Two major internet resellers – Carsite and Autoquake – have reported a significant increase in business from lease companies.
The internet sellers claim that the cars they sell achieve a higher price and at a lower cost to the seller than traditional auctions.
Autoquake, which sells some 6,000 vehicles a year supplied by many of the FN50 leading companies, has seen sales increase by more than 50% during the past three months.
“This strong performance is due to the company’s unique e-commerce technology platform that enables cars to be remarketed directly to consumers with factory-like efficiency,” said the site’s founder Fredrik Skantze.
“On average Autoquake attains substantially higher returns for fleets and a similar number of days to sale as auctions.”
During the last six months, Carsite has also seen a “dramatic increase” in enquiries from leasing companies looking for alternative routes to market.
“The vast majority of leasing companies have been locked into exclusive deals with the big auction houses, which is OK when the market is buoyant,” said business development manager Mark Thomas.
“But when times are hard, they need alternative tried and trusted methods of disposal.”
The company has developed two new alternative products – Preview and Postview.
Postview enables lease companies and fleets to offer vehicles direct to private buyers from their current de-fleet centre, which may be a traditional auction centre.
Preview sells vehicles before the lease contract ends.
Over 1,000 vehicles are now being offered via Preview, which since being launched in September has seen volume increase to over 100 vehicles per month.
“The most significant growth however, is not volume sold, as this market is still maturing, but in the number of leasing companies committing to the channel,” said Mr Thomas.
“They all see the benefit of cutting out the middlemen and benefitting from enhanced sale prices.”
Typically, Carsite is achieving an average of 110% CAP Clean.
“With online buying increasing by over 40% year on year, Carsite anticipates significant volume growth during 2009/10, with current lease clients expecting to list at least 5,000 vehicles per month.”
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