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AUCTION NEWS

Auction volume likely to hit record 10.1M units in 2017

BY JOE OVERBY, SENIOR EDITOR, AUTO REMARKETING

The National Auto Auction Association “This year, we forecast continued growth in of commercial consignment to auctions,”
had projected that auction volume would auction unit volume, but at a slower pace Silver said.
reach 9.7 million units last year. than in recent years as declines in deal-
er consignment will to some extent offset “Dealer consignment growth, which is
Turns out, it was even better than expected. strong gains in commercial consignment,” closely timed with new sales and the related
And this year, volume could be the stron- Silver said in the report. trade-ins declined slightly last year and is
gest it has ever been. expected to drop by a bit more this year,”
But, again, the anticipated 2017 volume he said.
NAAA said in an Economic Report com- would still be a record. And one largely at-
piled by its economist Ira Silver that auc- tributable to gains in commercial consign- In a separate report, J.D. Power Valuation
tion volume reached 9.8 million units in ment. It was up 13 percent last year and is Services found that for vehicles up to 8
2016 and should hit 10.1 million units this expected to grow 9 percent in 2017. Mean- years in age, there were 4.57 million auction
year. The latter would be a record high, while, dealer consignment was down 1 per- sales last year. This was an 8-percent year-
even though the rate-of-increase is expect- cent in 2016, with 2017 forecasted to show over-year gain and the most since 2010, ac-
ed to continue tapering. a 2-percent dip. cording to J.D. Power.

The year-over-year increase in auction vol- “The strength in new light-vehicle sales There were 2.71 million auction sales of
ume for 2015 was 6.5 percent. That fell to during the 2010 to 2016 period created a late-model units (cars up to 3 years in age)
5 percent in 2016 and is likely to dip to 3 large number of off-lease, off-rental, and which is a 12-percent increase, said the J.D.
percent this year. off-fleet vehicles that have, and will in the Power report. n
future come back to the market in the form

GIADA Independent Auto Dealer FEBRUARY 2017 | 15