It’s good to see that latest UK automotive industry figures show growth in values across ex-dealer stock.
The overall value increase between August 2013 and August 2014 was £533 to £3,162, a growth of 20.3 per cent.
The month-on-month figure was a more conservative £32 (one per cent).
In line with the recent announcement from the SMMT highlighting the 30th consecutive month of growth in new car registrations, significant volumes of good quality part-ex vehicles have made their way into the market.
This month’s plate change is likely to see even more attractive stock becoming available, allowing dealers to be selective in their purchases.
I reckon the availability of cheap finance and increasing consumer confidence has led to record performance in the new car sector, which has been echoed in the used market. However, the attractiveness of new car deals has also placed price pressure on some of the lower spec, higher mileage part-ex vehicles.
Let’s face it, while September should be another record-breaking month for new car registrations, it’s unlikely these heady heights will be sustainable in the long-term and I think the markets will realign and stabilise over the coming months.
For dealers looking to shift part-ex stock, this means taking a realistic overview of the quality and volume of vehicles in the market to price stock accordingly.
Also, while the relative low cost of borrowing money has allowed us to drive newer, more expensive vehicles than pre-recession, the looming interest rate rise and scrutiny of finance deals is likely to prompt realignment in the market over the coming months.