It’s time for another MTI front line dispatch. What’s hot ant the moment? What’s the “kiss of death”? What are buyers looking for? How are the auctions doing? What’s morale like on the “shop floor”?
Well 1.2, 1.4, 1.6/1.9/2.0 TDi hatchbacks or estates above S level trim i.e. SE, Sport, Zetec etc price range between £3-£7,000 all good news. Anything exceptionally good on fuel like an Audi A2 1.4 TDi, Seat Ibiza 1.2S, anything green (or blue in the case of VW and Mercedes) environmentally advantaged, auto diesel very popular. High spec unique cars, best in class examples with low mileage are still very desirable while popular brands are still shifting the metal; Ford, BMW, VW, Vauxhall etc.
4wd prices are hitting rock bottom, big petrol engine 1.8/2.0 and so on with low spec are now officially the kiss of death. Car buyers are being turned off by anything with over 60k on the clock. There are too many 3-4 year old ex-lease cars with 80k plus on the market so they should be cheap.
Car buyers are now more than ever looking for value adds; free insurance/service packages, extended warranties, 0 % finance deals, low tax and insurance.
Auction footfall is significantly down putting increased pressure on vendors to dispose of stock. This in turn is leading to big price reductions and downturn in values. There is certainly lots of choice for buyers both wholesale and retail and therefore everyone is being choosy.
A lack of confidence from buyers is definitely filtering through and is leading to low morale in dealerships. On the plus side however there are good signs that good operators are still selling cars and making profit, finance and insurance (f&i) income is increasing but access to funds still remains difficult.
Some dealers are doing very well at the moment. News reaches us of some dealerships shifting 20 plus cars in the first 5 days of the month so June really may start busting out all over.