Simon Henstock's blog: 20 June - The times they are a-changing
20 June 2016
Simon Henstock is BCA Remarketing's UK COO
As anyone interested in the mechanics of the wider wholesale used car market will know, we are going to experience a potentially significant change in the market dynamics over the coming months.
Consistently strong new car sales over the last four years mean supplies of used cars across the broadest range of makes and models are more readily available at every age, mileage and condition figuration than they have been since the onset of the recession in 2008.
Used car buyers have almost accepted as the norm the fact they will have to battle and scrap for every single car. In contrast, volume vendors have generally enjoyed demand across the board, high conversions and strong values on the vehicles they remarket.
As volumes rise, however, expect those market dynamics to change. Buyers will have more choice and, as a result, will gravitate towards the better cars in the nicest retail colours and a higher specification. They may change the profile of stock they buy. They will almost certainly become more 'picky' and cars they may have brought 12 months earlier perhaps requiring refurbishment may well be passed over.
For anyone operating in the remarketing sector, this is when the wheat is sorted from the chaff. It is one thing to sell vehicles when demand outstrips supply - another altogether when those positions are reversed.
Any number of remarketing 'experts' will tell you that the only way is their way, but the reality is when volumes rise, you need the capacity, the footprint and the integrated service provision to deliver orderly remarketing into a swiftly changing marketplace.
Customers need complementary services such as collection and delivery, refurbishment and preparation, appraisal and presentation that mean every vehicle has a chance to reach its potential in an increasingly competitive remarketing arena.
Buyers want choice, accurate vehicle appraisals, good clear images and access to catalogue information well in advance of the sale. They want consistency in terms of trading environment and someone to talk to if a dispute arises, along with the knowledge they will be treated fairly and equably.
Anyone and everyone can sell the nice cars in small volumes. Only the best operators can handle the good, the bad and the ugly, day in and day out.