Monday, 6 February 2012

Dealer part exchanges are getting older as private motorists keep their cars for longer in tough economic times.

The latest Manheim Market Analysis reports that the average age of dealer part exchange vehicles has increased by up to eight months when compared with January 2011.

Daren Wiseman, valuation services general manager, Manheim Auctions said: “We are used to seeing contract extensions in the fleet sector due to the economic uncertainty and it seems that an inceasing number of private motorists are driving their cars for longer before deciding to, or being able to, buy a replacement vehicle.”

Meanwhile, carmakers and dealers in the US increased profitability and turnover in 2011 despite the weak economic backdrop, according to Manheim Consulting in the US.

“This resulted from business restructurings, productivity gains, effective use of new technologies and good old-fashioned customer service, said Manheim consulting chief economist Tom Webb in the Used Car Market Report, released at the National Automobile Dealers Association Convention in Las Vegas.

Used vehicle sales by franchised dealers increased 8 per cent to slightly more than 13.8 million units

Sales by independent dealers increased by 6 per cent to just under 13.8 million.