Autobytel Plans Online Auction Site for Dealers

Irvine-based Autobytel.com Inc. will launch an auction-based program for car dealers to sell used vehicles to one another, the company said Sunday at the National Automobile Dealers Assn.’s annual convention.

The move comes at a time when the online auctions format, led by stock market darling EBay Inc., is hot and the market for business-to-business Internet commerce applications is growing, as more businesses upgrade their computer systems and revamp their strategies to accommodate the online world. Also, Priceline.com has been testing its “name your price” program on cars. The model originally was used for airplane tickets.

The new Wholesale.autobytel.com will open April 1, initially for the 2,700 car dealers belonging to the Autobytel.com network, and may be opened to other used-car wholesalers in the ensuing two months, said Tim Walker, Autobytel.com’s director of preowned products.

About 15.5 million used cars were sold wholesale last year, and 40% of those were between dealers, Walker said.

Autobytel.com, which plans to go public next month, already has an area on its Web site where individuals can sell vehicles, and Walker said it is likely that the company will introduce an auction format for the for-sale-by-owner area in the third quarter of this year.

The company said it also has plans to develop auction systems for vehicle-related products such as car stereos and parts.

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Jonathan Gaw covers technology and electronic commerce for The Times. He can be reached at (714) 966-7818 and at jonathan.gaw@latimes.com.