Used vehicle sales experience a seasonal summer lull, but Shoreham Vehicle Auctions Alex Wright believes certain segments will still move positivley in the period before September.
Wright said: “With the commercial vehicle market largely made up of small businesses and self-employed individuals, any commercial vehicle over four years old and competitively priced is selling well.
“SMEs and the self-employed are doing all they can to avoid taking out finance, so those three, four and five year old lower priced utility vehicles that don’t require a large capital outlay are selling well and will continue to do so throughout the summer.”
Wright pointed out that sales of younger nearly new vehicles in the £8-15,000 bracket are “patchy”.
He said: “These vehicles generally require finance, and with few in the market able to afford the higher price tags, sales are sporadic. With the myriad of new vehicle deals set to continue this will put further pressure on prices of the nearly new stock. “
Shoreham has noticed that sellers trying to shift blocks of the same vehicles, are also suffering from reduced conversion rates. With a restricted cash flow, dealers are not keeping large stocks of the more expensive vehicles, but are buying as and when they need them, rather than bulk buying.
Wright said those vendors who have created a good following for their vehicles will continue to have success, as buyers are seeking vehicles from a source they know and trust.
He said: “Sellers should, however, be aware that buyers will be very picky, so setting a sensible reserve is going to be key to achieving a first time sale.”
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