Mercedes-Benz Financial Services (MBFS) is converting two of its live auction sites to exclusively online auctions, becoming the first automotive lender in the U.S. to make this transition in its Remarketing initiatives for Mercedes-Benz franchise and independent dealers.
The company will start with exclusive online High Line auctions in Milwaukee at 1 p.m. Central on Friday, Nov. 4 at the Manheim Milwaukee via Simulcast. Online auctions will take place every two weeks on Fridays with approximately 100 late model Mercedes-Benz vehicles available for bidding. These MBFS sales are independent of any other sale and will take place exactly two days after the regularly-scheduled High Line auction.
The second location is Manheim Dallas-Fort Worth. Those online sales will take place every four weeks on Wednesdays at 1 p.m. Central, starting Nov. 16, followed by Wednesday, Dec. 14. The volume at these sales is expected to be approximately 175 late model Mercedes-Benz vehicles.
“This is a great time to test a different business model in Remarketing with internet sales,” said Joe Bedwell, National Auction Manager for MBFS. “Studies show that 65 percent of buyers in franchise and independent dealerships are ‘completely likely’ or ‘very likely’ to bid or buy via a mobile device. It is obvious that the methods for researching and purchasing vehicles are changing.”
Bedwell said as dealership operations have become leaner in recent years, dealers realize that it is more efficient to have the pre-owned manager working in the dealership than on airplanes traveling to different auctions to stock pre-owned inventory.
Bedwell also said MBFS will institute a 100 percent satisfaction guarantee on all internet purchases, giving the dealer who purchases from one of these online auctions 14 days to notify the auction of any concerns.
“We have one MBFS employee at each location who validates all of the condition reports and disclosures,” Bedwell said. “As a result, we are able to assure the dealers that the condition report is accurate and they will be happy with the purchase or we’ll take it back.”
MBFS will continue to make national inventory available to dealers to purchase in a special live online auction every Tuesday through Manheim Auto Auction’s OVE.com, which it has been participating in since March 2009.
“Like many of our customers, Manheim’s future is digital as much as physical. We’re excited about partnering with Mercedes-Benz to meet their dealers changing needs for acquiring used vehicle inventory,” concluded Nick Peluso, Senior Vice President, Customer Management for Manheim.