My Car Check Trade used car market overview August 2015

Independent traders seek fresh used stock as main dealers prepare for new 65 plate

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"Independent traders will be straining every sinew to source fresh used stock while their franchised rivals are busy prioritising new sales"-Gavin Amos

My Car Check Tradeis the trade valuations arm of CDL Vehicle Information Services. Based on cutting-edge industry data and feedback from independent and franchised dealers, these monthly bulletins highlight the most significant trends in the UK used car market.

Head of Valuation Services at My Car Check Trade, Gavin Amos, commented:"It is natural for forecourts to be a little quieter during the holiday season. Some main dealers have already shifted their focus away from used cars towards ramping up orders for new 65 plate vehicles, which arrive next month. Independent traders therefore see an opportunity in late August. They will be straining every sinew to source fresh used stock while their franchised rivals are busy prioritising new sales.

"New car sales continue to increase month on month and there is no sign that this situation will change in the short term. There is a complex story behind this and it could well be creating a problem in the longer term as manufacturers push for greater market share. The fleet sector is showing real growth, which has to be a good sign.

"Good used stock is still proving very difficult to come by. Many traders are picking up older stock, five years plus, at what seems to be the right money, only to find there are hidden costs when it comes to preparing them. In today's super-competitive market, the days of ‘nicking stock' - regularly finding bargains that deliver massive profits - are all but over.

"We have received reports that some traders are looking to buy stock from places like the Isle of Man. While potentially profitable, such off mainland routes can be risky if not properly researched. Even if the car is in tip top condition, getting the correct paperwork to register the vehicle on UK plates can be time consuming and troublesome.

"There was a worrying news story recently regarding control of a Jeep Renegade being hacked remotely. With manufacturers bringing ever more technically connected vehicles to market, and driverless cars on the horizon, we are likely to see more of this kind of thing. There doesn't seem to have been much debate about the implications of this technology. As to the impact in terms of used values, there is a parallel to be drawn with the introduction of air conditioning. Models with driver aids and connectivity could become much more desirable, with the opposite true for those lacking these mod cons."