Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview December 2013:
Stock quality warning as dealers search for the right New Year mix
- Unlimited car, van & motorcycle valuations for £99.99+VAT per year
- Accessible via smartphones and desktop
- 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 Car Valuations at MyCarCheck.com/Trade, Alan Senior, commented: “For many years before the financial crash of 2008, December was always an exceptionally quiet month for the majority of the motor trade. Since 2010, there has been a change in buying behaviour. Activity has become somewhat manic as dealers search for the right cars in time for the New Year buying season.
“Values have only taken a slight fall as the year comes to a close, much less than normal at this time of year. However, extra care must be taken when appraising potential stock. There are more than the usual numbers of cars being advertised in the classifieds and at auction, which are in poor condition with little or fudged service history. These must be valued accordingly.
“Demand for the best examples remains strong and supply is still short for most types of vehicles. Mid-size SUVs such as Nissan Qashqai and Land Rover Freelander 2 are particularly sought after. Mid-size people carriers such as Peugeot 5008 and Renault Scenic are also popular with retail buyers.
“Modern cars are very complex pieces of kit bristling with electronic technology. Repair bills can be high, so much so that one component failure can render the vehicle as scrap due to uneconomical repair costs. With much higher numbers of diesel cars around, we are hearing of diesel pump failures that will require replacement of the whole unit. This can be a £2,000+ repair cost.
“We are often asked by manufacturers how much value will be added to their latest models by safety aids and gadgets. There are many: stability control, lane departure warning, blind spot warning systems, auto parking systems, brake force distribution, anti-collision assistance – the list is almost endless.
“Some of these technologies have been pushed by legislation. For example, stability control is mandatory and tyre pressure monitoring systems will be from next year. The decision by car manufacturers to add more and more electronic wizardry is costing them a fortune in research and development, including the mandatory elements.
“All of these costs are, of course, passed on to the consumer. Unfortunately, none of this technology adds any value to the car. For new car buyers they are nice to have features, but to the used car buyer they are seen as a liability, something else to go wrong. New cars are more like computers, but they are far too expensive to recycle before the normal lifespan has been reached.
“Crude oil prices have just come down again, but petrol prices continue to be high as the oil companies are reluctant to pass this cut on to the consumer. Demand for larger 4x4 vehicles is at its highest at this time of year, but more buyers might be tempted by models such as the Audi Q7 and Range Rover Sport if fuel prices were lower. Oh how the oil companies control our lifestyles! Merry Christmas.”
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.