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REMARKETING: Changing face of the model mix

Date: 02 January 2014   |   Author: Jack Carfrae

The upper and lower medium segments hold a much smaller slice of the action than previously, thanks to growing demand for SUV and crossover models

Look at the graph below and you could be forgiven for thinking that things haven't changed much as far as used car buyers' tastes are concerned, as you're more likely to find a hatchback or a saloon rolling through an auction hall than anything else.

Graph

The split has changed enormously though, as four-doors in particular account for a much smaller slice of the market than they have done previously. Many of the 31% of cars that don't fall into the clearly defined bracket of saloon or hatchback didn't exist a few years ago, and they're gaining traction.

According to BCA's operations director, Simon Henstock, used car buyers are gravitating towards less-conventional models from what were once considered bread and butter vehicles. The popular ones are SUVs and crossovers: "Used car buyers continue to move away from the traditional mix of body shapes in favour of vehicles that more suit their lifestyle. Last year's BCA 2012 Used Car Market Report showed a rise in off-road and MPV cars for example, while there is also a general move towards smaller and more economical motoring, and city cars are becoming more popular.

"An early look at 2013 figures suggests this trend towards smaller cars is set to continue - 10 years ago, a third of the used car market was represented by saloons; today it is around a fifth," says Henstock.

It isn't just a car's body style that dictates whether used buyers go in for it or not, though. Popular ex-fleet cars hitting the used market now - i.e. those between three and five years old - are often the ones where demand outstripped supply from new.

Alex Wright, managing director of Shoreham Vehicle Auctions, explains that scarce models have a habit of going down a storm when they're sold on.

"We often see popularity in the three- to four-year old models where the manufacturer can't manage that demand," he says. "For example, the early Volkswagen Polo mk5 models are doing extremely well, as are the Nissan Qashqai, Volvo XC90 and V70s plus Peugeot's RCZ and 5008. All of these models are seeing good demand as shown by a good depth of buyer, i.e. five bidders or more on a vehicle."

Rupert Pontin, chief car editor at Glass's Guide, names even more specific models that are performing well on the used car market at the moment, some of which are conventional hatchbacks and saloons, while others follow the crossover trend.

He cites diesel versions of the Ford Focus and Vauxhall Astra, along with the Audi A1, BMW 3-series, Kia Sportage, Volkswagen Golf, Vauxhall Corsa and the Hyundai iX35.

He thinks the Korean crossovers are the revelations of the list: "I believe the market as a whole is surprised by the success of the Kia Sportage and the Hyundai iX35. These are from what were previously considered budget manufacturers and have proven to be well built, reliable and desirable.

"The Nissan Juke has also been a bit of a surprise as it has retained its desirability in the new market for a longer period than many expected and its residual values support this."

A second-hand car's popularity will hinge just as much on its equipment levels as anything else. Flogging the wrong car with the wrong spec won't wash when buyers have got the kind of choice available to them, even in a strong remarketing arena, so it pays to specify vehicles in mind of how they'll perform come defleet time.



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