CAP automotive predicted recently that the average price of used cars is on the rise. The most significant factor affecting the average price is the lack of decent stock available.
Due to an alleged fall in the supply of well-maintained used cars, dealers are being forced to choose between two options. Initially, dealers can purchase damaged and poorly maintained vehicles; of which there are no shortages, with the intention of carrying out repair works prior to sale. Alternatively, seeking out well-maintained examples and paying the extra premium which comes with a low supply market.
Around 100 independent used car retailers regularly contribute towards a survey, the Dealer Insight Panel, which measures the general satisfaction of the state of business and stock. Predictably, the latest updates over the past few months have attracted a 30 per cent negative rating, with poor stock cited as a major contributing factor. But how does this affect the general motoring public and readers of Girlracer.co.uk?
Were you considering purchasing a brand new car? Now is apparently the time, due to a high average of part exchange values. CAP also concluded that forecourt stock is at a record low, with decent quality stock experiencing a drought. So be sure to barter heavily with the dealer, as they are statistically more willing to fork over the extra cash for well-maintained used cars.
2 – Higher Used Car Prices.
Every Ying has its Yang. Whilst part exchange prices are high, purchasing prices for consumers will also represent this additional cost. Therefore, if you are in the market for a used vehicle any time soon, you may be losing out by comparison to the previous year. Though if the time has come to sell the current motor, then many private sellers may experience their fortunes perform a 180 degree turn, as most may receive an inflated price to the previous year.
Equally to dealers’ fears, consumers may find themselves purchasing a complete lemon. Whilst most second hand car dealerships will ensure that decent stock is provided and repairs are carried out, some may decide to take shortcuts. Ultimately, this spells disaster for the consumer, who may eventually enter into costly legal proceedings and footing unnecessary repair bills. Always be sure to carry out thorough inspections and carry out a car history check.
4 – A More Competitive Market.
With a high demand and low supply, the market will certainly become more competitive. This will certainly be great news for those supplying genuinely good quality vehicles for sale, as the potential for swifter sales is a definite possibility. Equally, this will mean that buyers should act fast to take advantage of the best deals on the market, as potentially a queue of other eager customers lurks closely behind.
Obviously with inflated prices, the eventual fall in demand for used vehicles may crash the market’s prices. Brilliant news for buyers around this time, however disastrous for sellers and dealerships. Whenever this eventuality arrives, be sure to be creative and diversify yourself from the crowd. Sellers could even adopt unorthodox tactics, as employed by this seller with his Volvo, in an effort to attract as much attention as possible. Indeed this tactic also has the potential to earn a significant amount of money in advertising, with over 1.4 million views in a fortnight.