An expected surge of used cars into the wholesale market, as lockdown restrictions are gradually lifted, look set to be remarketed online.
Adesa UK is receiving high levels of enquiries from finance and leasing vendors, and fleets, who have been sitting on de-fleeted stock since the lockdown began.
Jonathan Holland (pictured), managing director of the remarketing company, explained: “Many businesses who are keen to liquidate their assets and reduce any further exposure to depreciation are investigating online remarketing for the first time and are beginning to appreciate the expediency and cost savings.
“Furthermore, with social distancing restrictions expected to remain in place for the rest of the year, online remarketing is becoming an attractive option for trade buyers wary of visiting auction halls.”
He continued: “As an industry we are seeing pent-up supply and demand with vendors and buyers using the lockdown as an opportunity to re-evaluate the way they dispose and acquire assets with online making more sense than ever before.”
Adesa also believes new car buyers could switch to used purchases following the closure of car plants around the world.
“Once car factories start to re-open they will be working flat out to meet outstanding orders, so anyone entering the market for a new car will be going to the back of the queue and could face lengthy waits,” said Holland. “This should prompt many buyers to look at used alternatives and good quality defleeted cars will have a strong appeal.”
Adesa UK, a division of KAR Global, is a dedicated online vehicle remarketing provider for UK OEMs, fleet and leasing companies and dealers.
See the June issue of Fleet News for a full interview with Jonathan Holland