About half of all vehicles sold through auction giants Manheim and ADESA are now being sold to digital buyers.
Both of those companies are promoting mobile app-based wholesaling platforms that allow dealers to conduct wholesale transactions from wherever they happen to be.
Even with the rapid move to digital transactions, some traditional auction companies say physical auction space will always have a place in vehicle wholesaling. Asked about one advantage physical auctions have — parking space — Chamoun said there could be instances when ACV may lag its physical peers.
For example, a landlocked dealership in metro area may not have space to park a vehicle once it sells. When buyers choose ACV's transportation services, vehicles typically are picked up within two and a half days, Chamoun said. ACV is testing services to provide quicker pickup; none have officially launched.
"But the majority of the dealers across the country now … are fine with how quickly we're removing cars off the lot," he said.
Chamoun, who said he is not closely watching traditional competitors, sees plenty of wholesale business to go around.
"With 20 million wholesale cars and 42 million used cars sold [annually], it's such a big space," he said. "We believe we will be one of the market leaders, and I'm sure others are going to do well."