Consistent prices of around 97% of CAP Clean
were achieved in May for ex-fleet cars, while the buoyant light
commercial market saw prices average 100% of CAP Clean, the Vehicle
Remarketing Association (VRA) reports.
A good, steady balance of used stock has been
consistently entered for sale in May and June, which has helped
fleet vendors in particular to achieve healthy conversion rates and
consistent prices selling to the trade and to retail buyers.
However, cars failing to shift first time struggled to sell,
indicating used buyers are very focused on what they will buy and
at what price.
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Franchised dealers are regularly buying
three-year and older cars, reinforcing their increased efforts to
widen their stock appeal during the recession. Dealers are also
tending to trade more of their part exchanges taken in against new
or used stock, reducing volumes in the used market, but helping to
drive dealer profitability.
The VRA says there are signs that aggressive
new deals offered by manufacturers are pushing down nearly new car
and van values. If manufacturers then redirect to the UK some of
their vehicle volumes from economies struggling in the Eurozone,
this could provide further challenges for the sub 12-month-old
sector. There are some early signs of bulk-buy deals also being
made available from manufacturers which could put further pressure
on prices and demand for nearly new
cars.
The report continues: “Highly competitive new
car finance schemes are being underwritten by the manufacturer’s
finance divisions and the number of cars coming back from lease or
PCP agreements being sold directly to dealers continues to grow to
meet their appetite for two, three and four-year-old cars.”
Concluding its assessment, the VRA speculates
the Diamond Jubilee celebrations, Euro 2012 and the London Olympics
and Paralympics may dent demand for used cars and light vans in the
coming months, but stops short of asserting they will.
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By GlobalDataHowever, it does contend movement restrictions
in and around London caused by the Olympics will impact all car and
van collections and deliveries, saying the only alternatives will
be for operators to collect or deliver cars in the middle of the
night, adding further difficulties and costs for dealers and car
delivery companies, including possible new vehicle delays for
fleets and consumers in the run up to the September plate
change.
