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Growing sales show used car confidence is returning, says CAP

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Time 10:39 am, March 21, 2014

vcsPRAsset_2799631_122401_93aa5e65-051c-4df3-b470-642bb40da6ae_0CONFIDENCE has returned to the independent used car retail sector as sales grow again, says car cost information expert CAP Automotive.

An improved balance of supply and demand has been key, according to the latest review of dealer sentiment.

Each month CAP questions a ‘Dealer Insight Panel’ of around 100 independent used car retailers as part of the research for Black Book Live, CAP Automotive’s unique real-time used car trade values trending tool, used by businesses across the industry.


In the latest survey more than half reported that sales were increasing, but the most significant change this year has been in the proportion of independent dealers reporting difficulty in finding the right cars for retail.

The year began with frustration for dealers over a shortage of high-quality stock. But the latest figures now show the smallest proportion of dealers struggling to source the right cars for their forecourts than since August last year.

Every measure of dealer performance is currently positive in CAP’s research, with stronger month-on-month retail sales and a 16 per cent improvement on the end of last year.


CAP Automotive communications manager Mike Hind, pictured, said: ‘Although used car retail sales have been good for independent dealers this year, profitability was proving a real challenge because of the increase in wholesale values caused by strong competition for the best-quality stock. Now they appear to have come to terms with the higher prices and are once again enjoying the fact that retail demand is keeping the metal moving.’

Dave Brown's avatar

Dave, production editor on Car Dealer Magazine, is a journalist with more than 30 years' experience in the worlds of newspapers, magazines and public relations.



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