Motor Traders urged to sell older vehicles

Motor Traders are being urged to sell vehicles that have higher mileages and are more than three-years-old to combat the anticipated reduction in used car supply over the next 12 months.

It is expected that by 2011 there will be around two million fewer used cars aged between one and five years in general use compared to 2008. 

“In 2008 over 60% of franchised dealer stock consisted of cars less than two years old, and yet this year alone there could be as many as 600,000 fewer one and two-year-old cars available for dealers to retail,” explains Adrian Rushmore, managing editor at Glass’s.

The fall in used car supply are the product of two trends – each month of low registrations has produced a proportionally lower number of part exchanges, and the prolonged period of low registrations has meant the stock of younger used cars has also steadily diminished.

There are various initiatives that can be undertaken to combat the shortage the most obvious being the introduction onto the forecourt of older vehicles and those with higher mileages. However motor traders are advised that competition for stock is expected to intensify.

As choice becomes more limited in the coming years there may also be a greater need for dealers to buy cars that require additional reconditioning work therefore appraisal

Despite the reductions in used car availability, there is unlikely to be a dramatic rise in prices in the foreseeable future.

There will still be the normal highs and lows and, whilst prices will edge upwards when viewed on an annual basis, there will be no repeat of the unprecedented rises which were seen last year.

So although searching for good quality stock vehicles may be a headache for motor traders arranging motor trade insurance through Isis Insurance couldn’t be easier, just call one of motor trade insurance team direct on 01625 539 656 to discuss your needs – you’ll be connected immediately and we will arrange a policy to suit your individual needs.

This entry was posted on Thursday, August 19th, 2010 at 4:25 pm and is filed under Motor Trade. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.