Refurbishment encouraged for sellers to take advantage of used car demand
23 November 2018
Author: Sean Keywood
Fleets remarketing vehicles should consider refurbishing them before sale to better take advantage of growing used car demand.
That's according to auction firm Aston Barclay, which has reviewed the condition grades of thousands of used cars it sold in September and October.
It says the average difference in price between grade three and four cars during these months was 6.99% of CAP, which equates to £449.
This means that by investing £185 in refurbishing the grade four car to a grade three the vendor would be rewarded with an average £264 uplift in profit in the current market.
This is against a backdrop of high demand, as with WLTP causing new vehicle supply issues, used car volumes have been restricted as leasing contracts have been extended.
Aston Barclay believes it could be March 2019 before the issue resolves itself, and says in the meantime used car demand and prices are likely to remain strong.
Group operations director Martin Potter said: "We have taken the average prices of the two different grades of cars and as individual models need slightly different refurbishment, but from analysing our data it's clear vendors need to consider refurb more seriously.
"Refurbishment isn't relevant to every make and model, but in this buoyant used market it's worth sitting down with your remarketing partner and doing the sums to identify the end of contract and part exchange cars where extra disposal profits are available."