SmartAuction, Ally Financial Inc.’s online auction platform, sold its 5 millionth car, the company announced today. The vehicle was sold during a special auction to Classic Chevrolet of Grapevine, Texas for $180,000, which will be divided among 10 charities in the Dallas area, Ally said.
The five-millionth vehicle sale represents 15 years of evolution for the platform, according to Ally. SmartAuction launched in 2000 and has since grown into a network of 8,000 wholesale buyers and sellers that bid on approximately 22,500 vehicle listings during each daily online auction.
“Nearly 1,200 different makes and models of cars, trucks, SUVs, motorcycles, and RVs are represented on SmartAuction, and buyers and sellers include auto makers, dealers, banks, fleet/rental, and auction companies,” Ally said in a press release.
In 2013, Ally “mobilized” the auction process with the SmartAuction app for iPhones and Android, which allows users to purchase a vehicle and pay for it automatically using their credit line. The app has an average of 22,500 log-ins each month, and usage doubled between September 2014 and September 2015, according to Ally.
“Reaching 5 million sales on SmartAuction is a testament to the performance of the platform over the years, and its ability to generate value for buyers and sellers around the country,” Steve Kapusta, vice president of dealership online services and remarketing at Ally, said in the release.
Then-CEO Michael Carpenter called SmartAuction a “huge competitive advantage” for Ally. He said in a conference call earlier this year Ally would “absolutely not” consider selling the auction platform to General Motors. Earlier, Ally sold most of its overseas operations to GM.
“We have probably a $500 [per] car advantage for us,” Carpenter said at the time. “So on an even-up basis in the leasing business, we are substantially cost advantaged,” he said.
“We [also] have the superior information advantage, because we really know what the hell is going on in the used market. We don’t just use ALG data [to set residual values] like everybody else does. We have a very good system for tracking supply demand of the level of individual vehicles that enables us to manage risks in times better. It’s a huge strategic asset in the leasing business.”
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