Used market trade slows down
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Supply and demand slow as the used vehicle trade looks for guaranteed sales to avoid tying up cashflow with less desirable vans, says Alex Wright at Shoreham Vehicle Auctions
Words: Kevin Swallow
THE USED market is stable but quiet, as both buyers and sellers are only buying vehicles they know they can sell. Alex Wright, MD of Shoreham Vehicle Auctions, says buying the wrong vehicles and then not selling them quickly can have a very negative impact on a dealer’s cashlow.
“Supply is low but it’s being balanced by a low demand, which means prices are remaining constant,” he says.
There appears to be fewer operators looking for vans too, with dealers reporting lower sales than last year.
“Demand only falters when the market experiences a large amount of duplication of the same stock,” he says.
However, if demand during September picks up, as it always does, there will be a shortage of vehicles. Wright adds: “Supply is not likely to pick up, which means prices will start to increase, putting traders and retailers in the ageold dilemma of having to pay more money for vehicles, without any guarantee they are going to sell quickly.” ■