Auto Auctions Move Online and Upstream

Manufacturers are no longer giving away the store to keep factories open. Rental rates have not kept up with rising fleet costs. Car rental operators are trying to cope by streamlining operations and cutting costs in other areas.

One channel to look for savings is remarketing.
ATC-Onlane has partnered with Avis Budget Group to sell daily rental fleet vehicles wholesale, through the ATC Open Web site at www.atcopen.com. The program launched April 11.

The idea is to sell a portion of Avis Budget’s inventory faster and at lower cost compared to brick-and-mortar vehicle auctions. The service is designed to greatly reduce the time the vehicles are out of service before the sale, helping Avis Budget Group achieve higher overall fleet utilization.

Through ATC-Onlane’s extensive dealership population, buyers from across the country have access to rental cars coming off fleet.

“Avis was very clear that they wanted to maximize local income for the vehicles that were already in their portfolio, and at the same time minimize remarketing costs,” says Clive Kinross, senior vice president, ATC-Onlane.

ATC Open allows potential buyers to select from Avis Budget’s inventory of a variety of makes and models at a market “buy it now” price. Buyers receive detailed vehicle profiles, including the year, make, model, location and options. This helps them to make a more informed decision about purchasing vehicles in small or large quantities.

Cutting Costs by Improving Efficiencies
RACs may not necessarily see a higher return on their fleet vehicles sold online as opposed to the traditional way. The savings comes in the efficiency of the process.

ATC Open is designed to save costs on transporting vehicles to auction locations. With physical auctions, if your car doesn’t sell, additional costs are incurred to transport the vehicle back to fleet.

Transportation can take up to a week – valuable time in which the vehicle is both depreciating in value and not creating income.

Through this process, Avis Budget has been able to mechanize a formerly manual procedure through a direct-buy Internet chamber. “It’s like buying a book from Amazon,” says Greg Thiebault, Avis Budget’s director of turn-back operations/electronic sales channels.

CONTINUED:  Auto Auctions Move Online and Upstream
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