Autoebid.com launches reverse auctions linking dealers to private new car buyers

Article 13th January 2004

A new online service launched by Autoebid claims to be the first-to-the-market reverse auction for new car buyers in the UK.

Consumers specify the model they are interested in and the maximum price they are willing to pay, then suppliers from across the UK start a bidding war for their business. As a benchmark for both buyer and supplier, Autoebid.com displays the best price it has previously been able to source. If the buyer has been able to independently source a better price, this can also be included as a target for suppliers.

Consumers can pay both the deposit and the balance for the vehicle into a secure escrow account controlled by Fortis Bank, which pioneered a similar service to users of the import site www.oneswoop.com launched in the 1990s.

Autoebid.com does not take a commission from suppliers competing for sales. "This allows us to retain our independence and enables us to access every supplier nationwide, meaning that we are able to offer buyers the most competitive prices and the quickest delivery times," explains Amin Saleem, founder of the enterprise

Instead, successful buyers pay a finder's fee of 1 per cent of the purchase price, or £250 whichever is greater, pre-authorised via Barclays Merchant Services before the buyer enters the reverse auction. This confirms to suppliers that a winning bid will mean a confirmed order.

With a 'Group Buying Scheme', if more than five people are looking for the same vehicle, Autoebid.com will negotiate a bulk discount to win all of the business. Typically, this equates to a further 3 per cent discount with 5-10 cars, and 5 per cent for 10 or more. (www.autoebid.com)

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