Motor Industry News
My Car Check Trade used car market overview April 2015: Beware costly trim combos on pre-registrations as new plate shockwaves settle down
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My Car Check 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 My Car Check Trade, Gavin Amos, commented: “It always feels like a positive time of year as the clocks move forward into British Summer Time and prices settle back to a more realistic level following the hype surrounding the new plate.
“March always sends shockwaves through the new car market and these are felt in the used market too. Additional retail buyers are lured in by attractive showroom deals, while manufacturer pre-registrations increase significantly as they scramble to hit demanding first quarter sales targets.
“This pre-registration activity creates a glut of brand new registered cars for the trade, however, extra care needs to be taken when looking at specification and trim levels. They may look good value but getting the wrong trim and colour mixes could prove to be a costly mistake.
“The March new plate also leads to an inflated number of customer enquiries in the used market. While there’s no shortage of used cars, it’s a balancing act to keep the right level of cars for sale without getting caught with long term over age stock. There’s no doubt that older, high mileage and scruffy used stock is falling in value now.
“The more agricultural 4x4 vehicles will become less sought after as the weather improves, although there seems to be no weakening in demand for most in the increasingly important crossover sector.
“Late low mileage examples, particularly within volume franchises, are also struggling, unless they represent a sizeable saving against new. Some may think this has always been the case, but manufacturer-backed finance incentives, particularly on PCP offerings, are causing issues for some dealerships.
“For the buyer, there’s no good reason to buy nearly new when there’s a big discount and low rate finance on a brand new example. The only answer is to offer the buyer an attractive ticket price, but that means a heavy write down for the dealers.
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.