As the trickle of part exchanges arrive at action the distinct lack of cars has begun to re-heat demand. Most of the major auction houses have had many more buyers for far fewer cars and as a result some cars have been making, what we call in the trade, ‘Brewster’s‘.
This was kind of predicted and may very well be only be temporary in nature however the underlying trend means there are less new cars being sold and therefore over time there will be less used cars around as a result.
This year, of course as we have already reported there have been major issues with supply and lead times of new cars and therefore the expected September rush of cars has not yet materialised.
Buyers need to be more aware than ever when it comes do completing a deal as the choice is likely to be less and the wholesale price is likely to be more. The truth is that the rise in wholesale prices will inevitably need to be transferred to the customer as dealers look to shore up their forecourts because they can’t sell empty spaces.
Due to the situation with new cars and many dealers struggling to achieve targets it is likely that there will be some great incentives in terms of new cars introduced by manufacturers later in the month to try and redress the balance.
Just as long as buyers are prepared to compromise on the spec and model in exchange for great financial incentive.