Auction companies think outside the block: Online and off, strategies aim to help dealership groups

Auction companies are crafting ways for large dealership groups to buy and sell used vehicles more efficiently online and off.

"Technology makes a lot of this much easier to do," says Tim Zierden, ADESA senior vice president of dealer sales and services. "We're trying to facilitate some of the business models our dealer partners are asking for."

Manheim and ADESA, independent auction companies and SmartAuction, an online remarketing channel run by Ally Financial Inc., are hammering out a landmark initiative to list vehicles for sale simultaneously on competitors' online remarketing platforms.

Large-volume sellers, such as captive finance companies and large dealership groups, favor the change because they want every vehicle to attract as many bids -- and as much money -- as possible.

But that cooperative effort hasn't stopped Manheim and ADESA from racing to create and customize their own initiatives for dealership groups. "For Manheim, it's about creating innovative solutions that embed us in their day-to-day decision-making and their strategic planning," says Susie Heins,...