Autobytel.com has created a new division to expand its wholesale offerings to a wider base of car dealers – and drive away with a bigger chunk of the $93 billion per year automotive market.
“Our current wholesale operation is mostly dealer-to-dealer, and our dealer network tends to be very geographic in nature,” says Thomas Nashmy, newly named director of the firm’s business auction systems unit. “Now, we’ll be looking for more dealers and in multiple locations.”
In addition to finding more dealers, Autobytel is looking to attract more car fleet and rental companies to use its wholesale auction site. As part of its set-up, Autobytel is providing buyers and sellers with a set of online tools to help train them to perform online auctions, manage inventories and analyze their results.
To promote the new service, Autobytel plans to run ads in Automotive News and other used car trade magazines, and possibly on some automotive Web sites, says Nashmy. The Santa Monica, CA-based company is also eyeing marketing partnerships with other online firms.
But first, Autobytel is going to rely on its 35-person national sales force to spread the word. They will, says Nashmy, try to sell those dealers and others on the efficacy of using the Web versus the more difficult and time-consuming traditional wholesale auction process. That consists of traveling around the country from auction to auction to replenish used vehicle inventories.
Autobytel’s expansion of its wholesale business comes on the heels of its acquisition of A.I.N. Corp. – the owner of competing site CarSmart. com – for $3 million and 1.8 million shares of stock.
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