Penske launches new online auction platform
Penske Used Trucks has pulled back the curtain on its new online auction platform for used trucks at a time of rising inventory and falling auction values in the used-truck market.
Penske aims to streamline the buying process with a new interface, transparent pricing and free third-party condition reports, according to an Aug. 19 news release. It will hold weekly auctions starting on Tuesdays at 8 a.m. EST and ending on Thursdays at 11:30 a.m. Products will range from light- to heavy-duty trucks, along with specialized equipment.
Used heavy-duty truck inventory rose 20.4% year over year in July, while auction values dropped 10% YoY, according to Sandhills Global. Used medium-duty inventory increased 45.7% YoY in July, and auction values were down 11% YoY.
Mounting inventory and declining auction values have been trending since 2022, according to Sandhill’s monthly indices. While Penske acknowledged challenges facing the industry, deficiencies in other online auction platforms prompted the company to launch the new product, Todd Knutsen, vice president of remarketing pricing and asset management for Penske Truck Leasing, told Equipment Finance News.
“We built the Penske auction platform to maximize the online experience, while addressing many of the challenges that exist in other platforms,” Knutsen said. “The benefits for buyers include a Penske-maintained vehicle; no buyer premiums, which can run 5% on top of a winning bid at other auctions; and complimentary third-party inspection reports.”
Among the key differences between Penske’s platform and others in the industry, all trucks are sold directly from the Penske fleet and come with a comprehensive maintenance history report, he said.
Other providers of online auction platforms for commercial trucks include Taylor & Martin, ACV Auctions and America’s Auto Auction.
Customers purchasing used trucks through the Penske platform can obtain financing from Premier Financing, Penske’s financing partner, so long as they’re pre–approved based on the vehicle type, age and mileage range, Knutsen said.
Digitizing auctions
Nearly 7.3 million vehicles were sold via National Auto Auction Association member auctions in 2023, up 11% from 2022, according to an NAAA industry survey. Fifty percent of those vehicles were purchased online.
Knutsen said online auctions are becoming an industry standard and expects that to continue, although they involve some challenges.
“Perhaps the greatest challenge with most online auctions is the lack of condition transparency,” he said. “On-site auctions in the past would allow the buyers to inspect vehicles prior to bidding. While inspections still take place, they are not as common with online auction purchases.”
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