Time to Join or Renew Your IARA Membership
It’s that time of year for current members of the International Automotive Remarketers Alliance (IARA) to renew
their memberships for the coming calendar year.
And, for those that have yet to join the IARA, it’s the time of the year to consider joining the Alliance
The IARA allows consignors to meet and collaborate on new standards and best practices to improve the remarketing process.
Member companies offer a range of different remarketing perspectives, whether it’s from an OEM, financial institution, fleet management company, auction, or service provider.
The IARA also offers the only remarketing certification available in the industry: the Certified Automotive Remarketer (CAR) certification. Individuals that receive this certification will be given a comprehensive, diverse, thorough, and broad based education on the remarketing industry.
The IARA currently has 188 paid company locations, which do not include the various locations of ADESA or Manheim, or the thousands of employees of IARA member companies.
to learn more about the value members find with their IARA memberships.
To join or renew, the IARA offers an easily accessible web form available here. New members or existing members can go online to pay their dues by credit card or retrieve an invoice for check payment.
Announcing a New Trial Membership for New IARA Members
First time new member companies that join the IARA in 2019 will receive a 50% credit off their membership dues. Pay nothing now, then at the end of six months (or by 12/31/2019, whichever comes first), simply pay your discounted dues or cancel with no obligation!
To start your trial select 'Set up a new IARA Company Membership' here.
ARI’s Chris Clarke Speaks on the Value of an IARA Membership
Chris Clarke, manager, North American remarketing for ARI, has been involved with the International Automotive Remarketer’s Alliance (IARA) for close to four years. His time with the IARA has been pretty much in sync with his time at ARI.
When Clarke joined ARI he was exposed to a whole new side of the industry that he hadn’t been involved with before. He was in the automotive space, but had previously worked in the rental side of the industry.
“Coming into the fleet management side of things, things were a little bit different,” Clarke said. “From that perspective, getting involved with the IARA was an immediate opportunity to meet a lot of folks in that peer group.”
The IARA, Clarke noted, provided him with a great resource for names and contacts in the remarketing industry, and also allowed him to make connections with people in the industry.
“I’ve gotten a tremendous amount out of interacting with not just my peer group within the FMC world, but also OEMs, banks, credit union members, rental car members, and others,” said Clarke. “Getting to know the folks in other sides of things, we’ve established relationships and have signed off numerous vendors who we’re working with today from contacts made through the IARA.
Another aspect of the organization that Clarke appreciated when he first joined was how receptive its members were to him.
“Members of the IARA, in particular, go above and beyond in terms of being accommodating to other peers within the industry,” Clarke said. “I leaned on a lot of folks at the start in order to learn a little more about the remarketing world in the perspective of the fleet management company side of things.”
Because of this, Clarke and ARI, see big value in IARA membership, so much so that the company incentivizes all of its remarketers to go through CAR certification with rewards for those that receive the certification.
So far, all of the remarketers at ARI have received training from the IARA and are CAR certified.
For companies who are considering joining the IARA, Clarke has this to say: “The IARA is the voice of the consignor and to me it has been a critical piece. You see great organizations out there like the NAAA and NIADA, but the IARA is critical because there really is no other place for the consignors to get together, to work together, and discuss similar types of challenges we face, and to work toward common goals. The IARA really fosters that mentality and brings everyone together to work toward that common goal.
Seeking Nominations for 2019 IARA Circle of Excellence Award
Every year, the International Automotive Remarketers Alliance presents the Circle of Excellence Award to an individual who has clearly demonstrated outstanding contributions to the betterment of our society and to the remarketing industry.
This award is presented to the individual during an awards ceremony that takes place during the Conference of Automotive Remarketing. This year’s event will take place March 26-27, 2019, and while there is still some time until then, the IARA is beginning to seek nominees for the award.
The ideal candidate would meet the criteria described above, and should he or she receive the award will be recognized for his or her significant contributions.
Go to www.iara.biz
today for more information. The deadline to submit your nominee is February 28th.
What to Expect in Terms of Depreciation for 2019
Automotive analysts called 2018 as a banner year for used car values. Most vehicle segments beat forecasts, and saw low levels of depreciation through most of the year, but as the year comes to a close, depreciation is returning to the normal levels expected at this time of the year.
This trend of rising depreciation is expected to continue in the coming year, as analysts don’t expect a repeat of 2018’s performance in 2019.
A word that can be used to describe the depreciation forecast for 2019 would be cautious.
Depreciation has remained low for about two years. Used car values rallied in the second half of 2017 due to replacement activity spurred by two large hurricanes that hit Florida and Texas. And then, those values remained abnormally high through most of this year.
These high values, according to Kelley Blue Book’s director of residual values Eric Ibara, realistically can’t last for much longer.
“Probably the most obvious comment is that high auction values cannot last,” said Ibara. “But, like the stock market, it’s very difficult to forecast the moment of inflection. We think new car sales will soften next year as will used-car values.”
The short-term forecast that subject matter experts from KBB, Black Book, and various fleet management companies shared was that the SUV segment would see continued strength in 2019. Spacious interiors, the utility that comes with more cargo space, and easier entry and egress than a sedan, while offering better fuel economy than a truck, are reasons why more buyers will likely gravitate toward the segment in the short term.
However, the strong used-vehicle values that the segment has experienced in the past few years, and is continuing to see, are not expected to last looking past the short-term. The segment’s own popularity is expected to be a critical factor in a projected decline in value.
The number of people buying SUVs has been steadily climbing since 2015, after gas prices descended from their post-recession highs. In more recent years, the demand for vehicles in this segment has grown even more rapidly. OEMs are meeting this fervent demand by releasing even more SUV and crossover models. Many fleets have also shifted some of their sedan fleets into crossovers and SUVs.
These factors, and others, are leading to a shift in the types of vehicles sold at auction. Cars still make up the majority of vehicles sold at auction, but the big shift in the types of vehicles selling in the new-car market is changing that. The truck segment is expected to overtake cars as the dominant segment sold at auction in the coming years.
As this shift occurs, and more truck segment vehicles enter the auction market, supply may eventually oversaturate the used market. This means that there will be more supply than there will be buyers for in the used market. The result of this would be higher depreciation and lower used values for the segment.
One segment that hasn’t seen much attention yet, but is expected to make bigger waves in the coming years is the electric vehicle segment.
Electric vehicles are poised to see rising used values in the coming years, according to Ibara. This rise will be a result of the type of electric vehicles returning to market.
The electric vehicles that have returned to market in the past have had sub-100 mile ranges, but the newer electric vehicles returning to market will have ranges in the 200-mile range. The low ranges that older electric vehicles had fell into the “range-anxiety” category for possible buyers, leading to fewer of these types of vehicles being sold. Without that factor as a roadblock, more buyers should be moving toward the segment, and raising values along with them.
IARA Event Honors Ken Osborn
The International Automotive Remarketers Alliance held its first annual golf outing during the 2018 Summer Roundtable.
The 2018 event was held to honor Ken Osborn, the late general manager of ADESA Dallas that passed away in the year.
In mid-November, during Used Car Week in Scottsdale, Ariz., the IARA presented a $7,000 check to the The Warren Young Scholastic Foundation for one of its scholarship funds that was earlier renamed by Black Book in honor and memory of Ken Osborn.
Announcing the 2018 CAR Certification Graduating Class
The 2018 calendar year saw one of the biggest graduating classes of Certified Automotive Remarketers.
This year, 33 individuals received CAR certification
Graduating individuals include:
- Tenesha Long, Credit Acceptance
- Barry Merwin, Grand Rapids Auto Auction
- Amy Fisher, GM Financial
- Robert Reed, GM Financial
- Dennis Gonio, Emkay
- Hermeregildo Rangel, Big Valley Auto Auction
- John Yungwirth, GM Financial
- Larry Chestnut, GM Financial
- Mitzi VanVoorhis, Dealer Auto Auction Northwest
- Benjamin Caffee, Manheim
- Brandon Sadlowski, Auto Use
- Brandon Walston, San Antonio Auto Auction
- Jason Miller, America's Auto Auction
- Patrick Sellers, Dixie Auto Auction
- Chad Bailey, Akron Auto Auction
- Colin McConkey, Dealers Auto Auction Northwest
- Mike Waseity, Akron Auto Auction
- Sarah Bannister, Mannheim
- Erica Kompier, Grand Rapids Auto auction
- Drew Myers, America's Auto Auction
- Jeff Young, GM Financial
- Matt Fetter, Clark County Auto Auction
- Christina Shepard, BSC Auto Auction
- Katey Stearns, Dealers Auto Auction Seattle
- Michael Ray, Indiana Auto Auction
- Lisa Franz, Big Valley Auto Auction
- Maria Acuna, Big Valley Auto Auction
- Tyler Bowman, GM Financial
- Jacob Warren, Louisiana 1st Choice Auto Auction
- Sandra Vock, Credit Acceptance
- Keith Nichols GM Financial
- Ray Vickers, Farmington New Mexico Auction
- Tim Bowers, Houston Auto Auction
- Ron Cantrell, Superior Auto Auction
- Matt Coluzzi, ARI