Tough used car market

As many industry insiders and experts had predicted, the used car market is facing tough times at the moment. The financial meltdown has left many continuing to tighten their belts. According to Manheim Retail Services, retail sales in May decreased from an average of 12.8 to 12.1.

The number of enquiries for used cars had increased in May compared to April, from 33.3 to 33.6. But, the conversion percentage from test drive to sales fell by 2.3% down to 36%.

John Simpson the MD of Manheim Retail Services said, “Record low interest rates should ordinarily be underpinning a strong retail recovery. But with inflation remaining stubbornly high and economic growth appearing anaemic at best across most ‘big ticket’ sectors, the outlook is challenging. Rather than holding back for the market to pick up, dealers need to innovate, to think creatively about stimulating retail traffic. The virtual showroom should be a major focus with strategies for pushing used car stock to relevant portals.”

Like so many others, John Simpson has warned that the used car market will get much tougher because it gets any easier. He also said that waiting for the economy to change and for buyers to return to the market themselves was simply not an option.

The wholesale market does not fear much better, the decline in values continued in May. The average value dropped by £231, lowering the average value to £7,966. This has affected the prices of a used Audi in Dublin as well as the rest of the UK.