Get real, car dealers told
August 27th, 2009 by Richard Aucock
CAR dealers should make sure they set realistic reserve prices for car auction stock, says the SMA.
This is because the market may soften in the next few weeks, says the RMI division.
SMA head Louise Wallis thus warns car dealers not to become complacent. ‘Sellers at motor auctions have enjoyed the best possible conditions over recent months, with reduced supply and good demand from buyers, resulting in high conversion rates and strong prices.
‘Inevitably, the rising prices must impact on consumer demand, and it is likely that this will affect prices in the wholesale markets.’
Throw in more September part-exchange models, and it means far more choice and competition at car auctions.
That’s why, says Wallis, car dealers should ensure they speak regularly with their car auction partner, to ensure stock isn’t just sitting around, unsold, losing money.
‘Re-appraise your stock if necessary, manage your inventory through the appropriate channel, be prepared to invest in pre-sale preparation and get it sold for true market value first time.’ It’s all about pragmatism, she says.
‘This year has been exceptional so far, so it would be understandable if sellers got a little over-confident with their pricing.’
But ‘it is still critical to maintain good remarketing practice and accurate pricing… even more so if conditions change.’
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