The April issue of the CAP Black Book contains
better news for used car dealers, after successive monthly value
increases during the first quarter of the year.
Despite the squeezed margins experienced by
used traders at present, the Black Book’s editor Tim Bearder
reports that 2011 has so far been a very strong period for the used
car business, with several major dealer groups saying that the
first quarter was their best trading period for a long time.
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Nevertheless, dealers continue to complain
that they have been unable to pass on the additional costs of
acquiring stock to already hard-pressed consumers, the book
argues.
CAP also reports that the shortage of retail
quality stock seems set to continue in a market where overall
volumes are rising, helping franchised dealers in particular.
Dealers report strong business in the
sub-£3,000 sector, CAP says, with trade disposals described as “on
fire”, and ex-rental stock coming onto the market as some
manufacturers incentivise rental operators to place fresh new car
orders.
Another significant feature is the increased
number of high-mileage upper medium cars returning to the
market.
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By GlobalDataTim Bearder said: “One of the challenges for
the market over the coming weeks and months will be the shortage of
sufficient quality retailable three-year-old stock.
