• Answers to 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).
• Massive influx of new stock, particularly from Chinese manufacturers, is creating a “huge bulge in demand” for capacity.
• Meeting also covered the latest updates on the FCA motor finance redress scheme and a surge in vehicle recalls.on vehicle logistics and storage discussed at May’s VRA meeting
THE massive pressures currently hitting the vehicle logistics and storage sector took center stage at the latest Vehicle Remarketing Association (VRA) member meeting.
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.
Nothard noted that with a new and used car market likely to exceed 10 million units this year, logistics and storage providers are facing unprecedented strain, especially given sudden and often unanticipated peaks in demand.
Capacity under pressure
Michael Stewart explained that much of the immediate stress is originating from the new car sector, but warned this would inevitably feed through into used sales and impact 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,” Stewart said.
Mark Hindley added that Chinese manufacturers are bringing cars into the UK on much larger ships than has traditionally 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,” Hindley explained. “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.”
This influx has led to the creation of ad hoc storage facilities, according to James Hopkins. “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.”
Identifying solutions
A range of ideas was put forward by the panel to tackle the ongoing bottleneck. While investing in extra capacity is happening to a degree, Hindley suggested that a more effective immediate alternative is to focus on increased utilisation. Identifying business efficiencies, he noted, creates the potential to generate higher margins.
Hopkins added that the sector needs to improve how it communicates with those procuring its services to make them more aware of changing complexities.
Managing expectations around delivery windows and costs—especially concerning electric vehicles (EVs) on salary sacrifice schemes—is also key.
“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,” Hopkins said. “If you extend the window, we can charge less; if you want it within that hour, it’s more expensive.”
FCA redress scheme and vehicle recalls
The meeting, which took place at Cox Automotive in Bruntingthorpe, Leicestershire, attracted around 60 delegates both in person and online. Beyond logistics, the event provided legal and market updates affecting the wider fleet and leasing broker network.
Jonathan Butler, VRA counsel and partner at Geldards, provided an update on the FCA motor finance redress scheme following recent legal challenges from lenders and consumer rights advocates.
“It is clear that the FCA’s planned widespread compensation payments now look unlikely this year,” Butler said. “The current legal challenges introduce significant delay and with appeals, could push much of the scheme’s delivery into 2027.
“While a complete collapse of the scheme is unlikely, there is a real prospect of targeted refinement—especially in relation to pre‑2014 agreements which are under the greatest legal scrutiny.”
Delegates also heard from Mark Fretwell, CEO of One Auto API, on how a huge increase in vehicle recalls is impacting remarketing. Fretwell highlighted the complications of not having a single source for recall data, meaning businesses must check the DVSA, SMMT, and individual manufacturers.
“The DVSA is working towards a general solution and, in our view, this is essential,” Fretwell stated. “Existing and prospective vehicle owners should be able to access this data easily to remove the current confusion.”
Market insights
Finally, Rupert Pontin, Head of Insight and Communications at Brego, looked at the latest developments in the new and used vehicle markets, noting that April’s data reflected the wider geopolitical effects of the war in Iran.
Used car sales fell by 7.2% due to declines in consumer and business confidence, while new car pre-registrations increased dramatically, sending ripples through pricing structures.
However, Pontin highlighted a bright spot: used EV sales rose from 6.2% of the market in January to 9.5% in April as motorists looked to avoid the impact of the oil price shock.
Reflecting on the event, Philip Nothard concluded: “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.”
The May event was the third of five member meetings scheduled by the VRA for 2026. It will be followed by the organisation’s Annual General Meeting on Thursday, 2 July at BCA Birmingham, ahead of its showcase Automotive Summit in November.
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