Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview March 2014:
New registration sees main dealers taking their pick of part exchanges
- Unlimited car, van & motorcycle valuations for £99.99+VAT a 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 Valuation Services at MyCarCheck.com/Trade, Gavin Amos, commented: “A new registration month is upon us once again. It seems like only yesterday we were talking about the impact of superstition on 13 plate sales. Usually in March the trade eagerly await part exchange gems to restock their forecourts. This year might not be quite so straightforward. The well-publicised shortage of good, clean retail stock continues. As such, main dealers are struggling to find stock suitable for their own use.
“This means that throughout March main dealers will not only take their pick of the part exchange vehicles to retail immediately, they will also prepare and sell older cars. The knock on effects for traders could be quite significant. Only vehicles that are either too old or require a lot of money spending on them are hitting the open market from these channels.
“Some large dealer groups are continuing to push their ‘non franchise’ used vehicle pitches. Much older and previously auction-bound cars find their way here. This allows them a potentially bigger profit opportunity than other disposal routes. There are, however, issues with this approach. In many cases the pitches are on the same site as a well-respected, branded dealership, such as Land Rover.
“When a potential customer arrives at the dealership, their attention tends to turn to vehicles which are part of the main franchise approved used car programme. The ‘non franchise’ vehicles are not prepared as part of a manufacturer backed scheme. As such, they are frequently not up to the same standard. These expectations must be managed at point of sale as many dealers are having their fingers burnt with reconditioning costs.
“Many prestige brands, such as Audi, experience supply issues due to the huge demand for new vehicles, this keeps values very strong on late low mileage examples. Great news if you can get your hands on them. Some main dealers have been taking 30-40 combined new/used retail orders per week during the last couple of months, but the stock has to be there to feed this demand.
“On the whole, demand remains strong and, as a result, values remain stable and strong. The lack of the predicted snow blizzards has had a slight impact on 4x4 sales. Some dealers stocked up in anticipation of adverse weather. It hasn’t happened so some values are starting to drop, but only by 1-2%. A lot of the 4x4s that are out there are the ‘fashionable’ examples, such as Evoque and Q5. These are immune to weather-related trends due to constant demand.”
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.