Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview February 2014:
Consumer confidence returning and big price drops on convertibles
- 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 Car Valuations at MyCarCheck.com/Trade, Alan Senior, commented: “The news that the economy is ahead of the government’s forecast is no surprise to the used car trade. Dealers know from the many enquiries from potential buyers that UK consumers are already feeling more confident about 2014.
“The big headache for traders is the pressure to source the right stock to replace sold units. Such a situation can lead to only one thing: values strengthening. It’s the same issue we’ve been banging on about for the past three to four years now: there are just not enough clean, well-maintained examples to meet demand, and this is unlikely to improve for the rest of this year.
“One notable exception is the coupé and cabriolet market, which is unlikely to do quite so well due to changing buying patterns. At this time of year no one expects great results from convertible sales and, although consumer confidence is up, it will take a little more economic stability to bring back buyers to this sector.
“Our research shows that the models most affected are from the premium brands: Audi A4 convertible, A5 coupé and convertible, BMW 3 series coupé and convertible, Z3 and Z4 convertible, BMW 6 series coupé and convertible, Jaguar XK, Mercedes SLK, C Class Sport coupé, CLK, and CL coupé. Elsewhere, Volvo C70 convertibles are notoriously hard to find buyers for and Saab convertibles have to be cheap to create any retail interest.
“While the same lack of retail interest currently applies to the more run-of-the-mill convertibles, such as Peugeot 307 and 308, Renault Mégane, Vauxhall Astra and Tigra, it is likely that these buyers will return with sunnier weather. These models have taken such a value hit over the past year, they now look very good value for money … and a cheap convertible will always attract attention.
“Many dealers are reluctant to bid guide values on vehicles offered to them by private sellers, unless the service history is rock solid. You can tell by the ever-increasing numbers of stranded vehicles on our motorways that poor maintenance and lack of servicing is taking its toll.
“The value difference of a car with strong service history compared to the same car with an incomplete service book is getting wider. This applies even more so to the premium brands. The technical complexities of modern cars, along with higher component and labour costs, have resulted in the trade being very wary. Dealers are likely to bid on the low side in an attempt to avoid any financial maladies.”
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.