8:00 am, September 24, 2008
BLASÉ about the condition of your part-exchanges? Willing to take in anything, in order to get the deal done?
Then your profits are at risk, warns Manheim Auctions.
Dealers who fail to fully assess part-exchanges face serious shocks from poor vehicle condition. Trade buyers are inflicting swingeing cuts on values for badly-presented models.
Devaluations include £100-£300 for cracked windscreen, £75-£150 for cracked headlights, and £50-£150 for damage to alloys – each.
And these are all areas that can be easily missed during a rushed deal.
Dealers should also watch for poorly-repaired panel damage, which can see a £250 hit – per panel. Trade buyers also dislike work carpets, non-functioning air con, even missing sat nav discs.
Mike Pilkington, MD, Manheim Auctions & Remarketing said: ‘Apart from general consumer concerns over car running costs, the credit crunch is restricting the number of potential retail buyers in the market.
‘This, coupled with the contraction of the sub-prime finance sector, is making trade buyers more conscious of preparation and stocking costs. Vehicles in poor condition are much harder to retail and there is not the appetite to take them into stock, unless the price reflects it.
‘As the tough market continues, I think that there is little prospect of trade buyers not coming down hard on damaged or missing items for the foreseeable future.’
Here’s Car Dealer’s list of the things you should check for – and the financial hit if you don’t…
Cracked windscreen £100-£300
Alloy wheel damage £50-£150
Cracked headlight £75-£150
Poor accident repair, per panel £250
Worn carpet/seats £100-£350
No service history £300-£500
Missing V5 £200-£300
Expired MOT £150-£300
