Answers to the high levels of demand currently being placed on the vehicle logistics and storage sector were discussed at last week’s member meeting of the Vehicle Remarketing Association (VRA).
Philip Nothard, chair at the industry body, introduced an in-depth panel discussion on the subject featuring Mark Hindley, commercial director for OEMs at BCA; James Hopkins, managing director at DMN Logistics; and Michael Stewart, director, business development and growth at Cox Automotive Europe.
He said: “In a new and used car market likely to exceed 10 million units this year, there are massive pressures on logistics and storage, especially given sudden and often unanticipated peaks in demand.”
Michael explained that much of the stress resulted from the new car sector, but this would inevitably also feed through into used sales, hitting remarketing companies. “A lot of new stock is entering the market, and there is a limited amount of flexibility built into the logistics and storage capacity available. At the same time, prices for our services remain relatively low, and the services we provide grow ever more complex.”
Mark added that Chinese manufacturers were bringing cars into the UK on much larger ships than has been the norm. “We haven’t seen many vessels of this size in the past and there are only a couple of places in the UK where they can land. Up to 5,000 cars are being discharged at any one time and moving them into storage and delivery creates a huge bulge in demand.”
New vehicle storage facilities were being created on an ad hoc basis, James said. “This has always been a very entrepreneurial sector, and we are seeing car storage pop up in all kinds of places. I drove onto an industrial estate recently where hundreds of new Chinese cars were parked on adjacent space, although how suitable some of this land is for storage, such as on grass, is questionable.”
A range of ideas was put forward as potential solutions to the problems being seen. Mark said that businesses involved in logistics and storage would ideally invest in more capacity. “To a degree, this is happening. However, it is not the ideal moment to invest, and an effective alternative is to focus on increased utilisation. Identifying business efficiencies creates the potential to generate higher margins.”
James said the sector needed to improve how it communicated with people involved in procuring its services. “We should make them more aware of the pressures we encounter. There is perhaps limited recognition of how traditional models of logistics and storage have changed, and of the complexities we now face.”
On the same theme, he added more needed to be done to manage expectations better and show how they related to cost. “For example, we’re delivering a lot of new electric cars under salary sacrifice schemes at the moment. The driver normally wants a one-hour delivery window, but when you are moving a car from one end of the country to the other, there are often complications. If you extend the window, we can charge less; if you want it within that hour, it’s more expensive.”
The member meeting took place at Cox Automotive, Bruntingthorpe, Leicestershire, and attracted around 60 delegates both in person and online. It also covered the latest developments in the FCA motor finance redress scheme, following legal challenges from both lenders and consumer rights advocates.
Jonathan Butler, VRA counsel and partner, said: “It is clear that the FCA’s planned widespread compensation payments now look unlikely this year. The current legal challenges introduce significant delay and with appeals, could push much of the scheme’s delivery into 2027. Whilst a complete collapse of the scheme is however unlikely, there is a real prospect of targeted refinement – especially in relation to pre‑2014 agreements which are under the greatest legal scrutiny.”
Mark Fretwell, CEO of One Auto API, presented on how a huge increase in vehicle recalls was affecting the remarketing sector: “We’re in a position where there is no single source to check for recall data, instead having to look to the DVSA, SMMT and individual manufacturers. Even then, the information may still be unavailable, which can significantly impact remarketing, including the potential for a buyer to reject a vehicle if recalls haven’t been addressed.
“The DVSA is working towards a general solution and, in our view, this is essential. Existing and prospective vehicle owners should be able to access this data easily to remove the current confusion.”
Finally, Rupert Pontin, head of insight and communications at Brego, looked at the latest developments in the new and used vehicle markets.
“April’s data shows the effects of the war in Iran. Used car sales were down 7.2%, reflecting marked declines in consumer and business confidence. Also, in the new car sector, pre-registrations increased dramatically, sending ripples through the entire market as prices adjusted to reflect the amount of new stock.
“The main bright spot is that used electric car sales have risen as motorists looked to avoid the impact of the oil price shock, growing from 6.2% of the market in January to 9.5% in April.”
The May meeting was the third of five for VRA members in 2026 and will be followed by the organisation’s Annual General Meeting on Thursday, 2 July at BCA Birmingham. In addition, its showcase Automotive Summit is planned for November.
Philip said: “This was a superb VRA meeting, covering a wide range of important topics and sparking informed discussion. We believe these events have become essential for everyone involved in the remarketing sector.”
Details about attending VRA events can be obtained by emailing info@thevra.co.uk.
