These models have been proving increasingly difficult to shift through the distribution system, hence the pilot with dealer groups.
The move pre-empts the end of life vehicle directive set to be brought in at the beginning of 2003.
Universal has invested heavily to ensure it has the necessary clearance to deal with hazardous waste, as cars to be scrapped will be classified from the date of the new legislation.
The salvage operator is auctioning the dealers' low-value part-exchange models in a trial that has grown to involve between 150 and 200 cars per week.
One dealer group in the trial is based in the south, with the cars being auctioned through Universal's sites in Sandy and Sandwich and has been running for around six weeks. Another dealer is in the north of the country, and has been operating for three weeks from Universal's Doncaster operation.
The cars involved are worth up to £1,000, the kind of part-exchange models dealers traditionally find it more difficult to remarket. Universal Salvage marketing manager Anne Bermingham said “the potential is there to grow”.
“It's taking off almost on an auction-by-auction basis, and dealers are giving us more and more cars,” she said.
Universal said the system worked because the vehicles were made available to buyers familiar with low- value cars.
“We expect to roll out these auctions across all our branches over the next few months,” Bermingham added.
Chairman Alexander Foster said the move was “generating significantly enhanced returns” for dealers.
The company last week announced that it is planning to close its Corby salvage site due to the reduced income connected to the loss of Direct Line's business earlier this year.
The statutory 30-day consultation period commenced with the 36 staff affected by the closure two weeks ago, although Bermingham said the site would remain open if extra volume could be found before the end of the 30-day period. Universal laid off 11 of its 475 staff nationwide prior to the Corby decision, a move also blamed on Direct Line moving its business.
The closure would leave Universal with ten sites across the country, although it will hold onto the defunct Corby site with a view to reopening when business picks up.
The company announced its annual results last week, with pre-tax profits remaining virtually static at £6.5m for the year to 27 April, compared with £6.6m in the previous year. The Direct Line loss will impact on next year's results, as the contract came to an end last Friday.