DriveTime has named Manheim and Go Auto Exchange, an auction that specializes in dealer-to-dealer sales of low-end used vehicles, as its exclusive sales outlet for remarketing vehicles, the companies said today.
DriveTime operates 122 used-car stores, in 47 markets, focused on consumers with subprime credit.
Go Auto Exchange is a joint venture between DriveTime and Manheim and has one location each in Atlanta, Phoenix and Houston. Go Auto Exchange and Manheim are units of Cox Automotive.
“This partnership with Manheim and Go Auto Exchange is another example of how we are creating greater vehicle efficiencies for DriveTime while giving customers greater access to larger vehicle volumes,” Heath Vaughan, DriveTime managing director of inventory, said in a statement.
Up to 4 lanes
DriveTime is expected to buy and sell “over 100,000” units at Go Auto Exchange’s locations and about 27 Manheim locations, said Susie Heins, Manheim vice president for dealer sales.
Heins said Go Auto Exchange auctions have up to four lanes and sell vehicles for DriveTime stores that are in their markets and for franchise and independent dealers.
Go Auto Exchange locations specialize in vehicles priced at $6,000 or less and do not offer digital capabilities or reconditioning services that typically are found at Manheim locations.
Heins said Go Auto Exchange is the result of DriveTime telling the auction giant that DriveTime inventory could fetch better prices at auctions different from those typically operated by Manheim.
“DriveTime had a need and said, ‘We have an idea for a Manheim-lite version of an auction, and we’d like to partner with you,’” Heins said. “It is been in place for about a year now.”
Manheim also has an equity stake in Go Financial, a subprime retail finance company that also is a Cox Automotive unit.
DriveTime will continue to buy vehicles at Manheim and other auctions. The exclusive relationship only covers DriveTime’s sale of vehicles at auctions.