Nothard pointed to the downside of this over more localised custom: “They are influenced by price and price alone and are unlikely to return.”

Chris Green, who sold his Sky Ford business in Hertfordshire last year to Hartwell, said even allowing for reconditioning and marketing costs, margins on used cars can be four to seven times larger than on new cars and viewed disposal outside the franchised network “as a last resort”.

“There aren’t many cars that just refuse to sell, and even if that means you make a small loss, there is still money to be made on finance, service plans and extended warranty.”

 

Is it worth the risk to pay more than book value?

Murrells said some vehicles “can tick all the right boxes and still stick, but generally the better the spec, the better the price, especially with 20K mileage or less”.  

For Green “there are those lovely cars – good condition, one owner, full service history – where it’s maybe worth paying over book value to secure a new car sale”. Like the mix of franchised and non-franchised stock, he said dealers should consider “a permutation of punches” to maximise opportunities.

Nothard said that although factors such as manufacturer incentives and dealer standards affected the ratio of franchised to non-franchised stock, “dealers can’t afford to have an empty space on the forecourt or website because it can mean a lost profit of, say, £1,200 on every stock turn”.

Nothard said that, depending on market conditions, dealers were more selective on buying at auction. “Whereas at one time it may have been one in five, it’s more likely to be one in 20.”

Though acknowledging the benefits of new technology, Green said: “At the end of the day, there are traditional values – offering quality checked cars where the ‘history is no mystery’ to give customers peace of mind.”

Murrells said: “It’s wise not to become too reliant on systems; you have to combine this with experience,” with Wiseman describing it as “a healthy dose of industry knowledge”.

Being able to predict the weather may come in handy, too, with Nothard recalling: “A lot of dealers were caught out by SUV demand during the winter of 2012/13, with these models attracting premium prices. So this time round, they bought early in expectation of a repeat.”