Rocky Hauhe and his son, Ben, are the third and fourth generations of an auction family in the St. Louis dates back to 1959.
Photo: Legacy Auto Auction
When Rocky Hauhe launched Legacy Auto Auction last year, he aimed to keep the three methods that followed two generations ago of the family-owned auction business.
First, get rid of the hassles and fees; conduct sales with handshakes and respect; build confidence in status reports; and use a fair scoring system that can be understood by all parties. Hauhe finds the classic values handed down by his grandfathers and uncles still apply in an age of real-time, digital auctions and transactions.
“We wanted an auction where dealers were friends and worked together for the greater good,” says Hauhe. “We learn from the past to improve the future.”
Hauhe draws those values from his grandfather, Floyd Hauhe, who started the St. Louis in 1959, and then ran it with Rocky’s son and uncle, Dutch Hauhe, until 1993 when it was sold to Manheim. Dutch Hauhe then oversaw Manheim’s operations until he retired in 2006. Floyd Hauhe, who was also a founding member of the National Automobile Auction Association, retired in 1991 and died in 2010. Dutch passed away in 2018.
Rocky Hauhe, grandfather and founder of Floyd Hauhe, and his uncle, Dutch Hauhe in 2009.
Photo: Legacy Auto Auction
Their deaths prompted Rocky Hauhe to start Legacy Auto Auction in April 2021 after he owned and operated a dealership for 10 years called Pinnacle Automotive, which he still owns. He looked at potential properties for five years before finding one in early 2020. But the COVID pandemic has delayed construction and opening.
Now with 30 years of experience from his childhood, Rocky Hauhe has executed a long-term plan to restore his family’s legendary reputation in the St. Louis.
“Friends stop here every week to tell stories about Floyd and the Netherlands,” says Hauhe. “I grew up in the business when I was 10-12 years old, helping the body shop prepare the details, the details, and observe the operations,” he recalls.
A 1960s era photograph of St. Louis Auto Auction, the predecessor to the Legacy Auto Auction, opens in April 2021.
Photo: Legacy Auto Auction
The respect of customers
One of the principles Rocky learned from his grandfather was to treat all clients equally and with respect for their finances.
“Whether you sell 300 cars or one car, the customer is equally important,” says Hauhe. “You do business fairly and honestly and that keeps people coming back. This industry sometimes goes shady over the years, where no one trusts anyone, everyone is a number, and there is no value in handshakes. We got rid of the old values that businesses used to operate in.”
With that experience and firsthand observation, Hauhe now sees his auction as a place to address the problems and challenges he sees in the industry.
Hauhe cites the increase in fees associated with auction transactions. “The fees have become ridiculous. Everyone complains about them. We are not trying to be a Manheim. We are trying to serve our market and help dealers buy cars without paying corporate prices. We just wanted to bring back that local handshake auction where everyone is on a name basis.”
Fixed fees, shared profits
To date, about 32,000 dealers have signed up with Legacy as buyers to purchase vehicles online through a simulcast.
Legacy charges a flat auction fee of $250 to buyers and a flat fee of $99 to sellers, regardless of the vehicle’s price. “That way, people can come and buy pre-sold retail cars without having to give up all the profits before it leaves the auction,” he said.
Buyers and sellers can often save between $5,000 and $10,000 per month on auction fees, depending on volume, he said. “We limit the number of cars auctioned to 200 units per week. We keep it small. If we get bigger, the customer will spend more money and we lose that one-on-one experience. ”
Locations serving customers primarily within a 100-mile radius in Missouri and Illinois. Transportation fees have also increased, with fees from Nashville, for example, increasing from $250 to $400 per vehicle due to fuel costs, increased demand and COVID-related driver shortages, Hauhe said. “Even if you pay more for a pick-up, it’s not as fast as it used to be.”
Legacy Auto Auction, headquartered in O’Fallon, Mo., maintains a small business atmosphere but uses the latest technology and digital tools to operate efficiently and engage online buyers as well. and directly.
Photo: Legacy Auto Auction
Technology & Transparency
For transparency, Legacy strives to take the lead in resolving disputes by relying on third-party vendors for status reports. Auction used R8tr, a nationwide CR company and vehicle inspection service, which Hauhe also owns as a separate legal entity.
The company belongs to Auction Edge, a large national independent auction network. “It’s an expensive jump, but it’s something we feel we need to do for service agents.”
The company keeps a small business atmosphere and uses Auction Edge’s Pipeline platform to complement the older, more efficient auction method. “We let technology do the work and streamline processes,” says Hauhe.
Legacy uses on-site vehicle assessors equipped with a mobile app to assess any vehicle problems or damage. Each car has more than 30 photos, which are included in the mobile app listing.
Another way Legacy differs from standard auction practice is that it avoids a vehicle scoring system. “On the CR side, nobody understands 5.0 versus 4.5,” says Hauhe. “You cannot come up with a definite answer. We will not grade, so buyers will not receive any false information. “
Legacy reports accurately list and record reviews and errors, but do not rate or score the vehicle. Instead of such an overall condition, the reports list each noted aspect of the vehicle as fair, good, better or excellent.
“We bought cars with 3.0 conditions that should have been 2 or 2.2,” says Hauhe. “We give dealers all the information they need to make an informed decision about the vehicle’s true condition.”
Legacy has also moved into the digital marketplace with simulation from the lanes allowing for real-time, remote bidding from any location. “We stream from the lane so buyers can bid as if on the spot.”
Legacy has moved into the digital marketplace with simulations from the lanes enabling real-time, remote bidding, while ensuring a traditional approach remains an option.
Photo: Legacy Auto Auction
But operations ensure the traditional way is always an option along with digital.
“Many second-hand dealers still want to go for a walk and touch the cars themselves,” says Hauhe. “Some can’t trust what they see online. They have been burned a lot of times, based on mass. “
Hauhe adds: “We do all the things the big boys do without passing all the fees and costs on to the agents. “We want dealers to still make money on the car after they’ve put it up for auction. We want our customers to leave here not upset or broken.”
Hauhe looks forward to the fourth generation in his auction family now as his 10-year-old son runs a golf cart for racers and shows enthusiasm for the work. He wants to keep it as a two-lane, 200-per-week auction.
“I wanted to stay as a family-owned store and auction for a family feel,” he said. I don’t want to go to six, seven lanes. We wanted to serve local and national buyers in a way that the dealers could keep the profits on the car rather than the company salary, and let my son take over and grow the family.
Originally posted on Vehicle Remarketing
