All of Toyota Financial Services’ vehicles have been offered for sale to dealers online, proving just how important online auctions have become. Mike Reid, the company's national remarketing manager, said that a vehicle that hasn’t been sold online will then be offered in a physical auction.
At last week’s National Auto Auction Association's annual convention, Reid told Automotive News that so far, about 72 percent of the used cars and trucks that Toyota Financial Services offers to dealers are sold via online channels run by Manheim and ADESA Auctions.
In comparison, the financial company sold 40 percent of its vehicles online and 60 percent at bricks-and-mortar auctions in 2009. Reid asserts that both dealers and the finance company benefit from selling online because it’s efficient and cost-effective. Dealers can access used-vehicle inventory at any time and they don’t even have to leave their dealerships.
The vehicles get a wider audience and it saves the cost of transporting many vehicles to auctions, says Autonews. He said that the company is progressing toward selling all of its vehicles in a virtual environment.
He said that in a lane at an auction, there may be 200 dealers but on its weekend sales, it gets about 2,000 viewers.
Reid said that Toyota’s remarketing has focused more on online channels in the last 2.5 years. Reid explained that when the economy was suffering, dealers had to reduce their travel budgets and went to auctions less often. He said that this is when Toyota began to achieve outstanding weekend online sales.