Used car dealers closing.

Honest John Back Room » Motoring discussion
What is life like with your car? Let us know and win £500 in John Lewis vouchers | No thanks
View Threaded
Mon 21 Jun 2021 08:12
Used car dealers closing. - barney100

I have noticed here in sunny Basingstoke several small used car dealers closing, even a quite large one's windows have 'to let' signs plastered on them. One very near me which had some very expensive stock now has only two or three sorry looking examples on show. Is this a national trend due to the pandemic?

Reply | Report as offensive | Link
Mon 21 Jun 2021 08:13
Used car dealers closing. - Bromptonaut

One very near me which had some very expensive stock now has only two or three sorry looking examples on show. Is this a national trend due to the pandemic?

Would that be lack of sales or lack of available/suitable stock?

Reply | Report as offensive | Link
Mon 21 Jun 2021 08:18
Used car dealers closing. - _

3 lhave disappeared here in Colchester, and I would hazard a guess at

Lack of stock,

profit margin, due to warranty costs as people more aware of rights, and fixed costs.

But Colchester seems to be among the "not the cheapest areas"

I notice plenty of registrations here from up north on new cars.

Our Seat dealer threw in the towel a few months back.

Reply | Report as offensive | Link
Mon 21 Jun 2021 08:29
Used car dealers closing. - Galaxy

It's been happening for many years, long before the arrival of Covid-19.

Many former used car dealers sites here in Essex have long-since been converted to blocks of residential flats!

Reply | Report as offensive | Link
Mon 21 Jun 2021 08:50
Used car dealers closing. - FP

Since the end of the first lockdown I have entertained myself by getting frequent quotes from WBAC on my Mazda CX-5 (2014). They started off just above £10,000, then plummeted to below £9,000. Since then there has been some rise and fall to the current figure of around £10,500.

I can only assume this also is a indication of the fluctuation of supply and demand, but I'm surprised my car seems to be worth as much as it was a year ago.

Reply | Report as offensive | Link
Mon 21 Jun 2021 09:26
Used car dealers closing. - barney100
Unknown.
Reply | Report as offensive | Link
Mon 21 Jun 2021 09:35
Used car dealers closing. - SLO76
A combination of toxic factors are likely to blame. Poor availability of stock as fewer new cars are registered, reduced nearly new stock thanks to leasing firms hanging onto metal during the pandemic, larger dealers are also more likely to hang on to decent older cars for retail rather than paying the ever increasing auction fees and an increasing number are refusing to deal with small traders. I used to buy from a couple of single branch dealerships but when they were bought up by national chains they’d no longer entertain traders. It cut off a big percentage of my stock.

Small used dealers usually had links to larger local main dealers and bought up all their older stock but today those new car dealers are disappearing as they either go bust or get bought by national chains who won’t sell to other traders. Increasing and often unrealistic legislation protecting buyers which is fair enough on a £7/£8k used car but nonsense on a £1000 banger. If you have to guarantee a car at this money then you’ll have to charge a vastly higher price for it. The days of the small independent car sales lot are dying.

Edited by SLO76 on 21/06/2021 at 09:56

Reply | Report as offensive | Link
Mon 21 Jun 2021 09:59
Used car dealers closing. - movilogo

Wasn't there another post recently where it said like 25% of all cars on road over 10 years old?

Within my known circle I have not seen anyone changing cars during pandemic just they fancy it.

Perhaps people are cautious on spending money on a depreciating asset during difficult times.

The days of the small independent car sales lot are dying

It is probably true for other industries as well. Big players like Amazon etc. made it very hard for new traders to enter and/or survive in the market.

Reply | Report as offensive | Link
Mon 21 Jun 2021 11:26
Used car dealers closing. - Steveieb

That’s true SLO.

But what kind of comeback can you expect on a £2500 cheapie ? And how does the sale of goods act apply when you pay by credit card ?

Reply | Report as offensive | Link
Mon 21 Jun 2021 12:24
Used car dealers closing. - John F

Is this a national trend due to the pandemic?

Due more to the sea change in shopping habits driven by IT. Just as the ascent of nationwide supermarkets matched the decline of local grocery stores, the ascent of on-line traders such as 'cinch' reflects the decline of the local used car forecourt.

Reply | Report as offensive | Link
Mon 21 Jun 2021 12:26
Used car dealers closing. - Gibbo_Wirral

I don't think I would ever buy a car from a website and when its delivered be the first time I see it. I can't believe people would do this without even a test drive.

Edited by Gibbo_Wirral on 21/06/2021 at 12:26

Reply | Report as offensive | Link
Mon 21 Jun 2021 14:10
Used car dealers closing. - MGspannerman

I have been associated with car businesses in various shapes and forms for decades. This has been going on for a very long time with a consistent decline in secondhand traders. The trend was initiated by the internet and the increasing role of online sites, resulting in much greater price transparency. At the click of a button you can compare prices across the country and even a small price difference of a couple of hundred pounds can make the difference between getting phones calls or not.

In addition to downward price pressure, margins have been squeezed further with rising premises costs, more expensive stock etc. One dealer I know said that he had just had enough of whinging customers who would complain at the slightest thing on a cheap but otherwise good car. You may think secondhand car sales people are out to screw you, try some (but by no means all) of their customers!

Reply | Report as offensive | Link