Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview July 2014:
Values remain buoyant and hammer prices high as demand dips
- 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, Gavin Amos, commented: “July brings little change to the used car market. Although demand has tailed off slightly, used values remain buoyant. Only older vehicles have seen a reduction this month, mostly just 2-3%.
“The shortage of good used stock is ensuring that even though enquiry levels may be down due to the summer lull, the right cars are still in demand. With the downsizing trend continuing, Corsa, Fiesta and the Korean competition are thriving as late used cars. A small petrol engine is no issue for these vehicles in a market still dominated by the mighty diesel.
“The auction scene remains buoyant, as it has done for some time now, but while main dealers are ticking over due to limited good used stock, life isn’t getting any easier for traders. Auctions are attracting more and more private and overseas buyers who are bidding way over market value for prime retail cars. As always, clean vehicles with full service history go first.
“Dealers are still buying direct from the manufacturers to safely feed used demand, even switch-selling some customers from new cars. This is especially true in long lead-time situations. In some cases, buyers are being asked to wait until next year for a factory build slot.
“Manufacturers continue to pile pressure on dealer groups to take their own ex-demonstrator cars. Particularly for prestige brands, where demand can be more specification and colour sensitive, dealers are taking cars they know aren’t ideal. To add insult to injury, they will sometimes also be paying over the odds compared to buying from other sources. They then have to accept slimmer margins in order to achieve a quick turnaround.
“Over the last few years the internet has transformed the buying process for retail customers. Vehicles for sale throughout the country are now available to view on-screen via various channels. With this has come an element of trust from retail buyers. It used to be very rare for someone to part with their hard earned cash without seeing and driving the car. Now, main dealers are conducting a huge percentage of their used car sales via the internet and telephone.
“This is partly thanks to the exacting preparation standards put in place by the likes of Network Q all those years ago. Manufacturer approved used car schemes offer customers peace of mind. Strangely, the sales process seems far simpler for both parties when the customer never steps foot into a dealership.”
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.