A weekly round up of second-hand vehicle value and remarketing news, this week including CAP’s independent dealer survey, differing opinion over end-of-year wholesale planning and the second McLaren supercar down the lane at BCA.
Dealers downcast – CAP
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Confidence among independent used car dealers has dropped to its lowest level since spring, according to the monthly survey of around 100 independent retailers by CAP Automotive.
CAP attributed the downturn to a slowdown in used car retail since September, when consumers typically purchase new cars with the latest number-plate, culminating in November being the first month of the year to see a drop in used car trade prices.
In contrast to the high sales and bullish atmosphere of summer, nearly a third of respondents said October sales were down on September, with a similar number reporting a ‘poor’ business climate.
As well as a fall in sales, CAP added dealers were continuing to find problems with stock supply: nearly two-thirds of respondents said stock levels were too low, with just 6% happy with the volume of cars available on their forecourt. Just over half of those surveyed expected conditions to remain as they are, with the remainder split between expectations of improvement and further decline.
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By GlobalDataCAP and Manheim disagree over New Year’s preparations
CAP has also reported dealers are eyeing up stock purchases ahead of the New Year while consumers turn attention to Christmas retail and car traders attempt to take advantage of a slump in prices.
According to CAP’s real-time guide to values, Black Book Live, values have dropped daily since 1 November, and have fallen between £75 and £800 across the month on some models. However, prices for some 4x4s and SUVs have risen, as expected during the cold weather season.
However, remarketing group Manheim has said the example of last winter should warn traders over the strategy of buying heavily at wholesale between now and the end of the year.
Between December 2012 and January 2013 the average auction selling price dropped from £5,361 to £4,786, the average reserve price fell from £5,501 to £4,835 and the average CAP clean values were down from £5,699 to £4,980.
BCA’s second McLaren hits £126k
The second McLaren MP4-12C to be auctioned through British Car Auctions (BCA) in two months has sold for £126,000.
The hammer price was £1,000 short of the first sale, despite the second McLaren having fewer miles on the clock and the extensive high-specification detailing of the interior and components, which had led BCA to predict a higher value.
richard.brown@timetric.com
