Autumnal Weather Dampens Overall Demand
As the year enters if final few months, the usual seasonal demand within the used vehicle market appears to have dampened somewhat.
Online vehicle disposal company, G3 Remarketing has maintained its growth despite the downturn however reports that buyers are becoming much more selective in the run-up to Christmas.
“Online activity continues to be strong and since the beginning of 2010 which included a 23% increase in October alone. However, it is very apparent that the market has softened in recent weeks and with the industry guides adjusting values by around 3% in November we expect the market to remain lukewarm until mid-January”
Considering the recent slowdown, G3 Remarketing’s first sale of the month posted some notable results on certain vehicles for a selection of their fleet vendors against CAP Clean including:
08/08 A4 SE TDI 4dr 149K 125.74%
08/08 Octavia Scout TDI EST 55K 128.49%
07/57 A3 SE TDI 5dr 61K 106.39%
04/04 X3 D Sport 5dr 18K 117.56%
“The demand continues for clean, well specified vehicles whilst damaged examples remain difficult to place. There is a level which they will sell but the market is awash with standard spec cars that have suffered considerable hardship during their contract life. It is our opinion that demand for such vehicles will remain limited until early 2011” Matt Dale, Director
November in recent years has seen volume buyers entering the market to boost stock levels at sensible prices prior to the festive shut-down of the industry. 2010 will be no different but G3 warns that this window of opportunity is limited:
“Vendors need to work with their remarketing partners to maximise returns in the final months of the year. Disposal partner have to maintain focus to ensure customers get the best returns. Although the market may be entering its ‘hibernation’ stage, there are still buyers with an appetite it’s just that bit harder to seek them out as concentration switches from the sales floor to the Christmas party dance floor”