Dealer are putting more resources into used cars at auction and increasingly focusing on ready to retail cars that sell fast with no work needed.
That’s a key finding of the Glass Glass’s Monthly Car Market Report for April which found a direct correlation between cars that sell first time and their condition.
Glass’s said it is seeing dealers looking specifically for vehicles they can place straight on their forecourt or website.
This is not new but the focus means that there is wide divergence in conversion rates depending on the quality of the vehicle.
Glass’s editor Jonathan Brown said: “On a recent visit to one auction site, with high attendance, the conversion rate was 90% on the hammer with high-grade stock.
“Later in the week, at the same venue, the conversion was just 77%, on vehicles with a lesser grade condition.”
On the new car market Glass Seasonally adjusted annual rate (SAAR) analysis sees a decline of up to 10% in 2018.
“With the economic outlook uncertain at best and the recent increase in interest rates, a recovery in demand is clearly not expected. Ultimately, SAAR analysis suggests a new car market of between 2.3 and 2.5 million units in 2018, essentially down between 2% and 10%.”