Tradewinds Remarketing: Outstanding Experience

Stephen Houston Inducted into National Automobile Auction (NAAA)

HALL OF FAME

Two Industry Leaders Inducted Into NAAA Hall of Fame

October 8, 2008

Steve Houston and Ray Nichols were recently inducted into the NAAA Hall of Fame during the Association’s 60th Annual Convention, Equipment & Service Exposition in Washington, D.C.

This award is given annually to two members of the industry: an auction executive and industry auction supporter.

The auction executive award is awarded to person with long-term service to the wholesale motor vehicle auction industry and NAAA, who has improved the industry as a whole, has worked with other NAAA members to improve the industry as a whole, and has consistently followed the high standards of the NAAA Code of Ethics.

The industry auction supporter award is awarded to a person for long-term service to the industry and NAAA, who has consistently remarketed motor vehicles through NAAA member auctions or provided the highest quality of services and/or products to NAAA member auctions at fair prices, has encouraged others to remarket motor vehicles through or provide services and products to NAAA member auctions, and has consistently followed high ethical standards equivalent to those in the NAAA Code of Ethics.

This year’s recipients are Stephen Houston, national vice president, Vehicle Marketing for Wachovia Dealer Services and IARA Chairman of the Board, and Raymond Nichols, chairman of BSCAmerica Auction Group and past president of the National Auto Auction Association.

Jim DesRochers, NAAA past president, described Houston as “a low key and well-respected leader,” as he made the award presentation. A graduate of the University of Washington, Houston spent more than 20 years in the Seattle area as a partner in a family-owned new car dealership. In 1993, he left the Pacific Northwest to relocate in Southern California where be managed several large dealership groups, including Paulson Automotive Group in Beverly Hills.

“He left the retail side of the business in 1999 to pursue the best part of the industry: used cars, the auctions and remarketing, and has worked for WFS/Wachovia since January of 2001,” said DesRochers, noting that Houston has also served the industry well, working on a number of NAAA committees, helping to found IARA and serving as its president for the 2005 term. “Steve Houston has been associated with 15 automotive dealerships and remarketing companies,” said DesRochers. “We honor Steve tonight for his integrity and devotion to the auction industry, and I am privileged to welcome him to the Hall of Fame on behalf of the members of the National Auto Association.”

Ray Nichols (center) with Gregg Kobel, 2006-2007 NAAA President,(l) and Chuck Stepter, NAAA General Counsel(r).

Chuck Stepter, NAAA General Counsel, introduced Ray Nichols as “a leader with family, friends, business and NAAA, who is frequently relied on by many of us as a confidential advisor.”

Highlighting Nichols’ life in the industry, Stepter related that Nichols “left a very successful business career with a hair-brained idea to borrow $5,000.00 and open an auction business with his wife. That husband and wife partnership grew the auction and related businesses more than even they could have imagined, raising two fine children along the way and giving back to the communities and industries they worked in. This husband and wife partnership built a group of businesses that include wholesale auto auctions, asset management, liquidation, floorplanning, remarketing services to lenders and lessors, and residual and specialized insurance services for major lenders and lessors, including major financial and automotive companies in addition to various other real property partnerships and interests.”

Nichols served as NAAA president in the year following the events of 9/11, and skillfully led NAAA through a troubling year for all of America. One of his major accomplishments was working with his predecessor to embrace the concept of drawing the future officers of NAAA together regularly to create a team approach for providing member oversight. Nichols and his team streamlined the meeting schedule of NAAA by reducing annual meetings from three two, thereby minimizing the members’ time away from their businesses. He declared his presidency “The Year of the Used Car”, using the theme: “Challenge the Future Now.” He led many strategic and long-range planning efforts that continue to benefit NAAA. Since the conclusion of his presidency, he has devoted a great deal of time and energy to industry efforts such as growing and maintaining AuctionNet, which has generated a great deal of income for the NAAA.

Houston Looks Back Over the Years

Steve Houston, past president for the International Automotive Remarketers Alliance (IARA) from 2003-2006, nationally recognized remarketing professional specializing in large portfolios from a national perspective, recently left Wells Fargo Dealer Services and has started working independently.

As a member of the automotive remarketing industry for more than 10 years, Houston was an integral part of the IARA during his presidency, and helped the Alliance reach new levels, grow active membership, and develop closer relationships with the National Auto Auction Association (NAAA) and auctions.

"Steve was the catalyst for bringing industry credibility to the IARA. He was instrumental in establishing the IARA as the Voice of the Remarketing Industry,” said Matt Marks, executive director for the IARA.

The IARA’s Summer Roundtable will be held August 16-18. Bob Lutz has been announced as the keynote speaker, who will discuss his new book Car Guys vs. Bean Counters. More information can be found online at www.iaraonline.org.

Houston is a member of the NAAA Hall of Fame, inducted in 2008 during the Association’s 60^th annual convention. Jim DesRochers, NAAA past president, described Houston as “a low key and well-respected leader,” as he made the award presentation. A graduate of the University of Washington, Houston spent more than 20 years in the Seattle area as a partner in a family-owned new car dealership. In 1993, he left the Pacific Northwest to relocate in Southern California where be managed several large dealership groups, including Paulson Automotive Group in Beverly Hills.

Houston “left the retail side of the business in 1999 to pursue the best part of the industry — used cars, the auctions, and remarketing — and worked for WFS/Wachovia starting January of 2001,” said DesRochers, noting that Houston has also served the industry well, working on a number of NAAA committees, helping found IARA and serving as its president.

He was also named the 2007 Consignor of the Year by the Conference of Automotive Remarketing.

This year, Houston will be serving as a judge for the World Automobile Auctioneers Championship for the third consecutive year. The event hosts the world’s best automobile auctioneers, ring people, and teams who compete to win the title of “World Champion” and an assortment of prize money, trophies, and championship ring. More information can be found at www.waacnet.net.

 

Stephen Houston Faculty Member

Stephen Houston is a widely recognized Remarketing Industry leader. Most recently he was Vice President & National Remarketing Manager at Wells Fargo Dealer Services. A position he held since 2001. He and his team remarketed collateral exceeding 100,000 units per year consisting of cars, trucks, RV’s, boats and yachts many with values often well into the seven figure area. Stephen is widely recognized as an industry expert and has received numerous industry awards and recognitions including NAAA Hall of Fame and Consignor of the Year. He has served on a number of NAAA committees all of which have established new and improved industry standards and practices. He was among the founding pioneers of the International Automotive Remarketers Association (IARA) and actively participated for ten years serving multiple terms as President and then Chairman. He is a frequently invited speaker at various industry events. Prior to his role within the Remarketing Industry Stephen was a top performing auto dealer in the Seattle area often being the # 1 dealer for Nissan, Hyundai, Toyota and Ford. In addition, he managed large multi-franchise, multi-location auto groups in southern California prior to entering the banking world. Stephen graduated from the University of Washington in 1979 and while living in Seattle was a speaker to various classes at the UofW School of Business. He is currently pursuing several projects related to specialty maritime remarketing and is the owner of Tradewinds Remarketing.

Tradewinds Remarketing Philosophy

At Tradewinds Remarketing our primary goal is to get the most money possible on sale day for our customer’s car, truck, boat or RV.

With that in mind, it is important to understand the overall philosophy that has proven itself over the last ten years and been so tremendously successful in the sale of over 750,000 vehicles across the block in the auction fleet lanes throughout the country. We are successful in good markets and bad.  Through thick and thin we got it done and have consistently outperformed our competitors.

First, we ask you to think about who the players are at the auction.  There are sellers, buyers and the auction itself.  Sometimes you can hear statements proclaiming that “It’s the buyers who are most important!  No, it’s the sellers who matter most!” or even “Without the auction they couldn’t get these cars sold this fast and for this much money!”

The simple fact is that IT TAKES ALL THREE, Sellers, Buyers and the Auction, to make it work.  Sellers don’t get very far without buyers and the buyers are dealers.  And, we all know what happens when the dealers stop selling cars!  Things come to a grinding halt pretty quickly.  The auction brings both buyers and seller together in one place.  They provide the infrastructure and fund the transactions.

To that end, our process is an organized plan based on a partnership between sellers, buyers and the auction.  Everyone deserves courtesy, respect and fair dealing.  So how does all of that translate into what we do in the lanes?

What we do in the auction lane is a carefully planned consistent process and not an accident.   Our sellers must partner with us to get the most money possible at the auction.  There are no shortcuts!  If you leave out one piece you begin to chip away at the money and ultimately the performance of the entire lane. 

Buyers are not immune to “eyeball”.  That’s why it is important that every car we run is clean and detailed.  A good looking car just brings more money and generates more bids.  Remember, each bid is worth $100.  Even two extra bids add up to $200 easily paying for a detail and then some!

We avoid “tows” whenever we can.  Spending a few dollars to get a vehicle to drive across the block is always worth the money unless the vehicle is truly a salvage piece that needs to be run in the salvage sale.  Make it drive!  Cars that don’t run don’t bring top dollar.

The vehicles we sell are used.  Everybody knows that and any experienced buyer knows that we cannot know everything about a vehicle but our reputation of fairness and disclosure says the “We announce what we know”.  We’re not here to trick anyone.  Buyers never forget and they don’t buy in lanes or from companies that have tricked them and cost them money.  They just go to another lane.  It’s a simple as that!  Treat your buyers right and they’ll keep bidding in your lane making you money even when they are not the winning bidder.  Look around, sellers with good reputations always have buyers in their lanes and that’s no accident!

Sellers must partner with the auction and let them do their job.  It’s important to give them enough time to do their job right.  They cannot do their job if the vehicles are arriving at the auction the night before or the morning of the sale.  Bringing cars to the auction at the last minute does not allow the auction enough time to do a detail, do a CR (Condition Report) with photos and get the vehicle up on the internet and online.  You cannot expect any bidders online if there’s there is no CR and thus no information online about the vehicle.  Would you pay top dollar for a car you don’t know anything about? 

The internet can provide 10% to 25% more bids.  Without CR’s, pictures and giving the auction enough time to get things done you’re just cutting out that portion of the market.  Why would you cheat yourself out of the extra bids and the extra money?!  Each bid online is just as good as another bidder in the live lane and their numbers are growing every day.

100% of Tradewinds Remarketing sales run using “simulcast” type technology.  In other words, if we’re selling in the lanes at 9 AM we’re online at 9AM.  All of the vehicles are in one place and offered for sale at the same time.  You just cannot ignore the internet these days! 

We know that sellers want superior lane placement and run times.  The fact is that there are only so many “prime” spots.  Let’s face it, the best lanes and run times are valuable commodities and despite what many think, it is not as simple as “who you know”.  Both the auction and the auctioneers need to have sellers who come to sell in the best spots.  That means the right cars presented and represented properly & professionally, put “on the money” and sold on the market.  No-sales and just taking offers on over 50% of the run will not only “destroy” the lane and drive the buyers into another lane it will not get you into the best spots or allow you to stay there.

Sellers need to be realistic.  Being in the vehicle too much doesn’t make it worth more.  Car dealers are smart and they know what things are worth.  Floor your vehicle accurately for today’s market, not last month or the month before.  For instance, if a vehicle is floored at $10,000 and you have five or six bidders that stop bidding at $9,000 more often than not the value of that vehicle in today’s market is $9,000 and not $10,000.  It’s been proven time and again that, most often, your first money is your best.  Re-runs quickly become “shop worn” and buyers become suspicious of why the car or truck they saw last week is back again the following week.

Additionally, this is another place where reputation matters.  Buyers come to buy and they will not keep bidding in a lane where nothing gets sold.  As a buyer, where would you spend your time?  Dealers can’t make money if they don’t have cars to sell.  That’s why they’re in our lane.  They want to buy!  Quite frankly, they get mad when they can’t.

At the end of the day it all boils down to a few simple things.  1.  Clean cars always sell for the most money. 2.  Announce what you know – don’t play games with the rules – DO THE RIGHT THING! 3.  Put the cars on the money. 4.  Come to sell – nobody needs the practice!

Most likely you’re hiring Tradewinds Remarketing for our reputation in the lanes and because you want lane placement and run times that you can’t get alone.  It’s important that we work together to maximize our effectiveness in the lanes.  Shortcutting by one seller hurts the entire lane and everyone suffers including the one who does the shortcutting.  It really is a lesson in partnership and teamwork.  We all need to do it right and do the right thing every day.  It takes a long time to build a great reputation in the lanes and only a sale or two to destroy it.  We don’t want or need “tricky” sellers.  The buyers figure it out quickly and they avoid those lanes like the plague.  Truly “one bad apple CAN spoil the whole bunch”.   Our sellers at Tradewinds Remarketing all want the most money, the best lanes, the best run times and great sales.  They are committed to our consistent straight forward process.  If you want those things too then we would be pleased to have you as another one of our customer partners!

Thank you!

We manage the auction sale process for you saving you time and money.  When you add it up we save you time & money at the auctions!  Call us for more information:  909-908-9055