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Used cars in short supply

Private car sales boom makes life difficult for dealers

According to industry experts CAP, used car dealers are continuing to struggle sourcing quality used car stock. Evidence is mostly anecdotal but most dealers are pointing the finger at the internet, with sites like Ebay and allowing private sellers access to a wide market of car buyers quickly and easily.

Dealers are reporting that retail customers believe that they can dispose of their car online or by selling to friends and family, rather than selling at a lower price to a dealer. Car dealers rely heavily on part exchange vehicles for profitability, as most mainstream franchises would go out of business without them. But dealers often refuse to give top prices in part exchange. It is ironic that the very refusal to treat the part exchange as an opportunity , and paying the best price possible is driving consumers away from dealer.

Dealers refer to guides like Glass's Guide or CAP data to value cars, but rarely give what the guide says- it is an inbuilt and inherent problem that has been around a long time. Surely the market itself is a guide to what prices are available , so why not search and see what your car is worth.

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