Yesterday saw some pretty remarkable news – remarkable, at least, for the world of secondhand car supermarkets. Despite the fact that it could easily be argued that the secondhand market relies on priced based incentives and large stock bases, the UK’s largest online car dealer, Autoquake, has announced that they have gone into administration, and that the company’s assets are being sold off.
The demise of such a well-known online car brand, whose website is thought to have received a huge 5.5 million hits in 2010, can be seen by their competitors as both a worry and an opportunity. On the one hand the slight slump in secondhand car sales that seems to have corresponded with this closure will be making people tighten the purse strings and take relevant precautions. On the other, Autoquake will leave a big hole in the used car market, which large competitors nationwide will be eager to fill.
Speculation is rife as to the reasons behind the failure of the Autoquake business, in spite of the positive accolades that seem to have followed the brand since its launch. With an award winning website and vast amounts of publicity and industry recognition, you could be forgiven for assuming that the Autoquake brand was unshakable. However, it turns out that the business has always struggled to turn a profit, and the dedication of such large resources to their site without the return on investment needed to support it no doubt has a large part to play in the fact that it eventually went down the drains.
And so another internet giant bites the dust – and all that is left behind is a collection of car supermarket vultures, clamouring over the bones and juicy juicy assets.
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