Manheim Strikes Remarketing Deal with BMW Group Financial Services
ATLANTA and WOODCLIFF LAKE, N.J. — As part of a new partnership with BMW Group Financial services, Manheim is distributing and remarketing all BMW and Mini company cars originating from the automaker's North American headquarters.
And it appears to be paying off already, as the turn rate on these company vehicles has decreased from roughly 35 days to sell to 16 days since the program launched, according to Nick Peluso, Manheim's senior vice president of customer management, and Mark Davidson, Manheim's vice president of national accounts.
These Manheim executives discussed the program in more depth with Auto Remarketing late last week.
"That equates to holding costs. … When you take that many days out of the cycle, that's significant savings," Peluso told Auto Remarketing.
Under this partnership, BMW and Mini dealers throughout the U.S. can bid on these company vehicles in a single pool, officials noted. These units are sold through a closed OVE.com BMW seller group and Manheim Simulcast sales.
Manheim's distribution center in Chestnut Ridge, N.Y. — which is just three miles from the BMW of North America headquarters, the Manheim officials noted — handles the transactions.
Basically, these units are housed at the distribution center. After they are purchased, they are then sent directly to the purchasing dealer.
This translates to significant savings on time and money, as the units do not have to be shipped to a physical auction location and then likely transported again to the lot of the purchasing dealer, executives noted.
Specifically, the following is how Manheim's distribution center's services are designed to work:
—Employees of BMW Group can drop off their existing company vehicles and get their new company vehicles.
—All units delivered to BMW Group employees have a pre-delivery inspection process.
—Manheim conducts InSight Electronic Condition Report with AutoGrade on all the vehicles.
—Once company vehicles are taken out of service, they are inspected, reconditioned, photographed and listed for sale via OVE.com or bid-sale to franchised BMW and Mini dealers.
—Safety, warranty and software updates are conducted.
Peluso said processes at the distribution are designed to be quick, as Manheim is aiming for a 24- to 48-hour turnaround once vehicles are turned in and entered into the operating system.
Offering his thoughts, Randy Beil, general manager of vehicle sales for BMW Group Financial Services, noted: "At BMW Group Financial Services, we are always looking for innovative ways to improve our service to our customers while improving our business processes at the same time.
"This remarketing program resulted from our close working relationship with Manheim, and from our joint efforts to generate remarketing efficiencies while maintaining high-quality service and support," he continued.
"The new vehicle turn process will allow buyers in regional markets where demand is greatest to purchase the vehicles they need. It's a win-win solution that leverages Manheim's technologies while increasing our efficiencies," Beil shared. "We look forward to expanding this program to our other facilities in North America later this year."
Peluso added: "Manheim prides itself on offering online solutions that help customers like BMW Group increase efficiencies while saving time and money. We value the relationship we've built over the years with BMW Group and are honored to have been selected to facilitate this critical operation for them."
Among the many benefits to dealers, Manheim noted that the program saves time and money and offers them a strong selection of vehicles to fulfill their needs all in one place.
Not to mention, dealers also can access these vehicle anytime they want.
"Now they have a very desirable vehicle they can buy 24-7," Peluso noted. "They don't have to wait until once-a-week or once-a-month (sales)."
Davidson added: "Dealers have a lot of confidence in these cars and the convenience of buying these cars online is a big plus, as well."
Dealers can also build buying loads more effectively, filling their load in one location online instead of having to buy from various spots around the country.
Regarding the benefits for Manheim, Peluso noted: "For Manheim, we have access to cars in one location. The biggest efficiency is that we have more vehicles in one location to sell quicker.
"Basically, the entire selling process is quicker," he concluded.