Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview May 2013:
The shortage of good, low mileage 2-4 year old vehicles continues
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MyCarCheck.com/Trade is the trade valuations arm of CDL Vehicle Information Services. Based on cutting-edge industry data and feedback from independent and franchised dealers, these monthly bulletins highlight the most significant trends in the UK used car market.
Head of Valuation Services at MyCarCheck.com/Trade, Gavin Amos, commented: “May brings no great change to the used car market. The shortage of good, low-mileage 2-4 year old stock continues, with any units sold increasingly difficult to replace. The weeks following a new registration month usually see a period of relative inactivity as dealers prepare and sell an abundance of part-exchange vehicles.
“For May, values remain largely unchanged. Cars such as old 7 Series BMW and early Mercedes ML are now considered ‘too big and dirty’, so values have been pulled back by around 3%. On the other hand, star performers from Audi and Range Rover, such as Q5 and Evoque, are seeing even stronger demand.
“This year some main dealer sales departments have a real issue in getting fresh used stock prepared for sale. They often benefit from a reduced labour rate but, with the pressure on service departments to increase profits, higher paying retail customers take priority.
“In many cases, bringing older, higher-mileage cars up to the exacting standards of manufacturer-approved used schemes is proving costly, squeezing the profit margin until it is practically non-existent. Some groups are combating this by branding these older cars in a different, less stringent approved package. This way the preparation is kept to a minimum and the buyer still has main dealer peace of mind.
“Although new registrations for March were healthier than many predicted, there are suspicions that a lot of the cars were not actually sold. The pre-registering game is by no means a new one – it has played a major part in supplying dealer networks with nearly new stock for years.
“Short-term daily hire is also on the increase again after several years of manufacturers trying to stop it. Like pre-registering, it plays an important role in supplying the trade with a steady feed of cars. So long as they are not overused such practices can be useful in keeping the industry moving.
“Manufacturers’ fleet managers play an often overlooked but extremely important role in the used car market. The supply chain is delicate and easily disrupted by the mass registering of new vehicles, with the knock-on effect of damaging residual values. The current shortage for two, three and four year old vehicles is not going to ease overnight. Indeed, without the correct management of new cars, the problem will continue for much longer than it needs to.”
MyCarCheck.com/Trade provides buyers and sellers with all the vehicle price data they need: ready to retail, trade, average, retail and Cat D. As a free bonus, it also provides the annual road tax cost and key DVLA information, including the make, model, colour, engine size, body style, fuel type and date of registration.
Simply enter a car, van or motorcycle registration and the vehicle’s mileage to get an accurate valuation and additional information in an instant. Once signed up you can check as many vehicles as you like at no extra cost.
The MyCarCheck.com/Trade team includes:
Gavin Amos has 15 years’ experience in the used vehicle sector. After starting out at CAP he worked in several dealerships, progressing into management. He has hands-on experience of sourcing and disposing of stock, both to trade and retail customers.
Alan Senior has spent 34 years in used vehicle valuations. In 17 years at CAP he was Senior Editor for both the Black and Red books.
David Hill specialises in LCVs. He worked with Renault, LDV and Isuzu Trucks before spending 10 years as CAP’s Light Commercial Vehicle Editor then 5 years as national used vehicle sales manager for Iveco. He joined CDL in 2011.
Rob Hobson specialises in motorbikes and scooters. After leaving a dealer role to launch CAP’s Green Book, he worked in business development for Piaggio.
Gerry Clancy specialises in motor auctions. He has been selling trade valuation products since 1997 with both CAP and Glass’s.