Cox Automotive and Auto Trader have collaborated to create Dealer Auction, an online dealer auction marketplace for B2B sales.
The platform looks to “take the guesswork” out of buying and selling used vehicles, and increase profitability and speed to sale.
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By GlobalDataIt takes real time data capabilities of industry experts to give insights on vehicles in the wholesale retail market. The platform will host 11,000 fresh auctions each month and 7,500 customers on the platform.
Tools on the platform enable customers to filter their results based on their needs and set a competitive price based on the data available. Customers are also notified when stock meets their needs is added to the site.
Though the two companies have collaborated for the project, Dealer Auction will be an independent offering. It offers lower buyer fees, matches buyers and sellers transacting online and offers data for customers.
Le Etta Pearce, Dealer Auction chief executive said: “This is a truly exciting new platform that’s built to meet the real needs of our customers. While we’re drawing on a bank of expertise and experience from our parent companies, Dealer Auction is its own business with a clear goal of transforming the way vehicles are remarketed. We want to provide our customers with more choice, better insights and greater margin.”
A primary goal of the platform is to connect the right stock with the right buyer with existing customers being consulted before the change in process and throughout.
Martin Forbes, Cox Automotive chief executive said: “Dealer Auction will become an increasingly important and influential wholesale channel as we move further towards a digitalised sector. Our view is 80% of core trade vehicles will be transacted online by 2023 so it’s vital we provide our vendor and buyer customers with the products and services they need to achieve their own ambitions.”
“We’re equally focused on reshaping our physical capabilities so that they complement this increasingly digital-first vehicle journey and enable our vendor customers to remarket their vehicles quickly, cost effectively and efficiently,” he added.
Dealer Auction looks to add more stock to the marketplace this year, including vehicles from manufacturers and fleet and leasing companies directly.
Nathan Coe, Auto Trader chief financial officer and chief executive officer designate, said: “To truly improve efficiency and profitability for the circa 15,000 retailers operating in the UK, the wholesale marketplace needs to move online and no other business is better positioned to do that.”
“Not only is Dealer Auction a successful business in its own right, but it’s able to draw on both Auto Trader and Cox Automotive’s considerable digital and physical expertise, to the benefit of retailers and wholesalers,” he concluded.
