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Shoreham: new car supply 'takes the edge off' used demand

Date: 23 August 2013   |   Author: Jack Carfrae

The way in which new vehicles are manufactured and sold can reduce their appeal in the second-hand market according to Alex Wright, managing director of Shoreham Vehicle Auctions, who told BusinessCar that modern, multi-platform techniques mean manufacturers always meet demand for their new cars, rendering them less desirable when they're sold on.

"We define vehicles as popular when demand outstrips supply and so, according to our definition, there is currently no specific popular pattern in this market.

"Technology at a manufacturing level has brought about this change as there was a time when models could be produced and if a car suddenly became popular, old hard-tooling production techniques could take years to match production levels to meet demand.

"Now with soft-tooling engineering and vehicles developed on the same floor plan, manufacturers can now manage their demand and supply balance better than ever before."

He continued: "For example, the Citroen DS3 has sold extremely well, selling more than ever before for Citroen in that sector, yet Citroen has been able to satisfy that demand and thus that has taken the edge off the demand in the auction hall.

"In short, the manufacturer's ability to change to the demands of [new] buyers is better than it has ever been before."



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