Retail demand supports used values
Strong retail demand has supported used values in August with a reduction of 0.7% at the three-years and 60,000 miles, according to cap hpi.
The automotive data experts suggest the stable market is due to consistent performances across sales channels, and is steadier than the 1.6% reduction experienced during July. The figure mirrors September 2015, which saw an overall decline of 0.6%.
James Dower, senior editor of cap hpi Black Book, said, ‘There are likely to be two pressure points moving forwards, the nearly new market and also potentially higher volumes of stock entering the used car arena. The majority of manufacturers still have significant volume aspirations for the remainder of the year and the new car retail performance in September will dictate just how far reaching the effect of pre-registration activity will be over the used car market in the final months of the year.
‘With ongoing reports of dealer stock at such high levels, another wave of pre-registered cars could continue to put pressure on cash flow and stocking plans leading to increased stress on margins and profitability. Stock management, stock turn and realistic retail pricing have always been key to used car success and will be critical throughout the month. Black Book Live will continue to report market movements on a daily basis.’