Within the last 6 - 12 months I've seen at least 3 used car dealers near me disappear. Another looks like it's following suit. What's going on?
Is nobody buying second hand cars from dealers anymore?
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Within the last 6 - 12 months I've seen at least 3 used car dealers near me disappear. Another looks like it's following suit. What's going on?
Is nobody buying second hand cars from dealers anymore?
The bottom end of the market has collapsed now that you can put them on Facebook marketplace and similar for free. Don't see many private ads in auto trader or similar either.Quote:
Originally Posted by joshwa
Stuff more than 3-4k shouldn't be too affected though.
bit more complex than that-
I'll try to keep it clear cut, and explain it best I can
A) Used car traders used to buy direct from dealers, but nearly every dealer now sells via Auction. So used car traders are at auction, being outbid by the public and larger groups.
B) Used cars (proper ones, not old shaggers) are worth strong money and have been for several years. If it's desirable, it sells fast. Tht's because there's less of the proper old cars on the market. Why?
C) There is so much 2year and 3year PCP on the market, cheap leases etc, that the main dealers don't SEE many older part exchanges any more. They will in about 2 to 3 years, when the third round of PCP's comes ot an end
D) about 10 years ago, the reliability of new cars got really good, and the Korean brands along with Japanaese brands mean that a LOT of older drivers now keep their cars for 6 to 7 years and not 3.
E)Big National Car Selling Brands (not car marques... car groups) & Trade Centres (big ones) buy their cars via large National Buying schemes ( We Buy Any Car etc) and they are happy to hold smaller margins when they sell so they have squeezed the margins
F) Used cars don't have a very good return on investment - they sold their site for houses/shops/ tile centres/ one stop shops. The RoI on those is IMMENSE in comparison to used cars.
G) The global crash in 2008, caused pre registering in the UK in 2009 and 2010 to just....stop. Those 9 to 10 years old cars are rare. But by 2012 everyone was back at it, and by 2015/6 it was rife. In a few years they're proper used cars, and they'll bea little cheaper from sheer volume
F) There are more drivers than there was 10 years ago. Same with houses... more people want them.
Also its worth noting with the internet car sales places don't need to be visible and be on main roads any more. They can be in some industrial estate in the countryside as many people will be looking online.
Apparently PCP in the last year has dropped significantly it seems.
a little but that varies brand to brand,Quote:
Originally Posted by Kumagoro
PCP requires strong residuals and they fluctuate according to supply and public related news.