Fleet News

Auctions 'last resort' as Ford Direct extends to dealers

FORD will use auctions only as a 'last resort' as it moves to further increase its control over supplies of used cars across the country. As revealed in March, Ford Direct has been extended to cover cars of up to four years old and dealers will be allowed to prepare their own vehicles for sale under the Ford Direct banner.

Participating outlets are currently being trained to ensure vehicle quality and service levels are equally high across the network and a press launch is being planned for mid-June. Ford says only substandard cars will in future be sold through the auction system, leaving Ford Direct to control all high quality vehicles.

The market leader has cancelled 14 auctions in the last six months as cars are diverted through the Ford Direct reprocessing channel. The strategy is expected to significantly bolster residual values as used supply is strictly managed by Ford. Ford took 30,000 units out of the daily rental market last year, leading to a dearth of nearly new cars coming back into the market. Ford Direct is now controlling the supply of ex-daily rental, captive and fleet buy-back stock to the dealer network.

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