CD Auction Group: Defleet now to cash-in on high used values
28 September 2012
Author: Jack Carfrae
Remarketing specialists at CD Auction Group are claiming that the current shortage of used cars is due to remain largely static in the final quarter of the year, meaning prices are likely to remain high, despite an anticipated slump in values.
The organisation said that it was expecting second-hand prices to ease by the end of the year, but not by as much as had previously been expected, as MD Roger Woodward explained: "We know some fleet operators are tempted to extend contracts and that is adding to the supply issues.
"Actually, they might be better off letting the cars go now and taking advantage of the strong demand and firm values."
The auction house claims that a number of major fleet operators are now in the process of defleeting vehicles bought new at the end of 2009, when fleet sales began to lift from the worst of the recession.
However, it claimed that the best ex-fleet vehicles were being kept in-house and often sold franchise dealer groups.
Woodward continued to say that the stock shortage meant that buyers were being "fussy": "Because the buyers are being fussy, it's worth spending some time on refurbishment.
"But don't fall into the trap of over-preparation. There's no point in painting a whole panel when a quick polish will do."
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