Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview January 2015:
Strong demand, 4x4 balancing act and concern over hybrid appeal
- Unlimited car, van & motorcycle valuations for £99.99+VAT a year
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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: “With the distraction and financial strain of Christmas behind us, retail demand in the used car market always picks up in January. Forecourt footfall and internet and telephone activity all increase noticeably as consumers turn their attention to a change of vehicle.
“Proactive dealers have spent the quiet period buying stock, with a view to having a great line-up in place to meet the rising demand. This approach has its problems in terms of cash flow – carrying the financial burden for slightly longer than is usual or comfortable – but it generally brings rewards as the sales are made.
“At the time of writing, the majority of the country hasn’t seen much snowfall, so there’s been no resultant spike in demand for 4x4 vehicles. However, demand remains relatively strong in this sector and the crossovers sector continues to grow whatever the weather. Any prolonged drop in temperature will see demand for true 4x4 examples surge, so it’s a balancing act for dealers – invest early and probably take a hit if mild weather persists, or play the waiting game and join the inevitable scramble for this stock if snow arrives.
“While manufacturers continue to add more electric and hybrid vehicles to their ranges, retail buyers in the used market still view them with a degree of trepidation. There’s evidence that buyers will often choose a diesel option over a hybrid, even if the latter is in comparable condition and markedly cheaper. Recent fuel price drops further lessen the appeal of used hybrids, but this may well be a temporary blip. It will certainly be interesting to see how these cars fare in terms of values and demand over the coming years.
“Looking ahead to spring and summer 2015, we can only see strong demand for used vehicles. Ready to retail stock is key and a relative shortage through the normal trade channels should protect values.”
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.
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.