RECORD LOW used car forecourt stocks have made dealers happy to pay top dollar for high quality part-exchanges say CAP, the car information experts.
Specialist used car dealers are reporting their lowest levels of stock since CAP began measuring forecourt supply.
It means high quality part-exchanges are now commanding premium prices as dealers struggle to replace sold units with the right cars.
CAP charts supply and demand in the car market every day and the latest research shows the lowest ever level of forecourt stock among a panel of 100 used car dealers.
The problem for dealers is that while overall used car supply is increasing, the condition of cars available in the open market is generally worse than a year ago.
It means dealers face a choice between reconditioning cars bought at auction, or saving time and paying extra for the best cars offered by their own customers.
Buying better quality stock in the first place is always the dealer’s first choice because time is money and achieving a quicker sale is better than tying up workshop teams on refurbishment when they can be more profitably focused on servicing existing customers’ vehicles.
CAP questions its ‘Dealer Insight Panel’ every month as part of the research for Black Book Live, the real time used car trade values benchmark trending tool used by motor retail professionals. ‘CAP Clean’ is the benchmark recognised across the industry as the independent standard market value for a car that is ‘ready to retail’.
CAP Automotive’s Mike Hind said: “Dealers are telling us that they are frequently valuing the best quality part-exchange cars higher than CAP Clean, leaving their customers delighted as well as creating the opportunity for another profitable sale for themselves.
“This is a genuine win-win situation for motorists offering a well maintained, clean car to their dealer because both sides are benefitting.
“Put yourself in the shoes of the dealer. Would you prefer to go out hunting through all the tatty cars out there for the minority that are easy to turn into a fresh sale – or would you prefer to have great cars brought to you by customers who are looking to buy another?
“Our own free car valuation service for motorists at cap.co.uk reveals that a growing number of people are in the market this year to replace their cars. Our message is, don’t be surprised in the current climate if your local dealer beats the CAP price on your car, if it can be easily turned around and offered for sale again.”