MG Motor UK has become the latest OEM to create a closed digital network on Dealer Auction, the UK’s busiest online marketplace for used vehicles.
The closed network harnesses Dealer Auction’s powerful wholesale marketplace and uses it to enable MG Motor UK to engage directly with its UK retailers. MG Motor UK will offer previously owned, low mileage vehicles to its retailers on a wholesale basis. The closed network can also facilitate retailer-to-retailer sales, or stock direct from fleets and leasing companies, via both timed auction and buy-it-now.
This approach combines the advantages of a digital auction platform – convenience, efficiency, and greater access to vehicles – and the high quality of engagement and stock associated with a franchised dealer network. Using the closed network, MG Motor UK can secure a healthy flow of low age and low mileage stock within its dealer group, maximising quality and quantity on forecourts, and helping ensure strong residual values for MG on-brand vehicles.
“We are constantly looking for ways to strengthen and widen the support we give to our retailers, and Dealer Auction’s closed network function enables us to really level up in this regard, maximising the vehicle lifetime revenue,” said Geraint Isaac, Head of Fleet Sales at MG Motor UK. “Now, retailers will enjoy instant visibility of available stock and the flexibility to browse and buy vehicles at a time that suits them. All without compromising the advantages of working directly with MG as part of the franchise network – a win-win.”
Digital closed networks are a growing trend, with more and more OEMs embracing the benefits they provide over traditional remarketing channels. Hyundai Motor UK Ltd, Nissan Motor (GB) Ltd, Mobilize Financial Services, and Renault UK are some UK examples of OEMs who have chosen Dealer Auction as a partner in driving the success of their networks.
“Closed networks are rapidly moving from a new idea to industry-standard status, and it is not hard to see why,” commented John Biggs, Operations Director, Dealer Auction. “Most existing users report improved efficiencies and strong profits across their networks.
“Something we understand about digital solutions in automotive is they cannot be applied for their own sake – they must deliver measurable benefits to customers across every sector of the market. Dealer Auction’s closed network facility has a track record of improving both day-to-day activities and the bottom line – and we are always looking for more ways to grow and improve the service.”
About Dealer Auction
Dealer Auction is the UK’s smartest and busiest automotive digital wholesale marketplace. We give buyers and sellers more choice, better insight and greater margin. Dealer Auction is an independent company, created through a joint venture between Cox Automotive and Auto Trader. For more information, visit www.dealerauction.co.uk.
