CitiCapital to Remarket Via Live OnLane Auction Site
CitiCapital Fleet has partnered with the National Association of Fleet Resale Dealers (NAFRD) and online automotive remarketing and inventory procurement provider OnLane in a move to remarket its clients’ lease-end vehicles via a live online auction site. In August of this year, CitiCapital Fleet launched a pilot test with NAFRD and consigned vehicles to OnLane’s live online auction site. A pilot study of more than 500 sales indicate results that are competitive with traditional brick-and-mortar auction sites.
“The Internet leverages our strategy to attract the largest pool of prospective buyers, thereby maximizing our clients’ investment,” said Citi-Capital Fleet remarketing vice president Peter Klopchic.
In March 2001, CitiCapital Fleet decided to sell all lease-end vehicles through a multiple competitive bidding process. “This decision directly affected NAFRD dealers who tradi-tionally purchased lease-end vehicles from CitiCapital Fleet (and other) fleet management companies on a one-on-one negotiated basis,” said Klopchic. "Given that there are more than 100 NAFRD dealers spread across the country, the only effective means of organizing a competitive bidding auction was through the Internet.”
NAFRD researched online auction sites and in June selected OnLane. Its live, multiple competitive bidding format allows potential buyers to bid in real time and to see who is bidding against them. The benefits of this approach to CitiCapital clients are:
- A national market representing the largest pool of potential buyers — demand can be filled where it is the highest without regard for geographical considerations.
- Lower transportation costs than traditional auctions because NAFRD member companies use their own drivers for pick-ups.
- Fewer disputes and cases in arbitration due to the fact that NAFRD is a closed community and its members can trust that an accurate assessment of vehicle condition has been made.
- Reduced days to sell.
CitiCapital Fleet plans to expand its Internet sales through NAFRD/OnLane and other similar Internet auction sites, including Manheim, ADESA, and Autodaq.