Dealers will need to prepare used cars
The laws of supply and demand are going to have an impact on how easily used car dealers sell their assets, according to Glass’s. Vehicle preparation will be key to sellers maximising residuals over the next few years as used car availability continues to improve.
Rupert Pontin, head of valuations, explained that vehicle condition had been of less importance in recent years because the number of vehicles for sale had been so low. He explained: “Stock availability during the last few years has been so poor that sellers have not found it necessary to invest extensively in preparation. Unless vehicle damage was so bad that it was having a definite impact on its value, then dealers were often willing to pay book price simply to get hold of stock. The dealers then had to carry out extensive preparation themselves in order to retail. This has been especially true where the stock available has been older and run to higher mileages, something relatively common in ex-fleet vehicles since the recession first bit. However, that picture is changing. Stock availability is growing quite quickly and will continue to do so over the next few years. That means more choice for buyers and only the best presented vehicles will reach the desired values”.