Online retailers like Virgin and Jamjar will be forced down the auction route when their used cars start coming back off contract, according to Manheim Auctions.

It questions their ability to gain confidence with used car buyers and their skill to dispose of volume cars quickly and efficiently.

John Bailey, Manheim chief executive, believes they will be forced to consider auctions.

“Selling new cars fresh from the factory has proven tough n the internet, but what do retailers propose to do with a three-year-old Mondeo with 60,000 miles on the clock, a missing service book and an interior that smells like an ashtray?” he said.

Selling these cars quickly can often be the difference in making or losing money on disposal, which is why I believe the tried and tested auction disposal route should have a place in their disposals business plan.”

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