Long before Carsite and Autoquake hit upon the concept of selling ex-fleet cars online to the general public, a motor industry IT expert was developing an internet-based trading platform intended to bring together buyers and suppliers.

Greg Connell’s broad ranging remit led to the launch of Epyx in 2000.

His concept is a simple one: facilitate the transaction between vehicle buyers and sellers via 1Link, Epyx’s internet-based umbrella product.

The execution is more complex. Epyx touches every aspect of the automotive sector, spanning vehicle ordering, online service authorisation and billing for dealers to de-fleet management and remarketing for fleets and leasing companies.

Four years ago it stepped up its profile in the fleet sector with the purchase of stock locator Smart Remarkit.

This service sends messages to registered fleet drivers when cars that meet their purchase criteria are due to be de-fleeted. It links the driver to the website and provides them with a quote.

Epyx says Smart Remarkit, which replaces a manual process of writing to drivers with details, has doubled the proportion of ex-fleet vehicles sold to drivers to 12%.

“The system also process manages the movement of the vehicle. It tells leasing companies where the car is and alerts them if things don’t happen on time,” says head of business development Ken Trinder, who joined a year after Epyx’s formation.

Most leasing companies have a cascade model where they put the vehicle on to 1Link for around 1,700 trade buyers to consider for a limited period before it is de-fleeted and sent to auction.

“It’s a pre-sell handshake – if the car comes back on time and in that condition, they agree to buy it,” says Trinder.

He adds that the volume of cars pre-sold in this way is still very small – only a couple of the 12 leasing company clients signed up to Epyx’s remarketing services are using it. But the potential is high.

“We don’t have any rental companies using it but I think it will appeal to them because they have a lot of very similar models,” says Trinder.

Epyx has a good track record of selling vehicles before they reach the auction hall. Although they might only be displayed for a short time, around half are sold via 1Link – 9,000 a month.

The rest get directed to the leasing company’s or fleet’s choice of remarketing partner.

“The best route to market changes all the time – it’s a fickle business,” says Trinder.

“1Link enables vendors to access the best route – it provides the data so they can make informed decisions over the fastest place to sell the cars. But we don’t sell them; we facilitate and manage the process.”

According to Epyx, every FN50 leasing company uses at least one aspect of its services. It’s also in talks with rental providers and outright purchase fleets. But it tends to be a slow process reeling them in.

“When they first come on board they want to use the management and logistical side,” says Trinder.

“As they get confident with the process they start to try other things. They continue to rely on auctions but over time they will experiment with online auctions.”

Epyx is developing a method of linking franchised dealers to a leasing company’s stock from day one, enabling them to track when cars are due for de-fleet. Trinder claims it “makes no sense” for retail stock to go to auction.

“This is the cheapest way of selling and buying cars. It also reduces the time to sell.”

He predicts “an evolution” where manufacturers look to gain control over where ex-fleet cars are sold.

Epyx has already created a programme with the Volkswagen Group where (initially) small volumes of ex-fleet cars will be sold directly to dealers.

Other manufacturers are considering adding their endorsement to a vehicle if it has a service history – but only if it’s sold via their dealers.

With Epyx extending its reach with leasing companies, Trinder likens the company to the automotive equivalent of BACS in the banking world.

“We don’t try to influence where people buy and sell cars; we just provide options and choice,” he says. 

Quote, unquote: Ken Trinder on...

Physical auctions…

“Traditional auctions won’t die out, but there are pressures on everyone to get more efficient. The internet is very efficient.”

The recession…

“The recession has been fantastic for us because it forces people to change their processes – when times are good, people don’t look for new ways to do things.”

Reducing costs…

“Leasing companies fear that if they put all their business to us, we will increase the price. That’s what one told us, but we have helped reduce their costs by a quarter. Our strategy is, and will continue to be, value for money.”

Growing business…

“We are seeing 9,000 trade sales per month via 1Link, up from 4,000-5,000 at the start of last year. This year we would like to see another 4,000-5,000 added per month both via growth with more leasing companies and by our current leasing companies selling more on our system.”