Manheim Auctions has expanded into Scotland through a joint venture with the Scottish Motor Auction Group.

The partnership involves ownership of a new £2m auction centre in Glasgow, expected to sell up to 25,000 vehicles a year. The site, due to open next week, gives Manheim 19 centres.

John Bailey, Manheim chief executive, said residual values in Scotland, which have been low for several years, were now similar to England.

“We were persuaded to move north of the border by some of our major fleet customers who have large numbers of vehicles to sell in Scotland,” he said.

“It now makes economic sense for customers to sell their vehicles in Scotland rather than moving them to the south.” The Scottish Motor Auction Group, owned by Fife and Kinross Investments, sells around 50,000 vehicles a year through centres in Glasgow, Edinburgh, Aberdeen and Kinross in Scotland, and Newcastle upon Tyne.

The venture gives Manheim nationwide coverage as it bids to shake-up the auction market with a series of product launches planned over the next year.