donate

 
 
 
Direct Impact
ARADirect provides automotive recyclers a fast lane in a crowded salvage marketplace.
A key element in the success of an auto recycler’s business is acquiring good salvage. With an ever-increasing crowded marketplace, obtaining quality salvage has grown more difficult in recent years. It’s become a serious concern for all association members. So much so, that is has become a constant and unsettling topic of discussion among auto recyclers. As the expression goes, you cannot sell from an empty warehouse. To meet this concern head-on, ARA has recently launched ARADirect, an Internet salvage auction that is poised to be a solution to the members’ concern.

ARADirect is a service of ARA Product Services, LLC (“ARAPS”), a subsidiary of the Automotive Recyclers Association (“ARA”). ARAPS, along with Alteso Group, offers the automotive recycling industry a new and refreshing means to acquire vehicles and thus meet their acquisition demands.

The ARADirect platform provides a significant benefit for vehicle disposal and fleet management for insurance companies, wholesalers, fleets, franchise dealers and others in a manner that significantly improves their methods of vehicle disposal and changes the way auto recyclers acquire product.

“We are able to provide this product directly to our membership, at the same time giving the vehicle providers a fully responsive North American buying clientele,” said Ed MacDonald, ARA President. “Furthermore, certain funding generated from this program will be reinvested into endeavors which will foster new growth and development in our industry.”

“ARADirect is the newest source for salvage and damaged vehicles for the automotive recycling industry, with buyer membership to the site restricted to ARA members, State and Provincial Affiliates, and licensed automotive recyclers,” said Ginny Whelan, Director of Procurement for ARA Product Services, LLC. “This impacts the crowded bidding marketplace because it gives ARA members and the professional automotive recycling industry the advantage in buying quality salvage from one site that has eliminated the middle man by bringing multiple sources of inventory right to members’ fingertips.

“The marketplace is crowded in many ways, including a vast number of auctions, variety of buyers, vehicle conditions and title considerations. Within the auction network there are certainly so many sizes of auctions from less than 100 units to over 1000 units per facility,” Whelan said. “Most recyclers purchase many of their vehicles through online auctions which means they must consider quality of the description, quantity, and quality of the pictures and other information given to calculate the best possible bid for that particular auction platform.”

ARADirect is different from other auctions because it’s an auction hub specifically developed for ARA, state association, and provincial organization member buyers. This hub gives registered buyers the opportunity to buy vehicles efficiently both through area pools as well as in independent auctions worldwide; all from their desktop or iPads. Through ARADirect, members will benefit from a wide network of buying options listed on one site, with significant discounts in customary pool fees. Access to the global inventory of salvage vehicles will only be one click away for ARADirect members, giving member-recyclers an edge in managing their purchased inventory and building a sustainable and growing business model.

The website is easy to use, with the ability to comfortably scroll through all the items available for purchase. By clicking on each vehicle the purchaser will see photos of the vehicle as well as details, date of the auction, price, current bid, and whether or not the purchaser can buy it now. There are also full vehicle descriptions and shipping information.

One of the challenges recyclers face today in the crowded marketplace comes when trying to purchase a true total loss vehicle such as a Hurricane Sandy flood car. Those vehicles have already been evaluated by an insurance company or collision shop and deemed beyond a reasonable repair and unsafe to be on the road. Some states allow those vehicles to be sold at auctions that are open to the general public, thus allowing unlicensed buyers, exporter, and rebuilders who may not be concerned for the impact on the environment or safety to purchase vehicles.

Doug Reinert, Chuck’s Auto Salvage, feels ARADirect addresses that problem head-on.  “ARADirect is the best solution,” he said. “ARA has set up a competitive auction platform to benefit the seller and the recycler. ARADirect created a marketplace where thousands of recyclers can have the opportunity to bid on vehicles for the purpose of recycling, not rebuilding. With up to thousands of buyers, the seller can maximize their return, while backing up their corporate commitment to be environmentally responsible by being sure their vehicles are purchased and processed by responsible auto recyclers.

“I look forward to the continued success of ARADirect as a recycler who not only has the opportunity to purchase a particular vehicle but if I don’t have the winning bid, I at least have the chance to buy a part from a fellow recycler to satisfy one of our customers’ orders,” Reinert said.

There is no cost to ARA and ARA Affiliate chapter members to sign up for ARADirect when they register by filling out the form available on the ARADirect website, www.ARADirect.net.

Once registered, members will gain the ability to bid on and secure the vehicles they need to continue to grow their business. Registered bidders will be able to place bids during the online auctions remotely from any location, and the bid amount covers the price of the vehicle at the auction. Any additional fee or transportation cost will be separate and vary from item to item, depending on the price of the vehicle and membership type.

“ARADirect is counting on the robust support of our automotive recycling association membership, both national and statewide, which will help draw additional salvage vehicle supply opportunities,” said Whelan. “After considerable market analysis to understand the challenges of this initiative, we have learned from the experiences of others. Issues related to storage, low dollar inventory, and static location have been deliberated at length and stakeholders know that the near-sourcing hub that is ARADirect can successfully address these challenges.”

“We have listened to our membership, developed a user-friendly platform, and launched this product in order that our membership and indeed, all association members, benefit from the continued flow of product at the same time solving our suppliers’ demands and growing our associations,” said MacDonald. “These are wonderful positives for our current industry members.”

Get more information and sign up for this online auction service at www.ARADirect.net.

Michelle Keadle-Taylor is a freelance writer based in Northern Virginia.

Click to download the full November/December issue in PDF format


 
Membership Software By:
Timberlake