Amid years of challenges, some good news for the wholesale auto industry.
While sales at auctions haven’t returned to pre-COVID levels, the number of vehicles offered for sale at National Auto Auction Association member locations and the number that actually sold were both up double-digit percentages last year.
Not to mention, conversion rates beat prior-year figures, pre-COVID numbers and those from a decade ago.
All this according to the association’s 2023 Industry Survey, conducted on behalf of NAAA by accounting firm LSWG.
Specifically, there were 12 million vehicles offered for sale at NAAA-member auctions last year, and close to 7.3 million of those sold, the association said Monday.
Both are 11% year-over-year gains. The resulting conversion rate was 60.7% .
The average unit sold fetched a price of $15,200. While that’s off 9.6% year-over-year, it’s up 34% from pre-COVID levels in 2019, NAAA said.
And 2022 prices marked a record high.
While prices fell, the total gross value of vehicles sold ($110.6 billion) was up moderately (0.4%), since volume sold was 11% higher, NAAA said.
“For 75 years, NAAA members have kept the used-vehicle wholesale remarketing industry thriving by adhering to outstanding customer service, standards, and professionalism,” NAAA executive director Paul Lips said in a news release. “Anyone can auction cars, but not everyone can remarket them like our members do.
“Our 2023 survey results once again illustrate our members’ efficiency and significant contributions to the auto industry and economy.”
A new wrinkle to the survey this year was isolating the data related to simulcast sales.
Among simulcast sales occurring at physical auctions, 50% of vehicles were purchased online and 50% were purchased in-lane.
For dealer consignment in simulcast sales, 52% of vehicles were bought in lane and 48% were purchased online, NAAA said. For commercial consignment in simulcast sales, 53% was online and 47% was in-lane.
NAAA also broke down digital-only sales via its member auctions — those that were entirely online and not included in an in-lane simulcast sales. These would be member auction sales through digital platforms like OVE, SmartAuction or Edge Pipeline.
There were 604,000 sales from member auctions through digital platforms, with these units fetching an average price of $27,500, according to NAAA.
