The National Independent Automobile Dealers Association said Thursday that ACV Auctions is now a bronze-level national corporate partner of the organization.
This follows news from earlier this month, when ACV announced a $31 million round of Series C venture funding that will allow it to double its footprint and expand coast-to-coast by year’s end.
In regards to its latest move, ACV chief executive officer George Chamoun said in a news release: “NIADA has a long history of seeking cost-effective services that enable their members to succeed. ACV Auctions’ ability to connect franchise and independent dealers in real time with trust and transparency is a perfect fit with NIADA’s mission for its members.”
The move also comes shortly after NIADA partnered with another company in the automotive technology space. Earlier this month, NIADA announced Lyft as a national member benefit partner.
How ACV works
Franchised and independent dealers can bid on, buy and sell cars online via 20-minute auction sales on the ACV platform.
ACV said it is selling more than 1,000 cars per week. All listed cars are almost entirely from franchised dealers, with a few from rental car companies. The company is currently in talks to expand the seller base to the commercial consignor community.
A year ago, 99 percent of the buyer base was independent dealers, Chamoun said in a phone interview. They have since expanded and now 60 percent are independent dealers and 40 percent are franchised.
By NIADA partnering with ACV, dealer members can learn how to use the online platform to make inventory management more efficient, the association said.
“Our independent auto dealership members continue to expand their vehicle sourcing strategies through wholesale e-commerce channels,” NIADA senior vice president of member services Scott Lilja said in a news release.
“ACV Auctions has helped transform that market through innovative technology, first-class service, an easy-to-use platform and a cost-effective vehicle acquisition structure,” Lilja said.
“Finding retail-ready inventory at the right price in real time has become a critical factor to success in our market,” he said. “ACV Auctions helps our members accomplish that objective.”
$31 million investment to foster expansion
With aforementioned latest round of funding — which was led by led by Bessemer Venture Partners, Tribeca Ventures, SoftBank NY and Armory Square Ventures — ACV has now generated $53 million in funding since its founding.
ACV is currently available in 35 markets,Chamoun said in the phone interview, but this expansion will bump that up to at least 70 by the end of 2018 as the company broadens its reach to the West Coast.
ACV is planning to open in between four to eight new markets a month — depending on the month — as it expands westward, Chamoun said.
“We’re funded to be able to hire away. And we’re able to get across the entire country. We’re funded now to go after all 150 markets,” he said. “We’ll be in at least 70 by the end of the year, likely a higher number.”
ACV also plans to use this round of funding to continue improving its technology and customer experience. Chamoun said these upgrades will be designed to make it a “full-service” platform.
Take transportation, for instance. ACV is aiming to put the “technology and people and systems” in place so that when a buyer in Indianapolis needs the car shipped from the seller in Richmond, Va., the process is simple, Chamoun said.
In other words, you need the technology not just for the auction sale piece of the transaction, but the ancillary processes that come with the sale.
“The process of how our customers interact with ACV — everything from titles to payments to process — the interactions with our customers will become more and more digital and more and more easy (to use),” Chamoun said.