Whilst it’s encouraging that Motorpoint are sending upbeat signals about their 2009 sales forecasts (as reported on TalkingMotors today), it is worth pointing out that with most of the stock they carry being nearly new cars (85% of 08 sales), this stock may well be harder to locate on the wholesale market this year. With rental companies sure to run their fleets for longer thus turning higher mileage examples onto the market at end of contract, there will be lively competition for the lower mileage examples with main dealers and supermarkets jostling to sell similar stock.
The other interesting point is the fact that Motorpoint have seen a rise in customers taking cars on a PCP (personal contract plan) and a big decline in traditional hire purchase and as we recently pointed out we believe this trend will continue. With prices of nearly new stock being at an all time low PCP deals look very attractive both from a monthly payment point of view but also by giving consumers the peace of mind that future values are fixed when linked to mileage and condition parameters. Some dealers are even offering 4 year examples, so if explained properly to a customer they will see that they can have a much newer car for their monthly payment than perhaps they had previously even dreamed of.
Will this still be the case if and when the supply dries up?