VIP Data: Used car activity to pick-up at the start of the New Year
In the past traders and retailer groups have used December to fill their forecourts with cars bought at the right price whilst activity was down. However last month, things were a little more difficult. The lack of Ready to Retail cars made life very difficult for the trade to fill their proverbial boots. We have previously talked about cars in poor condition being the only option as forecourt fillers. These cars do pose more of a risk as the preparation costs can only be estimated before purchase. Despite being more of a gamble, if bought right they can be a great source of stock and of course increased profit margin.
Over the past few years the financial impact of driving a larger engine car has seen an increasing number of drivers move from the likes of the Audi A4 and BMW 3 series to smaller more efficient A3 Sportback or BMW 1 Series. These still offer adequate cabin space but in a more financially viable package. As such the used market will continue to see a lot of demand for the right diesel models in each range. Crossovers have been the ‘in thing’ for some time now and models such as Skoda Yeti and Nissan Qashqui remain ultra-strong performers in the used market. The high driving position and fantastic levels of practicality will keep these models strong for the foreseeable future.
Most manufacturers continue to develop new, cleaner engines across their ranges and this is constantly raising the bar in terms of reduced CO2 levels and increased levels of economy. 2013 will see many new models in key sectors of the market. Dacia are hitting the budget end of the market – this is sure to give the more established manufacturers something to think about as buyers realise that they can have a brand new car for used money.
The shortage of used stock continues and values remain strong pretty much across the board. Certain undesirables such as older high mileage Renault Laguna and Ford Mondeo are booking the trend and have seen a drop in the region of 3%. As it stands we cannot see any major change for the first quarter of 2013.