Eighty-six per cent of dealers say that having to sell older cars creates “specific problems” – with vehicle history, preparation and breakdowns heading the list, dealer research in August’s Startline Used Car Tracker shows.
The research shows that 58% say stock shortages and high values mean they are selling older cars than three years ago. This ranges from 52% of dealers retailing stock that is around one year older than previously to 34% retailing 1-2 years older, to 14% retailing more than two years older.
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As a result, 32% say that vehicle history has become more important, 24% that more preparation is needed for sale, 13% that breakdowns or warranty claims are more common and 11% that customers require more convincing to buy.
Paul Burgess, CEO at Startline Motor Finance, said: “We can see from our own lending profiles that the average used car purchase is getting older and this is something that is affecting everyone from franchise dealer groups to small independents.
“The situation means that dealers are experiencing issues. Some of these are around the need to reassure customers that an older vehicle remains a good buy – concentrating on presenting a well-prepared vehicle with a sound service history. However, more active problems are arising, such as high levels of breakdowns and even more cars being returned.
“There is a positive to be drawn from this. The pandemic showed how dealers are incredibly good at adapting to market conditions and the same is happening again here. The used car sector has adjusted its approach in the light of stock shortages and continues to overwhelmingly offer vehicles that satisfy the needs of customers despite stock shortages.”
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By GlobalDataThe Startline Used Car Tracker is compiled for Startline Motor Finance by APD Global Research. This month, 300 consumers and 50 dealers were questioned.
