Two UK used car market commentators appear slightly at odds over the current availability of late model stock and the prospects for Easter holiday sales.
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Earlier this week, the managing director of Vehicle Remarketing Solutions, Mike Pilkington, referred in a statement to “…recent industry reports indicating a widespread scarcity of used vehicles” and added: “Easter often proves a watershed for the industry and it may prove so again this year. Strong demand from dealers for retail ready stock and a shortage of quality used vehicles has led to stock shortages throughout the industry. If the balance between supply and demand is sustained we can expect prices to remain steady. In this marketplace dealers need to look outside their usual sources of vehicles.
“Easter may well prove a watershed as more vehicles enter the market and if the consumer stays away from the forecourts over the holiday. Even so, there has been a shortage of used vehicles and this will occur again. Dealers need to seek new sources of quality used vehicles to avoid being caught short in the future.”
However, Jeff Paterson, senior car editor at Glass’s Guide countered: “There is certainly no shortage of late-plate stock, thanks largely to increased volumes of pre-registrations and because more buyers have been tempted away by the incentives offered on new models.
“With the new car market reaching out to many more people than it used to by offering hard-to-refuse deals, then the problems will be with us for some time to come.
“The market for older used cars has performed well so far this year and this has meant dealers have been keen to secure quality stock. This has, in turn, led to a reduced number of better examples.
“Although… booming new car sales [have] generated increased volumes of part-exchanges, dealers have been saying that many are of a generally poor quality. This is largely because, with the market for new cars set to ease back after a prolonged surge, those buyers on smaller budgets running poorer vehicles are finally succumbing to the increasingly attractive deals that remain on offer for new cars.”
Commenting on prospects for the UK holiday break, Paterson said: “As regards Easter, it may well have proved a watershed in previous years, but I generally find that when Easter coincides with good weather, would-be buyers tend to spend more time visiting garden centres, DIY stores, the beach or friends and family. I think this year will prove no exception.”
UK weather has been exceptionally warm this week with temperatures reaching 27C (81F) in the south-east on Wednesday. Forecasters are expecting the good weather to last until Easter Saturday before temperatures return to more seasonable norms of 10-12C.
