Online sellers Virgin Cars and OneSwoop are battling to become vehicle providers to retail motor industry new entrants. Both companies have accepted they are unlikely to prosper as stand-alone services selling to retail buyers even if direct supplies were possible after next year's Block Exemption review.

Ian Lancaster, Virgin Cars chief executive, is offering a 'white label' service so the company would operate under the brand name of other organisations.

Mr Lancaster expects supermarkets, banks and motoring associations to be among major newcomers to car selling. “Buying is predominantly price-led and we are being ripped off in this country,” he said.

OneSwoop wants to use its dealer networks on the Continent to source cars for new retailers and says it would provide dedicated teams to business customers. The two companies are targeting supermarkets, banks, motoring associations, and food and clothing retailers.