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Manheim Consulting Overview
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The Manheim Consulting team's track record in helping clients improve their business performance is without peer in the remarketing industry. Seasoned professionals tap the vast Manheim database, their knowledge of the wholesale used vehicle marketplace and their understanding of economic events to help clients refine fleet management and remarketing strategies.
We work one-on-one to ensure that the results of our research provide actionable advice that is specific to each client. Our work is done in complete confidence and always without bias.
We invite you to contact Manheim Consulting or your Manheim representative to discuss the full range of analytical services, studies, and resources that make Manheim Consulting such an important partner in the remarketing industry.
Contact us at 678-645-6202 or consulting@manheim.com.
About Us
Manheim, the leading wholesale vehicle auction and remarketing company in North America, formally established Manheim Consulting in 2005 as a separate research unit. Manheim recognized an opportunity for commercial consignors and dealers to develop remarketing strategies around data-driven research. Wholesale vehicle transactions through all Manheim channels comprise a historic and real-time database that permits clients to examine any aspect of their remarketing strategy.
Clients have examined seasonal, regional and national pricing behavior for their vehicle portfolios in addition to more granular questions related to the value of specific vehicle features, condition, setting reserve prices, and impact of channel selection. Manheim Consulting provides periodic performance reviews for customers and conducts one-of-a-kind research tailored to specific client objectives.
The Manheim Consulting staff has also conducted research into topics identified by clients that have broad and important implications for them and the remarketing industry as a whole. These white papers and case studies of research undertaken for individual clients demonstrate but a part of the department's capabilities.
Manheim Consulting also monitors the impact of economic events on the wholesale and retail used vehicle markets through its monthly Auto Industry Brief and annual and mid-year editions of the Used Car Market Reports. Tom Webb, Manheim's chief economist, writes these reports as well as the most accurate and authoritative data on wholesale vehicle price trends. Tom updates the Manheim Used Vehicle Value Index monthly and hosts a quarterly conference call where he answers participant questions following his presentation.
Our Staff | Our Services | Used Vehicle Industry
Our Staff
Lynn Morgan
Vice President, Marketing and Consulting
Lynn Morgan is the vice president responsible for Manheim Consulting, Manheim Marketing, as well as Manheim's DRIVE innovation center. Lynn not only oversees this team of professionals, but also engages directly with Manheim clients in developing research and analytical projects.
Lynn has had extensive business experience with Cox Enterprises prior to joining Manheim as the director of the DRIVE center, Manheim's remarketing think tank. In 2005 Lynn assumed full responsibility for Manheim Consulting. Since that time, she led the creation of a skilled team of professionals who have contributed their knowledge of the remarketing industry, database expertise, and financial acumen to provide a full range of analytical services to Manheim clients as well as clients in a wide array of other sectors.
Under Lynn's guidance, Manheim Consulting has expanded the amount of information available to the public through quarterly conference calls, the mid-year Used Car Market Report, monthly Auto Briefs and the annual issue of the Used Car Market Report. This has raised the visibility and understanding of the economic and business importance of the wholesale used vehicle industry.
Scott Hatmaker
Director, Customer Consulting
Scott joined Manheim Consulting in 2012 after supporting commercial and dealer accounts for more than three years as the director of National Client Operations. Scott provides a number of consulting services including performance benchmarking, remarketing strategy reviews, industry and macroeconomic analysis, and remarketing channel optimization.
Prior to joining Manheim, Scott spent 12 years at Accenture as a management consultant in their Customer Relationship Management practice where he was responsible for improving sales, marketing, and support functions for telecommunications, pharmaceutical, and consumer goods clients.
Scott holds a bachelor's degree in marketing from the University of Alabama.
Tom Webb
Chief Economist
Tom Webb joined Manheim as chief economist in 2001, bringing to the position his unique understanding of the automotive retail and wholesale industries. As the chief economist for the National Automobile Dealers Association for 26 years, Tom was already recognized for his authoritative research and commentary on economic trends and their impact on vehicle demand. At Manheim, Tom continues in his role as commentator on the economy and vehicle markets and is a frequent guest at Manheim client and automotive events, in the media and as a contributor to automotive and remarketing publications.
In 2001 Tom launched the Manheim Used Vehicle Value Index, the only measurement of wholesale vehicle pricing that is based on wholesale market transaction data and adjusted for seasonality and mileage. The MUVVI has become the most widely referenced indicator of wholesale used vehicle market trends. Tom is also the author of all Manheim Consulting publications that are available to Manheim clients as well as to the automotive community.
Our Staff | Our Services | Used Vehicle Industry
Our Services
Manheim Consulting: Your Partner for Remarketing Success
The remarketing process involves a multitude of tasks and decisions that influence outcomes. Since 2005, the Manheim Consulting team has been helping Manheim clients refine their remarketing strategies using customized research, mathematical modeling and data mining. We know that applying analytical techniques has enabled vehicle consignors to achieve more predictable results and optimize their remarketing strategies.
The Manheim Consulting team is dedicated to enabling commercial consignors and dealers improve their remarketing performance by applying data mining, targeted research and quantitative analysis. We access the massive database represented by the more than 10 million vehicles that are posted annually on line or run in Manheim auction lanes. Even when vehicles fail to sell for whatever reason, those outcomes provide as much valuable information as the results for vehicles that sell in their first trip through the lane or within minutes of being listed online.
The Manheim database allows the analytical team to research questions related to vehicles themselves, local, regional, national price trends, buyer behavior in various auction settings including online, the impact of services such as reconditioning on prices and much more. We always let the data speak for itself in providing our clients with unbiased reporting of our conclusions and work with our clients to set the parameters for our studies. Click here to see examples of customized research for individual clients.
Our Staff | Our Services | Used Vehicle Industry
Used Vehicle Industry
There are more than 250 million vehicles on the road in the United States. As the vehicle population has expanded, the average vehicle has gotten older. Modern cars and trucks retain value long into their lives because of continuous improvements in design, engineering and quality. These trends underpin annual retail demand for used vehicles at about three times the level of new vehicle sales. Today's new car or truck will have more owners over its life than in the past, and a family's vehicle is often among its most valuable possessions.
Each time a used vehicle is sold to a new owner, market conditions determine price and enable sellers to unlock the value in the vehicle. There is no better example of the dynamic nature of the used vehicle market than the open bidding in live and online wholesale auctions. In these venues, the market value of any vehicle, irrespective of age or condition, can be determined. Those values reflect all economic, business and model-specific factors that could influence the price of any vehicle.
The importance of the used vehicle industry to the overall financial health of the automotive industry cannot be underestimated. The liquidity of the wholesale market and pricing data generated in auctions supports vehicle lending and leasing, fleet management decisions, dealership profitability and inventory management, and even automakers' marketing strategies.
Presentations
Manheim Consulting clients have improved their remarketing performance by challenging our analytical staff. Read the conclusions of just a few of these in-depth studies.
Case Studies
Consignors Increase Returns by Selling Ample Volume Alongside Peers
Manheim Consulting determined that consignors selling at least 20 units per sale at the same time as peers boosted returns and drew potential buyers into the lane.
Recon Opportunities for Units Valued at $5,000 or Less
Sellers achieved a return on investment of $2.35 for every $1 spent on reconditioning services when the reconditioning resulted in an increased inspection grade.
Condition Reports Boost Simulcast Sales for Dealers
Manheim Consulting study determined that dealer vehicles with a condition report received a higher amount of online bids, resulting in increased online sales %, fewer arbitrations, and a general lift in retention.
Arbitrage Analysis Prompts Major Dealer To Alter Its Wholesaling Practices
After comparing the prices his vehicles realized with the final prices obtained by wholesalers for many of those same vehicles in Manheim auctions, the dealer adjusted his remarketing practices to achieve higher values.
Depreciation Analysis Aids Rental Company's Sourcing of Risk Vehicles
Manheim analysts reviewed three years of vehicle transaction data and isolated the factors that resulted in variations in depreciation rates. These findings helped the rental company to optimize its risk vehicle acquisitions.
Fleet Consignor Researches Impact of Options on Residual Values
A seemingly simple request to study the impact of color and option packages on wholesale values produced some surprising findings that enabled to fleet operator to alter his vehicle purchases.
Reconditioning Process Efficiency Improved After Review by Manheim Consulting
A client requested that Manheim Consulting review their process efficiency for reconditioning and repair work. Process simulation measured and analyzed all aspects of the client's operation. The suggestions made improved the client's efficiency.
A National Consignor Requested a Study of In-Lane and Online Buyers
The findings of the analysis enabled the consignor to target its remarketing efforts to ensure that it attracted the right buyers to its auctions.
White Papers
Auction Recon and Certification Pay for Themselves
Nearly 90,000 transactions by financial institutions were analyzed to determine the financial impact, if any, from reconditioning and certification. The results demonstrated a significant ROI for the seller for these services.
Delayed Titles Reduce Consignor Revenues
Delayed titles are an industrywide problem for both buyers and sellers. This white paper measures bidder behavior and pricing on vehicles with delayed titles.
Financial Implications of "No Sales" and Multiple Registrations
This white paper analyzes the reduction in transaction prices that results when a vehicle is a "no sale" and is registered in subsequent sales.
Rising Fuel Prices Impact Domestic and Foreign Used Vehicle Pricing
A review of all transactions through all Manheim channels from 2007 to mid-2009 illustrated the impact of fuel prices by vehicle segment for domestic and foreign brands during the previous run-up in fuel prices.
Tom Webb's Recent Presentations
Tom Webb is a frequent speaker at automotive and economic conferences. His PowerPoint presentations enable the reader to understand the impact of macro trends on the vehicle markets. Please visit this website periodically to view Tom's latest presentations.
User Car Market Report, NADA Press Conference, February 5, 2011
Trends in the Used Vehicle Market - Causes & Consequences, ACVL Webinar, February 10, 2011
Used Vehicle Value Index
By applying statistical analysis to its database of more than 5 million used vehicle transactions annually, Manheim has developed a measurement of used vehicle prices that is independent of underlying shifts in the characteristics of vehicles being sold.
The Manheim Index is increasingly recognized by both financial and economic analysts as the premier indicator of pricing trends in the used vehicle market, but should not be considered indicative or predictive of any individual remarketer's results.
Manheim Index Declines in April
Wholesale used vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) declined 1.0% in April. This brought the Manheim Used Vehicle Value Index to a level of 119.2, which was 5.5% lower than a year ago.
Although April marked the fourth consecutive monthly decline in wholesale used vehicle values (and produced a cumulative decline of 3.9% since December), the recent movement has been neither alarming nor disruptive to the market. Indeed, the easing was long anticipated and, in fact, probably mitigates some of the decline that many were expecting in the back half of the year. Moderating strength in the retail market, however, suggests the possibility of further pressure on wholesale values.
New vehicle sales pace eases. In April, for the first time since October of last year, the seasonally adjusted annual selling rate for new cars and light-duty trucks slipped below 15 million. Although it is still generally expected that full-year sales will be closer to 15.5 million than 15.0 million, the recent decline in consumer confidence, already low savings rates, and the overhang of possible negative regulatory and policy changes suggest that manufacturers and dealers may have to become more aggressive in pushing the market in order to reach their sales targets.
Used vehicle sales stable in April. Total used vehicle sales rose less than 1% in April, according to CNW. And, used vehicle retail sales by dealers (excluding private-party transactions) fell by 1%. Nevertheless, sales for the first four months were up 5% in total, and up 7% for dealer sales. That's a noteworthy achievement in the face of otherwise tepid consumer spending. Clearly, the ample flow of retail credit is boosting the used vehicle market.
Results for the seven publicly traded dealership groups show that used unit retail sales rose 6.5% on a same-store basis in the first quarter of this year. That marked the 15th consecutive quarterly increase. Unfortunately, gross margins continued to decline. On a sales-weighted basis, it was the 13th consecutive quarter that used vehicle retail gross margins were lower than their year-ago levels. Given that F&I income is likely going to come under pressure, these narrow margins will prevent dealers from becoming aggressive bidders at auction.
Pockets of strength in various price points. Despite the overall easing in wholesale values, Buy-Here, Pay-Here dealers experienced no relief in their acquisition costs. Indeed, those operators holding their average per vehicle costs steady had to accept a vehicle with considerably higher mileage.
Prices for rental risk units sold at auction (adjusted for changes in mix and mileage) were 4.1% lower than their year-ago levels. Vehicles selling just below the price point for many rental risk units were the weakest segment of the wholesale market in April.
Market class shifts remain predictable. Midsize and compact cars have been the most price-competitive segments of the wholesale market both in recent months and over the course of the past year. That's not surprising given the offerings, pricing, and financing options available on midsize and compact cars in the new vehicle market.
Prices for pickup trucks continued to be strong due to increased demand (as a result of the improvement in the housing industry) and limited supplies in the wholesale market, especially for units with less than 100,000 miles.
Index Release Dates
On the fifth business day of each month, Manheim Consulting releases the latest update of its Used Vehicle Value Index. To receive a monthly reminder about this update, as well as reminders for Tom Webb's quarterly conference calls, please e-mail manheimindex@ketchum.com.
Quarterly Conference Calls
You are invited to join Tom Webb, Manheim's chief economist and the compiler of the Index, as he discusses the major economic and industry trends that have shaped the quarter. Tom will also take your questions following the presentation.
Next Conference Call: TBD
- Call-in number: 888-395-3237
- Conference ID: 4464936
- Program Title: Manheim Used Vehicle Value Index
View the Quarterly Conference Call Presentation
Tom's presentation will be available one hour before the conference call. For questions or to RSVP for the quarterly conference call, please email manheimindex@ketchum.com.
Used Car Market Report and Auto Brief
What happens in the used vehicle market impacts every aspect of the automotive industry, from retail finance, fleet management, vehicle affordability and demand, to company profitability. Manheim economist Tom Webb provides insights into the economic and business trends that influence used vehicle demand and pricing.
The Auto Industry Brief is published monthly and is distributed electronically to subscribers. This one-of-a-kind report covers all critical economic, automotive and remarketing industry events that influence retail and wholesale used vehicle demand. To subscribe, e-mail us at consulting@manheim.com for information.
Manheim has published the annual Used Car Market Report since 1995. This comprehensive report examines every aspect of wholesale and retail used vehicle market conditions and buyer and seller strategies in the wholesale market. The report also includes an analysis of salvage vehicle business trends. The report relies heavily upon proprietary Manheim data as well as industry and government data. Publication of the Used Car Market Report coincides with the annual NADA convention. Click here to purchase recent editions of the UCMR.
The Used Car Market Report is now available via iPhone, iPad and Android devices at no additional charge. Your purchase includes access to the apps in addition to traditional .pdf format.
Used Car Market Report
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