Glass’s: Smarter remarketing strategies needed as used car volumes grow
Glass's has said vendors will need smarter remarketing strategies in 2016 to increase the speed of sales in a 'difficult' used car market
Glass’s said that it anticipates used car volumes to expand in 2016, following the return to the market of vehicles purchased through PCP.
Rupert Pontin, head of valuations at Glass’s, said: “More cars are entering the market all the time and this will inevitably impact on values as we head into 2016. Rightly, in our view, the market as a whole is generally aiming to counter this trend by aiming for the fastest possible, most effective disposal turnaround and sale. In a more difficult market, ensuring the use of cash is being maximised in this way is essential.
“Therefore going into 2016, we see more use of technology to make fast sales happen. Online trade sales of all kinds are becoming more and more effective and efficient, especially through use of the NAMA grading system and improved online images and video.”
According to Pontin, the manufacturers most likely to see the firmest values will be those which invest the most time and effort in creating strong remarketing programmes.
However, Pontin said that many of the PCP vehicles coming onto the market are in better, lower mileage condition than ex-company cars, and highlighted that this could cause new issues for manufacturers and franchise dealers.
Pontin said: “Generally, in recent years, franchise dealer networks have been able to soak up all of the quality stock available for sale through approved used programmes but, with more PCPs around, this may no longer be the case and high grade vehicles may increasingly be retailed through other channels.
“It is therefore becoming more difficult but also more important to make decisions about how much to invest in refurbishment before a car is brought to sale. It could be that some models are unsaleable unless they are in excellent condition because that has become the de facto standard.”