CHICAGO - The use of the Internet for upstream remarketing activities and broadcast auctions continue to dominate auto remarketers' strategies in 2004, according to a new industry study conducted by Emercent Solutions with assistance from the International Automotive Remarketers Alliance (IARA).

The findings, released March 18, are derived from a survey of 35 auto industry executives representing 52 percent of the vehicles remarketed annually.

Eighty-two percent of consignors indicated that the major change to their strategy from 2003 to 2004 was the increased focus on the use of the Internet as a channel. In 2004, consigners increased usage of online proprietary dealer auctions by 3 percent and broadcast auctions by 5 percent. Sales via traditional auctions decreased 6 percent in total. Remarketers' focus on technology will remain strong in 2005, as 87 percent of consignors perceive the biggest opportunity during the upcoming year is improving exposure through technology.

"We are continuing to see a shift in the way vehicles are remarketed," said Julie Andersen, vice president of strategy and delivery for Emercent. "Consignors, looking to maximize profits, are increasing their upstream channel usage and also their use of broadcast auctions. It is all about exposure—and consignors are using technology to achieve this."

Other noteworthy study findings include:

The Emercent study built upon 2004 upstream findings and was broadened to highlight trends in channel usage, vehicle volume, pricing, vehicle value, and challenges and opportunities remarketers face. Responses were collected from 19 captive lenders, 8 banks, and 8 fleet/lease organizations.