- Market remains stable
- Car stocks still too high, driven by volume returns from dealers
- Mass market product struggles to sell
- Different stock will sell well
- Book Values must drop
- LCV stock now growing at market but sales remain healthy
- Large panel vans very popular indeed
- Vivaro remains very popular at market
- 4×4 Sales now poor, all values down in the guides
Used Market Place Trade Talk
This month, the used markets definitely fell into 2 categories, cars and commercials. In the car markets, values are generally down across the board as stock levels continue to rise, and demand remains level. It is a completely different picture for commercials, as most stock is eagerly bought at market, especially the small and large panel vans.
Car Volumes Increase
This has, without doubt been the biggest influencing factor over recent months and continues, this month unabated. Most sale sites are seeing large volumes of cars returning and much of it is the normal mass market Vauxhalls, Peugeots, Fords etc.
Much of this stock is coming back from manufacturers, where 3 year old Personal Contract Purchase vehicles have reached the end of their lives with the first owner. Interestingly, that first owner is, almost without exception not choosing to buy the car, instead opting for another new car PCP. Of course this is no surprise as the industry widely expects new car purchases to be made through PCP now, as it is the only realistic method for most people to afford a new car. Manufacturers are suffering though, as those models returning are struggling to make Book and, perhaps therefore NBV monies.
The overall result of these volume returns is that prices are down across the board, with most cars now struggling to make Book money.
Different Product Will Sell
Of course, if the car is sufficiently different it will sell well, as did this very unusual Renault Twingo RS at Shoreham Auctions, which easily sold for over Book with plenty of bidding.
It is different stock like this that will continue to sell well, but the more mundane stock will now struggle.
Book Values to Drop
The inevitable consequence of this activity is a drop in Book values, which some traders say is long overdue. We will see quite large Book drops for cars over the summer period such that, going into a better September market with yet more volume from the plate change, trading should return to normal.
LCV Stock Increases
As with the car market, the volume of LCV stock is slowly increasing into the market. But unlike the car market, there remain plenty of buyers in the LCV sector to snap up all of the stock, with most sale sites reporting near 100% conversion rates.
Large and Small Panel Vans very popular
In particular, large panel vans are selling very well indeed, with all models snapped up immediately. Even badly damaged examples are being bought with strong, if not Book, money being paid.
The small panel van market also remains very buoyant, with Vivaro van being particularly popular, especially with low miles. Interestingly, this model now easily out sells the small Transit 280, with other similar sized vans such as Toyota Hi Ace and Peugeot Expert also selling very well. The, very basic but silver Fiat Scudo seen below made £1000 over Book at sale this month!
This probably vindicates Ford’s decision to replace the 260/280 Transit with the new Custom, to tackle the Vivaro sized competition.
What a shame that Ford is no longer ahead of the game though, they now react to competition rather than lead the industry.
Different Product Will Sell
As with the car market, anything different in the LCV sales really does well. This Fiesta TDCi van, which was fitted with alloys and air conditioning, outperformed Book by £400 at East Anglian Auctions in the month.
As a retail prospect, this would be very easy for a trader to sell, giving a quick turn round and good margins.
4×4 Sales Now Poor
I guess rather inevitably, the 4×4 market is now quite poor, with most models suffering at sale time. There remain a good number of pickup’s available left over from the winter stock, plus a sizeable returns programme from manufacturers.
Even the elusive VW Amarok is now appearing in reasonable volume, with prices dropping accordingly. As for other more normal pickups from Ford, Mitsubishi and Nissan, you can pick your colour and still pay well under Book now.
Sales in this sector will remain slow until October.
Active Rostrum Management
Rostrum Management remains the key to successful sales, with our staff earning a total of £21,810 this month across all clients. That equates to £95.24 per vehicle sold! Many deals can be achieved by being on the rostrum and, especially in a tougher car market, getting stock ‘on sale’ at the right time always encourages more bidding.
D.J.Woods, MANAGING DIRECTOR, XBG FLEET REMARKETING LIMITED