Big trio in NZ vehicle sector take a stake in Auction Online platform
Three big names in the vehicle industry have taken a 40 per cent stake in dealer-only trading platform Auction Online for an undisclosed sum.
Auction Online, founded by entrepreneurs Rui Santos and Ben Carrancho, now have Armstrong’s executives Rick Armstrong, Mark Darrow and Troy Kennedy on board as shareholders as the business looks to accelerate growth.
The platform, which like other online markets or intermediaries such as Air BnB or Uber does not depend on physical assets, has been running in New Zealand for five years.
Santos told the Herald Auction Online has 800 to 850 dealers on its books, representing nearly a third of New Zealand’s entire motor vehicle dealership base.
The company has sold just under 10,000 vehicles since its inception.
Auction Online has no direct competition, although NZX-listed Turners Automotive and Manheim — one of Australia’s largest providers of automotive auction services — operate in a similar space. “We are a dealer-only platform,” Santos said. “Turners and Manheim have similar offers but they do other things as well.”
The company is about to launch a private-to-dealer offering in the next week or so, called Auto Cashup.
It also has plans to provide finance options for both buyers and sellers on the platform.
Auction Online was previously 50/50 owned by Santos and Carrancho.
“I think the new shareholders will open a few doors for us that were previously not really available, purely based on them being respected individuals in the market and in the industry,” Santos said.
“Their influence will streamline our growth and expedite it.”
Commenting on industry trends, Santos noted a big shift back to petroldriven cars after government incentives for electric vehicles came off at the end of last year.
Santos comes from a car dealership and accounting background, while Carrancho’s background is in marketing and software.
Santos said the company was not seeking an NZX listing “at this stage”.
Early in 2022, Armstrong’s — one of New Zealand’s largest private automotive groups — put plans for an initial public offering on hold, blaming market conditions.
The company had sought to list its shares on both the NZX and ASX.
“This is a pragmatic decision to see us come to market under more stable investment conditions,” chief executive Troy Kennedy said at the time.
“It was important to the team we get this right for investors and the business. We’re prepared to be patient and to continue executing on our growth agenda in the meantime.”
Armstrong’s has 18 international vehicle brands and has locations around New Zealand.