Dealers paid strong money for used LCVs in good condition in Q2, according to Aston Barclay’s market insights report.
Prices rose in Q2 by a healthy 17.2% (£1,442) from Q1 helped by a fall in average mileage from 102,933 to 94,000 miles and a consistent average age of 61.3 months.
Auction conversion rates were running consistently high at 75% despite signs that used volumes were increasing on the back of improved new vehicle production.
Dealers however were being more selective about bidding on vehicles with damage and what they were prepared to pay. With more used volumes gradually entering the market it has become imperative that vendor reserves reflect the change in market conditions, particularly on damaged vehicles.
The used value guides are yet to reflect the changing market conditions which makes setting reserves on individual vehicles important to keep conversion rates high.
Q2 also saw the effect of higher interest rates on some smaller businesses who became more cautious when buying replacement or additional used LCVs to protect their cashflow. This has helped increase demand for used stock with full-service histories and in good condition as SMEs planned to keep their vehicle ownership costs under control.
“We are starting to see a market correction based on used volumes improving and demand slowing down as we enter the summer period. Add to that used value guides being out of sync with the market then everyone is having to work harder to keep the market moving. Importantly the market remains stable,” explained Geoff Flood, Aston Barclay’s national LCV manager.
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- Sumber: https://www.am-online.com/news/used-cars/2023/07/26/used-lcv-prices-remain-consistent-as-buyers-become-more-selective-reports-aston-barclay
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