Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview Sept 2013:
Dealers scramble for 63 plate part-exs to alleviate stock shortage
- Unlimited car, van & motorcycle valuations for £99.99+VAT a year
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- For further details visit: www.mycarcheck.com/trade
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: “How time flies; once again we’re entering the month of a plate change. Back in March all the talk was of the 13 plate’s superstitious meanings. In reality this only affected a handful of buyers and certainly didn’t dent the sales figures as some had predicted. Likewise, September’s new plate will undoubtedly boost used car activity through to the beginning of October.
“Historically at this time of year both small traders and main dealers tend to run their stock down in preparation for the prime retail stock due in - as part exchanges against the new registrations. Thanks to the well-publicised used car stock shortage that has been with us throughout 2013, most dealers don’t have to think about running stock down – they haven’t got forecourts full enough to supply current demand!
“There are exceptions to the rule. The buying power of some big dealer groups is still giving them the upper hand when it comes to quenching their thirst for used stock. The usual sales channels are feeding the good stock directly to these buyers and keeping these lucky dealers’ sales figures afloat.
“As the part-exchange vehicles flow in, the chances of the main dealers sending any prime stock to auction, or trading them directly, are remote. If they’re smart, they’ll hang onto these vehicles and retail them. Even some of the older ones will represent big profit opportunities when retailed rather than traded. This won’t help smaller traders who will be fighting for the best of the rest, which will keep values buoyant.
“A keen eye is still needed when buying prestige vehicles. Older Audis and BMWs, for instance, might look like great buys, but then there are the higher servicing and maintenance costs to consider. On closer inspection they might well not have a service book full of main dealer stamps, and there might be a warning light or two displayed on the dashboard. If these cars are bought in good faith at a ready to retail (RTR) price, they can be a very costly mistake.
“Switched-on trade buyers will look at the history and the condition of tyres before looking at the bodywork. A car needing a bumper repair and a couple of panels painting, is still a safe bet so long as it has a full service history.
“Throughout September we will again see the pre-registering new vehicles. Order banks for the 63 plate do look good though, and it is these ‘real’ registrations that will create the part-exchanges. Popular models such as Q5 and Evoque are stirring up plenty of demand and customers are willing to wait. This ensures that late examples still demand top prices.”
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 35 years’ experience in used car valuations. After a decade running a franchised dealership he spent 20 years at CAP where he was Senior Editor of the Black and Red books and co-founder of the Green book, then two years as editor of Parkers Guide before co-founding VIP Data valuation services.
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.