Research conducted by CAP Black Book Live shows a bright future for the used car market.
The main indicators used to gauge the used car market range from how the used car buyer was at the showroom, buying trends at auction and retail demand.
Main dealerships however are still reporting that it is difficult to find good quality used car stock. This is primarily down to the fact that new car registrations have been down in the last few years. This problem could increase as growing numbers of higher than average mileage and poor condition cars start entering the market.
Combine the issue of finding good used car stock and the fact that dealerships are still very nervous about over stocking means that some dealerships are only three quarters full with “prime ” stock.
A spokes person for CAP is reported to have said “We are seeing what we describe as a good ‘buzz’ around the auction halls, with plenty of appetite from dealers for the best quality stock – when they can find it. Some auction sales have seen conversion rates up to 20% better than during the same period last year and the dealers we speak to are generally happy with the level of retail interest they are seeing. We keep a close watch on the market every day and there have been some signs that increased short term rental business for some model ranges is starting to bring higher volumes into the marketplace. When that happens, prices tend to reduce but at the moment stability is the watchword in the current trade market.”
So the message is that if you are about to change your car for a newer model and if it is classed as prime used car stock, that is to say in very good condition, low mileage then you may well be pleased at the part exchange you are offered.