Dealers' best opportunity for selling cars online could come from the business-to-business sector rather than private sales, according to Epyx managing director Greg Connell.
Mr Connell, who helped develop Pendragon's Tins car retail website, believes the dotcom sector is ripe for consolidation.
"The focus is on business-to-business internet activity now," he said. "My work at Tins opened my mind to the supply chain potential of the internet."
Epyx, a Leeds-based e-commerce firm, has launched 1Link, which enables dealers to shift the car buying and selling process online. Thirty dealerships are piloting the software.
"Costs like invoicing, phone and fax bills will be massively reduced. It will also greatly improve the enquiries-to-orders ratio because dealers can respond in real time," said Mr Connell.
Dealers pay a one-off £295 licence fee to use 1Link, which includes a free half-day training seminar, and £4 for each confirmed order.