9:26 am, May 18, 2017
THE budget used car market is ‘on fire’ and receiving record numbers of buyers and strong prices, according to Aston Barclay’s group operations director, Martin Potter.
Dealers should be taking this end of the market just as seriously as newer part-exchanges as there is a healthy revenue stream to be had, he says.
Four hundred buyers regularly turn up at Aston Barclay’s Monday night Chelmsford sale, with two lanes selling between 400 and 500 cars every week.
Used cars between six and 15 years old can change hands for £200 to £12,000, with dealers reporting a healthy profit on stock, even those with more than 100,000 miles on the clock and having clearly been well-used.
‘The budget sector is a massive part of the used market,’ explained Potter.
‘Not every motorist can afford an expensive car or does the mileage annually to justify spending money on a newer car, meaning budget buyers are often getting into their dream car for the first time.
‘These buyers are either bidding on cars at auction directly or buying a car from their local independent dealer. Whatever their source of stock, our Monday night sales have been consistently busy for the past three years.’
German cars, SUVs (particularly Range Rovers), estate cars and MPVs are in high demand. MPVs in particular often get purchased for use as taxis while estate cars often support a buyer’s hobby or a small business.
‘Last Monday, our regular car supermarket vendor made around 98 per cent of CAP average, with our local Vauxhall dealer making well over 100 per cent of CAP average on their budget trade-ins,’ added Potter.
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