Carsite.co.uk business model

property.advert

I've just spoken to Carsite and their receptionist seemed to me to give up their business model and I wondered if anyone has any additional information they might care to share.

They take in ex fleet cars, presumably in bulk and on agreed volumes and make it easy for end user companies to swap over their stock. What interested me was her comments that if it didn't sell at auction, with a reserve price, then it would be offered and there was potential negotiation.

This got me thinking whether they are really just taking in volume at a large discount and then pushing them out at auction individually at a lower discount and making their cut. The public were just an additional marketing method and if they can shift a car to a punter for more cash than they would get at auction, then it is extra profit, albeit with some service costs.

I may be well off the mark but the prices do seem higher than Car Giant.

Just looking for opinions and additional knowledge.

bigjl

I have looked at carsite, the cars wheren't what I would consider cheap, but then they are in business to make money, they will try and get as much as they can for a car, but they will probably have a limit to how long they will keep a vehicle in stock before taking it to the auction, if they have access to hundreds of cars a month coming off lease then they can't afford to keep anything in stock for long. Storage costs money, why stock a car that hasn't sold after three weeks when you can use the same storage space to store a car that may sell the day it is advertised.

Companies like carsite aren't interested in anything other than getting the car disposed of, I would personally use CarGiant, just don't expect to be given a free Latte and a biscuit just because you have spent £15k, you will struggle to get a decent test drive at cargiant, in fact even to get the keys to look inside a car at Cargiant you have to leave your car or house keys and give all your personal details.

Cargiant also only ever give bottom book for a trade-in, then dispose of most of them at Chelmsford car auctions, but there is a reason why most of Londons minicab drivers buy their cars there, you have access to a huge number of ex-lease cars with service histories and known providence. Just don't expect to get the main dealer "service", for example when you go to collect your car, expect to be there for at least 2 or 3 hours, once you have signed your HP agreement you are old news.

Don't under any circumstances buy a high value car that isn't direct from a lease company or without a full service history, as you will more than likely being buying a liability that has been off loaded by somebody that thinks servicing is washing it before going cruising "innit". Stick to three year old ex-lease.