The fact that car dealers all seem to be chasing the same kind of stock, namely high spec, high end and predominately German or Indian cars (by that I obviously mean Jaguar Land Rover) clearly is leading to some mad prices being paid.
However if there are customers out there willing to pay then how mad is mad?
It is well known – although sometimes a little baffling – that something is only worth what the market is prepared to pay for it, and therefore no matter what your Glasses, CAP or parkers opinion of a cars worth the only true guide is the car buyer who hands over their money.
Of course this is the way it should be isn’t it? The best top spec cars which have a unique selling proposition should naturally attract a unique price in the same way that Barcelona’s Lionel Messi is at this moment (in actual fact) priceless.
Of course as Lionel gets older, slower and has a few more miles on the clock he will be worth less but will still be an attractive proposition for many clubs who will shell out a lot more for him than similar players of his age (or indeed younger) because they don’t come close to the talent he possesses and his uniqueness means he is simply worth much more.
Back to the this car game and in the trade this year dealers will probably be regularly faced with situations where cars are not making anywhere near what they were and therefore unique cars will need to become the forecourt heroes of profitability.
They will be needed to offset the potential losses on bread and butter cars which only really ever sell on price but that, due to a lack of used cars in general and not necessarily because of greater demand, means the dealer will have to stock them.
As one sales manager said to me recently, this year will sort the men out from the boys. It will sort the ones that really know the job and the value of a car at any given time and more importantly how to market the cars for the best profit opportunities from the ones that, quite simply, are waiting to be found out (and then of course it’s good night Vienna).
At the end of it all it will surely be the experienced entrepreneurs that save the companies bacon, because they know enough to take the right kind of risks and pay the right money for the cars which people actually want to buy.
There will always be someone with deep pockets who will want a unique model on their drive.
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