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A new survey by Manheim Retail Services has found that most dealers experienced a downturn in used sales during 2008, but the auction house saw the possibility of a price recovery later this year.
Half (54 per cent) of the 200 retailers who took part in the survey said sales were down by over 10 per cent, but nearly a quarter (21 per cent) said sales had remained at the same level and 12 per cent said sales rose over the year.
Fifty-four per cent of the dealers questioned said they had reduced their stock levels, indicating a lack of confidence in the market, while a quarter (26 per cent) had kept the same level of stock and 20 per cent had increased their stock levels.
Manheim’s findings showed 76 per cent of respondents lowered the average value of cars on display, while 63 per cent of dealers were stocking more superminis and 29 per cent increased their stock of medium-family cars.
Manheim group communications director Rob Barr told Motor Trader he expected used vehicle prices to remain flat in the first half of 2009 with a possible price recovery towards the end of the year, assuming there is an easing up of credit restrictions.
“Demand for fuel and tax efficient cars will continue and it is also possible that the increased consumer desire for value may help to stimulate the executive and 4×4 segments.”