subject: Used Cars Still Scarce [print this page] The automotive and housing markets in the UK have been hit hard by the recession. Both cars and houses require a substantial financial commitment, but with Banks being very selective as to who they lend to, many people are unable to buy a new car or house. Without any buyers in the market house owners are reluctant to put their houses up for sale, which means even the few buyers that are out there are not finding what they want; causing a stalemate.
There is a similar situation in the automotive market, businesses as well as individuals are worried about the economy and are reluctant to commit to finance. With fewer new cars being sold there are fewer used cars in Edinburgh and the rest of the UK. A lot of the used market is reliant on ex-fleet cars, but like I said with fewer fleet operators buying new they have little or no used stock to sell.
According to one online auction group used cars will be hard to get hold of until at least the end of this year. The fleet market did not recover until December 2009, where it saw a 4% increase in fleet sales. Fleets tend to keep their cars for three years, which means come December we should see a boost in activity within the used car segment.
The MD of this online auction company said x-fleet vehicle volumes at auction drop by 15% to 20% in the first quarter. This shortage in quality ex-fleet cars means that typical auction prices have risen by a few of percent of CAP Clean in the last two weeks. Higher values are commanded by premium brands, such as BMW, Mercedes-Benz and Audi.
The MD said, The market is still tight so condition and specification remain critical. We know some fleet operators are tempted to extend contracts and that is adding to the supply issues. Actually, they might be better off letting the cars go now and taking advantage of the strong demand and firm values.
