BMW has decided to split its used vehicle remarketing programme, which involves the sale of some 26,000 vehicles 20,000 of which are ex-lease and contract hire vehicles annually, between the country’s two largest auction houses - Manheim and BCA.

The two will sell vehicles valued in excess of £375 million every year on behalf of BMW UK.

Manheim will manage the remarketing of 6,000 vehicles annually from BMW UK, Mini UK and BMW Financial Services until the end of 2011.

Under the new three-year auction deal, BCA will also hold open and closed sales for BMW and Mini UK, BMW Financial Services, the BMW-owned but multi-marque leasing company, Alphabet, and all BMW virtual sales.

BCA will sell some 20,000 vehicles annually under the new arrangement, which also runs until the end of 2011.

The decision to split sales of its ex-fleet vehicles between the two auction houses was not only because the location of the pair’s auction centres provided better coverage – from Scotland to East Anglia - and therefore the likelihood of more buyers attending, but also about sparking some additional competition.

"It gives us better coverage and also increases competition between the two,” Tony Dean, BMW’s group remarketing manager told Fleet News.

"It's all about making sure we get the best possible prices."

As well as handling ex-lease and ex-contract hire vehicles, the auction houses will also remarket lease purchase returns and ex-BMW demonstrator or company cars.

The deal further expands BMW’s re-sale options. "Auction is our main route to market, but not our only one,” explained Dean.

“We have a various mix of remarketing options, like our own in-house auctions."

Both Manheim and BCA will offer BMW’s via their respective online auction facilities as well as through the traditional physical auction sales.

Mike Pilkington, managing director, Manheim Auctions and Remarketing said: “We are determined to deliver market-leading results to support the programme over the next three years.”
Mark Hankey, BCA sales director added: “This is a significant partnership that will see up to 20,000 highly desirable, prime ready-to-retail BMW vehicles offered for sale at BCA nationwide every year.”