Motorway, the UK’s fastest-growing online marketplace for used cars, today reveals record growth in transactions on its platform as buyers and sellers embrace the opportunity to buy and sell cars entirely online.
Having paused trading during the lockdown, Motorway restarted its service for private car sellers and dealers nationwide on May 11th, along with free, no-contact transport for every transaction. It has since seen 100% week-on-week growth in transactions, achieving £4.9m in sales last week, and a record £1.39m completed on June 10th. Over 250 new dealerships have started buying cars in its daily auctions since lockdown restrictions were eased, joining over 1,000 already using the platform. This recent performance surpasses figures from before the lockdown, supporting reports that the market is surging back to life.
To respond to huge market demand, the three-year-old start-up is now expanding its 70-strong team to reach 100 by the end of the year, as it leads a drive for efficiency and online transactions in the used car market.
Motorway connects car sellers with dealerships looking to buy stock via a purely online platform, helping both parties get the best deal by removing middlemen and automating the sale process. It charges dealers a fee for each successful sale, and is free for consumers to sell their car, with each vehicle collected from their home in a contact-free transaction.
Key stats from Motorway include:
- Over 60,000 customer sale enquiries since the start of May
- £4.9m in weekly sales and a record £1.39m on a single day
- 480% increase in revenue over the past four weeks
- Sustained improvement in car sale valuations achieved in its auctions. On average, Motorway’s sellers are receiving £480 more for their cars in June than in May.
- The company is now looking to expand its 70-strong team to 100 in the next three months to help fulfil market demand for its service.
Huge demand from consumers looking to sell their cars, along with safety concerns around visiting physical dealerships, is shifting behaviour to all-online solutions, which Motorway is leading. Motorway’s model – connecting private sellers directly with dealers – results in much faster transactions for everyone.
Tom Leathes, CEO of Motorway, says:
“We have been growing rapidly for the past twelve months as the automotive market continues its shift online. The coronavirus pandemic has accelerated that trend, and we’re now seeing unprecedented demand for our service, from car sellers and dealers alike.
“Unlike many other industries, the used car market is now looking stronger than it has been for months. Consumers wanting a quick sale for the best price, and dealers looking to replenish their stock, are now embracing the efficiency of doing everything online with Motorway.
“The car industry has been behind others in embracing technology, but that is changing – and there will be no return to how things were. Motorway is delighted to be at the forefront of a fundamental movement towards a better experience for the long term. We look forward to continuing to drive technology to help the used car industry get back on the road.”
“With ballooning sales and a surge in new dealers signing up, Motorway’s experience suggests strong growth ahead in the used car market. Motorway expects this trend to continue through 2020 as both car sellers and dealers adapt to the post-Covid market with a much greater focus on efficiency, speed and transparency.”