The new business, Dealer Auction will provide a digital marketplace for wholesale vehicles in the UK.
Cox Automotive UK has transferred both Dealer-Auction.com, which is an online auction of trade-in vehicles from UK franchise dealers, and Manheim Online, the online remarketing services division of Cox Automotive UK, to the joint venture, while Auto Trader has transferred Smart Buying (formally known as Autotrade-mail), its retailer-to-retailer platform.
The three businesses have now been transferred into the new company – Dealer Auction – which will enable prospective buyers and sellers to visit one platform to view and buy a large selection of vehicles across the wholesale marketplace.
Whilst a new platform to combine the inventory is being built, customers will continue to buy and sell stock through the existing Dealer-Auction.com, Manheim Online and Smart Buying websites.
Auto Trader’s Smart Buying is a weaker proposition than Cox Automotive’s Dealer Auction but there were plans in the pipeline to develop it.
According CMA estimates Dealer g Auction takes between 10 and 20% share of supply in B2B online vehicle remarketing to franchised and independent dealers as buyers based on 2017 volumes. Smart Buying has between five and 10%
Le Etta Pearce, the newly-appointed Managing Director, who previously worked for both Cox Automotive and Auto Trader, said: “We’re really excited to now be able to form the company and get started. We believe we can fundamentally improve and make changes to the industry that will benefit wholesale sellers and retailers alike.
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