Record new car registrations in the first half of the decade means the auction halls are full of three to five year old cars. Many are in a good enough condition to turn a quick profit for dealers.

But auctions are also a good source of recently registered, low mileage vehicles thanks to many car manufacturers’ efforts to maintain their share of the new car market by pumping product out to rental companies and to their own company fleets.

Six months to a year on and these cars are returning to market with fewer than 5,000 miles on the clock.

This ready access via auction to a spread of nearly new and mid-aged cars provides dealers with a straightforward way of maintaining a balance of used stock on the forecourt.

If customers don’t want to commit to the expense of a new car, clever marketing might tempt them into a barely-used, current year equivalent that will save a wallet-full of cash and return a modest profit for the dealer.

Data gathered last month by Manheim Retail Services shows that a third of dealers feel used cars are their lifeblood at present, and one in 10 has increased marketing activity in this sector.

• Read this story in full in the 9 Jan 09 issue of AM. To subscribe to AM magazine click here or call 01733 468659.