Europe’s No.1 Vehicle Remarketing Company, British Car Auctions (BCA), is warning that higher than expected volumes of ex-fleet cars arriving on the market will undoubtedly put pressure on prices this month. Director of communications at BCA, Tony Gannon, explains “Although it is early days, we would expect to see de-fleet volumes ramp up in late March and this will possibly result in some more price pressure in the fleet and lease used car sector”.
Fleet lease values fell 2.4% in February, according to the latest Pulse report. However, overall used car values for the same month were the highest they have been for more than a year, since December 2009. The nearly new sector saw values rise 12.5% – an average of £2,208.00. The BCA claim model-mix was largely responsible for the increase, with sold volumes of higher value premium cars experiencing a rise of nearly 20%, and the number of volume models sold, falling by approximately 8%.
Tony Gannon, BCA said, “The overall economic picture remains gloomy however, and consumer confidence is fairly low.” He goes on to say “High fuel prices are contributing to rising inflation, as well as the knock-on affect of the VAT increase – it all means motorists are likely to be looking to reduce their costs going forward.”
Finally, Tony Gannon advises, “Vendor strategy is going to be increasingly important in the weeks ahead. Easter and the Royal wedding both fall into the same week at the end of April and it is quite possible that the wholesale market will soften around that time. Sellers should ensure they make the most of the demand in the intervening weeks.”
Think Insurance, the motor trader insurance specialists, fully support this advice and urge Motor Traders to really maximise opportunities in the busier periods, in order to survive throughout the predicted quieter times.