Motorists Surprised By Part-Exchange Values
Motorists who part-exchange their cars might be pleasantly surprised how much they receive, CAP has reported. But why? The problem – from the second-hand trade's perspective – is a lack of reasonable quality stock. A CAP survey of independent dealers therefore revealed that 70% are “having difficulty sourcing the right cars”, and 78% say their stock level is “too low”. Poor supply and fair demand tend to boost prices, of course.
Mike Hind, Communications Manager at CAP, said: “Motorists who assume they will automatically do better by selling their car privately are behind the times. For independent used car specialists doing their best to keep up with demand, a good part-exchange is like gold dust in today’s market.” He added: “If they know they can generate another profitable future sale from your part-exchange you can expect to be pleasantly surprised by how favourably a good independent used car specialist stacks the deal.”
Dealers are struggling to find stock for two reasons. Firstly, new sales have been slow in recent years because of the economic crisis. This, of course, has affected the entire supply chain. Secondly, CAP has reported that high demand for used cars abroad means that those destined for export can sell for more than twice their book price at auction. Recent examples include a six year old Citroen C8 – which is worth about £2,200 on the UK market – that sold for £5,600. Furthermore, a five year old Audi A4 went under the hammer for £15,400 rather than £7,175. There is also high demand overseas for trucks, vans and motorbikes. Such vehicles are sourced in the United Kingdom because the pound is fairly weak which makes our shores a fertile hunting ground for foreign buyers. Furthermore gas guzzlers – many of which are unpopular here because of high fuel prices – are more appealing in counties where fuel is cheap. Finally, old and damaged stock is valued in eastern Europe where it can be stripped for parts or provide low cost motoring.
Mike Hind from CAP added: “This is one of the biggest untold stories of recent years across the UK used vehicle markets. Our car, bike, truck and van experts are often astonished at the prices they see paid for vehicles destined for export and there is no sign that demand will dry up any time soon. Sometimes it is causing real issues for dealers and traders in our own markets”.
Stephen Turvil, motoring.co.uk: 25th Mar 2013 15:03:00
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