Vehicle remarketer Aston Barclay has undergone momentous change. Christopher Marchant speaks to chief executive officer Neil Hodson about the move to a ‘supercentre’ vehicle auction site in Wakefield, the acquisition of Independent Motor Auctions, and the implementation of its Cascade digital software.
In January, Aston Barclay opened a 7,250m2 auction ‘supercentre’ in Wakefield.
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The site is set to host 15 dealer and fleet auctions per month, and has the capacity to sell 50,000 used vehicles annually, contributing to Aston Barclay’s plan of doubling its group sales volume to 160,000 vehicles by 2022.
Chief executive Neil Hodson believes the move to the Leeds location was a natural fit for the company. “We’ve got a large dealer programme in the area, and we have some big customers coming on board,” he says. “Aston Barclay had its roll-out at the site last week, and we had over 200 customers through the site in two days. The feedback has been phenomenal.”
Hodson credits the new centre’s consumer-friendly commercial environment for this positive feedback, where attention has been paid to consumer habits.
“Consumers like the benefits of the new centre, like the gym and a more café-style of restaurant than a greasy spoon: they like the modern trading environment. Most people see it as the future of remarketing centres, going forward.”
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By GlobalDataPart of the Aston Barclay plan for expansion into the region was the acquisition of Independent Motor Auctions (IMA), increasing its group sales volumes by 10,000 vehicles per year.
“IMA is a local business. [Managing director] Justin Lane has been in the area for a long time. They will benefit from our technology, bigger sites and larger facilities.”
Hodson adds: “Via the acquisition, we have gained some real quality people, and they are bringing over fantastic customers and relationships that IMA built for many years.”
The IMA headquarters in Leeds will also be transformed into an auction centre focused on LCVs, adding another element to the Aston Barclay operation.
The three badge colours in the Aston Barclay logo signify the business’s three outlets: blue for car-buying services, green for its traditional remarketing arm, and orange for its digital services. The company’s digital operations have also recently undergone new introductions, contained under the umbrella of the Cascade platform.
Explaining the process, Hodson says: “Cascade starts with helping a customer – whether it is a consumer, a dealer or a driver. It’s very much app-driven on mobile, and it takes you through a process to appraise and to value a car. That data is pushed into a digital dashboard where a customer can look at the different channels available. Customers can put cars on a buy-now facility, some on a dealer-exchange facility, or through a physical auction.”
Aston Barclay has also constructed a dealer exchange platform through software known as ‘e-live’. Through this, the company will be able to offer real-world auctioneers offering auctions based on images that can be accessed through a web or mobile platform. Hodson explains: “We’ve been piloting the platform all last year from Mercedes and other vendors, and it’s been really successful. It brings the whole auction experience ability to the consumer, whatever their location.”
Aston Barclay’s expansion comes from a place of confidence in a time of economic uncertainty. Hodson identifies the strength of the used car market in 2018 as a trend, and notes the implications for the rest of 2019. “As well as used car upturns, we were hit by things last year like WLTP, where we saw some manufacturers miss the recommended standard, and have volumes decline as a result,” he says. “We’ve seen a lot of movement towards used cars, particularly in the big dealer groups and supermarkets, because it’s profitable.
“The new car market is really important in this country. Whether it be lenders, finance companies or government, it does employ a lot of people, and new cars need to sell in a stable market for there to be a used car market.
“More people will diversify into the opportunities that used cars bring because it is profitable and has a quick turnaround. That is registering with the big dealer groups already. It’s a changing marketplace for sure, but with this change can be real opportunity for dealers.”
Aston Barclay is establishing itself as a significant player in the vehicle remarketing world. This embrace of modernity across its digital, remarketing and auction arenas may serve it well as the next 12 months unfold, as companies from a variety of sectors will increasingly depend on elasticity and a contemporaneous outlook to expand.
