Direct Line claims to be selling more than 100 cars a week on its Jamjar.com website since last month's launch. The website, a joint venture with Dixon Motors, supplies mostly UK-sourced cars, but also includes unofficial imports.

Paul Dixon, chief executive of Dixon Motors, said: “We paid a lot of attention to detail on the website and it's gone far better than expected.”

Mr Dixon plans to acquire more dealerships while expanding the website's capabilities. Investments will be funded from cashflow, which will partly come from sales on Jamjar.com.