Dealers are becoming increasingly picky when it comes to selecting their used cars, Next Gear Capital has claimed.
The stock funding provider has produced a white paper, within which it states that used car buyers have become increasingly “discerning” over the condition, service history and specification of cars in recent months. The report says that dealers are increasingly looking for used vehicles that are in a condition to achieve a quick sale, rather than cars that might require some repair work.
Whether they go for quality stock or cheaper cars in need of some attention, it is vital that dealers have a road risks insurance policy in place that enables them to drive the vehicles they are selling. This will provide financial cover in case a car they are selling is crashed while out on the road.
According to the Next Gear Capital paper: “Buyers appear willing to pay a price premium for such stock. This is in stark change to recent years and vendors need to be alert to the value of preparing disposals for sale.”
The report also examined the type of cars that are proving particularly popular at the moment, with the supermini, C-segment and dual purpose vehicles performing particularly well in 2015 so far.
The paper adds: “It is worth noting that there has been strong relative growth in demand for alternatively fuelled vehicles over recent months, sales rose 70.9 per cent in June. However, overall volumes remain modest.”
SUVs have reportedly been among the poorest performers due to large volumes in the market.