AM Online

Market in 'decline' as September approaches

"The market is definitely showing signs of decline. It is certainly becoming harder in the auction halls as buyers become both more selective in what they buy and lethargic in their bidding and it is evermore noticeable that the "unusual high spec" stock is standing head and shoulders above everything else.

As I predicted and expected weeks ago, the used car market is being affected by new car orders for September and I'm sure we will see August becoming a progressively more difficult month to dispose of used stock.

Main franchise dealers tell me that they do not want used stock unless they have an order for something and that new car registrations are taking priority. The car supermarket buyers are buying, but not in the volumes seen three or four weeks ago. It is probably a good thing, in hindsight, that many of the national fleet and leasing companies are not carrying a massive amount of stock at the moment and as such, they are still enjoying high conversation rates at good Cap clean figures, albeit for a smaller volume of entries.

It is still evident that vehicles carrying 100,000 miles plus are virtually unwanted - I have certainly witnessed these cars being sold at "give away money".

On a more upbeat note, it appears that September 1st is going to be a very busy time in the showrooms and on the roads. I expect this will have a "knock on" effect on the nearly new used car market in September/October and the market should remain quite bright. Let's hope that my feelings and crystal ball gazing predictions come true."

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