Strong Dealer Demand for Used Car Stock

Andy Muir  

Leading remarketing organisation BCA’s latest Pulse report stated that; ‘demand remained unseasonably strong during a period usually impacted by rising stock levels post plate change and the October half-term breaks’. It had the report noting:

‘Demand is currently very good for this time of year and prices are more stable than traditionally seen as we approach the Christmas period.  This is giving dealers confidence and in expectation of continuing high levels of used vehicle activity.’

Given that BCA’s report and observations were made ahead of the General Election and the certainty that the result now provides, at least politically, then this has to be an encouraging picture. The natural question that this dealer demand may create is what will the impact be upon retail prices?

At Mann Island, we see a rise in retail prices as very likely. Dealer demand will push prices higher and we can foresee a rebalancing in car pricing/financing with higher chassis prices offset by lower interest rates to reflect regulatory changes.  In this scenario, finance will become a more important marketing tool with car sales led more actively by finance promotions focused upon monthly payments.


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