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Letter to the Editor
Monday June 9
ADESA Orlando-Sanford Opens Reconditioning Facility
ADESA Orlando-Sanford is now equipped with a state-of-the-art reconditioning facility housed on the auction’s current location in Sanford, Fla. The new facility is able to handle both light and commercial vehicle reconditioning.“It’s a known fact that reconditioned vehicles will reap a higher profit for the dealer at auction,” said Don Davis, director of reconditioning operations for ADESA Corp. “We’ve implemented the latest reconditioning options into our shops to better serve customers nationally. When we can offer value-added services to our customers, it’s a winning opportunity.”
The fully automated reconditioning shop is housed in a 110 by 175 square-foot building with three lanes for detailing vehicles. Catering to the specific reconditioning needs of commercial vehicle dealers, the building also features a lane designed to recondition heavy-duty trucks and equipment as well as one of only three EPA-certified heavy-duty truck de-grease pads in the Orlando market. In addition to its weekly consignment sale, the auction hosts a monthly heavy-duty truck sale.
“The new facility gives us a chance to recondition vehicles that will raise retention levels for our customers,” said Jason Brinkley, general manager for ADESA Orlando-Sanford. “When we can provide convenient, cost-effective services under one roof for our customers, we know that they will be able to pass the savings onto their retail customers. We’re excited with that possibility.”
By adopting the one-stop shopping concept at ADESA Orlando-Sanford, more jobs in reconditioning and automotive technology have been created, according to Brinkley.
“We’ve created approximately 35 to 40 new jobs in the reconditioning shop alone,” he said. “In addition, we’ve hired additional automotive technicians.”
Located on 40 acres on ADESA Drive in Sanford, Fla., ADESA Orlando-Sanford features six auction lanes and weekly consignment sales every Thursday. Major accounts include Onyx Acceptance, Key Bank, Triad Financial, Westlake Financial, PNC Bank, Par North America, Wachovia Bank, Wells Fargo, Auto One Acceptance, Nationwide Fleet, Key Auto Leasing and Huntington Bank. Major heavy- duty truck accounts include Mercedes Benz Credit, Mack Truck, Federal Assurance, First Union, Ryder Trucks, Kenworth Corp., GE Capital, GE Capital Leasing, Hertz and RSA.
Headquartered in Indianapolis, Ind., ADESA Corp. is a wholly owned subsidiary of ALLETE, Inc. Through its network of subsidiaries, ADESA operates 53 wholesale vehicle auctions and six heavy-duty commercial vehicle auctions in the United States, Canada and Mexico. The ADESA network of services includes several other related businesses in the vehicle remarketing industry including ADESA Impact total loss management (with 29 auction locations), Micro 21 dealer software, AutoVIN inspection services, PAR North America remarketing services, and Automotive Finance Corp. (AFC).
In other ADESA news,the latest index from ADESA on auction inventories for the automobile manufacturers and their captive finance companies at the company's 40 U.S. wholesale used vehicle auctions, which reflects a ratio of current inventory levels to those in place at ADESA auctions during the week ending June 1 of 2001, was down at May month-end by more than 75 points (38 percent) from the peak this year during the week ending January 24. Moreover, for the first time since its inception, the index is down slightly from year-ago levels, by one point (2 percent).
Scaling ADESA's inventory levels up proportionately to estimate total auction industry inventory levels, and taking into account annual auction sales volumes for manufacturers and captive finance companies, ADESA Analytical Services estimates that current inventories stand at approximately 25 days of auction sales, compared to 40 days in January.
The decline in inventory levels reflects two major trends, in ADESA's analysis:
- Dealers are beginning to purchase vehicles at auction in modestly higher quantities to meet current, or stock up for future, Spring retail market demands.
- Sellers are growing in their awareness that, with high and growing new-car incentives, used car prices are not likely to get better in the near term. Sellers are therefore unloading more vehicles at "Today's Dollar" rather than "No-Sale-ing" vehicles in hopes of better future prices.
Declining inventory levels provide a slight counter-balance to the downward pressure on late-model (four models years old or less) wholesale used vehicle prices created by high/growing new-car incentives.
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