Manheim Auctions has made its site in Mansfield, Notts, a franchised dealer-only sales centre to cope with growing demand from dealer groups in the Midlands.
Dealer sales director Alan Cureton said "three years of massive growth" had been sparked by Manheim's Dealer Direct sales programme, which was attracting business from dealers like Reg Vardy, DC Cook and Ilkeston Co-op.
Manheim part-exchange and overage stock sales are running 30% ahead in the first half of the year, compared to the first six months of 1999. This follows 46% growth the previous year and 30% sales rise in 1998 over 1997.
Mr Cureton said: "The launch of Dealer Direct sales provided large franchised dealership groups with real national competition in the disposals market for the first time.
"They have responded to the opportunity. The result has been a faster sale of unwanted part-exchange and overage stock and resale prices which reflect the vehicles' true market value because of the high numbers of quality buyers attending sales.
"Competition is the life-blood of this industry and Dealer Direct sales have provided a much-needed transfusion," he added.
Manheim has also installed £65,000 of designer lighting at the Leeds and Wimbledon centres.