Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview November 2013:
No sign of ‘the quiet season’ as strong demand for used cars continues
- Unlimited car, van & motorcycle valuations for £99.99+VAT a year
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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: “As winter draws in, new and used car sales tend to dip, but this year seems to be different. Usually by November consumers are looking ahead to Christmas and all the expense that goes with it. However, dealers are telling us that many buyers are still out trawling the forecourts, especially on Saturdays and Sundays. There is a strong thirst for used cars that even the rainy weather can’t dampen.
“Pure traders are having a difficult time due to the shortage of good stock. This is becoming more of an issue as dealers form ever-stronger relationships with auction companies, cutting professional buyers out of the picture. It is increasingly difficult for traditional one-man-band traders to buy stock at a price that enables them to earn a decent profit.
“The seasonal boom in the 4x4 market is well under way, with dealerships stocking up on these fashionable go anywhere vehicles in preparation for bad weather reaction buyers. During an onslaught of snow in 2011, I witnessed a Land Rover dealership selling every 4x4 unit they had in stock. The pace of business was quite incredible: the phone was ringing non-stop and internet leads were coming in by the dozen. Last year was a different story. Dealers who invested heavily in 4x4 stock got stung when the bad weather didn’t arrive – the stock went overage and had to be moved on for little or no profit. Recent predictions of ‘the worst winter for decades’ is sure to kick start interest and ensure strong 4x4 values for the next few months.
“So, what’s hot in the used market at the moment? The star performers are still the likes of Audi Q3 and Q5 and Range Rover Evoque. If you don’t mind a long wait then these are worth buying new: April for a Q5 built to the buyer’s spec seems the norm at the moment. If it’s a late used example then expect to pay close to list for any of these popular models. Ex-manufacturer cars with great spec are the best stock for any dealer. They don’t hang around long and often generate a part-exchange vehicle to feed the forecourt.
“Buyers still seem keen on diesel power even if they don’t need the increase in economy due to low usage. Hybrid hasn’t seen much uptake, especially in the 4x4 market where there’s a diesel alternative. Even cars such as Touareg Hybrid aren’t moving quickly and certainly aren’t demanding a premium.
“Overall values remain steady with only older, dirtier, larger petrol engine vehicles taking another slight drop. As we move towards December then activity may well tail off, but with demand this strong don’t expect values to fall as much as they have in previous years.”
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.