The stable used car market in 2013 has been a welcome change from the peaks and troughs of previous years and dealers face the challenge of meeting consumer demand in a climate which appears to be promising a modicum of recovery which may not be met with sufficient availability of stock, says CAP operations director Adrian Rushmore.
Speaking at this year’s AM Used Car Market Conference, which takes place at the Ricoh Arena in Coventry on 10th October, Rushmore explores the relatively benign used car market which has typified the past 12 months and the impact of current conditions.
His presentation includes the impact of the increase in new car registrations and lack of availability of stock on the market as well as the implications for the remainder of 2013 and into 2014.
Drawing on the wealth of data from CAP, Rushmore will deliver insights, trends and analysis to provide dealers with the most up-to-date and accurate information in order to formulate the most effective used car retailing strategy.
Rushmore said: “The increase in new car registrations has given the industry a much-needed boost and in turn this is creating a different set of market dynamics to those earlier in the year. The market is undoubtedly benefiting from relative stability at the moment but dealers will need to be prepared for some challenges ahead as they search for an insufficient number of good quality retail stock.
“Despite the new registrations, the availability of good quality stock will need to be confronted in the face of a slow increase in retail demand. The start of the recovery will lead to increased activity in the used car market and dealers will need to have strategies in place if they are to be best placed to fulfil demand.”
The market is already feeling the impact of the recovery together with the rise in new car registrations with modest price increases in the wholesale market experienced over the last few weeks, traditionally a slower period. Vehicles such as 4x4s have already began to attract forward-thinking dealers pre-empting winter demand.
Added Rushmore: “The real barometer will be the number of unwanted part-exchanges from the September plate change which appear in the wholesale market. By comparison, retail-ready vehicles will find themselves on dealer forecourts irrespective of the franchise as dealers will be eager for a quick return. We eagerly await the data from September which will give us a much better idea of the way in which the market reacted and indications of its short-term future performance.
“The timing of the AM Used Car Market Conference means we will be able to give a much more accurate overview and forecast of the market as we look ahead to 2014.”