Did you hear that Hendrick Automotive Group just chose Manheim as its exclusive remarketing partner?
In this day of mobile devices, upstream remarketing, online auctions, and inventory management, wouldn’t you say that physical auctions might sound a bit….. old school?
So why would the nation’s second largest privately held dealership group make this deal?
Here are a few used vehicle market trends that might answer these questions…..
Reason #1: Hendrick Automotive Wants to See More Remarketing Growth:
Hendrick Automotive, based in Charlotte, NC, owns several new vehicle brands – most notably Acura, BMW, GM divisions, and Honda. New and pre-owned vehicles are both getting a lot of focus these days, as is the case for most franchised new vehicle dealers. Hendrick Automotive needs more staff training and resources to take on its increased volume in used vehicle sales. Manheim is delivering the used vehicle sales channels and a variety of business solutions such as remarketing training for the dealers’ used car directors; and setting up on the first Dealer Trade Operations, which are closed-vehicle exchanges giving individual dealer locations to get the right cars to the right lots.
Reason #2: Auctions Have a Lot More Technology to Offer these Days
Just like Hendrick Automotive has found out, the major auctions are ramping up their technology offerings. A few months ago, ADESA and Chrysler Group LLC Remarketing built on their relationship to launch a new and improved version of the Chrysler Direct online vehicle remarketing website for franchised Chrysler Group dealers. Chryslerdirect.com is powered by technology from OPENLAND, an ADESA subsidiary. Dealers have been pleased to view and purchase online from the Chrysler Group portfolio of used inventory prior to these vehicles being offered at company closed auctions. Also, inventory that used to be only available on the discounted Chrysler Online upstream auction site is now accessible on the Chrysler Direct platform. Chrysler needed the latest in remarking technology that ADESA has to offer.
Reason #3: Dealers Need to Best of Both Worlds in Auctions and Technology:
As Black Book’s Ricky Beggs told us earlier this month, dealers are still going to physical auctions to get a real world experience of the vehicles and market environment – they need to feel what the atmosphere is like out there. At the same time, Black Book is moving forward in new technology offerings, launching Black Book Digital at the NADA convention. Black Book’s second-generation mobile application offers a new design with simple-to-use features to help automotive professionals make smarter decisions. Dealers and their remarketing professionals want the best of both worlds – the get out to physical auctions whenever possible and to have their mobile devices connected to the most accurate and reliable vehicle data.
