Manheim Tucson has become the company's first all-digital auction.

The auction will feature a new four-lane format where vehicles won't run through lanes.

Instead, vehicles remain parked in designated spots and are offered for sale digitally by an auctioneer via oversized monitors featuring enhanced images, barcode price scanning capability, and condition report information, the company stated.

Buyers and sellers can bid in person or online using Manheim Simulcast.

The digital auction's inaugural sale included more than 300 online and in-lane bidders and achieved an approximate 76% sales conversion rate.

“Bringing the excitement of the auction to clients in a live, all-digital format is a key move in our broader digital strategy,” said Grace Huang, president of Manheim. “With advanced vehicle information and imaging, we are able to deliver digital solutions that create greater confidence and efficiencies while delivering a safer auction experience for everyone.”   

Manheim Tucson predominantly handles dealer vehicles under $5,000 which can be challenging to sell through digital channels such as Manheim Simulcast. Even with this disadvantage, the auction was chosen as an all-digital auction to prove that the format can appeal to all types of buyers.

The auction held its Digital Debut Grand Celebration sale today, where the team ran a total resource auctions sale and its regular sale, and also provided giveaways to the first 200 attending dealers.

While this is the first all-digital location for Manheim, the company stated that it is only an indicator of the changing remarketing landscape.

In an interview with Vehicle Remarketing earlier this year, Nick Peluso, president of Manheim Digital Marketplace + RMS Automotive, stated that in the next five years, digital sales could account for up to 70% of Manheim's business with physical sales accounting for the remaining 30%.

Last year, of Manheim's 2 million vehicle sales, 44% originated from a digital sale. 

Physical auctions will always have a place in the remarketing business, but Peluso noted that its role will most likely change away from sales and toward services.