Dealers losing customers by undervaluing part-exchanges

Dealers have been urged to set realistic part-exchange values or run the risk of losing repeat and referral business.

EurotaxGlass’s, the used car analyst, has reported that customers are being offered unreasonable prices for trade-ins on older vehicles and is advising retailers to ensure a deal is secured to retain business in the medium and long term.

“It is unfathomable that some dealers won’t take the time to do a bit of desk research, by simply scanning Auto Trader or eBay, or make a call to an older car buyer or scrap merchant,” said John Glynn, older car editor at EurotaxGlass’s.

Glynn said dealers need to be aware of the bond car owners have with older vehicles.

“Undermining this attachment by making what could be seen as a derisory offer may lead to a lack of business in future – word spreads fast among prospective buyers who feel they have been ripped off by the motor trade,” he said.

The problem is not restricted to older used cars, according to Adrian Rushmore, managing editor at EurotaxGlass’s, who said dealers are not comfortable predicting how prices will move at the moment.

“This caution means they will try to value part-exchanges on the basis that prices will continue to move downwards at a faster rate than perhaps they would have last year”.

He added that customers too should be aware part-exchange values have fallen more than the price of new cars they are looking to purchase. “The cost of change has increased,” said Rushmore.