Motor Trader The award-winning and longest running UK magazine for car retailing professionals. Your first stop for News, Jobs and Reports for the motor industry.
Demand for wholesale used cars has deteriorated in the last two weeks with one auction house blaming an over-supply of pre-registration vehicles hitting dealer forecourts.
CD Auction Group, the online seller, said the current trading environment contrasts sharply with the first 10 weeks of the year when sales of used cars were strong with the company claiming around 30 per cent more trade buyers in the market in February compared to the final months of 2010.
“The market has not died but suddenly trade buyers are being much more cautious about what they bid for. Even the major car supermarkets who regularly buy much of their stock from us are holding back. In this climate, vendors need to be realistic about values achieved,” said Roger Woodward, managing director.
Woodward said pre-registration activity around the 11-plate change was adversely impacting used market.
“I think we have had a false market for most of the first quarter and there is plenty of evidence of pre-registration by franchised dealers to achieve new car sales targets in March. Forecourts are now over-stocked with late-plate and part-exchanges.
“As always, the market will sort itself out but, right now, we’re in danger of creating a log-jam. Wholesale values are going to fall as a result. Vendors should be very wary of holdings onto cars for too long or presenting cars for sale in poor condition.”