Latest VRA remarketing report warns that used buyers remain highly selective
The organisation warns that there is much more price sensitivity around in the wholesale market and sellers are being urged to be very pragmatic about anticipated values, particularly on those vehicles with excessive mileage and damage.
Whatever their condition or specification, leasing and dealer members are saying there has almost been a total switch-off in demand for cars coming back from lease extensions in excess of 100,000 miles, unless they deemed as good value.
Whilst gas-guzzlers are certainly feeling the pinch, small, fuel-efficient cars at the other end of the market are in strong demand, reflecting the consumers' reaction to the UK's austerity measures.
This is especially apparent in the 4×4 sector, which is currently a story of two halves. The smaller-engine, fuel-efficient models are holding up quite well against downward revaluation in the price guides, whereas the values of their larger, higher CO2 emitting counterparts are under big pressure as dealers report consumers struggling to reconcile the growing running costs in the form of increased fuel prices and tax disincentives.
On a more positive note, the used van market continues to hold up well, with strong prices in most main categories. A number of the larger fleets are finally replacing their ageing stock with new vans which, in turn, is releasing much needed quantities of used stock into the market. These are being snapped up by the small business and self employed sectors, who likewise have been holding off replacement, with many happy to buy three to five year old vans, in an effort to keep a lid on their operating costs.