Artificial intelligence (AI) is currently best used to augment human vehicle appraisals in the remarketing sector but is developing quickly.
That was the consensus view of a panel of experts at the Vehicle Remarketing Association (VRA)’s March member meeting, which took place at Cox Automotive’s Innovation Centre at Bruntingthorpe, Leicestershire.
Adrian Kelly, director of inspection and logistic services at Cox Automotive, said: “Probably the first thing to realise is that the term ‘appraisal’ covers a whole range of different actions, from a full assessment of a vehicle carried out to an industry standard by an expert, to a two-minute walkaround of a vehicle by a collection driver. AI has different potential roles to play, depending on the appraisal taking place.
“Generally, we see AI as augmenting the human. It’s improving all the time and there may be a time when it can do more but, at this stage, we see its main role as an aid to help people carry out faster, more accurate assessments.”
Simon Jackson managing director at Vehicle Quality Solutions, agreed: “The current capabilities of the technology depend very much on the circumstances. Ask AI to assess a freshly valeted vehicle in a well-lit, purpose-built studio environment, and the results will be relatively good. Do the same with a grimy car in an underground car park late at night and the data will be understandably compromised.
“Our view is that the technology will improve and over time, find more of an advanced role. However, at the moment, it’s more a question of using it to ensure accuracy. For example, assessors make very human mistakes such as entering the wrong registration plate, and AI can certainly help in that area.”
Phil Deegan, head of UK sales at PAVE added that while there was a definite role for AI in helping trained people carry out better appraisals, there was also the possibility of it being used by people without specialist training in some applications.
“A good example of this is upstream remarketing where you might ask someone whose car is coming to the end of the lease to download an app and follow its instructions to check the vehicle. Is this as good as a trained person? No, but it can provide low cost and effective data that allows the leasing company to decide to which remarketing channel the vehicle should be allocated, making considerable savings in areas such as vehicle movements and potentially improving days to sell.”
The meeting also heard from Paul Hill of the National Association of Motor Auctions (NAMA), on the importance of using appraisals to carry out accurate vehicle grading and how this can feed directly into profit opportunities.
“A key purpose of vehicle grading is to assess what we call vehicle enhancement. For example, you might be able to spend £550 improving a car that has been assessed as a grade four using the five-grade NAMA system. That investment will make it a grade two and enable you to increase the vehicle’s resale value by £1000.
“With a general ageing of the vehicle parc having taken place since the pandemic, leading to a general deterioration in vehicle conditions, being able to recognise opportunities for additional revenue is important for vendors and retailers.”
VRA members also heard from Peter Lawton, head of member sections at the Society of Motor Manufacturers and Traders on issues including the Zero Emissions Vehicle Mandate and future changes to the MOT test.
“There are probably going to need to be changes to the test quite soon. With more ADAS devices fitted to cars, there will have to be checks to ensure their safety while, as EVs become more common, motive batteries will need to be assessed, probably initially for issues such as damage rather than to assess their capacity.
“We’re also keen to see the MOT emissions test upgraded. The current standard could potentially be passed by a car with the diesel particulate filter removed, and that is obviously an issue.
“However, in our conversations with government, it is clear that they are very keen to balance pressure for MOT test enhancements with the needs of motorists, plus there is the investment required by MOT test centres to consider, so any changes are likely to be gradual.”
Marc Thornborough, brand director for independents at Auto Trader, reported on the state of the used car market so far in 2025.
“There have been stable levels of consumer activity as used sales pick up after a slow start to the year and we’re expecting quite strong March figures. However, sourcing of pandemic-era 3–5-year-old cars remains challenging although when they can be bought, stock is turning very quickly. Generally, we’re also seeing an improvement in margins as retail prices grow year on year.”
The meeting also heard an announcement on the new partnership between the VRA and CARA, the Car Remarketing Association of Europe.
Luis Maria Perez-Serrano, chair at CARA, added: “CARA and the VRA fulfil very similar roles in the UK and Europe, providing a valuable forum for the remarketing sector in their respective territories. We welcome this agreement, and the opportunity to work side-by-side to establish closer links.”
Philip Nothard, chair at the VRA, said: “This was a strong meeting. The new relationship with CARA shows how our organisation is moving forward while the content around AI appraisals, SMMT activity and the used car market provided valuable information for our members.”