VIPDATA, the valuations arm of vehicle
information provider CDL, says that despite a strong first quarter
for the car retail business, the market has been affected by its
traditional April slump.
Consultant Diane Williams commented: “many
dealer groups were overstocked with used cars at the end of March,
as were the auction halls, and clearly this stock needs to be sold
before trade activity can pick up again.”
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Williams added that March’s disaster in Japan
continued to affect the retail environment, with manufacturer
reliance on sole suppliers of everything from electronic components
to paint ingredients restricting the availability of vehicles to
consumers.
“These extra delays further bolster late model
prices. Customers have been experiencing long lead times for well
over 12 months now and this further setback is causing many buyers
to switch to used examples up to 12 or even 18 months old at list
price – or in some cases well over list price.”
She added that while the sourcing of new parts
suppliers would resolve the problem “before too much long term
damage is done”, late model, low mileage cars would stay strong for
months to come.
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