Initiatives
• Multi-Platform Selling facilitation
• Internet-based resources for remarketers
• Align IARA and NAAA (Cdn) standards– Pending NAAA (US) draft and meeting July 1, 2013
• Structural Damage Policy revisions and clarifications– NAAA (US) draft revisions
• Used Vehicle Condition Report & Grading System Standardization – panel discussion
IARA Canadian Committee Membership
• Current Canadian membership consists of 24 companies
• Identified 28 new potential members
• Will continue to expand membership base over the coming year.
2012-2013 New Canadian Members
• ADESA / OpenLane Canada• Ally Bank / RBC• ARI• BMW Canada• Canadian Black Book• Canadian Dealer Services• CarFax• CarProof• Data Scan• Ford of Canada• Foss National Leasing• GM Financial Canada
• Honda Finance Canada• Hyundai Auto Canada• Jim Pattison Lease• Kia Canada, Inc.• Manheim Canada• Mitsubishi Canada• Nissan Canada• North Toronto Auction• Pareto Corporation• Porsche Cars Canada• RSR Canada
Membership News!
• New Membership Registration - $1250 for all Members!
• Membership renewal – a predetermined date will be set for annual renewal
• Now accepting membership dues in Canadian Dollars!
Membership Registration News!
Our Canadian Membership Committee will be sending all current and prospective members an IARA membership package which will include:
• Payment options in Canadian Dollars (invoice / online)• Membership benefits form• Contact info for Membership Committee
On behalf of the IARA Canadian Committee
Thank You for Your Support!
August 20-21, 2013 Hyatt Regency
Dallas, TX
CERTIFIED AUTOMOTIVE REMARKETER (CAR)
PROGRAM
Certified Automotive Remarketer (CAR)The mission of CAR is to enhance and promote the profession of Vehicle Remarketing by providing the premier credential in the industry.Curriculum includes 20 courses in five units:
1. Remarketing Channels2. Pre-sale Activities3. Actual-sale Activities4. Post-sale Activities5. Legal, Ethics, and Terminology
• Each module is 10-20 pages in length (great to read on planes!)
• The test are multiple choice, a score of 75% or better is required to pass
• Testing is available at industry events and throughout the country using CAR graduates and other approved proctors
• Many recent graduates completed all 20 modules in less than 4 months!
Education & Certification UpdateThe IARA Certification program has really taken off!
120 – # of people who have taken at least one module toward certification
41 – # of companies supporting the certification process
20 – Number of companies with at least one CAR Graduate
70 – # of people who have successfully completed all 20 exams YTD
Certified Automotive Remarketers2008 - Sal Terranova Carolina AA Chris Wise Charleston AA 2009 - Ricky Beggs Black Book USA Dave Sutton CARFAX 2010 - Jim Jackson ARI John Elizaga Emkay Les Lynott Emkay Mona Spoon Emkay David Thompson Emkay Scott Braidwood ARI Steve Johnson ARI Jennifer Schade ARI Jill Tarallo Manheim/DealerTrack Brian McBrearty ARI Dave Seher ARI Chris Slaughter ARI John Wright ARI2011 - Brian Garner ARI Fred Walerski ARI Gus Xamplas Donlen Mike Kreider Credit Acceptance
2012 - Phillip Finley JD Byrider Stephanie Gingras DAASW Irina Toader Manheim Rob Wagner Hyundai Bill McCready Charleston AA Laura Taylor Charleston AA Don Roccia Credit Acceptance Fred Uhter TSAA Jeannie Chiaromonte Bank of America Randy Gold CARFAX Mike Bradley 166 Auto Auction Jackie Malik Credit Acceptance Jiles Wanna TPC MGMNT Mark Hopkins Dealers AA Chuck Novince Manheim Scott Kolb United Road Jackie Matejewski Credit Acceptance Diane Scharafin CARFAX Juan Spears Credit Acceptance Rod Feuell Credit Acceptance
2013 (YTD) - Matthew Yoo CARFAX Mark Pelech Credit Acceptance Laura Westray Black Book USA Terry Park Black Book USA Drew Smith GM Financial Steve Collins Black Book USA Bill Boutwell Manheim-New England John McDavid Black Book USA Josh Giles Black Book USA David Heslet GM Financial Tim West Black Book USA Heather Crawford Black Book USA Scott Yarborough Black Book USA Eric Lawrence Black Book USA Zach Staruch Black Book USA Stacey Scarnati DAA Rockies Michelle Noblitt DAA Rockies Charles Cathey Black Book USA Mark Simpson Black Book USA John Carter GM Financial Joshua Hunt GM Financial Jimmy Marino GM Financial Chris Watkins GM Financial Levi McCoy LeasePlanUSA Randall Harshman LeasePlanUSA Spence Couch MidSouth AA Stephen "Derik" Page Black Book USA Brett Swanson Black Book USA Linda Amerman Black Book USA
Online Remarketing Courses
• Remarketing Orientation Courses – Online 24/7• Delivered via Northwood University – CEU’s• More than 150 Participants to Date• Twelve Courses:
• Terminology• Transportation• VIN description• Ethics• Resale Channels• Titling
• Introduction to Remarketing• Inspections• Reconditioning• Guidebooks• Technology• Factors Affecting Values
More information regarding both programs can be found at: www.iaraonline.org/training
August 20-21, 2013 Hyatt Regency
Dallas, TX
Introductions!
IARA Officers
Robert Wagner, CARPresident
Levi McCoy, CARVice President
Gus Xamplas, CARDirector
Jeff Bescher Treasurer
Mike AntichSecretary
Bob GrahamChairman of the Board
IARA Directors
Jeannie Chiaromonte, CAR
Don Fowler
David Alfonso Eric Autenreith Dick Curtis
Mary Haller Dan Heinrich
IARA Directors
Layne Weber
Mike Kreider, CAR
Chuck Novince, CAR
Scott Kolb, CAR Tim Meta
Jack Rennels
Jason Herman
IARA Committee Chairs
Dave Alfonso Industry Recognition
& Awards
Mike Antich Press & Public
Relations Communication
Dave Sutton, CARIARA CAR Certification
Don Fowler - Membership Development & Recruitment
Stephanie Gingras, CAR Technology & Social Media
Dan Heinrich - Remarketing Industry Standards & Vehicle Certification
Scot Kolb , CAR Education & Conference
Management
August 20-21, 2013 Hyatt Regency
Dallas, TX
SUMMER ROUNDTABLE
NIADA Update
Chase TidwellVice President of Media Services
NIADA Overview PresentationChase Tidwell
VP of Media ServicesNIADA
IARA Meeting, Dallas, TX 8-20-13
INTRODUCING NIADA
Today’s Agenda
About NIADA Benefits of Membership NIADA Partnerships with NAAA and IAA Membership Profile Industry Trends Regulatory Challenges Auto Remarketing Challenges Q&A
About NIADA Founded in 1946 5th largest trade association in the US Focused on:
Legislative Advocacy Regulatory Compliance Support Member Education Member Services Programs Member Consulting Services Industry Relations
Voice of the Independent Auto Retail Industry
Benefits of Membership Discounts on products & services Legislative Advocacy Educational Opportunities
Certified Master Dealer Program NIADA National Convention & Expo NIADA.TV Education Resources NEW! Twenty Group Program NIADA Leadership Conference
Industry News Used Car Dealer Magazine Annual Used Car Industry Report NIADA Member Benefits Mailings and e-Newsletters
Business Resources Expert advice on financing, marketing, taxes, legal matters and more.
NIADA Partnership with NAAA NIADA’s Used Car Dealer Magazine and NAAA’s On the Block
Newsletter Merge. One publication will be shared with all NAAA auctions /members and all NIADA
Dealer Members Cost effective and efficient way to inform and educate both auctions and used
car dealers about each other’s side of the industry. A great way to unify the remarketing industry and the dealers you do business
with everyday.
New discounted Auction Directory Listing Packages available to all NAAA Members. Greater exposure and promotion of all of your consignment and lane sales at auctions nationwide.
NAAA’s Annual Report will merge with NIADA’s Annual Used Car Industry Report in 2014.
The release and availability of NAAA’s upcoming new arbitration policies to all NIADA Dealer Members
NIADA & IAG Member Benefits NIADA has recently worked with existing NIADA vendor
discount programs that were originally designed for dealers to expand their services and provide similar discount programs specifically for the smaller independent auctions.
IAG and NIADA now offer excellent member benefits to help IAG members grow their business, protect their assets and enhance their profitability.
For a complete listing of over 20 IAG member benefit and discount programs through NIADA, visit www.independentauctiongroup.com and click on the member benefits tab from the home page.
About our Members & the Used Vehicle Industry Almost 38,000 Used Dealers Nationwide, according to
CNW Research. (those that sell 10+ vehicles per month) NIADA Members represent approximately 40% of the
used vehicle retail market 14M units sold in 2012 worth $125-B dollars (CNW- 2012) Average annual retail sales were at 370 units and at an
average price of $8,916 (CNW- 2012) 82% of NIADA dealer member inventory sourced via
auto auctions Dealer Consignment Represented 58% of auction sales
in 2012 (NAAA 2013 Annual Report) Diverse Membership: Used Retail Operators, BHPH
Dealers, New Car Franchise Dealers, Wholesalers
Industry Trends Increased competition from new vehicle franchise
dealers. New dealers are holding onto and selling more used units instead of sending their trades to auction.
The Non-prime auto finance market continues to expand: 57% of used vehicle retail originations reported in 2012
F&I regulatory burden is growing: items such as adverse risk notice, red flags, risk based pricing, CFPB actions, etc. are keeping dealers and our entire industry on high alert.
Used vehicle demand is strong, There were 40M used retail units sold in 2012 (CNW 2012). For every new vehicle sold there were nearly three used sales.
Regulatory Issues
FTC Used Car Rule Updates: Issues NIADA is monitoring: Consumer groups continue to push for vehicle history data on
every buyers guide The need for Spanish Buyers Guides OEM warranty remaining on all Buyers Guides.
CFPB Actions: Issues NIADA is monitoring: ”Large market participants rule” effecting BHPH Dealers 2013 focus payday lenders, BHPH dealers Adverse Risk, Risk Based Pricing, and Red Flags compliance Rental Car Recall Vehicle Legislation
Member Auto Remarketing Challenges
Becoming more familiar and comfortable with the online remarketing channels. Our Dealers still like to go to the auctions and kick those wheels.
Dealers are looking for auctions to provide more retail ready vehicles that they can place directly on the front line without having to take the time and energy to recondition them.
Finding the right market analytics tools to determine the correct inventory levels for the right customer at the right price
Competitive floorplan financing resources due to heightened level of wholesale investment
August 20-21, 2013 Hyatt Regency
Dallas, TX
SUMMER ROUNDTABLE
NAAA Update
Ira Silver, Ph.D.Economist
THE ECONOMY, AUTO SALES & AUTO AUCTIONS
Dr. Ira SilverNAAA Economist
Slow Real GDP Growth
1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 22008 2009 2010 2011 2012 2013
-11.0
-9.0
-7.0
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
0.3
3.1 2.7
1.5
-2.7
2.0
-2.0
-8.3
-5.4
-0.4
1.3
3.9
1.6
3.92.8 2.8
-1.3
3.2
1.4
4.93.7
1.2
2.8
0.11.1
1.7
Percent Change From Prior Quarter at Annual Rate
Recession
Percent Change From Prior Year
Is this all bad?
Slow Growth Does Not Quickly Create The Excesses That Lead To Recessions
67 70 73 76 79 82 85 88 91 94 97 00 03 06 09 122.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
RecessionUnemployment Rate
Recessions are preceded by very low unemployment
And the economy is growing
Institute for Supply ManagementIndexes Indicate Continued Growth
Three-Month Moving Averages
78798081828384858687888990919293949596979899000102030405060708091011121325.0
30.0
35.0
40.0
45.0
50.0
55.0
60.0
65.0
70.0
Recession
Manufacturing Activity
Recession Level
Nonmanufacturing Activity
Employment Is GrowingChange (thousand of Jobs)
1 3 5 7 9 11
1 3 5 7 9 11
1 3 5 7 9 11
1 3 5 7 9 11
1 3 5 7 9 11
1 3 5 7 9 11
1 3 5 7
2007 2008 2009 2010 2011 2012 2013
-1,000
-800
-600
-400
-200
0
200
400
600
Recession
Auto Sales Recover
(MILLIONS OF UNITS, SEASONALLY ADJUSTED AT ANNUAL RATE)
79808182838485868788899091929394959697989900010203040506070809101112138.0
10.0
12.0
14.0
16.0
18.0
Recession
Light Vehicle (right scale)
Auto Sales Recover
(MILLIONS OF UNITS, SEASONALLY ADJUSTED AT ANNUAL RATE)
Housing Recovery Starts
79808182838485868788899091929394959697989900010203040506070809101112130.2
0.7
1.2
1.7
2.2
8.0
10.0
12.0
14.0
16.0
18.0
Recession
Housing Starts (left axis)
Light Vehicle (right scale)
Households Reduce Financial Obligations
Financial Obligations as a Percent of Disposable Personal IncomeBack to Early 1980s Levels – Consumer Spending Will Grow
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 1310.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
14.5
Recession
Household Wealth RecoversSupports Future Spending
Stock Prices Surge & Home Prices Turn Up
33239332703329833329333593339033420334513348233512335433357333604336353366433695337253375633786338173384833878339093393933970340013402934060340903412134151341823421334243342743430434335343663439434425344553448634516345473457834608346393466934700347313475934790348203485134881349123494334973350043503435065350963512535156351863521735247352783530935339353703540035431354623549035521355513558235612356433567435704357353576535796358273585535886359163594735977360083603936069361003613036161361923622036251362813631236342363733640436434364653649536526365573658636617366473667836708367393677036800368313686136892369233695136982370123704337073371043713537165371963722637257372883731637347373773740837438374693750037530375613759137622376533768137712377423777337803378343786537895379263795637987380183804738078381083813938169382003823138261382923832238353383843841238443384733850438534385653859638626386573868738718387493877738808388383886938899389303896138991390223905239083391143914239173392033923439264392953932639356393873941739448394793950839539395693960039630396613969239722397533978339814398453987339904399343996539995400264005740087401184014840179402104023840269402994033040360403914042240452404834051340544405754060340634406644069540725407564078740817408484087840909409404096941000410304106141091411224115341183412144124441275100
120
140
160
180
200
220
300
500
700
900
1,100
1,300
1,500
1,700Recession
House Price (right axis)
S&P500 Stock Price (left axis)
89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 -
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Nonfinancial Corporate Cash
Bank Excess Reserves
Corporate Profitability At Record LevelsWill Support Business Investment & Hiring
60 63 66 69 72 75 78 81 84 87 90 93 96 99 02 05 08 113
4
5
6
7
8
9
10
Recession
After-tax Profit Margin
Other Economic DriversContinued Monetary Stimulus If Needed
“the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent”
Other Economic DriversContinued Monetary Stimulus If Needed
“the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent”
Other Economic DriversContinued Monetary Stimulus If Needed
“the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent”
Other Economic DriversThe World Is Looking Better
Other Economic DriversU.S. Energy Production Soars (Quadrillion BTU)
00 01 02 03 04 05 06 07 08 09 10 11 12 131.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2.1
2.2
0.8
0.9
1.0
1.1
1.2
1.3
1.4
Natural GasOil
Other Economic Drivers
A potential game changer!Federal Energy Regulatory Commission
Natural Gas PricesDollars per Thousand Cubic Fee
Better Times Are Ahead! Real GDP Percent Change
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
-0.3
-2.8
2.51.8
2.81.5
3.02.0
3.5
Auto Sales Recover (MILLIONS OF UNITS, SEASONALLY ADJUSTED AT ANNUAL
RATE)
79808182838485868788899091929394959697989900010203040506070809101112138.0
10.0
12.0
14.0
16.0
18.0
Recession
Light Vehicle (right scale)
Auto Sales Drivers
• Pent-up demand created during recession• Continued easy/cheap credit • Low household debt service burden• Household wealth increasing• Improving labor market• New attractive, fuel efficient vehicles• Housing construction increasing
New Vehicle Sales Continue Strong Recovery
Millions of Units
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
16.6 16.9 16.9 16.5 16.1
13.2
10.4 11.612.7
14.415.6
16.7
-1%1% 0%
-3% -3%
-18%
-21%
11% 10%
13%
8% 7%
New Vehicle Sales Percent Change
AUCTION UNIT VOLUMEPERCENT CHANGE FROM PREVIOUS YEAR
1 2 3 4 1 2 3 4 1 2 3 4 1 22010 2011 2012 2013
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
Dealer Consignment Commercial Consignment TotalAuctionNet
Strong new car sales
AUCTION UNIT VOLUMEPERCENT CHANGE FROM PREVIOUS YEAR
1 2 3 4 1 2 3 4 1 2 3 4 1 22010 2011 2012 2013
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
Dealer Consignment Commercial Consignment TotalAuctionNet
Weak past new car sales
Strong new car sales
AUCTION UNIT VOLUMEPERCENT CHANGE FROM PREVIOUS YEAR
1 2 3 4 1 2 3 4 1 2 3 4 1 22010 2011 2012 2013
-30.0
-20.0
-10.0
0.0
10.0
20.0
30.0
9.4
Dealer Consignment Commercial Consignment TotalAuctionNet
Weak past new car sales
Strong new car sales
Strong past new car sales
Turnaround in Commercial Consignment Adds to Strong Dealer Consignment
Millions of Units Sold
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
10.0 9.7 9.4 9.5 9.5 9.58.9
8.37.7 7.9
8.49.0
4.6%
-3.0% -2.8%
1.2%0.3%
-0.6%
-5.9%-7.1% -7.6%
3.3%
6%8%
Units Sold Percent Change NAAA Survey, NAAA
Bottom LineBetter Times Are Ahead!
• The economic recovery will strengthen
• Auto sales will approach past levels
• Auction volume will increase this year and next– And probably further on
• Auctions need to ramp up to be able handle the increased business
THE ECONOMY, AUTO SALES & AUTO AUCTIONS
Dr. Ira SilverNAAA Economist
Used Retail Sales Continue RecoveringMillions of Units & Percent Change
Source: CNW Research, NAAA
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
43.6 42.7 44.1 42.6 41.4
36.5 35.5 37.039.0 40.5 42.6
44.1
1.3%
-2.0%
3.4%
-3.6%-2.7%
-11.8%
-2.8%
3.9%5.2% 4.5% 5.0%
3.5%
Used Vehicle Sales Percent Change
August 20-21, 2013 Hyatt Regency
Dallas, TX
SUMMER ROUNDTABLE
Keynote Speaker
Mike BroePresident, CEOAuto IMS
Vehicle Buying TrendsFor the Independent Auto Remarketers AssociationAugust 21, 2013
Industry shifts to customer demands
Historical Industry Shifts
1945:First Physical
Auctions
1980s:First Reconditioning
Centers
2003:First Simulcast
Auctions
1990s:Floor Planning for
Wholesale Purchases
2003 2012
3,400 Buyers
41,000 Buyers
CAGR:32%
(Source: Manheim)
Number of Buyers Purchasing Online
A 12X Increase in Ten Years
Number of Cars Purchased: Simulcast(Source: Manheim)
2003 2012
43,000 cars(Simulcast only)
553,000 cars(Simulcast only)
CAGR:34%
A 13X Increase in Ten Years
Number of Cars Purchased: Total Online
A 22X Increase in Ten Years
(Source: Manheim)
A 22X Increase in Ten Years
2003 2012
43,000 cars(Simulcast only)
906,000 cars(Simulcast & OVE)
CAGR:40%
No. of Dealers Buying Exclusively Online (Source: Manheim)
A 22X Increase in Ten YearsBuyers are getting more comfortable buying online
2003 2012
- 0 -(No Dealers wereexclusively only)
10,500 Dealers(15% of all Dealers)
YearPage Views Visits
2009 14.8M 2.9M
2012 20.0M 4.1M
OVE Dealer Traffic
Buyers are getting more comfortable buying online
(Source: Manheim)
YearAvg.
Monthly Views
2009 342,000
2012 677,000
Retail View
More and more dealers are shopping
(Source: Manheim)
The Industry Does Move!
Historical Industry Shifts
1945:First Physical
Auctions
1980s:First Reconditioning
Centers
2003:First Simulcast
Auctions
1990s:Floor Planning for
Wholesale Purchases
Mobile technology Multi-platform Exclusive online buying Upstream buying
2013 shifts coming faster and faster:
IARA 2013 Summer Roundtable Sponsors
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SUMMER ROUNDTABLE