Investment needed to recondition older used vehicles, says VRA

Dealers and remarketing firms need to increase their investment in vehicle reconditioning to ensure older vehicles meet the expected retail standard.

Stock shortages of new cars and vans means buyers are being forced to pay more for older vehicles.

The Vehicle Remarketing Association (VRA) discussed the challenges of an ageing vehicle parc at its monthly member meeting, on January 25.

VRA chair Philip Nothard said that it wasn’t just a question of dealers and others in the remarketing industry spending more money on bringing vehicles up to the expected retail standard, but allocating additional time and enforcing new standards.

He explained: “Much is being asked of suppliers in our sector who valet and recondition vehicles and our advice is that resources need to be built into used car and van processes that allow these experts to do the best possible job.

“It’s not just a question of deciding to spend more money on bringing vehicles up to scratch in a mechanical, electrical and cosmetic sense but acknowledging current customer expectations and allowing time to ensure they are met.”

Speakers at the latest VRA member meeting included Derren Martin of Cap HPI, on the factors causing the vehicle parc to age; Jon Butler of Geldards on the legal implications of selling older vehicles; James Hopkins of ASKE Consulting on the latest trends in vehicle preparation and reconditioning; and Lee Coomber of Assurant and the RAC Dealer Network on trends in warranties and wider dealer propositions.

Nothard added: “The ageing vehicle parc presents a range of remarketing conundrums. These are cars and vans that are likely to reach retailers with higher mileage, more faults and an increased propensity to break down in future.

“The remarketing sector is working hard to ensure that these vehicles retain maximum appeal for used buyers and are presented in such a way that might minimise future problems. It’s a question of developing processes and propositions that meet these changing conditions, something which our meeting suggested is underway. Certainly, the trend towards the industry having to retail ever older stock is unlikely to reverse anytime soon.”

Dealers will need to offer a high level of reassurance to ‘vulnerable’ buyers as used cars become older and more expensive in 2023, according to the RAC Dealer Network.

The average price of a used vehicle advertised for sale on Auto Trader rose for the 33rd consecutive month in December – reaching £18,030.

The VRA’s next member meeting will be held at Cox Automotive, Bruntingthorpe on Thursday, March 23 and look at The Questions About EVs That Remarketing Must Answer.