Dealer Auction – Answer to Independents’ Prayers?

Independent dealers’ apparent appetite for selling stock online seems to know no bounds and certainly Dealer Auction, the UK’s busiest digital wholesale marketplace, is making the most of it.

Dealer Auction is a JV between Cox Automotive and Auto Trader and only opened for independents to sell their overage or part exchange stock on 1 August and in that first month it claims to have seen over 300 independent dealers list vehicles on the platform.  September saw even more come onboard.

The good news for dealers is that their cars are said to be selling in an average of two days, exceeding reserve prices by an average of 9%, with the average independent vehicle selling for over £10,000.

So what’s not to like?

Dealer Auction say that this demonstrates that independents are looking for smarter ways to curate their forecourts and ensure they extract maximum value from their stock.  Sales and Marketing Director, Sarah Marley, explained: “Amid the fast-moving market conditions we are seeing today, independent dealers are thinking harder about the vehicles they stock, and looking to move on unwanted vehicles to maximise their returns.

“Whereas historically, only franchised dealers might have been able to do this at scale, now digital platforms such as Dealer Auction afford independents the same possibility, flexibly and seamlessly. And, judging by our adverts from August and September, they are embracing the opportunity in numbers.

“Enabling independent dealers to sell via the platform was our way of responding to their evolving needs as the industry undergoes digitally-led transformation. We recognise that independent dealers want greater sales flexibility, but also need confidence that they are getting the best possible price. Dealer Auction is uniquely positioned to provide this, thanks to its integration with Auto Trader’s real-time pricing data and its array of tools to drive visibility and buyer interest.”