Manheim and a consortium of major banks will create an upstream vehicle sales platform set to launch in September that will give major banks a more prominent presence on the Internet.
Termed Bank Vehicle Exchange (BVE), the newly established marketplace for lease-end and repossessed bank vehicles is the outcome of a joint development effort by the coalition of major banks and Manheim. By consolidating bank-owned vehicles for sale, the site will be geared to dealers who are increasingly seeking quality used vehicles online. The site will enable banks to dispose of quality lease end and repossessed vehicles prior to going through an auction sale and help assure that banks capture the higher values that can be derived through more timely sales to a national marketplace.
“This bank initiative builds on the success of the upstream Internet sales platforms being operated by captive finance companies,” said Nicholas Stanutz, executive vice president of Huntington Bank and chair of The Consumer Bankers Association’s Auto Finance Committee, who along with Mark Pregmon, senior vice president of SunTrust Bank, assembled and co-chaired the bank industry group.
BVE is the culmination of extensive discussions and meetings among bankers and Manheim to develop a bank upstream channel.
The consortium of banks involved in the development of industry upstream platform included almost all the nation’s leading banks that are active in auto leasing and retail financing. The BVE site will be available for exclusive use by all banks and qualifying independent auto finance companies that meet the group’s criteria for membership.
Manheim is planning to commence aggressive marketing of the BVE platform to its 65,000 dealer customers in September following some pilot studies and will handle all transaction services including: vehicle inspection, grounding, transportation, payment processing, funds processing, titling, reconditioning, and auction services once the initial pilot has been completed. Bank members may select among these services or, at their option, use any other service provider.