MG Motor UK creates closed dealer network on Dealer Auction

MG Motor UK has become the latest OEM to create a closed digital network on Dealer Auction, the online marketplace for used vehicles.

Dealer Auction said the closed network will enable MG Motor UK to engage directly with its UK retailers. MG Motor UK will offer previously owned, low mileage vehicles to its retailers on a wholesale basis.

The closed network can also facilitate retailer-to-retailer sales, or stock direct from fleets and leasing companies, via both timed auction and buy-it-now.

Geraint Isaac, head of fleet sales at MG Motor UK, said: “We are constantly looking for ways to strengthen and widen the support we give to our retailers, and Dealer Auction’s closed network function enables us to really level up in this regard, maximising the vehicle lifetime revenue.

“Now, retailers will enjoy instant visibility of available stock and the flexibility to browse and buy vehicles at a time that suits them. All without compromising the advantages of working directly with MG as part of the franchise network – a win-win.”

Dealer Auction said digital closed networks are a growing trend and OEMs including Hyundai Motor UK, Nissan Motor (GB), Mobilize Financial Services, and Renault UK, have chosen Dealer Auction as a partner.

John Biggs, operations director at Dealer Auction, said: “Closed networks are rapidly moving from a new idea to industry-standard status, and it is not hard to see why. Most existing users report improved efficiencies and strong profits across their networks.

“Something we understand about digital solutions in automotive is they cannot be applied for their own sake – they must deliver measurable benefits to customers across every sector of the market.

"Dealer Auction’s closed network facility has a track record of improving both day-to-day activities and the bottom line – and we are always looking for more ways to grow and improve the service.”

The MG Motor UK franchised car retail network will have capacity to fulfil the brand’s future target “in excess of 90,000 sales” by the end of 2022, says commercial director Guy Pigoukanis.

Land Rover dominated Dealer Auction’s August ranking of car brands and models offering the largest sales margin to car retailers.