Click the thumbs up >Car auction firms believe that values for used petrol and diesel cars will remain strong or could increase, despite a decline in the used car market.
Motor auction members of the National Association of Motor Auctions (NAMA) have told the trade body that internal combustion engine vehicle values have held steady during the recent lockdown in the United Kingdom.
In a recent survey it found that 90% of respondents believe both petrol and diesel values would remain strong or further increase. Auctioneers also say first time conversion rates are performing well, with 67% expecting rates to increase over the next month, with the remaining 33% expecting them to stay the same.
The remarketing industry is increasingly refurbishing ex-fleet cars to match quantifiable NAMA-approved levels of condition.
There is a spectrum to refurbishing used cars. At one end are those who hand over the keys to something utterly pristine that, as we have often discussed in these pages, will more than likely fly through auction with no shortage of bids.Â
At the other are owners or lessors who just want shot of the thing - never mind the state of it. That was fine during summer, when demand for used cars was such that even old, ropey ones were going for serious money - not so much when the market is anything but strong.Â
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A post-Brexit VAT issue that will see 20% added to the cost of used cars imported from mainland Britain and sold by car dealers in Northern Ireland is “not going away”, AM has been told.
And while the NFDA said that it anticipates Government will factor in a solution in its upcoming Budget – hopefully delivering a VAT rebate for retailers at a later date – NI dealers remain “totally disadvantaged by the problem”, according to Shelbourne Motors director Paul Ward (pictured, right, with fellow directors Richard Ward and Caroline Wallis).
“We are lobbying all our local representatives to challenge with the treasury,” said Ward, one of many franchised retailers who import roughly 10,000 cars a year into NI from the mainland UK.
Click the thumbs up >Dealers prospects for 2021, business opportunities and retailing in a post-Brexit, post-FCA changes market, are all topics for discussion with the AM Motor Retail Review webinar panellists this afternoon at 2pm.
AM readers can watch the 45-minute webinar free by registering here. Registration also allows you to watch on demand after this afternoon.
Chaired by AM editor Tim Rose, the January AM Motor Retail Review webinar panellists are:
Louise Wallis, head of business management at the National Franchised Dealers Association
Adrian Dally, head of motor finance at the Finance & Leasing Association
Darren Ardron, managing director of AM100 group Perrys Motor Sales