THE billion-dollar vehicle auction market is facing an “Uber” moment, according to the founder of a Queensland start up that has created an online market place for car dealers.
Dealer Trade™, which allows car dealers to display surplus stock on an app rather than transporting them to a traditional auction yard, has already signed up more than 1000 dealers since being launched last year.
The company, chaired by veteran director Wayne Myers, is now planning a listing on the ASX either later this year or in 2018 as it expands its operations.
“After a period of time if a vehicle is not selling, a dealer will pay to off load it to a wholesaler or send it to auction,” said Mr Myers. “We are like the Uber of the auction industry. We cut out the auction house and the wholesalers by allowing dealers to upload stock onto our app.”
Mr Myers said the system took the physical cost of dealers sending cars to auction houses. Dealers currently could spend up to three days each week attending local dealer motor auctions and pay an auction fee of between $100 and $150 for each vehicle bought.
“With our platform all that goes and the car stays where it is until another dealer buys it,” he said, adding they also could buy from government, hire car and corporate fleets. Dealer Trade™ boasts it has now signed up a third of the dealers in Australia for its app.
The company also has a subsidiary called CarRecord ® which provides online property and security reports on everything from cars and motor bikes to jet skis and motorhomes.
Mr Myers said the company has just sealed a deal to provide the reports to people buying vehicles on Gumtree and to the National Automobile Dealers Association (NADA) in the US.
He said people buying a vehicle are able to check whether it is not stolen, on the written off register or has money owing.
Mr Myers is a former executive chairman of Australian Water Queensland and a former director of state-owned energy retailer Ergon.
See the original article here at The Courier Mail.