Chelmsford-based Aston Barclay is proof that smaller remarketing companies can compete in the fleet sector against the big two – BCA and Manheim – despite widespread consolidation of leasing providers.

Set up in the 1960s by Les Scarborough as Chelmsford Auction Centre, it has set out its stall as an alternative to the national chains, focusing on service and competitive pricing.

While Scarborough remains active as chief executive, his son David now holds the operational reins.

Aston Barclay laid down its fleet aspirations in the 1990s with the acquisition of two sites – Westbury and Prees Heath.

It gave David Scarborough a foundation from which he could target larger leasing companies.

“Our Chelmsford site was always a major player when fleet was localised. But as the sector started going towards the control of big leasing companies, we found it harder to retain business,” says the national sales director.

“We had to have a bigger profile.”

But it wasn’t until Scarborough got the right people in key positions – including Barry Watts, ex-Manheim, to run the Westbury centre – that the company started to make headway.

Arguably the biggest statement of intent, was rebranding the business. Previously trading under three names, Aston Barclay, the name of the holding company, was introduced in April.

“We rebranded in order to appeal to the major vendors – it takes away the regional aspects of our sites,” Scarborough says.

“We had to convince companies that our people were up to the job, but already it has opened doors to the FN50 companies. We now work with five of the top 20.”

Scarborough, past chairman of the Society of Motor Auctions, predicts a growing opportunity for the smaller remarketing companies.

“We see leasing companies and fleets pulling away from solus national remarketing deals,” he says.

“Companies like Aston Barclay keep prices sensible; they need us in the market to keep it competitive.”

Scarborough plans more acquisitions. He has narrowly missed out on sites in Birmingham and north London, but is keen to add up to two more.

Growth hasn’t been without its complications, however. In 2005, Scarborough was forced to move his leasehold Chelmsford centre to a neighbouring site after the council decided to turn the premises into a recycling centre.

He acquired the 12-acre site’s freehold to prevent any repeat.

The Chelmsford centre will be revamped this year with a refurbishment facility, while the Westbury site will be doubled in size to six acres.

“Securing the future at Chelmsford delayed us a lot,” Scarborough says.

Amid the delays was the launch of Aston Barclay’s online auction service.

Scarborough admits that the concept was “pushed upon us” by the leasing industry, but he accepts that it opens up new markets and gives smaller groups a chance to compete nationally.

Within six months, online sales have risen to account for 15% of its 60,000-unit volume.

Scarborough is also keeping an eye on other internet developments, such as the channels selling ex-fleet cars directly to consumers.

He does not rule out a move into that market, most likely via a tie-up with an existing operator.

“It would give us access to the private market as an alternative,” he says.

Aston Barclay’s business is split equally between fleet and dealer, which brings a wide spread of buyers.

That helps when stock from one of the sectors is in shorter supply.

“There are stock shortages, but there’s enough to keep business ticking over. It benefits vendors – cars are making more than a year ago.”

While Scarborough expects shortages to ease, he also points to issues concerning this month’s VAT return to 17.5% and rising fuel prices.

“No-one will breaking records this year,” he says.

“But once people can get funding, they will quickly be back buying cars.” 

Hands-on role for managers

David Scarborough ensures his management play a hands-on role.

They regularly walk the auction floor talking to buyers and sellers.

“Our managers deal with all aspects of the business and their fleet customers,” he says.

“It gives us an understanding of buyers and sellers. I still auction cars, visit vendors and talk to leasing companies. It’s important and it’s fun. It keeps me focused on the market – I know what the buyers are saying by being close to them.”