MOTABILITY Finance Limited has launched an internet-based used car sales operation as part of a disposals battle plan to de-fleet more than 100,000 vehicle a year.

The online initiative is set to be the UK's largest internet remarketing system as MFL, the business arm of disabled motoring charity Motability, runs a fleet of about 370,000 vehicles.

MFL started to take residual value risk for its fleet in 1999, replacing a system where dealerships supplied vehicles on buy-back arrangements.

Motability cars are run on three-year replacement cycles, meaning the first large batch of vehicles will hit the used car market during 2002. This has created anxiety that the centrally-organised disposal of 100,000 vehicles a year, the majority of a similar type, age and mileage, will undermine residual values.

In March, MFL drew up a four-point disposal plan, firstly offering cars to supplying dealerships; then to a wider pool of dealerships; then to all MFL approved buyers, before finally selling through auction.

From the first stage, MFL will use the internet to offer and sell vehicles online to all dealership customers, through a new service called mfldirect. Among firms approving the move was Glass's Guide, with Adrian Rushmore, chief car editor, saying: 'It is encouraging that MFL has adopted such a well researched and responsible approach to vehicle remarketing.'