Great to see you have initiated a new level in the Wholesale Automotive Industry. I have had the idea for years to start such a bulletin board forum like this, but lacked the time, resources, and motivation. You are just the person to take the lead on your great idea.
I have a new topic for a discussion thread: "Unethical Practices by Wholesale Auctions". (Yes, I have a few more controversial topics, but lets take them one at a time.)
"Unethical Practices by Wholesale Auctions" is a topic I would like to see thrive with the focus of dealers posting their comments, experiences and suggestions for eliminating such practices.
While relatively new to the industry (since 2001), I do recognize the origins of the wholesale automotive industry has serious issues with unethical behavior on the part of auctions (and other players in the arena.) While this may be the historical culture of the wholesale market, and has been since the inception of the wholesale automotive market, that does not mean there is not a time and place to identify it, talk about it, and make efforts to eliminate it. Or maybe, there are some out there that don't think we should eliminate it, in which case, we want to hear from you too !
I certainly know first hand some management staff at the largest auctions believe unethical behavior IS acceptable and anyone who is exposed to it must live with it or get out of the business.
Let me start with the first primary example of what I refer to as an "Unethical Practices by Wholesale Auctions".
Manheim's Simulcast Auction Format. Simulcast has some great features and benefits, and is some of the best technology in the industry. As Manheim likes to market it, “Just think of how dealers can sit at their home or office and purchase inventory.” Yes, this is true, but . . .
But what about us little guys in the marketplace, where every hundred dollar bill counts ? This is where Manheim's Simulcast steps on us little guys.
Manheim's auctioneers consistently bid up Simulcast bidder's against no real bids on the floor, then, when the Simulcast bidder stops bidding, Manheim's Auctioneer simply cancels the highest floor bid, leaving the Simulcast bidder the highest bidder, and wallaha, SOLD ! That Simulcast Bidder just paid $500, $1,000 or $1,500 more that the market truly had to bear.
Unethical ? I think it's a good question. No one at Manheim wants to even talk about it.
Now, for some in this market place, maybe every hundred dollar bill does not count. Anyone buying inventory who does NOT use their own money, that is, they purchase inventory with money that comes from someone else, typically the Dealer Principal they work for, may not care they paid more than the market really had for that unit of inventory. But, I would bet if you asked their dealer principal, the person with the money, and they would not be happy with the unit of inventory purchase.
Again, remember, I am one of those little fish in the big pond where every hundred dollar bill counts. That’s why I started this thread topic.
I have considered that possibly I am the smallest minority on this issue. But that is what this forum is about. Let's test it and see what others think of the this issue, and what others can tell us about their experiences that may be another blatant form of Unethical Practices by Wholesale Auctions. I certainly have a few more.
Lets hear what others think until Manheim swings their big hammer and squashes this thread.