After learning of the new live online auction recently launched by Infiniti Financial Services, Auto Remarketing caught up with IFS director of remarketing Kevin Cullum to talk about the impetus behind the program and how it benefits the manufacturer and its dealers, as well as the role of upstream and online remarketing.

As reported by Auto Remarketing, INFINITI’S 1ST CHOICE is a live online auction that gives Infiniti dealers the first shot at buying off-lease Infiniti vehicles.

The program uses Manheim’s Simulcast Everywhere platform. Through Simulcast Everywhere, Infiniti dealers can source the vehicles online then bid through the platform without having to compete with non-Infiniti dealers.

The cars are housed at dealerships and include end-of-term leases that have yet to be transported to traditional auctions. Testing was conducted in the fall, and the program just completed its first full month, Cullum said.

 Upstream & Online

Cullum explained that with increased supply in the used-car market, there are numerous benefits to giving your own dealer body the first opportunity at the cars and limiting how much inventory is placed in open sales.

With residuals bouncing back in recent years, the expense of transporting cars and coordinating the sale of the car was somewhat absorbed with the values being so strong, Cullum said.

“Now that market is kind of stabilizing and the values are starting to come down, both the manufacturer and well as the dealer are looking for ways to save some of that expense, because you don’t really have the value of the car taking care of that for you,” he said.

“At least from a Nissan standpoint, we’re looking more upstream simply as a cost-savings for us and a cost-savings for the dealer,” Cullum added.

As for online element, he said:  “That’s been a growing demand and really customer-directed. As the technology has gotten better, the confidence in the condition reports have gotten stronger, we’re seeing more and more (vehicles) being purchased over the Internet versus in-lane, which has really helped our business, helped us move the inventory, but at the same time, it’s helped dealers find vehicles that they otherwise would have had a tough time finding.”

More Details

These sales are held four times a week and include 400-plus used cars throughout the U.S. There are 205 Infiniti dealers participating.

In the announcement of the program, Cullum said: “It saves them time, money and provides them with the first choice of pre-owned Infiniti inventory while still protecting residual values.”

Additionally, IFS said this gives dealers another competitive bidding channel to help them generate needed pre-owned inventory and cuts down on transportation, auction fees and reconditioning costs, while giving quick access of off-lease Infiniti vehicles to retailers.

When asked what role the expected increase in off-lease volume played in the formation of the program, Cullum said: “It played a part of it, but it wasn’t the primary driver. The primary driver was really to give our Infiniti dealers first opportunity at the off-lease inventory prior to being moved, where it would save us money, save them money, but yet protect the value of the cars by having a live bidding environment.

“It just happens to be a perk that with the off-lease inventory rising, it gives us another sales channel to try and leverage,” he concluded.