Thursday, August 21, 2008
Car dealers face auction house price rises
RMI issues warning over higher selling charges
Car dealers and fleet companies face a significant increase in auction house charges the RMI has warned.
The trade body said auction houses were facing greater economic pressures and were unable to hold selling charges as they have done in recent years.
“The vehicle remarketing industry is a low margin, high turnover business, which is only sustainable from a low cost base,” said Louise Wallis, head of the organisation's Society of Motor Auctions.
“Auctions are an integral and ever-more important part of the distribution chain for used vehicles. Auction charges need to be viable in order to provide the expanding range of services increasingly demanded by both auction buyers and sellers.'
She added that rising energy and business rates, coupled with increased fuel and energy prices, were the primary reasons for the increases.
DATED: 21.08.08
FEED: MT
Car dealers and fleet companies face a significant increase in auction house charges the RMI has warned.
The trade body said auction houses were facing greater economic pressures and were unable to hold selling charges as they have done in recent years.
“The vehicle remarketing industry is a low margin, high turnover business, which is only sustainable from a low cost base,” said Louise Wallis, head of the organisation's Society of Motor Auctions.
“Auctions are an integral and ever-more important part of the distribution chain for used vehicles. Auction charges need to be viable in order to provide the expanding range of services increasingly demanded by both auction buyers and sellers.'
She added that rising energy and business rates, coupled with increased fuel and energy prices, were the primary reasons for the increases.
DATED: 21.08.08
FEED: MT
