Leasing sector support group Paragon plans to create the third biggest auction company in the UK with a new subsidiary, Paragon Remarketing.
It has recruited Peter Davies as the subsidiary’s managing director and former BCA stalwart Paul Joyce as director of sales and events.
The weekly online auctions will start in the third week of January. Five vendors have signed up, including manufacturers.
Davies said: “We entered the sector because the Paragon group is one of the biggest service providers to the automotive industry.”
The company has 355,000sq ft of stock preparation areas and transports 500 vehicles a day, so remarketing for leasing companies is “a logical step” he said.
“We can bring these cars to market through our sale or return programmes at low cost in a shorter time than traditional auction houses because we can sell the vehicles from a de-fleet centre.
“This can take out a significant amount of costs in the overall process of bringing a car to auction.”
To attract dealers, the auctions will have no buyers’ fee.
Paragon estimates it will annually remarket 20,000 vehicles aged either three to 12 months or two to three years.
It will target motor retailers wanting young used car stocks.
Davies, who previously held a senior marketing and business development role at US energy provider Indec, said: “We believe that a no buyer fee is a compelling factor when buyers are deciding where they source and purchase their cars.”
Customers and partners, including manufacturers and rental companies, understand the benefits of no buyer fees,
he said. “They are not necessarily paying anymore than they do to a traditional auction house.”