Avis Europe's internet retail site could stifle the number of quality used car sales opportunities for dealers. The site will dispose of Avis's 4,000 ex-rental cars and be swelled by offering vehicles from manufacturers and other leasing companies.

This could result in 12,000 nearly-new cars a year being offered direct to the public rather than being channelled back through auctions and dealers.

Mark McCafferty, Avis chief executive, said the venture, jointly developed with US service provider Navidec, would be a “more consumer-friendly way of bringing cars to market”. He expects to sell about 3,000 units in the first year.

The AA, reported as launching its own online used car site, said the plans were a “possible broad strategic move” that should be viewed as a “long-term aspiration”.