That’s the conclusion of a survey carried out by CAP of franchised and independents dealers and car supermarkets in October.
Dealers experienced a significant tail-off in showroom traffic and online activity in October, following the plate-change in September.
The majority of dealers ( 61%) said footfall had declined, 52% said online activity had gone into reverse and a third (33%) said margins were under pressure.
Despite the huge numbers of trade-ins at dealerships following the plate-change, a minority of dealers reported stock shortfalls.
“This could be caused by the sector of the market they operate in, as the sub £3,000 vehicles, in the right condition, with the correct provenance are a challenge to locate,” said Cap black Book editor Philip Nothard.
“Over half of those, responding felt that the current trade values are too high, with the majority of the remainder agreeing, they are reflective of the today’s market. As you would expect, in the final quarter of the year, those that felt values were too low, are in the minority.
“With the month-on-month growth we’ve experienced with new car registrations, it’s interesting to see that 46% of those questioned believe that 2016 new-car sales could exceed 2015. This question, as you would expect, generated a few comments surrounding transparency of reporting, continual growth, and the impact on the used car market,” said Nothard.
