ACV vs Manheim, ADESA & Physical Auto Auctions: Indie Used Car Dealers
inpractise.com/articles/us-independent-used-car-dealers-wholesale-process
ACV Auctions Inc
Why is this company interesting?
ACV Auctions is an online wholesale auto auction platform that helps dealers source and manage inventory, price vehicles, transfer titles, and finance and transport vehicles.
The company operates in the $230bn US wholesale vehicle market which facilitates the sale of over 22m dealer and commercial vehicles per year. Of the 22m wholesale vehicles sold annually, ~32% are dealer-to-dealer, 22% are off-auctions, and over 30% are from commercial consignors to dealers. ACV operates in the dealer-to-dealer channel and competes directly with KAR Auction’s Backlot Cars and Manheim.
ACV offers buyers more transparency and assurance when purchasing wholesale and sellers and saves sellers time and money relative to using physical auctions. ACV’s fees are ~$360 per vehicle which is about half of KAR or Manheim.
The company has over 18,000 marketplace users and is looking to onboard larger dealers to build on the base of independents. ACV is run by the company’s early angel investor who took over from the two founders in 2016.
Written in December 2021
Aim of the Survey
Over the last 6 years, ACV Auctions has consistently been winning market share of the dealer wholesale auction market reaching ~8% in FY23. We’ve curated all our existing research and explain how ACV’s digital auctions and inspection reports compare to physical auctions in our recent ACV Learning Journey.
We surveyed 8 independent dealers to understand how they compare digital vs physical auctions, limitations of ACV’s process, and long-run challenges and opportunities for ACV to win a majority of the wholesale auction market.
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