Manheim announced the creation of Go Auto Exchange, LLC, a new joint venture with DriveTime, a subprime credit used-car dealer. This partnership creates a separate, independent wholesale auction company focused on independent dealers and the low-end vehicle segment. Go Auto Exchange will establish locations this year in Atlanta and Phoenix, Ariz., and plans to expand to other key markets in 2014.
Tim Janego will serve as president of Go Auto Exchange. Janego, who most recently served as Manheim Regional Vice President for the East Region, brings broad experience and deep expertise in the wholesale auction industry. He will work closely with teams from Manheim and DriveTime to have the new locations open by the end of the year.
“Tim’s extensive background in the wholesale auction industry made him a perfect fit to lead this exciting new business,” said Manheim SVP and CFO, Joe Luppino. “Go Auto Exchange will benefit from Tim’s deep operational experience in running wholesale auctions and from DriveTime’s inventory and deep knowledge of this growing market segment.”
Go Auto Exchange and its locations will operate independently from Manheim and DriveTime locations. The company will be headquartered in Atlanta and plans to add locations in early 2014.
“As Manheim’s business today focuses on serving many different customers, Go Auto Exchange’s focus will be exclusively on the low-end vehicle segment in local markets,” said Janego. “Our highly-targeted approach allows us to concentrate solely on growing this segment, while allowing us to aggressively compete.”
Go Auto Exchange plans to hire a combination of auction pros and industry experts to run its locations. In addition, the company will partner with NextGear Capital to offer vehicle financing options to independent dealers. Go Auto Exchange will share more details in the weeks ahead.
“We’ve been a long-time Manheim customer, and this new arrangement with them is a result of our close collaboration and identifying what our mutual customers need and want to succeed,” said DriveTime Chairman Ernie Garcia. “Manheim’s success with wholesale auto auctions and our deep knowledge of the low-end vehicle market and independent dealers is a perfect match.”