Camden Motors hopes to boost business from large fleets by promising end of contract vehicle disposal to reduce depreciation costs. The move is expected to produce a regular supply of cars to allow its Car Shop used car operation to expand.

The company is looking to expand the Car Shop network from one to eight sites within the next three to five years, with the first likely to open next year to meet demand from fleet partners.

Jeff Peyton-Bruhl, Camden corporate sales director, said: “We want to work in partnership with outright purchase fleets just the same as we are doing with contract hire and leasing companies. If we can supply new vehicles to companies we can work with them to achieve rapid disposal of de-fleeted vehicles to maximise cash flow and operating efficiency.”

Vehicles will be de-fleeted to fair wear and tear conditions laid down by the British Vehicle Rental and Leasing Association. Following a valet and smart repair, cars will be on the Car Shop forecourt within 48 hours.

Camden chief executive Paul Dunkley dismissed claims from experts who believe the UK is too small to accommodate a network of used car superstores.

“We had an unexpected experience with the Car Shop in Northampton – of the 5,500 used cars sold this year, 95% were to customers in the Northampton area,” he said.

“Our used car market share is still small so it shows the size and scope for these types of businesses.”

Car Shop is turning over £150m and in October sold 500 cars. “The margins for used cars are bigger, but the commitment to cash investment is also greater,” said Mr Dunkley.