Used 4x4s sales boom including Q3 & Evoque following “worst winter for decades” predictions
Head of valuation services Gavin Amos commented: ‘As winter draws in, new and used car sales tend to dip, but this year seems to be different. Usually by November consumers are looking ahead to Christmas and all the expense that goes with it. However, dealers are telling us that many buyers are still out trawling the forecourts, especially on Saturdays and Sundays. There is a strong thirst for used cars that even the rainy weather can’t dampen.
‘The seasonal boom in the 4×4 market is well under way, with dealerships stocking up on these fashionable go anywhere vehicles in preparation for bad weather reaction buyers. During an onslaught of snow in 2011 I witnessed a Land Rover dealership selling every 4×4 unit they had in stock. The pace of business was quite incredible: the phone was ringing non-stop and internet leads were coming in by the dozen. Last year was a different story. Dealers who invested heavily in 4×4 stock got stung when the bad weather didn’t arrive – the stock went overage and had to be moved on for little or no profit. Recent predictions of “the worst winter for decades” is sure to kick start interest and ensure strong 4×4 values for the next few months.
‘So, what’s hot in the used market at the moment? The star performers are still the likes of Audi Q3 and Q5 and Range Rover Evoque. If you don’t mind a long wait then these are worth buying new: April for a Q5 built to the buyer’s spec seems the norm at the moment. If it’s a late used example then expect to pay close to list for any of these popular models. Ex-manufacturer cars with great spec are the best stock for any dealer. They don’t hang around long and often generate a part exchange vehicle to feed the forecourt.
‘Buyers still seem keen on diesel power even if they don’t need the increase in economy due to low usage. Hybrid hasn’t seen much uptake, especially in the 4×4 market where there’s a diesel alternative. Even cars such as Touareg Hybrid aren’t moving quickly and certainly aren’t demanding a premium.
He concluded: ‘Overall values remain steady with only older, dirtier, larger petrol engine vehicles taking another slight drop. As we move towards December then activity may well tail off, but with demand this strong don’t expect values to fall as much as they have in previous years.’