Auction StandardsManual

Remarketing Objectives:

  • Maximize recovery values on inventory
  • Support effective disposal of repossessed inventory through timely inventory management.
  • Ensure compliance of auction/vendor companies to standards and procedures.
  • Ensure compliance to statutory regulations.
  • Assist in building buyer loyalty for Caprock Auto Remarketing inventory.

Table of Contents

Transportation......

Condition Reports......

Reconditioning......

Title Processing......

Vehicle Redemption......

The Sale......

1.Pre-sale......

2.Sale day......

3.Post-sale......

Arbitration Guidelines......

Transportation

  1. Vehicle transportation should be coordinated by the auction. Transportation vendors utilized by the auction should be fully licensed, bonded, and insured.
  2. All vehicles consigned to the auction should be dispatched to the transporter within 24 hours of consignment receipt and should arrive within3 days from consignment (5 days out of state), measured from “Date Assigned” in AutoIMS to “Date Secured” in AutoIMS.
  3. When contacting the repossession agency to arrange for transport, the auction should confirm the vehicle’s drivability, whether or not it needs keys and confirm the unit is not on any holds (i.e. redemption hold, key hold, no vehicle release, etc.).
  4. If the auction or transporter has any difficulty procuring the vehicle from the repossession agency, it should be reported immediately to Caprock Auto Remarketing, Remarketing Coordinator and noted in AutoIMS. If the driver is en route or is at the agency’s lot, a phone call should be placed to the Remarketing Coordinator. Caprock Auto Remarketing policyis notto pay “dry run” charges.

Condition Reports

  1. Condition reports are to be completed and uploaded to AutoIMS within 2business days of being secured at the auction.
  2. The vehicles mileage should be uploaded to AutoIMS as soon as possible. When mileage cannot be determined, the appropriate code in AutoIMS should be used. If TMU, the mileage should be listed as 999999 along with the appropriate code.
  3. Each vehicle should have the following pictures taken and uploaded in AutoIMS: Front, Rear, Front ¾, Rear ¾, any significant damage, odometer and interior.
  4. Inoperable odometers are to be identified by the auction. The auction is responsible for purchasing any arbitration as a result of an inoperable odometer.
  5. All vehicle damage should be listed.
  6. Any vehicle with unibody/frame damage should be coded appropriately in AutoIMS (the “Unibody/Frame Damage” field). The specific location of the damage should be identified and indicated.

Reconditioning

  1. All Caprock Auto Remarketingvehicles, (with exception of inoperable, salvage, tow or dealer vehicles), are to receive a full detail. Inoperable, salvage, or tow vehicles are to receive nothing more than a wash and vacuum. Exception: dealer vehicles are not to receive reconditioning unless the Remarketing Coordinator notifies the auction to request.
  2. Trunk areas are to be fully vacuumed and clean. Spare tires and jack assembly to be secured and bolted properly.
  3. Engine and engine compartments are to be completely cleaned and dressed.
  4. Wheels and tires must be cleaned and dressed. Tire dressing can be applied the day before sale.
  5. License plates are to be removed and placed in trunks or floor board on trucks, unless state requirements dictate otherwise.
  6. Dealer emblems are to be removed from vehicles without damage to deck lids or tail gates.
  7. Cracked or broken aftermarket trim items are to be removed. The Remarketing Manager should be consulted regarding the removal of aftermarket accessories or trim that could be considered poor quality or could hinder the re-sale value of a vehicle.
  8. Glass areas should be clean inside and out, and free of stickers or emblems.
  9. The auction is to make keys for any vehicles with missing keys immediately upon arrival. If the cost is more then $150.00 the Remarketing Coordinator will need to approve the key being cut.
  10. Oil changes are to be completed on all program vehicles. Oil changes outside of this inventory are to be conducted on a “need be” basis. Dip sticks should be clean of sludge or varnish on all vehicles. Tie straps are to be attached to dip sticks to signify oil change is complete.
  11. All vehicle defects covered under factory warranty are to have repair completed prior to sale.

Title Processing

  1. All vehicles must sell with an available title. Caprock Auto Remarketing’s policy is to not sell vehicles as “slow title” or “title attached.” The auction is expected to be the primary processor for title work. The majority of all title work should be processed “in house” by the auction. The use of third party title vendors are not supported in the normal course of business, but exceptions will be made on a case-by-case basis. If the auction cannot process the title work on its own, Caprock Auto Remarketingcoordinator should be notified.(Dealer Program is the only title exceptions- unit can be sold title attached.)
  2. If Caprock Auto Remarketingsends a title that is appropriate for the sale of the vehicle, it will be documented in AutoIMS under the “Title” tracking section with the sent date and the tracking number for each title sent. The auction should mark the “Title Received” field with the date it is received.
  3. If any documents are needed to complete the title process, the auction should identify those documents and advise the Remarketing Coordinator by email and by placing a note in AutoIMS.
  4. Once the title packet is received, the auction is expected to take the most prudent actions to get the title processed in a manner that makes the vehicle ready for sale. Once the auction receives the title, they must indicate the “Title Received Date” in AutoIMS.
  5. The auction should be prepared to report on cycle time performance and explain any delays in processing.
  6. The auction is not to send the title back to Caprock Auto Remarketing unless the consignment is cancelled or the Remarketing Coordinator requests it.

Vehicle Redemption

  1. In the event of a vehicle’s redemption, the Remarketing Coordinator will indicate via AutoIMS with the “Redemption” button. This will create a note in AutoIMS, it will populate a date in the “Redeemed Date, Client” field, and an email will be sent to the auction. The auction should make sure Redemptions are enabled within its own AutoIMS account.
  2. After a vehicle has been picked up by the customer, the auction must indicate with the “Redemption” button. This will create a note in AutoIMS, it will populate a date in the “Redeemed Date, Auction” field, and an email will be sent to the Remarketing Coordinator. If this is not done correctly, the vehicle cannot be archived and will remain in the auction’s post inventory in AutoIMS. The auction should only use the “Redemption” button after the customer has picked up the vehicle.
  3. The vehicle’s release will indicate who is responsible for paying auction fees: Caprock Auto Remarketingor the redeemer.
  4. If the auction has the title, it should be returned to Caprock Auto Remarketing.

The Sale

  1. Pre-sale
  2. All vehicles will be “Cleared for Sale” in AutoIMS once the following has been completed: Mileage listed in vehicle summary, legal sale date expired, and “Title Received” has been documented. Once a vehicle has been made “Cleared for Sale,” the auction must place the vehicle “On Block” in AutoIMS. Vehicles should not be set for sale within 48 hours of the sale, with the exception of aged units designated by the Remarketing Coordinator. This is in exception to dealer sale program.
  3. By 9:00AM on the day before the sale, all vehicles set for sale need to be on their mark, in run number order for the Regional Auction Manager to review.
  4. The run order should be as follows: program units, green and yellow light units (lowest to highest mileage), red light units (lowest to highest mileage). Inoperable or tow units should be run separate from the lane sale.
  5. The sale lot should be neatly “string-lined” or “bumpered out” with vehicles evenly spaced to allow sufficient room for dealer preview without risk of door damage.
  6. Hoods and deck lids should be open.
  7. All of Caprock Auto Remarketingvehicles must be run as a group, with no other vehicles interrupting the run order.
  8. A sale block should be provided to the Regional Auction Manager that has the run number, the VIN, year/make/model/trim, options, mileage, condition grade, announcements, charges against the vehicle, days in inventory, time run, high bid, and black book value.
  9. Caprock Auto Remarketingexpects to have consistent lane assignments. Lane reassignments are not to occur without prior approval of Caprock Auto Remarketing’sRemarketing Manager.
  10. Run numbers and all announcements should be placed on windshield. The location of frame or unibody damage should be indicated.
  11. Sale day
  12. The dealer sale catalogue should accurately reflect all announcements and vehicle information.
  13. All sales should be made on the block. Vehicles are not to be sold, nor bids accepted off the block.
  14. All sales are final, unless Caprock Auto Remarketing, NAAAand the auction’s arbitration policies and procedures are met. Post sale purchase amount adjustments for dealers are not to be facilitated.
  15. A final sale block and sales and expense summary must be sent to the Remarketing Coordinator for auditing.
  16. Post-sale
  17. For each vehicle sold, please complete the following fields in AutoIMS when submitting payment: Sale Amount, Charges, Check Amount, Check Number, Funds Sent, Sold Date, and Funds Sent Date.
  18. The auction should notify Caprock Auto Remarketing,Remarketing Coordinator of any arbitrations.
  19. Proceeds
  20. The auction must submit anACH transfer of sale proceeds no later than 24 hours after the sale. This is with the exception of dealer units.
  21. Expenses
  22. All expenses are to be posted to vehicles by sale day. Outstanding account receivable items received from the auction after proceeds posting to accounts will not be reimbursed to the auction.
  23. Expenses should be mapped as follows:
  1. All sale fees need to be listed under the AutoIMS field name “Admin, Sale Fee (28)”
  2. All full details need to be listed under the AutoIMS field name “Recon, Detail (44)”
  3. All Wash & Vac’s need to be listed under the AutoIMS field name “Recon, Wash (54)”
  4. All regular cut keys need to be listed under the AutoIMS field name “Recon, Keys-standard (60)”
  5. All specialty keys need to be listed under the AutoIMS field name “Recon, Keys-VAT/PAT (61)”
  6. The auction fee for processing a title should be listed under the “DMV: “ (California only) Any DMV printouts or KSRs should be listed under the AutoIMS field name “DMV: DMV printout (32)”
  7. All paint/body work (including glass, PDR, and interior work) should be listed under the AutoIMS field name “Recon, Body Work (42)”
  8. All mechanical work should be listed under the AutoIMS field name “Recon, Mechanical Work (47)”
  9. The AutoIMS field “Other: Miscellaneous (41)” should never be used. If the auction is unsure where to put the charge contact the Remarketing Coordinator.
  10. No fees should be listed in any “Sublet” field. They should be listed under the appropriate paint/body or mechanical field.

Arbitration Guidelines

Published Dealer Arbitration Guidelines

NAAA Arbitration Policy, Effective Date January 1, 2011

Additional Internal Arbitration Guidelines (not for dealer publication):

  1. The Regional Auction Manager in attendance must be notified of any arbitration issue during or following the sale.
  2. Caprock Auto Remarketingmust be notified within 24 hours, or the arbitration will not be honored.
  3. Copies of the bill of sale and arbitration complaint report must be supplied.
  4. There will be no price adjustments (exceptions must be escalated to the Remarketing Manager).
  5. The auction will be responsible foridentifying units with inoperable odometers.
  6. In the event a vehicle is arbitrated, the auction should update the “Arbitration Reason” field in AutoIMS with the appropriate reason for arbitration.
  7. The failure of an auction to comply with Caprock Auto RemarketingArbitration process will result in the auction being responsible for the vehicle’s ownership.

Index

1/14

September 2012

arbitration, 5, 11, 13

condition reports, 5

dry run, 4

expenses, 11, 12

frame damage, 5, 11

keys, 4, 6, 12

lane assignment, 11

proceeds, 11

reconditioning, 6

redemption, 4, 9

run order, 10

title, 8, 9, 10

transportation, 4

1/14

September 2012

1/14

September 2012