10:01 am, June 20, 2012
CONSISTENT prices of around 97 per cent of CAP Clean were being achieved during May for ex-fleet cars, according to the latest figures from the Vehicle Remarketing Association.
Meanwhile, the buoyant light commercial market saw prices average 100 per cent of CAP Clean, says the VRA.
A good steady balance of used stock has been consistently entered for sale which has helped fleet vendors in particular report healthy conversion rates as well as consistent prices when selling to the trade and to retail buyers.
However, any car that hasn’t sold on its first attempt is struggling to find a new owner, reinforcing that used buyers are very focused on what they will buy and at what price.
Franchised dealers are regular buyers of three year and older cars reinforcing the increased efforts being made to widen their stock appeal during this tough economic climate.
Dealers are also tending to trade more of their part-exchanges taken in against new or used stock, reducing volumes coming into the used market, but helping to drive dealer profitability.
Downward pressure
There are signs that the aggressive new deals being offered by manufacturers are putting a downward pressure on prices of nearly new cars and vans.
There are also some early signs of bulk-buy deals also being available from manufacturers which could further put pressure on prices and demand for nearly new cars.
However, the biggest immediate concern on all new and used car radars is whether the busy summer, featuring Jubilee events, Euro 2012 and the Olympics, will dent demand for used cars and light vans.
