'I'm a car dealer - I predicted CarGiant's downfall weeks ago'
A 50-acre second-hand car dealership has confirmed it will close its doors, but one expert saw the warning signs weeks before.
A used car dealer and motoring expert predicted the collapse of one of the UK’s biggest used car dealers weeks before a formal announcement. James Baggott, owner of used car dealership 'the Clever Car Collection' in Gosport, as well as the editor of Car Dealer Magazine, revealed CarGiant was in trouble as early as March.
Last month, James claimed that CarGiant had started redundancy consultations with its staff. However, in a video uploaded at the end of March, James revealed he had heard rumours that CarGiant could be set to close altogether.
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He said: “Some of the staff members have been in touch with me anonymously to let me know what’s happening in those consultations. They have been told April 24 is D-Day for Cargiant.”
According to James, staff felt “sideswiped” by the decision after previous redundancies over Christmas. CarGiant is one of the UK’s biggest second-hand car dealers with a 50-acre site in West London valued at a whopping £98million.
In the video uploaded on March 27, James stressed that stock levels had also diminished in a worrying sign.
He added: “They seem to be winding down the number of cars they have got. Last time we spoke about this they had 384 cars listed, as of this morning they have 242 on the site. This is a business that used to run with 2,000 cars in stock plus, so it says a lot that they are now down.”
Cargiant has now confirmed that its final operating day will be on April 24, with the business closing its doors for good in less than two weeks. The company confirmed the site was set to close after owners were unable to secure a future for the site.
A statement from CarGiant read: It is with great sadness that we announce the closure of Cargiant’s retail operations. This decision follows an extensive consultation process with our team, during which we carefully explored all potential options to secure a viable future for the business. We would like to sincerely thank our colleagues for their commitment, professionalism, and the constructive way they engaged throughout that process.
"Unfortunately, despite those efforts, we have concluded that the business is no longer commercially sustainable in its current form. This reflects a combination of factors, including a continued reduction in the supply of used vehicles, primarily driven by the EV mandate, alongside rising operating costs and increasing complexity within the used car market.
"Cargiant has been a major part of the UK motor industry for more than 50 years, pioneering the used car supermarket model and growing to become the UK’s largest independent car dealership. Over that time, we have sold more than one million vehicles and supported thousands of people in building careers in the motor industry and beyond.
We are immensely proud of what has been achieved over that period, and we would like to express our sincere thanks to all our staff, past and present, as well as our customers, partners, and suppliers, for their loyalty and support over many years. The business will now move into a managed wind-down, with remaining retail stock being sold over the coming weeks. Our after-sales operation, including an office support team, will continue beyond the closure of retail activity to support customers and ensure that existing commitments are properly fulfilled.
"While this marks the end of an era for Cargiant, it also represents a new beginning for many of our people, whose experience, resilience, and professionalism will continue to create opportunities well into the future."
