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

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Auto auctions are seeing the same declininv revenues as the dealersthey provide. But it’s not because of a lack of buyers, auctioneers say, as much as a lack of Brad Phillips, owner of at 4716 S. Santa Fe St., says he has seen a 20 percen drop in the number of cars available at hisweeklgy auctions. And with many auto dealers surviving the economu ontheir used-car sales, Phillips says the inventoryg he once enjoyed won’t return until consumed confidence does. Phillips, who holdws dealer-only auctions every Wednesday sayssluggish new-car sales have caused many dealersd to place more emphasis on theirr used-car sales — “a double-edged sword” for his business.
Dawson president of , says his new car business is off by 30 but used sales are only down15 percent. He is lookinb to keep used carsin stock. The difficult part is finding the vehicles hiscustomers “Nice used cars are harde r than heck to find,” he Dealers often look to auctions to move theier excess used inventory and to grab a few choice selectionws for their own lots as well. But with dealerx either running through their used cars or just holding on to them the number of used cars available at auction have Phillips sees plenty of buyers at his hejust doesn’t have the cars to sell Last year he says the auctions’ weeklyh gross averaged $1.3 million.
This year, it’ s $700,000. Keith McMahan, used-car manager for in Cheney, is strugglinb to keep his inventory up. “II go (to auctions) aboutf everywhere, and the cars are just gettinymore scarce,” he says. who travels to auto auctions throughout the estimates some auctions are down as much as 40 For him, it meanw having to travel to more auctions to replenish his used car inventory. “New car saled are going to have to turn around before this thing will ever get back to he says. “And the ones it’s going to hurt the wors t arethe smaller, independent dealers.” Craig Harms, general manager of at 400 S. West St.
, specializee in late-model luxury cars, rangingy 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 finds are in such high demand they arebringinv near-retail prices. “We’re just not able to buy cars and make themarginx we’d want,” he With new-car dealers rolling out more rebates and incentives, Harma says savvy customers are oftejn able to find deals he can’t afford to Wilma Grice, owner of at 3820 S. Broadway, runs the only auto auctionj in the state open tothe public.
She says she’s movinb 70 to 75 vehicles at herweekly auctions, down 5 to 10 percentg from last fall. She believes those numbers won’t increase untilo new-car sales pick up. Phillips says that’s just not happenintg yet. “This should be the best time of the year for the car just coming out oftax season,” he says. “People are tightening thei belts andsaying ‘we’r just going to have to get along with what we’ves got.
’ ”