The UK's largest fleet is using Manheim's Simulcast interactive bidding service in a new contract which will see more than 100 cars a week offered at Manheim Leeds.
Motability has already been involved with three sales with an average of 40 buyers bidding online. Online buyers have bid on more than 25% of the online sales and purchased almost a fifth of all Motability's cars.
Lee McCombie, national auction sales manager at Motability, said: 'We are expanding our online sales programme as it opens up our vehicles to new buyers who maybe can't get to the physical auction or who wouldn't normally attend.
'We are seeing more bids from a wider group of these cyber-buyers which in turn are increasing prices of our stock going through Manheim.'
Online auctions are set to surge according to David Mercer, Manheim's director of Automotive Services.
He said: 'Technology is going to continue to play a greater role in the future of our business and we have seen online sales increase by more than 10% compared to the same period in 2003.
'We expect this growth to continue in 2004 as buyer acceptance of online auction services increases exponentially.'