Over half used car dealers turning to older vehicles in stock shortage

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Nearly all of sellers (86%) say that having to promote older automobiles creates issues with automobile historical past, preparation and breakdowns.

Analysis in August’s Startline Used Automotive Tracker exhibits that 58% say inventory shortages and excessive values imply they’re promoting older automobiles than three years in the past.

This ranges from 52% of sellers retailing inventory at round one 12 months older than beforehand, to 34% retailing one-to-two years older, to 14% retailing greater than two years older.

Because of this, 32% say that automobile historical past has grow to be extra necessary, 24% that extra preparation is required on the market, 13% that breakdowns or guarantee claims are extra frequent and 11% that clients require extra convincing to purchase.

Paul Burgess, CEO at Startline Motor Finance, mentioned: “We will see from our personal lending profiles that the typical used automotive buy is getting older and that is one thing that affects everybody from franchise supplier teams to small independents.

“The scenario signifies that sellers are experiencing points. A few of these are round the necessity to reassure clients that an older automobile stays a great purchase – concentrating on presenting a properly ready automobile with a sound service historical past. Nonetheless, extra lively issues are arising, equivalent to excessive ranges of breakdowns and much more automobiles being returned.

“There’s a constructive to be drawn from this. The pandemic confirmed how sellers are extremely good at adapting to market circumstances and the identical is occurring once more right here. The used automotive sector has adjusted its strategy within the gentle of inventory shortages and continues to overwhelmingly supply autos that fulfill the wants of consumers regardless of inventory shortages.”

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