Dealer Auction willl supply digital auction services to Volkswagen Group UK's franchised car retail networks after signing a preferred supplier agreement with the German OEM.
The partnership, which covers the five core Volkswagen Group brands of Audi, Volkswagen, Seat, Skoda and Volkswagen Commercial Vehicles, aims to retain more Volkswagen Group vehicles within its franchise networks by creating a ‘closed’ network on its digital trade auction platform.
The network allows Volkswagen Group retailers the opportunity to sell overage or unwanted part exchanges to other Volkswagen Group franchises.
Le Etta Pearce, the chief executive of Dealer Auction, a trade-to-trade sales joint venture of Auto Trader and Cox Automotive, said: “We are delighted to be providing Volkswagen Group UK with a solution to assist the repatriation of stock within their network.
“Our new closed network functionality offers retailers an efficient disposal route for their part-exchanges or overaged vehicles, while generating greater returns.”
Barney Butterell, project lead at Volkswagen Group, said: “All too often we see quality Volkswagen Group vehicles being traded away at open auction because they are overage or from a different VW brand, when in fact they could be a viable retail prospect in another geographical location, or on the forecourt of the correct Volkswagen Group franchise.
“In creating the closed Volkswagen Group branded network Dealer Auction are providing an opportunity whereby VWG retailers can buy and sell VWG used vehicles before cascading them into the independent market”.
Volkswagen Group retailers will also have access to the Dealer Auction open network, where they can offer non-franchise part exchanges to upto 5,000 trade buyers.