The Greater Manchester firm, formed by industry heavyweights Dennis Studholme and Aiden Minogue, is aiming the scheme at medium to large accident repair centres running fleets of more than 10 vehicles with the intention of offering bodyshops a consistent level of supply at competitive rates.

Minogue says Circle plans to be the number one provider of new vehicles to the bodyshop sector by 2005, and anticipates a turnover of £27m next year from a fleet of 5000 cars.

Customers include Howard Basford and London-based Solus. Bodyshops pay about £1200 per vehicle a year and can choose from the new Nissan Micra, Ford Fiesta, Vauxhall Corsa and Volkswagen Polo. The cars have a 10,000-mile limit over the 12-month period.