Exponential Growth Predicted For UK B2B Used Car Sales Online

Online UK remarketing company Autorola is predicting a 100 percent increase for online business to business (B2B)car sales during the next five years. Currently, only about 15 percent of B2B sales involving used cars are done online. By 2016, this figure will jump to nearly 30 percent, says Autorola. Despite this, offline auctions will still be a viable way for businesses to purchase used vehicles.

Spokespeople for the remarketing company believe that almost all offline auctioneers will develop an online presence in the coming years. Over time, the percentage of online sales will increase in relation to transactions conducted offline. Peter Groftehauge, Autorola CEO, stated that there will be some physical auction network realignment, but this will be related to decreased numbers of used cars returning to market.

To continue to be viable, auctioneers require volume. This explains why several large sites have recently been mothballed. Online growth will be fueled by the remaining sites and an increasing number of online B2B used car providers, said Mr. Groftehauge. More business consumers will be securing car finance for vehicles purchased online rather than those bought through a physical auction.

Many car supermarkets, independent traders, and dealer groups have been forced to decrease staff levels due to the economy, according to the Autorola CEO. Online auctions are an easy way for staff to bid on automobiles across several channels in one day, without the need to leave their office. The convenience and efficiency aspects alone should have positive effects on the industry.

Autorola predicts that over 220,000 vehicles will be sold through its online platforms this year. With only two weeks remaining in 2011, this goal seems within reach. Continued growth in the online B2B used car sales market during the next several years provides car finance providers with substantial opportunities as well as a few challenges.