Used car shortage
Driving around you wouldn’t think there was a shortage of used cars in Cumbria but, according to CAP there is a shortage in supply of used cars which is going to push trade values up during the early part of this year. The lack of quality cars coming through auction houses is making used car dealers compete heavily for stock, some are finding it very difficult to fill their forecourts and meet customer demands.
According to the January edition of the Black Book exceptionally high auction conversion rates in December were fuelled by a genuine demand for stock among dealers. Findings from the first few days of 2011 suggest car buyers are already out in force. The severe weather conditions of December have forced buyers to come in early to get the best prices. CAP has also reported that online bidding activity soared during the December bad weather.
As well as trade demand, retail activity has also increased, creating further gaps in dealer forecourts. Black Book research editor Mark Bulmer, said: “Buyers spent December attempting to stock up and this was not only driven by the desire to beat an anticipated January rise in values.
Looking at the rest of the year, CAP predict the shortage and high demand of used cars will continue, especially as dealers are working hard to avoid low used car stock levels after they were caught short at the beginning of 2009.
Mark Bulmer commented, “The memory of early 2009 remains fresh in the minds of many. Those who had de-stocked at the end of the 2008 downturn quickly found themselves behind the game and there is a determination not to repeat that understandable mistake.”
Processing your request, Please wait....
