by Jon LeSage, editor, Used Car Market Reports
In a letter from Nov. 6, the International Automotive Remarketers Alliance (IARA) affirmed its commitment to see a cross bidding multi-platform online remarketing solution to become widely adopted. Having a “central interface that allows consignors to offer vehicles on various online sites at the same time with continuous bidding across all venues” is a win-win for all parties involved, including consignors, auctions, and service providers. In addition to centralizing the interface across the industry, benefits include creating a competitive bidding environment, improved sales results, and making sure the vehicle for sale is exposed to the highest number of buyers possible.
In addition to market consistency, the central interface will create a competitive bidding environment and improve sales results by ensuring that a vehicle is being exposed to the highest number of buyers possible – more eyes on more cars.
But where does it stand now?
Earlier this year, ServNet announced that it had joined ADESA in deciding not to participate in the IARA’s currently proposed MPS. The company agrees with ADESA that, as it’s currently structured, the proposed MPS would erode competition while increasing technology requirements and expenditures.
Manheim, Columbus Auto Auction, BSC America, and WTG Global (Whann Technology Group) filed a request with the U.S. Department of Justice during the spring seeking confirmation that MPS, in its current form, is in compliance with antitrust laws. Manheim and its colleagues believe MPS would help keep the industry on track to produce live transac-tions this year; they think it would drive innovation and efficiency to auctions, consignors, and dealers. As far as we can tell, they’re still waiting to hear back from the Dept. of Justice on it.
As for the latest developments, IARA did a survey finding that 87% of responding IARA consignors showed support for a cross bidding multi-platform online remarketing solution. ARI, Donlen, Emkay, Fiserv, GM, GM Financial, Hertz, Hyundai Motor America, Mike Albert Leasing, Motorlease, NextGear Capital, U.S. Bank Asset Remarking, and World Omni Financial Corp., signed the letter in support.
Seven additional IARA consignor members “expressed their strong support for the cross bidding multiplatform system but could not add their name to this letter due to internal company policy,” according to the letter. Three IARA consignor members said they did not actively support this initiative.
What about auctions and service providers? They’re not mentioned in the IARA letter. There has been a split in the auction industry over it, and it’s most likely been unresolved.