The first half of November has shown signs of the used car market beginning to cool but only by a couple of degrees. Many dealers continue to report strong sales performances and are relatively buoyant about the prospects for the rest of the month. Whilst values have moved down over the last couple of weeks, the erosion is at a slower pace when compared to the same stage last year.
Overall stock volumes have risen slightly so far this month with reports that desirable, clean examples follow the seemingly continual trend of performing well, whilst vehicles requiring reconditioning work are proving a challenge through the remarketing channels.
We have noticed some significant growth in the on line classified volumes suggesting that forecourt stock is a little more plentiful than they have been over recent weeks. Much of this growth appears to be weighted towards nearly new cars as the impact of the September registration activity becomes more visible. Dealers are well versed in marketing these cars but there are a number of replica models, only differentiated by colour, and in significant volume, all fighting for the same customers. These may take a little longer to retail, leading to a greater threat of stock ageing.
Two manufacturers have just announced scrappage/swappage schemes, which will point customers that may have initially been used/nearly new customers, into brand new vehicles, and this could adversely impact retailers that are holding volumes of pre-registered stock. That being said, this should draw more true retail registrations into the final months of the year and potentially reduce the need for tactical registration to achieve target.
Values are likely to continue to slip through the month and black book live will continue to monitor the market on a daily basis, allowing subscribers to see real time valuations.
James joined cap hpi in May 2016 and is responsible for the production of black book valuations, managing the team of 7 editors. With over 27 years’ experience within the motor industry he has worked within motor retail - from volume brands to high end prestige, motor finance and most recently as Sales and Marketing Manager for a vehicle remarketing company. James keeps a close eye on current market conditions and reports on valuation performance alongside key industry issues through his editorials and press releases.