VIP Data: Used car demand strong but Government making things harder
This is great news for the late used examples out there on the market as they are still enjoying very strong values.
At this time of year forecourts are usually full. The part exchanges generated by the new registration are in, prepared and ready to go to a new home. Many traders are reporting strong demand for these fresh cars. Valued wisely when coming in part exchange they often offer a better profit opportunity than those sourced from auction where values are [email protected]@. As a result they aren’t hanging around for long.
The shortage of cars is becoming ever apparent, and with trade now looking to top up their depleting stock the auction halls are ever busy. Sellers are now wise as to the importance of a Ready to Retail condition car when selling at auction. The number of cars that receive smart repairs for damage such as wheel scuffs and bumper damage is definitely on the up in an attempt to maximise profit. Both the trade and the ever inquisitive retail audience are bidding high for anything in Ready to Retail condition with the right specification and mileage. Late, low mileage Corsa and Fiesta are still firm favourites. Corsa 1.2 SXi up to 8 years old is still ever popular amongst traders. Some Skoda models are creating a lot of attention. Superb diesel estate is in demand and a bright Octavia vRS 2.0TDi estate is certain to perform well in the trade.
The Government seem determined to destroy the thriving used car industry. They seem to forget that every shiny new car registered today is a new car for a very short time, but it is a used car for a very, very long time. By moving the green tax goal posts at every budget resulting in the car being more expensive to run, they are shortening the appeal and hence the life of an otherwise perfectly good vehicle. Manufacturers pour millions of pounds into the research and development which enables them to produce a longer lasting product, anti-rust treatment to the bodywork and more durable mechanicals etc. We all know that a car is the most expensive purchase next to a house. The consumer now demands much higher quality, and manufacturers have come up with the goods. It seems very wrong that at the stroke of a pen an MP that will reign in office for at best a fifth the life of a vehicle can implement an ill thought out Government policy that can render a vehicle almost un-saleable in the future.
Values remain stable for April with only a few exceptions. Last month we talked about the pending fuel price increases instigating a price drop on anything undesirable such as previous generation petrol Audi A8, big petrol 4×4’s and older unloved saloons such as Mondeo . With the budget fresh in buyer’s minds and a now certain further jump in fuel costs, the situation for these undesirable vehicles can only get worse. We have dropped them yet again for April by between two and four percent. Values of the usual high achievers such as Q5 remain bulletproof.