BMW Group Financial Services plans to expand a program that resells company-owned BMW and Mini vehicles exclusively through Manheim.
Randy Beil, BMW Group Financial's general manager of vehicle sales, said all vehicles turned in by BMW of North America employees at company headquarters in Woodcliff Lake, N.J., are being sold to BMW dealers on Manheim's online remarketing channels, OVE.com and Manheim Simulcast.
Nick Peluso, a Manheim senior vice president, said the nation's largest auction chain conducts no physical auctions at the distribution center.
A distribution center near BMW's headquarters handles all remarketing duties, such as inspections, reconditioning, photography and listing vehicles on one of Manheim's remarketing channels. Manheim also inspects new vehicles delivered to BMW Group employees. The program began nine months ago.
The companies will open a second distribution center near the BMW plant in Spartanburg, S.C., in the third quarter, Beil said. About 4,000 vehicles a year will be remarketed out of the New Jersey site and about 6,000 at the Spartanburg site. A third center in Hilliard, Ohio, near BMW Financial Services, will follow, Beil said.
Beil said mixing late-model, low-mileage, company-owned vehicles with off-lease vehicles improves sales for both vehicle groups. The program also saves BMW Group time and money because the vehicles are not moved until they are sold, he said.
"We have better dealer attendance when we have some 2010 company cars with 5,000 miles mixed together with some 2007 30,000- and 40,000-mile cars," Beil said. "In some cases, we have the vehicle turned in on a Tuesday and up for sale the very next day."