Markets remain Stable
The markets for both cars and commercials have remained remarkably stable this month, with a fairly even supply of stock to the market. Retailers are reporting good demand too, helped by the latest offerings in finance packages, so stock is generally all moving well.
4×4 Sales Increase
As usual at this time of year, 4×4 sales are improving across the board.
One of the most popular models remains the Ford Ranger, simply because of its value for money. The Book values of this model, compared to Mitsubishi L200 and Nissan Navara are always a shade behind, making the Ranger the best value for money option.
This also translates through to the forecourt, where the vehicles sell from their ‘blue badge’ pedigree.
However the real reason for increasing demand is the traders that buy this product at this time of year, to store in readiness for any adverse weather.
The vehicles are dry stored and held ready to hire out when the snow comes; if the weather fails to turn severe, the trade offload the stock by end of January, in an attempt to recover what they paid for the vehicles! It happens every year, it has become so predictable!
LCV Markets
All models in the LCV market are selling well, as a shortage of stock remains. Where volume exists, for example with the British Gas Caddy short SDI vans, prices are adjusted sensibly to allow the stock to sell, which is working.
As ever the most popular models are anything different, such as Tippers, Dropsides and large Box Vans.
Again, Box vans and Luton bodied 3.5 tonne vans always sell well in the run up to Christmas, because the seasonal trade requires load luggers. Like the 4×4’s they are often sold on again in the New Year, once the rush has passed.
We anticipate no issues with the LCV market in the foreseeable future, even into the first quarter of 2016, when sales will still be buoyant.
Car Sales Market Remains Good
The car market too remains very stable, with most sales producing the desired results. Volume is always more of issue in the car market though and today is no exception. Any volume of one particular model will affect prices, regardless of how clean the stock is.
Colour is starting to make a real difference; with most of the returning stock from Fleet now dark colours or grey/silver, anything different will make a premium, especially in desirable light blue metallic. But even the once considered unsaleable oranges, light greens and purples are now selling and making strong money, as long as they are all metallic.
There continues to be more fragility around the car market though, with sales being very susceptible to volume. Any oversupply, such as late September when the part exchanges arrived, will affect both sales conversions and pricing.
And so that will be the theme for the next few months, as retail demand at the forecourts slowly dissipates towards Christmas. It will be business as usual, but rostrum management will be essential to keep sales conversion rates up.
Condition Makes the Difference
In both the car and LCV markets, the one thing that makes the difference in sale price is condition. This has now even taken precedence over mileage, with any badly damaged stock being left behind. It will sell but only at a price, which is normally at least 20% behind Book.