Dealers to hold firm on used car prices
Nine in ten dealers will not be cutting their used car prices as they begin to re-open for face-to-face trading, according to the latest dealer sentiment survey undertaken by Cox Automotive UK.
Dealerships in England are permitted to reopen from today (Monday 1st June) provided they adhere to strict social distancing rules. Showrooms in Northern Ireland will follow from Monday 8th June while those in Wales and Scotland are awaiting guidance.
Just over half (54%) of those surveyed said they’ll hold firm on prices, while a third say they’re waiting for market data before deciding. Less than 10% plan to implement reductions across the board.
This position is in despite of dealers ranking cashflow as their second most pressing concern post lockdown. Only the health and wellbeing of their employees and customers was ranked higher.
Philip Nothard, Customer Insight & Strategy Director at Cox Automotive comments:
“We’re encouraged by the sentiment shared in this latest survey. It’s reassuring to see the overwhelming majority of dealers taking a calm and sensible view of their pricing strategies, despite the pressure they inevitably feel to get cash flowing back into their businesses.”
“It’s absolutely right dealers wait for market data that’s based on actual transactions now. We expect unusual things to happen with used prices over the coming weeks as supply and demand imbalances work out. It’s inevitable dealers will be more receptive to deals from genuine buyers in the short term, but overall the feeling is used prices will settle reasonably quickly so panic-pricing to clear stock is not in the best interests of anyone.”