Used market upturn to continue into September, says G3 Remarketing
Director Matt Dale at the online vehicle remarketing company, said of the downturn in recent months: 'The World Cup and the long-awaited Budget had the anticipated effect on the used vehicle market, with dealer footfall down as the general public were either reluctant to spend or too interested on invents in South Africa. Historically, whenever it's World Cup year, interest over the summer months is stagnant.'
The company has reported more positive activity of late though.
Mr Dale commented: 'The continued fall in prices published by CAP has helped, however the main contributing factor is vendors assessing vehicles on their realistic values rather than those suggested by the industry experts.
'Vendors have to assess what is more important. Should they aim for a three-figure CAP percentage with a low conversion rate or be willing to take a pragmatic view on both elements? Those vendors who work with their remarketing supplier will inevitably experience a better combined result and maintain their buyer following throughout these indifferent market conditions.'
Looking forward, G3 Remarketing suspects that the next six weeks will remain consistent. Mr Dale said: 'We envisage that August and early September will witness a slight shortage of vehicles that will help maintain the current market upturn. However unloved examples will still struggle to find new homes as buyers continue discount them heavily based on damage.'
He added: 'If a dealer purchases a vehicle that requires hours in the paint shop, by the time they have acquired the car, had it delivered, booked it into the paint shop, completed the repairs and then presented it on the forecourt the guides could have dropped another 5%. The knock-on effect is that this potential reduction in value is deducted at point of purchase to compensate'
'Remarketers have to work harder in these conditions to maintain performance. It's difficult for everyone concerned and by working with vendors and purchasers, conditions such as these can help cement relationships rather than dissolve them in our experience.'For more of the latest industry news, click here.