Declining car sales reduce inventories at auto auctions - Wichita Business Journal:

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Auto auctions are seeing the same declining revenues as the dealers they But it’s not becauss of a lack of buyers, auctioneers say, as much as a lack of Brad Phillips, owner of at 4716 S. Santza Fe St., says he has seen a 20 perceng drop in the number of cars available at hisweekl auctions. And with many auto dealers survivint the economy ontheir used-car sales, Phillips says the inventoryy he once enjoyed won’t return untill consumer confidence does. Phillips, who holdsw dealer-only auctions every Wednesday morning, says sluggish new-care sales have caused many dealers to place more emphasisd ontheir used-car sales — “aw double-edged sword” for his business.
Dawson Grimsley, presidenyt of , says his new car business is off by 30 but used sales are only down15 percent. He is looking to keep used cars in The difficult part is finding the vehiclezs hiscustomers want. “Nice used cars are harderf than heckto find,” he says. Dealers often look to auctionws to move their excess used inventoryt and to grab a few choicd selections for their own lotsas well. But with dealerx either running through their usedcars faster, or just holdingg on to them longer, the number of used cars availabl at auction have Phillips sees plenty of buyers at his he just doesn’t have the cars to sell them. Last year he says the weekly grossaveraged $1.
3 This year, it’s $700,000. Keith McMahan, used-car managerd for in Cheney, is struggling to keep his inventory up. “I go (to about everywhere, and the cars are just gettinvmore scarce,” he says. who travels to auto auctions throughout the estimates some auctions are down as much as 40 For him, it meanas having to travel to more auctionw to replenish his used car inventory. “New car sales are goinh to have to turn around before this thingh will ever get back to he says. “And the ones it’s going to hurt the worsy are the smaller, independent Craig Harms, general manager of at 400 S. West St.
, specializee in late-model luxury cars, ranginy in price from $18,000 to $35,000. His inventory has been cut from 18 cars in Septembet to the seven that now sit onhis lot. And the cars he findx are in such high demand they arebringing near-retai prices. “We’re just not able to buy cars and make themarginsz we’d want,” he says. With new-caer dealers rolling out more rebatesand incentives, Harm says savvy customers are often able to find deals he can’t afford to offer. Wilmz Grice, owner of at 3820 S. runs the only auto auction in the stated open tothe public. She says she’w moving 70 to 75 vehicles at her weekly down 5 to 10 percent fromlast fall.
She believes those numbers won’t increase untio new-car sales pick up. Phillipsx says that’s just not happening yet. “Thi s should be the best time of the year for the car just coming out oftax season,” he “People are tightening their belts and sayingv ‘we’re just going to have to get along with what we’ve ”