Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview August 2014:
Values down, particularly on convertibles, as retail activity slows
- 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: “We are seeing a similar slowdown in retail activity to this time last year. As usual in July and August, consumers are thinking more about paying for their holidays than changing their car.
“Hence, for the trade, it is time to move over-age stock to the auctions. As a result, values are down overall by 2%, but for many convertibles it is more like 4-5%. Interestingly, this is not the case for desirable SUVs – a true insight into the changing buying habits of the general public.
“At present you could be forgiven for thinking that we are still in the depths of a downturn in new car sales. The number of franchise dealerships displaying cars with distress stickers plastered down the sides, advertising ridiculously low deposit and monthly payment terms, is quite alarming. It is not just the volume manufacturer dealers that are playing this game. Some Volvo dealers are doing the same thing, which has the effect of cheapening the brand, as the likes of Jeep seem to have done.
“Internet sales continue to gather pace as more buyers demand more choice. They seem to have largely overcome the fear of buying unseen, with more dealers offering a money-back promise if not completely satisfied on inspection of the car. This has left many used car dealers with a bit of a dilemma: should they stick with the usual car dealer’s domain of a forecourt or go for a covered unit on an industrial estate? There are many advantages to keeping stock undercover, such as improved security and the fact the cars don’t need to be constantly cleaned, plus it’s always dry for customers to browse. Many dealers are also looking to offer a supermarket style delivery-to-your-door service to stay ahead of the competition. Selling cars in this way is certain to grow even more rapidly over the next couple of years.
“The retail new car market is a little slow at the moment and the long lead times seem to be creeping back for some brands as European sales slowly pick up. This is very frustrating for the fleet market as it is performing very well. An unwelcome consequence of this is that many existing fleet vehicles are coming back to market with higher mileages and this is depressing values further. The buoyant fleet market has not gone unnoticed by some manufacturers and they are having a real push in the fleet segment. Volvo for example has realised that success within the fleet market is reliant on two major factors: having a stylish and desirable model range and, perhaps equally important, having a low CO2 range that will appeal to company and end user budgets.”
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.