Inchcape has drastically cut its exposure to used cars by taking the strategic decision to shutter eight of its 17 bravoauto supermarket sites in the UK, thwarting its launch ambitions to expand to 20 locations within three years.
The lack of supply over recent years continues to significantly impact the UK’s car supermarkets who are struggling to secure cars in the 3–5-year age bracket due to the fall in new car registrations during the pandemic.
Speaking at a finance conference earlier this year, Auto Trader’s Rachael Jones, warned that the availability of used cars in the 3-5 years age bracket was going to be ‘incredibly challenging’ for the car supermarket segment.
Inchcape had launched the bravoauto brand for its used car retail division in November 2021 and added four sites to its network of used car dealerships in December 2022, taking it to 17 locations.
A spokesman for bravoauto told AM: “We continuously develop and optimise our go-to-market approach for bravoauto and have made good progress since launching in 2021. Having analysed the returns in each site, we are taking steps to optimise our existing network.
“This has resulted in the closure of five sites on 30 November and we are in consultation with colleagues at three additional sites. We are continuing to work closely with our colleagues to retain their expertise within our business and are seeking redeployment opportunities where possible.
“We remain fully committed to our other nine bravoauto sites and the bravoauto model and are confident in their potential to deliver value.”
Bravoauto’s customer proposition includes a 21-day money-back guarantee, which claims to be the longest offered in the market, a 12-month warranty and free 12-month breakdown assistance.
Customers can buy a car entirely online, including valuing their part exchange, and applying for finance, before choosing collection or home delivery.
Stock between 3-5 years traditionally accounts for between 45 -50% although Auto Trader predicts there will be 39 per cent less stock available compared to four years ago. In terms of cars aged between 0-3 years, car supermarkets will likely face a 22% drop in available stock compared to 2019 levels.
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- Source: https://www.am-online.com/news/used-cars/2023/12/05/bravoauto-becomes-latest-casualty-of-used-car-supply-shortage
