8:18 am, November 10, 2026
Former Marshall Motor Group boss Daksh Gupta has warned car dealers they could get ‘burned’ by holding too much nearly-new stock as aggressive deals from Chinese manufacturers threaten used car values.
Speaking on the latest episode of the Car Dealer Podcast, Gupta said the combination of cheap new car finance offers, expensive used car borrowing and longer manufacturer warranties was creating a difficult environment for retailers.
He believes the pressure could be particularly severe for dealers stocking one- and two-year-old vehicles, with consumers increasingly tempted by heavily supported new car deals.
Gupta, who is now chief executive of builders’ merchant Huws Gray and remains involved in the motor trade through Hendy Group, said dealers needed to be extremely careful about the vehicles they were buying.
‘The problem is you’ve got this dynamic where the cost of capital is expensive now,’ he told hosts James Baggott and Jon Reay.
He pointed out that used car buyers could face borrowing rates considerably higher than those available on manufacturer-backed new car deals.
‘What’s it going to cost to fund that used one? It will be significantly more than it will be new.
‘Someone’s sat there thinking, why would I buy a one- or two-year-old one with one or two years less warranty, with mileage, and I’m not the first owner, and it’s not a new car? Well, I can buy a new one for that.’
He added: ‘The problem is that’s going to put massive downward pressure on nearly-new.’
Gupta then issued a direct warning to retailers, including colleagues at Hendy.
‘One of the tips I’ll be saying is be careful – so Hendy team, please listen – be careful of sitting around [on] nearly-new cars because you will get caught.
‘And it will really hurt you in December potentially.’
His comments come as Chinese manufacturers continue to expand rapidly in the UK, offering competitive monthly payments that are increasingly putting pressure on established brands.
Gupta said he had recently spotted a Jaecoo 7 leasing offer at around £275 a month, illustrating the challenge facing rival manufacturers and used car retailers.
He admitted that while he had anticipated the arrival of Chinese brands during his time running Marshall Motor Group, their speed of growth had surprised him.
‘We did see this coming. I think the speed was probably faster than even I expected,’ he said.
He believes the cost-of-living squeeze has helped the newcomers gain ground, with consumers increasingly focused on affordability.
The former Marshall boss was particularly complimentary about BYD and Jaecoo, describing their products as impressive.
Asked whether he would include Chinese manufacturers in his portfolio if he were building a dealer group today, Gupta replied: ‘100%.’
He added: ‘I think Jaecoo look really good. I think BYD, I think their products are amazing.
‘They’re the two for me that really have caught my eye.’
However, he warned that retailers taking on emerging brands also needed to consider the longer-term financial implications.
In particular, he highlighted the lack of an established used car parc for many Chinese manufacturers, limiting opportunities to generate aftersales income.
‘One of the challenges with the Chinese brands is they don’t have a used vehicle parc,’ he said.
Gupta argued that successful retailers would still need a strong mix of franchises, sufficient scale and a major focus on used car sales.
He also believes established premium brands will continue to attract customers willing to pay more for their products, despite the growing appeal of cheaper alternatives.
Elsewhere in the interview, Gupta discussed his involvement with Hendy, where he acknowledged that the dealer group was working through several challenges.
He said changes to the management team, including the return of Simon Bottomley as chief operating officer and the appointment of a new chair, would help strengthen the business.
‘I think you’ve covered that it’s got some challenges in that business that we’re working through,’ he said.
‘We’re obviously doing all the right things to get that business into a position where it should be because it’s a fantastic business.’
He added that Hendy was facing some of the same manufacturer-related pressures affecting other large dealer groups.
‘Some of the challenges that we’ve been talking about, about OEMs, we’re experiencing that,’ he said.
Gupta said his involvement with the company had also proved more demanding than initially expected, joking that what was meant to be eight hours a month could easily become 80.
Despite the difficulties facing the trade, he insisted retailers could still protect their businesses by focusing on stock management, data and everyday dealership processes.
Returning to the threat posed by Chinese brands, he warned that businesses which failed to recognise changing market conditions risked paying a heavy price.
‘For those retailers that are doing that, they’ll still get through. They’ll still do really well.
‘For those that kind of wonder what happened, they’ll miss out and they’re gonna get burned. They’re going to lose money.’
He added: ‘You’ve got to be all over the data.’
The week’s top news stories are also discussed, and you can watch the podcast at the top of this story or listen to it through your favourite streaming services, including Spotify and Apple Podcasts.