This sounds pretty fanciful, but it doesn't seem entirely implausible.
Occam's Razor says that the garage managers weren't interested because they're doing just fine, and your service wasn't solving a greater problem than the inconvenience of manually dealing with bids would cause. But I wonder if there's another factor at play here. :)
Anyhow, this is a great recap of your approach, and I'm sure it's been a fantastic learning experience for you both. Thanks for writing this, and for sharing it! On another level, it frustrates me to read your story: it seems like you guys had identified a real problem with users ready to try it out, and the other side of the market just didn't have the same degree of need. That sucks.