Stephen Brighton, managing director of Hepworth Honda, cited a part-exchange Jaguar S-Type with a book value of £2,000. But after a listing on the Dealer Exchange website, it fetched £3,500.

Brighton acknowledged the pressure on UK dealers to move new metal as the market in the rest of Europe remained weak. But he echoed Potts’s view on the importance of featuring older stock; in Hepworth’s case typically Jazz and Civic models in the £4,000 to £6,000 bracket.

“We look at what is popular new and reason that it will retain popularity in three to four years’ time,”said Brighton.

About one third of Hepworth’s 700 used cars a year from its three sites are trade disposals. “We tend not to use auctions because of the fees, but are active on  websites such as Dealer Exchange,” said Brighton.

“We reckon to spend up to £400 on repairs, expecting to recoup two thirds on the sale. Anything above £500 when you’re looking for a reasonable margin doesn’t leave much room for manoeuvre.”

McBrierty said valeting alone could add several hundred pounds to a vehicle’s value, but emphasised that it was difficult to quantify. “More relevant than incremental value is the part it plays in engaging customer interest.”

While valeting is Motorclean’s core business, with a client list including 600 dealerships, it also provides SMART repair and paint and fabric protection. Just over a year ago it added a photography and video service for used vehicles featured online, which is now used by more than 50 dealers.  

 

The impact of online marketing and remarketing

Another company that has extended its service portfolio is Epyx. Usually associated with fleet disposals, its 1link platform now offers a dealer-to-dealer facility to remarket over-age and non-franchised stock.

As with similar online services, David Goodyear, head of business development procurement platforms at Epyx, pointed to its attractions compared with physical auctions: Fees – in Epyx’s case £50 per purchase – plus cost savings in delivery and collection and ‘days to sale’.

In his experience, buyers tended to opt for vehicles in their ‘natural’ condition and prep them themselves rather than pay a premium, typically £250, for one in ready-to-retail condition.

Jon Mitchell, sales director of online trader Autorola, said: “Putting a car in front of a national base of 2,000 buyers without it having to be collected and having to wait to go under the hammer works well for dealers. They particularly like the fact that a car can be put up for sale online at the same time as remaining for sale on their forecourt.”