Volkswagen Group UK sign Preferred Supplier Agreement with Dealer Auction to supply digital auction services to their franchise retailer networks
The innovative partnership which covers the five core Volkswagen Group (VWG) UK brands, (Audi, Volkswagen, SEAT, SKODA and Volkswagen Commercial Vehicles) aims to retain more VWG vehicles within their respective franchise networks, rather than seeing them traded at open auctions.
With the recent emergence of several direct to consumer used car websites, it has never been more important for Manufacturers to support their franchise networks in obtaining quality used vehicles for onward sale to customers. To that end VWG have partnered with market leader Dealer Auction to create innovative ‘closed’ network on their digital trade auction platform. This network allows VWG retailers the opportunity to sell overage or unwanted VWG part exchanges to other VWG franchises, before they are cascaded into the independent market. The simple aim is to keep as many VWG vehicles on VWG franchise forecourts as possible.
Dealer Auction CEO, Le Etta Pearce comments ‘We are delighted to be providing Volkswagen Group UK with a solution to assist the repatriation of stock within their network. Our new closed network functionality offers retailers an efficient disposal route for their part-exchanges or overaged vehicles, while generating greater returns.’
As well as benefitting from the closed network functionality, VWG retailers will also have access to the award-winning Dealer Auction open network where they can offer non-franchise part exchanges to an audience of over 5000 carefully vetted trade buyers. Due to the low fees on the platform, Dealer Auction typically sees stronger values achieved than at physical auctions boosting retailer profitability. Improved speed of sale and savings on transport further benefit the retailer’s bottom line.
VWG Project lead Barney Butterell said; “all too often we see quality VWG vehicles being traded away at open auction because they are overage or from a different VWG brand, when in fact they could be a viable retail prospect in another geographical location, or on the forecourt of the correct VWG franchise. In creating the closed VWG branded network Dealer Auction are providing an opportunity whereby VWG retailers can buy and sell VWG used vehicles before cascading them into the independent market”.