Wednesday, June 16, 2010
Self registered cars are damaging used market
 Motor business specialist ASE has issued a warning that the new car market is being artificially forced with pre-registered vehicles coming onto the market in increasing numbers. It said this is having an impact on the used car market with dealers taking longer to sell cars whose values are falling. "In the current economic climate there is little indication that customers have an increased appetite for more expensive vehicles. "Dealers should consider, therefore, whether they should be re-profiling their stock to drive the average stand in values down." As a consequence, it said, dealers need to take action immediately to reduce their used car stock turn. Used vehicle stockturn was 58 days in April this year compared to 36 days a year ago and the return on used car investment fell to 80 per cent from 139 per cent in April 2009. "Used car performance has slipped over recent months and has now reached a stage where dealers need to take direct action," said ASE. "Over recent weeks we have seen auction prices and the books falling. Based on the stock-holding and stockturn figures for April, a four per cent drop in the book produces a used vehicle stock write-down of £15,000 per month. "Dealers need to mitigate these losses through an improvement in stockturn as we are currently perilously close to the average vehicle suffering two book drops prior to sale," it said. DATED: 16.06.10 FEED: MT |
