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G3 Vehicle Auctions has seen a “surge” in repossessions coming through its doors in 2024.
The group has seen a 12% increase in vehicle repossessions in the second quarter and a 9% increase in quarter three in comparison to the same periods in 2023.
“At G3 we operate 35 drop-off locations across the UK for a wide range of repossession agents to utilise on behalf of our growing roster of finance houses and this year will be a record year for vehicles processed through our Castleford and Bedford auction facilities.
“As a result of the surge in repossessions (and new vendor wins in this sector), we have grown our logistics team by 40% this year in order to manage the growing dependence on customer care calls to arrange the collections for our finance house vendors,” said G3 director Gareth Jones.
The fall in used car values over the past 22 months has meant negative equity for many car owners, handing back vehicles to finance houses and leasing companies at the end of the contract. This week Vertu flagged up the issue of cars coming off contract worthless than is owed.
Leasing companies are “actively encouraging” businesses and drivers to extend their contracts on electric vehicles for another 12 or 24 months.
The aim is to stop the cars coming to market and further reducing prices in an oversupplied used car market. Prices have have fallen 58% in 22 months.