A quick buyer is being sought for rental provider 1car1, which is in administration, after its financiers demanded the company’s 15,000 vehicles be returned to them.

If a buyer is not found, the nationwide fleet of cars and light commercials will be broken up within five weeks and the remaining 600 1car1 staff will lose their jobs.

A spokesman for the administrator, PricewaterhouseCoopers, said while it was “encouraged” by the level of approaches to purchase either part of or the entire 1car1 business, it is still too early to say whether these will materialise into a buyout.

The arrival of 15,000 vehicles in the remarketing arena so quickly will also impact on the sale performance in this already unstable market.

However, managed properly the effect could be positive.

“It could be argued that additional stock would be welcome in today’s market which has been seeing values consistently rising largely due to restricted volumes available,” said CAP’s Mark Norman.

“A clear majority of dealers are telling us they are having difficulty finding enough of the right vehicles for stock.”

But it is all down to how the remarketing of these vehicles is handled.

“What is unknowable is whether an influx of 15,000 cars and vans into the marketplace would better balance supply with demand or tip the market into an oversupply position, with consequently softening values,” said Norman.

“Used vehicles have attracted premium prices at recent auctions,” agreed Mark Cotterill, managing director of Europcar UK Group.

“However, a flood of used cars and vans may now take values closer to book prices.”

PricewaterhouseCoopers (PWC) appointed Steve Ellis and Mark Loftus joint administrators on 18 March.

They blamed the company's collapse on difficulties securing loans for a fleet renewal programme.

“1car1 has sadly become reliant on levels of funding which are unsustainable in the current credit climate," said Ellis.

"1car1 is a well-known brand with an exclusive network and we remain hopeful that it will prove attractive to a purchaser.

"Potential buyers for a radically restructured business will need to act quickly as we are returning the fleet to funders at their request.
1car1 operates from Leeds but has 87 sites throughout England, Scotland and Wales.

It employed around 800 people, 200 of whom have already lost their jobs.

The administrators said they are working on strategies to "salvage value from the business, however the main trading business and the company’s 15,000 vehicle fleet is likely to be wound down over the next five weeks".

Prospective purchasers should contact Chris Rooney christopher.b.rooney@uk.pwc.com in the first instance.

 

What you are saying online about 1car1
“It is panic but not blind panic. The companies are working on the basis of survival now.” - RentalManager

"The tide went out and they were left naked on the beach." - Rentman

“In 1989 a Transit van for the day was £48 plus insurance plus VAT…I was told of a company that were now offering a similar van for £16.42 per day.” - Nevtherev

“I believe that we have a fundamentally sound industry, sure there are some bad operators but there are also some very good operators.” - Spade