INCHCAPE has closed eight of its 17 UK-based Bravoauto supermarket sites blaming poor availability of used-car stock; an issue that bears watching by big-box used car retailers in Australia as well.

Bravoauto had planned to open 20 outlets within three years of starting the used-car business in November 2021.

In Australia, Inchcape has opened six Bravoauto sites. In response to GoAutoNews Premium, Inchcape said “Whilst we continuously review the go-to-market approach to ensure the optimal model for used-car retail in the local market, the changes announced are in relation to specific bravoauto sites in the UK, not the Australian operations.”

UK publication Automotive Management (AM) reported this week that the lack of used-car supply over recent years continued to significantly impact the UK’s car supermarkets.

It said these outlets were “struggling to secure cars in the three to five-year age bracket due to the fall in new car registrations during the pandemic.”

In the UK at a finance conference earlier this year, AutoTrader’s director of automotive finance Rachael Jones warned that the availability of used cars in that age bracket was going to be “incredibly challenging” for the car supermarket segment.

Vehicles aged between three and five years in the UK traditionally account for between 45-50 per cent of used car stock. 

AutoTrader predicts there will be 39 per cent less stock available compared to four years ago and that UK car supermarkets will likely face a 22 per cent drop in available stock of cars 0-3 years old compared to 2019 levels.

Inchcape had launched the Bravoauto brand for its used car retail division in November 2021 and added four sites to its network of used car dealerships in December 2022, taking it to 17 locations.

A spokesman for Bravoauto told AM: “We continuously develop and optimise our go-to-market approach for Bravoauto and have made good progress since launching in 2021. Having analysed the returns in each site, we are taking steps to optimise our existing network.

“This has resulted in the closure of five sites on November 30 and we are in consultation with colleagues at three additional sites. We are continuing to work closely with our colleagues to retain their expertise within our business and are seeking redeployment opportunities where possible.

“We remain fully committed to our other nine Bravoauto sites and the Bravoauto model and are confident in their potential to deliver value.”

Bravoauto’s customer proposition includes a 21-day money-back guarantee, which claims to be the longest offered in the market, a 12-month warranty and free 12-month breakdown assistance.

Customers can buy a car entirely online, including valuing their trade-in and applying for finance, before choosing collection or home delivery.