Cars Direct: Changes facing the vehicle remarketing sector

Cars Direct, the UK’s leading on-line vehicle remarketing company, comments on the effects that the prevailing economic uncertainty is having on the vehicle remarketing sector.

“We are currently seeing an extraordinary change in the market,” commented Carol Stevens, National Sales and Marketing Manager at Cars Direct. “There is a severe and increasing shortage of vehicles available for resale. Many of the major leasing companies are extending their current contracts and companies are retaining vehicles for longer periods, coupled with this, consumers are tending to select a quality used vehicle instead of a new purchase. We are now seeing traditional main dealers having to look further afield, specifically at quality older vehicles with higher mileages which is adding to the competition with car supermarkets, to purchase this type of vehicle.

Stevens continued, “so far in 2009 we have witnessed an increasing number of buyers turning to alternative routes to market, such as online auctions, for both the sale and purchase of vehicles. Industry price guides have not kept up with this change in the market, and we are now witnessing prices that in some instances compete with retail prices achieved at car supermarkets, with some dealers realising as much if not more for their cars when sold at auction. We are seeing a substantial upturn in residuals, resulting in used vehicle prices well in excess of clean cap.”