part-exchanges
Dealers who fail to appraise part-exchanges realistically risk
damaging their profits, Manheim has warned, as private purchasers
grow ever scarcer, and trade buyers become choosier about the
condition of the vehicles they will consider.
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Manheim Auctions & Remarketing’s MD Mike Pilkington said:
“Apart from general consumer concerns over car running costs, the
credit crunch is restricting the number of potential retail buyers
in the market.
“Vehicles in poor condition are much harder to retail and there
is not the appetite to take them into stock, unless the price
reflects it.”
In addition, the lack of sub-prime funding in the market will
directly hurt dealers who do not price stock realistically, said
Rob Barr, group marketing director at Manheim. “Vehicles taken in
part-exchange are often bought by sub-prime buyers, and if the
sources of finance to this sector are reduced, this makes it harder
to sell vehicles, whereas where there is an active sub-prime
market, buyers are more forgiving of cars in less-than-perfect
condition.”
If a service history is missing it could knock between £200 and
£500 off the value of a part-exchange vehicle, with a missing V5
costing £200 to £300.
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By GlobalDataSee “You can get finance – as long as you can prove you
don’t need it” for more on sub-prime finance
