Simulcast Insurance Auto Auctions End Market Opacity in Markets

Openlane

In the past, insurance auto auctions have been rather limiting. Dealers like the fact that they can buy cars in bulk from reputable buyers, and that they can control costs. There have been big limits to insurance auto auctions, though. The biggest limit to insurance auto auctions is that they tend to be regional. These mean markets are not very liquid, and raises the disturbing possibility of arbitrage.

Thankfully, insurance auto auctions are now national. Thanks to services offered by Manheim, such as Openlane, Ove and Smartauction, insurance auto auctions are now truly national. These auctions are simulcasted on a variety of media, which can be accessed by any bidder with interest. Through the clearinghouse these services offer, bids can be verified instantly, keeping the market very liquid.

Similar things have happened with GSA auctions. In the past, GSA auctions were limited to those bidders who could physically attend the auctions. Washington DC area bidders could have consistent advantages, for instance. Like insurance auto auctions, though, GSA auctions are truly national. This simulcasting means that the GSA can finally get a fair price for its fleet vehicles. Read more about this topic at this link.

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