Septem­ber short­fall

“A dealer of­fered £1200 more than his PCP was worth”

Car Mechanics (UK) - - Dealer's Diary -

In Septem­ber, new car reg­is­tra­tions fell by 25% com­pared with last year. Dis­be­lieve those fig­ures if you like, but cer­tainly the stock in auc­tions is down con­sid­er­ably. While I’m not go­ing to spec­u­late on why the sales have fallen – there are nu­mer­ous the­o­ries, but the an­swer is prob­a­bly a com­bi­na­tion of all of them – used cars prices are ris­ing rapidly.

One bro­ker I know is buy­ing stock in auc­tions at re­tail prices, then adding his com­mis­sion on top. Quite how the dealer is ex­pected to take money out of that, I’m not sure, but ex­pect to be laughed out of a show­room if you’re a cash buyer.

A ma­jor PLC out­fit has aban­doned their ‘cheap­est on the in­ter­net’ price prom­ise as their used stock lev­els are down by sev­eral thou­sand units. How­ever, due to the in­crease in resid­u­als, the money be­ing made on what they are sell­ing is ac­tu­ally the same. My mas­ter tech­ni­cian has used this sit­u­a­tion to his ben­e­fit. Eigh­teen months ago, he took out a PCP on a Ford Fo­cus 1.5 petrol as the of­fer was too good to be true. An­other dealer, des­per­ate for such de­sir­able and un­ob­tain­able stock, of­fered him £1200 more than his PCP set­tle­ment was worth to get him out of it six months early. So he took out a PCP on a brand­new diesel Qashqai for pen­nies more than the Fo­cus had been cost­ing him and he’ll save the dif­fer­ence on fuel econ­omy. It’s the first time I’ve heard of peo­ple mak­ing se­ri­ous money out of PCPS, but such is the mar­ket at the mo­ment.

If you’re savvy and can read what’s hot, what’s not and what’s about to be, then take out a PCP on some­thing new. Just don’t gam­ble the mort­gage on it.

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