The budget used car market is on fire and is receiving record numbers of buyers and strong prices according to Aston Barclay’s group operations director, Martin Potter.
Dealers should be taking this end of the market just as seriously as newer part exchanges as there is a healthy revenue stream to be had.
Generally, few people comment on the budget sector, or take it too seriously, but 400 buyers regularly turn up at Aston Barclay’s Monday night Chelmsford sale, with two lanes selling between 400-500 cars every week.
Used cars between six to 15-years-old can change hands for £200 to £12,000, with dealers reporting a healthy profit on stock, even those in excess of 100,000 miles on the clock and in a well-used condition for age and mileage.
“The budget sector is a massive part of the used market,” explained Potter. In 2016, NAMA reported that up to one-in-four used cars being sold was a budget car. Dealers shouldn’t just offer these cars to local traders for a quick sale as they could well be missing out on a healthy revenue stream.
“Not every motorist can afford an expensive car or does the mileage annually to justify spending money on a newer car meaning budget buyers are often getting into their dream car for the first time.
“These buyers are either bidding on cars at auction directly or buying a car from their local independent dealer. Whatever their source of stock, our Monday night sales have been consistently busy for the past three years.”
German cars, SUVs – particularly Range Rovers – estate cars and MPVs are in high demand. The MPVs in particular often get purchased for use as a taxi while estate cars often support a buyer’s hobby or an SME will use it to support its business.
“Last Monday, our regular car supermarket vendor made around 98% of CAP average, with our local Vauxhall dealer making well over 100% of CAP average, on their budget trade ins,” adds Potter.
