Manheim, a subsidiary of Cox Enterprises (which also owns several newspapers, television and radio networks, and Internet technology platforms) is the world’s biggest automobile auction chain. Of course, this is more than just the occasional car auction here and there. Manheim employs 34,000 workers and has 140 different operating locations. Manheim helped 10 million cars change hands in 2008 alone, with transactions totaling more than $50 billion.

Manheim runs auctions for car dealers only, with cars usually available from a number of categories, including used cars more than four years old that major dealers don’t want; exotic cars from collector dealers; used rental cars from rental car agencies; trade-ins dealers have taken of brands they do not normally sell; and cars returned at the end of leases.

Manheim continues to extend its global reach through innovative technology, and serves the car “remarketing” industry in more than a dozen countries, including China. Both live auctions and online auctions are part of Manheim’s operation, bringing together volume buyers, sellers, banks, car rental agencies, government agencies, and carmakers in a vast automotive marketplace.

Actually, “vast” may be an understatement. Every year people buy 40 million used cars, which is three times the number of new cars bought. In 2008 36.5 million used vehicles were sold, compared with 13.2 million new ones.

photo credit: Paco Espinoza

Businesses like Manheim have a long list of services, including getting the cars together, writing condition reports, advertising the wholesale auctions with dealers, and reporting results of their auctions. These outfits also have facilities for complete body work for high volume dealers of used cars. In 2007, Manheim opened an enormous reconditioning center with state of the art technology and environmental improvements such as the use of water based paints.

Manheim is great at what it does, which is help cars change hands. In fact, it does it so well that the Federal Trade Commission (FTC) in 2000 ordered it to sell off nine auctions in seven markets. This was after Manheim bought ADT Auctions, which used to be a subsidiary of Tyco International, and the U.S.’s third largest automobile auction chain.  One of the dealers Manheim was ordered to divest itself of was in Phoenix, Arizona, where Manheim had a monopoly on car wholesale auctions. In the FTC’s ruling, Manheim had to sell eight ADT auctions and Manheim’s auctions in Phoenix to an Indianapolis company called ADESA in order to restore competition to those nine regions.

Ordinary folks can’t go to Manheim’s auctions. They are for registered car dealers only, and being registered isn’t necessarily an easy thing to do. While these are great places to buy cars, your only real shot at getting a car from them is if you happen to know a registered dealer who is willing get an advanced list and bid on your behalf. Of course, you’ll want to pay the dealer for going to the trouble, but it could still be a great way to get a good car at a great price.