Quarterly Auction Industry Metrics Point to Spring Bounce

All signs point to a more normal, although perhaps slightly delayed, spring bounce this year, according to a recent 1Q industry metrics report prepared by AutoIMS, a firm that analyes detailed data from its roster of auction clients nationwide.

Prices remained steady at already-elevated levels, and conversion rate (% sold vs offered at auction) bumped up in March. The data resembles a trampoline -- to go up, you must first go down.

The average vehicle sales price rose to $16,356 in 1Q 2022, compared to $14,341 in 1Q 2021. Meanwhile, over the same period, the quarterly conversion rate dipped to 61%, compared to 71%.

So, what’s down?

• Conversion rates dropped steadily from October through February
• Floor price achievement did the same
• Cycle times (transport; days to sell) both crept up at the start of the year – ie. a drop in performance

Meanwhile, the seller investment in each car also trended down, as evidenced by lower YoY expenses in all auction charge categories except gas (up 54%) and sale fees. These trends seem to confirm what other reliable sources are indicating:

• Black Book Market Insights
• Automotive Ventures Auto Intel Report
• Cox Automotive Auto Market Report
• KAR’s Kontos Kommentary

Originally posted on Vehicle Remarketing