10:06 am, August 9, 2024
It’s more important than ever now for car dealers to test-drive part-exchanges before they buy them from customers.
That’s the warning from Shoreham Vehicle Auctions MD Alex Wright in the wake of part-exchanges getting much older and becoming more expensive to have them ‘forecourt-ready’ if the car is in a poor condition.
He said people were also contacting dealers to buy their used car after approaching other outlets, such as car-buying services, where their offer price had been downgraded because of mechanical problems found on a test drive.
‘The older part-exchange sector is on a knife edge between dealers buying the right car at the right price or overpaying for a car in poor mechanical condition and losing money,’ he said.
‘I have never seen the part-exchange market as divided. The only peace of mind is to test-drive a customer’s car before offering to buy it.
‘Ignore the test drive and risk a repair bill that could equal the value of the car, as vehicle servicing, parts and even paint repair costs continue to rise,’ he added.
Wright, pictured, suggests that dealers should begin by checking the car’s service history and covering enough miles on the test drive to check if warning lights go out or stay lit.
If the used car does then have visible mechanical problems, the work needs to be priced up thoroughly based on parts availability, prices and repair lead times.
‘If a dealer wants to buy the customer’s car after carrying out their own checks, they can offer a realistic price based on its actual mechanical condition.
‘There are healthy margins to be made at the older end of the part-exchange sector, but dealers should show a level of caution before parting with their money,’ said Wright.
