Online remarketing not set to over-take physical auctions

Online remarketing channels are not set to over-take physical auctions in the near future, according to industry experts.

The ratio of vehicles sold in the UK at physical auction compared to online channel is currently about 9:1 (or 11%). When asked what the ratio would be in five years’ time most delegates at the Vehicle Remarketing Association (VRA) remarketing seminar predicted a 3:1 ratio or 25%.

Delegates felt that there would always be a place for physical auction as market interaction is important. However, the mix of vehicles at physical auction might change over time.

Delegates also suggested that the information required by online auctions had helped to raise requirements and improve physical auctions.

Physical auctions would only be threatened by technology if they failed to respond to it, according to experts.

Rob Barr, group board director at Manheim, said: “Physical auction has embraced technology and evolved in its own right rather than being overtaken by online.”
Delegates were also asked about the viability of online ‘retail’ remarketing channels such as Tesco Cars.

Although they felt they were a viable channel most delegates were unsure whether they would become mainstream.