Motor Industry News
Values expected to remain firm into autumn due to scarcity of quality stock
“Franchise dealers are working frantically to hit new car sales targets… a prime opportunity for independent traders to maximise their used car business” - Gavin Amos
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: “As normal at this time of year, franchised dealers are working frantically to hit challenging September new car sales targets. Meanwhile, there is a prime opportunity for independent traders to maximise their used car business while some main dealers, particularly those where the same salespeople cover both new and used, perhaps take their eye off the used sector a little. Reports suggest that enquiry levels have been lower than expected over recent weeks, but there’s sure to be a flurry of activity generated by the 2015 65 plate.
“We have seen major players introducing new models into the 4x4 sector. With this in mind, it is worth noting that Audi’s all new Q7 is finally in showrooms, while the fantastic new Volvo XC90 is also gaining traction in the marketplace. Interestingly though, the introduction of these new models does not appear to have had a major impact on either demand or values for the outgoing models, certainly not to the level that many predicted. Old model Q7 values are holding up particularly well.
“Another strong performer is the JLR group, which appears to be going from strength to strength with its new model barrage. Discovery Sport sits at the top of many peoples’ wish list, and even those operating on a more limited budget are looking to get involved in the brand – more so than in the past. This translates into healthy residual values and strong retail demand for many Land Rover dealers.
“As we move into the autumn months, the used car sector traditionally sees a shift in demand in terms of model types. There’s bound to be fresh part-exchange stock from the new plate introduction, but overall used stock levels are felt to be low. We therefore expect values to remain firm, for the short term at least. As ever, higher mileage examples will be more affordable.”