Manheim invests $17M to grow retail recon operations


Manheim has been investing $17 million to develop its retail reconditioning solution's proprietary technology platform and build new facilities, while upgrading existing ones.

In a news release, Manheim explained that its retail reconditioning solution is designed to help dealers increase efficiency and save time via offerings that include a 140-point retail inspection, mechanical and body reconditioning, detailing, merchandising, storage and transportation.

“Between saving time by outsourcing their retail reconditioning needs and freeing up their own service bays for paying customers, dealers can boost their profit on numerous fronts,” Manheim reconditioning vice president Angie Babin said in a news release.

“With the headwinds facing dealers today, any solution that can help them improve margins, manage greater capacity and turn cars faster is one that deserves serious consideration.”

While not replacing US Auto Sales’ centralized recon facility located in Lawrenceville, Ga., its marketing and business development director Neill Waters said Manheim’s retail reconditioning solution has become a dependable supplement.

“We buy a lot of vehicles in Orlando, Fla. We were shipping them all back to Georgia, reconditioning them, then sending some vehicles back down south to stores in South Georgia and Jacksonville, Fla.,” Waters explained in an email interview with AuSM.

Manheim Darlington's Retail Solutions center. Photo courtesy of Manheim.

“Our work with the Manheim Orlando facility allowed us to buy, recondition then ship direct to stores from the auction, ultimately reducing throughput days and logistics expense.”

Depending on client specifications and vehicle condition, dealers can generally expect a turn-around within four to 10 days, according to Manheim.

This year, the company said it has gotten more than 30,000 vehicles ready for retail for clients. These clients have included everyone from independent to franchise dealers, fleet operators and manufacturers.

Manheim has invested $9 million dollars in on-location operations, which includes  building out new facilities at three locations and adding new lifts, paint booths and imaging booths to other locations.

The remainder of the $17 million investment was invested in the solution’s proprietary technology platform, developed with Xtime, which allows dealers to receive real-time updates on their inventory, approve or deny work, manage transportation and track costs and invoicing, according to Manheim.

Manheim currently operates retail reconditioning locations across Florida; Illinois, Missouri, Michigan; Georgia; Texas; Colorado; California; Washington, D.C. and South Carolina.

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