Vehicle valuation firm CAP has said new-car finance deals are responsible for the continued problem of a lack of retail-quality stock available to independent, used dealers.

Despite recently examining a potential drop in used values prompted by rising stock availability, CAP’s latest monthly poll of independent dealerships has pointed to an ongoing perception of a dearth of supply.

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Mike Hind, communications manager at CAP, said: "Cheap rate finance offers on new cars from franchise dealers are sucking good quality part-exchanges away from independents, which is contributing to their difficulties in sourcing retail-suitable stock.

"Those new car deals are also tempting a lot of motorists away from used cars altogether. This means independents who specialise in more expensive late plate cars are having to work harder to make their own offers more attractive, without the support of manufacturer subsidies on finance."

By numbers

Compared to last month, more respondents reported finding the second-hand vehicle market tough while fewer were confident about their short-term future.

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The percentage of dealers describing current trading as ‘stable’ or ‘good’ fell to 64%, from 74% at the end of April. Over the same period, the ratio of dealers predicting growth in their business declined from 87.5% to 81%.

At the same time, those feeling their current stock levels were ‘too low’ remained at a steady 70% while those reporting difficulty in finding retail-quality vehicles rose from 32% to 42.7%.

richard.brown@timetric.com