The used-car auction business might sound like a low-tech industry, and one destined to stay that way. But KAR’s executives think otherwise.
Auction giant KAR sees industry’s transformation as opportunity
CEO Jim Hallett predicts that 2019 will be the peak year for brick-and-mortar auto auction volumes, but company officials aren’t sitting around wringing their hands and wishing for the past.Read More
Currently operating in eight states, the firm was founded in 2000 by three executives who had previously worked at another local auto auctioneer, Carmel-based ADESA.
The Flint business will become part of KAR’s Adesa unit, which offers wholesale used-vehicle auction services.
Brian Fenner, owner of Sperro Towing and Recovery and a former repo man, has been sued at least 14 times since October 2014 in Marion and Hendricks county courts, with lenders demanding he give back dozens of cars worth hundreds of thousands of dollars.
KAR Auction Services Inc. expects to spend as much as $125 million on technology this year as its focus continues to shift to the Web and apps.
KAR Auction Services Inc., 13085 Hamilton Crossing Blvd., Carmel 46032, is the holding company for ADESA Inc., which operates used-vehicle auctions at 67 locations; Insurance Auto Auctions Inc., which operates salvage auctions at 163 locations; and Automotive Finance Corp., which provides floorplan financing at 104 locations.
Last year’s Mecum auction at Indianapolis reported gross sales of $41.7 million and drew more than 30,000 people.
Auctions America by RM, which bought the former Kruse Auction Park in Auburn two months ago, said more than 25,000 people attended this past weekend’s event, during which sales topped $13 million.
Sales of Eisenhower-era Eldorados and Kennedy-era Corvettes provide signs of hope.
Kruse’s attorney said his 69-year-old client would like to find some way to keep the annual auction alive, possibly by finding
another auction company to run this year’s event.