Toyota Financial Services will use the service as part of a major solus agreement with Manheim Auctions.
Using Manheim's electronic inspection service, cars will be inspected for damage on arriving at auction. The costed appraisal is then used to recharge any vehicle damage to the customer if considered appropriate.
The vehicles that are put up for sale will be finance repossessions and voluntary terminations. They will be sold through Manheim's Rotherham, Washington and Birmingham auction sites, while all vans will be directed through Manheim Haydock.
Cars include models from both Toyota and Lexus and the range of Toyota commercials, including the HiAce van and HiLux pick-up.
Manheim will manage aspects of TFS's disposal requirements from collecting cars to cleaning and refurbishing them before they are put under the hammer.
Andrew Yellop, TFS vehicle management administration manager, said: 'TFS took over responsibility for repossession disposals in 2003 and we are constantly working with Manheim to achieve the best price for our product in the second-hand market.
'Their advice has been invaluable and the current pilot we are undertaking with electronic inspections gives us valuable information on the condition of cars when we take possession from customers.'