Sales of certain used 4wd’s are now on the increase. We have had reports from sources in Land Rover, BMW, Audi and also VW who say that customers are now looking at year old 4wd’s that were maybe £40k when new and which they are now able to buy for .less than £20k
Dealers can either sit and watch these Big Boys keep depreciating or bite the bullet and get what they can for them. With trade guides now unsure and out of touch in some cases with the reality of valuing certain high end models the dealer has to decide whether to take a flesh wound or wait and take the full force through inactivity.
There is nothing worse in the trade than watching a depreciating asset further devalue and lose even more money. The buzzwords right now are “keep your stock turning” hence the reason why many businesses are reporting good used car volumes but badly hit margins. For every car they can make a good margin from there will be 2 or 3 others which will lose money therefore until the market bottoms out the balls need to kept in the air.
There have also been reports of increased sales in private plates perhaps simply because customers at the top end of the market, who may be feeling financial strain, would rather buy an older top of the range model and disguise the fact that they can no longer afford a new one with their own number plate!
Some things never change, finally watch out for another buy- one-get-one-free deal we’re getting reports that some dealers, who have fields full of large expensive cars, are thinking of ever more radical ways of reducing this stock like generating interest on high end expensive models by giving away a small entry model to go with it! (rather like the big yacht and an the launch boat!)
Can’t see that happening myself but if it does you saw it here first!