12:08 pm, August 9, 2022
The vast majority of dealers say having to sell older cars creates specific problems – with vehicle history, preparation and breakdowns at the top of the list.
That’s according to August’s Startline Used Car Tracker, which saw 50 dealers quizzed by APD Global Research.
Eighty-six per cent of them said that having to sell older cars led to specific problems.
Fifty-eight per cent of them are selling older cars than three years ago because of stock shortages and high values.
Fifty-two per cent are retailing stock around one year older than previously, 34 per cent are retailing one to two years older than before, and 14 per cent are selling more than two years older than before.
Because of this, 32 per cent say vehicle history has become more important, 24 per cent cite more preparation being needed for sale, while 13 per cent say breakdowns or warranty claims are more common.
Meanwhile, 11 per cent say customers need more convincing to buy.
Startline Motor Finance CEO Paul Burgess said: ‘We can see from our own lending profiles that the average used car purchase is getting older.
‘This is something that is affecting everyone from franchise dealer groups to small independents.
‘The situation means that dealers are experiencing issues.
‘Some of these are around the need to reassure customers that an older vehicle remains a good buy – concentrating on presenting a well-prepared vehicle with a sound service history.
‘However, more active problems are arising, such as high levels of breakdowns and even more cars being returned.’
But he added: ‘There is a positive to be drawn from this.
‘The pandemic showed how dealers are incredibly good at adapting to market conditions and the same is happening again here.
‘The used car sector has adjusted its approach in the light of stock shortages and continues to overwhelmingly offer vehicles that satisfy the needs of customers despite stock shortages.’
August’s Startline Tracker also registered a four percentage point increase to 12 per cent among those who said they were more optimistic than in July, while there was a corresponding three percentage point drop to 32 per cent in those who were more pessimistic.
Reasons cited by those who are optimistic include strengthening stock supply – mentioned by 100 per cent of respondents – and that motor finance availability was improving – up by 17 percentage points on July to 67 per cent.
Those who were pessimistic said the market and prices were weakening – with a 22 percentage point increase to 45 per cent – and that stock supply was poorer – up 11 percentage points to 45 per cent.
