11:07 am, September 18, 2023
Used car dealers are being forced to change how they value their stock as a result of the tumbling prices of second-hand EVs.
That’s according to Flipstock CEO and founder Steve Blair, who appeared on the latest episode of the Car Dealer Podcast, sponsored by JATO.
The past year has seen the price of used EVs fall through the floor, with electric models dominating lists of biggest depreciating models.
Car Dealer reported earlier today (Sep 18) that there may be some light at the end of the tunnel, with used EV prices climbing for the first time in a year.
However, Blair says the changing market dynamics have already impacted on how dealers do their business.
He told hosts James Baggott and Jon Reay: ‘What is funny at the moment – and this has changed within the last six months since the EV market dropped – is that a lot of dealers are all going different ways to value their cars.
‘So, for example, some of the massive dealer groups have got their own way – they’ll take information, whether that is Cap, Auto Trader, or any of the other larger valuing tools.
‘But then the other smaller dealers and traders will still be working from Cap, so there’s a huge disparity in what individuals will value their cars at.’
He added: ‘I had the most ridiculous amount of electric vehicles stock that people were offering me. But the good news with that is I had so many I could bulk them up.
‘I’ll get five different dealer groups or traders offering me two cars each, I make them bulk them up to an EV dealer and they’ll buy 10 of them and then they’ll give me X amount for each car.’
Among the stories discussed on this week’s podcast was the recent call for London car dealers to export non-Ulez-compliant vehicles to Ukraine.
Last week, we reported that automotive charity Car4Ukraine wants to see the Ulez scheme tweaked to allow vehicles that would be suitable for Ukraine that aren’t compliant in London to be used in a different environment rather than be scrapped.
The team also discussed the ongoing row between China and the EU, the Kent car dealer that had a car clamped and the dim-witted salesman who got caught out taking an unauthorised holiday in Portugal.
The full list of stories can be seen below:
- London used car dealers urged to send non-Ulez-compliant part-exchanges to Ukraine
- Used car dealer caught taking unauthorised beach holiday after bumping into company director in Portuguese bar
- EU considering tariffs on new Chinese EVs as it looks to help the likes of Stellantis avoid ‘race to the bottom’
- China hits back at EU as major row brews over plans to slap tariffs on the likes of BYD
- Happy ending in DVLA clamping row as Kent used car dealership finally sells Fiat 500
- Onto enters administration after failing to secure extra cash from shareholders
- Car dealer Sherwoods Motor Group saw profits tumble 42% in 2022
- Peter Vardy Group blames used car supply issues for falling profits in latest set of annual accounts
- Land Rover models make used car dealers the most profit – with Evoque topping the list
- Out now: Car Dealer 187 features an amazing Mazda museum, how some dealers are benefiting from the Ulez expansion and more!
Reporter: Cameron Richards
