ATLANTA -

DriveTime Automotive Group solidified its pipeline of potential inventory to boost its buy-here, pay-here business prospects.

A new partnership finalized on Thursday installed Manheim and Go Auto Exchange as DriveTime’s primary source for remarketing wholesale inventory through its physical locations, mobile auctions and online. DriveTime is one of the largest players in the BHPH industry, operating 122 stores in 47 markets.

And the company needs the inventory as along with continuing to move metal through retail installment contracts, DriveTime has ramped up its leasing business in recent months.

Thursday’s development enhances the relationship between DriveTime and Manheim that already had several offshoots.

Both companies have developed a variety of solutions for their customers, including the creation of Go Auto Exchange, a new wholesale auction company focused on independent dealers and the low-end vehicle segment, and Manheim’s equity stake in Go Financial, an innovative subprime finance company providing dealers with more financing options via NextGear Capital.

And now DriveTime’s lots will be stocked with vehicles that came through one of Manheim’s wholesale channels.

“Through our close working relationship, we frequently collaborate on new and different ways to help our mutual customers succeed,” said Heath Vaughan, DriveTime’s managing director of inventory.

“This partnership with Manheim and Go Auto Exchange is another example of how we are creating greater vehicle efficiencies for DriveTime, while giving customers greater access to larger vehicle volumes.” 

Manheim vice president of dealer sales Susie Heins said this partnership offers both companies a variety of benefits, including added flexibility in developing new technologies, increased efficiencies by doing business with a single vendor and the ability to focus on solutions for a broader base of existing and new customers.  

“Our strong partnership allows us to put together our best thinking to create new and better ways to help our customers succeed,” Heins said. “With dealers’ ongoing needs to access wholesale vehicle inventory and various types of financing, our joint expertise can deliver these services efficiently and effectively.” 

In addition to Manheim locations all over the country, Go Auto Exchange features locations in key areas such as Atlanta, Phoenix, Houston and Orlando, Fla.

“The biggest benefit for DriveTime, obviously, is that they’ve got multiple places to drive inventory, at multiple marketplaces, as well as to multiple types of buyers,” Heins said during a phone conversation with sister publication Auto Remarketing. “But they’re also able to offer financing and take advantage of all the wholesale expertise that Manheim is able to bring to them.

“What that means is all the inventory that DriveTime sells in the marketplace, wholesale, will now come either to a Manheim facility or to one of our auction companies named Go Auto Exchange, as well. It brings it to close to 30 locations between the two companies that they will be sending all of their inventory.”

Heins hopes the evolution of their relationship will allow the two companies to simplify and strengthen each other’s business goals.

“We’re really, really excited,” Heins said. “They’ve been terrific to work with over the years, and this is just one more confidence in Manheim in being able to select us, and it really enables them to drive and sell inventory at multiple locations. But it also frees both of us up to really look at other projects we want to work on that’s going to further their business, as well. They’ve been great to work with — Ray Fidel (president and chief executive officer of DriveTime) and his team is awesome.”

Staff writer Josh Hyatt contributed to this report.