Increased volume of used cars easing pressure on dealers
Tuesday, 8 May 2012
The number of second-hand cars entering the used car market has taken away some of the strain for dealerships that have recently found it difficult to source used cars at fair prices.
The influx of part-exchange cars is partly responsible for “taking the edge off prices”, according to used car pricing experts CAP.
CAP has reported that the dip in prices is not likely to threaten the medium-to-long term stability of the marketplace.
Mike Hind of CAP, said: “A year ago the increase in volume was much more of a cause for concern because it was largely driven by dealer self-registrations. This was due to severe weakness in the new car market and it meant a sudden and large influx of late plate cars into the market.
“This time more of the March new car sales represented genuine business and the fact that there are around 15,000 fewer 0-12 month old cars advertised for sale at present than a year ago is evidence for that.
“The dynamic in the trade market has clearly shifted from that of a few weeks ago when franchise and independent dealers were competing hard for every quality used car and consequently finding it difficult to maintain satisfactory profit per unit. Now the heat is off we are hearing reports that margins are improving for many.”
Quality used cars can be maintained to roadworthy standard without having to pay for brand new car parts from dealerships. At ASM Auto Recycling our used car parts department contains over 250,000 guaranteed and tested parts. Purchasing parts processed through our car recycling workshop makes economic sense and is ideal for those who know their way under a car bonnet.
The used car market is certainly buoyant at present, particularly with the fuel price war on British motorists still rife. More drivers are considering visiting an online salvage auction as a means of picking up a bargain. These cars have been sourced direct from insurance companies that can be repaired and restored to roadworthy condition at bargain basement prices.
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