Dealer Update Quarter one of the financial year was a tale of contrasting Volkswagen Auction Melbourne results with July seemingly the softest start to the year for used vehicles in quite some time. However, once EOFY new vehicle A highlight of the quarter was the Volkswagen Group Australia discounting had come to its conclusion, the turnaround through bi-monthly auction in Sunshine, Melbourne. Coming off a pretty both August and July was remarkable – with dealer participation, lacklustre auction at the bottom of the market in late July, the clearance rates and values increase dramatically. Most industry September sale proved to be a complete turn-around with twice press seemed to confirm our anecdotal evidence with virtually as many dealers participating in the auction, a significant increase all importers reporting a decline, in some instances up to 5%, in in the number of vehicles sold, and the vendor reporting the best new vehicle sales through August and September. As well as our clearance rate since moving the auction to Pickles in June 2017. usual series of ‘factory branded auctions’ for our OEM customers, The Dealer Relationship Management team were set a significant we also ran some very successful dealer-only sales for our FMO task of ensuring that the results of the August and September clients on both the east and west coast, proving that dealers’ sales had at least an eighty-five percent clearance rate and up appetite for quality used vehicles, in a closed (non-public) to forty dealers attend either online or in person. These numbers environment is a highly cost effective and efficient way to dispose were hit consistently across August and September with VGA of high volumes of vehicles in a timely manner. Below are some of declaring September one of their best ever results. the highlights of the quarter: Jaguar Land Rover FMO Dealer Only Sales In response to our FMO customers increasingly competitive With Jaguar Land Rover announcing Pickles as their contracted space, with a real focus being our organisation’s ability to return remarketing partner in June, the Dealer Relationship Management increasing results against the residual values of their assets, team sprang into action in preparation for our very first JLR we are finding that among the traditional streams of Fixed auction in late July. Being the first new dealer group to come Price, Tender, and Public Auction, dedicated Trade-Only Dealer aboard since the implementation of the new PicklesLIVE Auctions are finding more acceptance as a means to achieve (Velocicast), the feedback on the experience with the website and some great outcomes. As a consequence, throughout August and our processes have been overwhelmingly positive with their July, September, we ramped up our offering in this space – with six August and September auctions clearing over ninety-five percent dedicated dealer-only sales across Perth, Adelaide, Sydney, and of vehicles offered, and members of the network participation in Brisbane. These sales were on behalf of our FMO and Government our other sales encouraging. vendors who sought to take advantage of our national coverage and ever-expanding reach into the various franchise dealer and Fiat Chrysler Australia independent dealer networks. Another significant dealer network to be introduced to the Pickles With the ability to directly market these sale types into our three brand was Fiat Chrysler Australia – including all Chrysler Jeep, thousand plus licenced motor dealer buyers around Australia and Alfa Romeo, Fiat Abarth and Fiat Professional (commercials) in outstanding offerings of vehicles from the likes of FleetPartners, the country. We found in this instance we were already engaged Custom Fleet, LeasePlan, Orix, Volkswagen Finance Fleet, and in a significant number of these dealer networks, making the the South Australian Government (fifty white Cruze anyone?) implementation task a little easier. In the lead up to our first Pickles sold $6.5M worth of vehicles in 19 days across four sites in physical auction in August, we again engaged every member specialised Dealer-Only auctions while continuing to run our usual of the dealer network in Australia, even managing to get fifty Government, Fleet, and regular public vehicle sales. As a result of percent of them involved in a minor tender process in July before these successful dealer-only offerings, more auctions have been the contract had even begun. The ensuing sales have been planned for both Perth, Melbourne and Sydney throughout the well patronised with 100% clearance rates, with more dealers final three months of the year. participating than there are vehicles to sell! www.pickles.com.au