FREDERICK, MD - Sales of used vehicles totaled 8.9 million units worth $80.5 billion at National Auto Auction Association (NAAA) member auctions last year, according to the trade organization’s 13th annual survey. Fleet/lease and repo vehicles represented the largest number of units sold at 47.3 percent, followed by dealer-consigned vehicles 39.3 percent, factory vehicles 10.3 percent and just 3 percent from other sources.
The survey found that while the number of vehicles entering auctions decreased by 14.5 percent to 14.6 million, the decline in the sale of used vehicles was significantly lower due to the largest conversion rate in the history of the survey. Sales of used vehicles totaled 8.9 million units worth $80.5 million down 5.9 percent and 3.1 percent, respectively since NAAA began the annual review in 1997.
“Given the financial downturn and problems that have plagued the auto industry beginning in 2008, a small decline was not unexpected,” said NAAA President Dave Angelicchio. “It’s encouraging to note this is only the third time in thirteen years we’ve seen any kind of decline. I think the survey results show the strength and depth of a mature industry that despite various challenges over its seven decades has demonstrated its resiliency. I’m confident we’ll continue to be a vital and growing part of our nation’s economy in the decades to come.”
Conducted by LarsonAllen of Arlington, Va., for NAAA, the survey provides the most accurate picture available of the wholesale auto auction industry, with a 70-percent response rate representing 217 NAAA North American member auctions. The numbers for sales, units’ entered and gross value are projected to the total NAAA membership of 312.
The results reflect a continuing wholesale auction industry trend toward full-service auction facilities. A substantial 99 percent of North American auctions now offer detail shops, 92 percent body repair and paint shops, and 100 percent transportation services (either in-house or sublet). Most provide some level of mechanical services 98 percent and dealer financing 98 percent.
Survey data reveals that the average NAAA auction member operates a 7-lane facility on 78 acres, employs 146 people with a payroll of $3.1 million, and contributes $32,400 annually to charity.
