UK Used Car Market Jan-Mar 2012

If ever the gulf between trade auction prices and forecourt retail prices was closing then the current period is increasingly tight. So tight in fact that many Retail supermarkets have actually stopped the buying of usual stalwards such as Corsas,Insignias, Golfs and even Ford products. Many of these sellers were finding that unless a suitable Finance package was being sold with the car the deals were not adding up. Despite record numbers of cars being available at auction the recycling of cars which we have seen since mid period 2011 continues and vendors are just unwilling to wash out cars like they were doing in 09′-10′. At Manheim and BCA is is not an uncommon sight to see a unit rolling through for its sixth to eighth sale. unheard of in the past, but making sense now as eventually these cars are finding a buyer.

There are many problems for retailers but the product coming back off lease is increasingly too mileagy. Despite modern cars being capable of doing the mileage it is still hard to convince a retail public that wants a sub 12K per annum vehicle. Guides have been generous on pricing also and estimates are based on smaller numbers of high mileage vehicles coming to market, the result retail and low mile cars are smashing book and the regular 25-30K cars are recycling and finding a new home slow work.

The export market is expanding with strong sales to Eastern Europe and Southern Africa. Sales in Ireland,Malta and Cyprus remain strong on low emission models that comply locally.

© 2012, MD. All rights reserved.