NEW ORLEANS -- ADESA Inc., the nation's second-largest vehicle auction company, has built a custom trading network that enables groups such as Bob Rohrman Auto Group, which has dealerships in Indiana and Illinois, to trade vehicles among their own stores, says CEO Stephane St-Hilaire.
He said other dealership groups in Canada are using the feature and there are other "interested parties," but he did not give more details.
The rise of such intragroup-only auctions reflects dealership groups' desire to keep good used vehicles in-house but move them to a store in a market where those vehicles are likely to command the highest possible prices.
St-Hilaire, who became ADESA's CEO Jan. 6, said the technology is similar to what the company makes available to captive finance companies that sell their vehicles, including ones coming off lease, exclusively to their maker's dealers. Those "private label" or "closed sale" auctions represent a growth opportunity for ADESA, he said. "