As I recently wrote in the last article about the changes in auto auctions as of late. Thinking further into the issue, imagine the differences if the auto auctions decided to shut the doors. It could happen, I mean just look at Blockbuster video which happens to have been the same founder as Mnahiem auctions. I never thought thought Blockbuster would close just like that, but little did I realize at the time how significant cultural changes are affecting business of today.
It could happen, the auction could realize that even with the massive lay offs they put into effect a few weeks ago, it just isn’t worth it, cashflow has diminished, used car sales have dropped ten fold and the auctions cannot survive just on repossession cars. They need trade ins, they need, banks, bottom line a few years back one auction in Florida was doing thousands of cars each week, now that number has turned to hundreds. As a private company, perhaps you can just layoff as needed, tighten the belt and make adjustments moving forward. Manhiem is a public company that has shareholders and executives, a whole array of additional expenses that private companies do not have and many cannot be cut. Are finance companies and banks ready for this huge change. Will they have to open their own auctions? Its possible, perhaps a large cooperative of auctions between the banks. Of is it just easier, cheaper and less complex to allow the repossession guys to handle the sale as well.
If they close, those of us that liquidate cars will have to get seriously creative. We will of coarse ramp up our online liquidation auctions. Accepting bids on our websites after the waiting period has passed. Sometimes repossession cars sit at auctions for several weeks even months depending on the banks title status and legalities. Imagine if car repossession companies would have to increase storage lots in order to accommodate longer term storage.
Storage fees for finance companies may go up depending on your deal with them. Perhaps you give them a break on storage in order to gain a remarketing contract. A few recent jobs have come up at repossession offices seeking people with remarketing experience so it seems to be a growing trend now.
We will have tent sales more often then not. We will have to set up repossession car lots, if it really ever did get as busy as it once was, which I predict it might with the horrendous impulsive buying at new car dealerships going on. I can see a variety of short term problems and surely some of the smaller auctions will still be around and suddenly get busier.
Thinking back and look forward at all these massive changes occurring we have to look ahead to stay competitive and start calling some future changes. Personally i think the auction disappearance may be one of them, although it may just become a dot com only thing.