CONTRACT hire and leasing companies still rely heavily on the auction houses as their primary disposal route, with only the superstores showing any serious signs of growth in the volumes they handle. This still embryonic sector will account for about 4% of ex-contract car disposals this year - up from 1.4% in 1995 - and the report predicts that proportion will continue to rise.

The authors say the overall statistics are somewhat misleading and hide the diversity of remarketing methods - such as closed and electronic auctions - employed by the major players like Cowie Interleasing, Lease Plan and Lex Vehicle Leasing. The report also points out that many contract hire companies will dispose into dealerships owned by their parent companies and highlights the number of leasing companies which have set up their own retail and trade disposal centres.

Personal and nearly new leasing are seen as areas of growth for the future, the former as an attractive way for manufacturers to increase sales and the latter as a profitable way of soaking up nearly-new car supply.