July 
Older Cars Editorial - July 2010
I dropped in to my local MOT station the other day, for a quick test on one of my old Porsches before a European road trip. It’s a village garage, with the owner also the MOT tester. He and his wife both have bad backs from years of pulling front wheels to check steering gear and the like, so I was delighted to see that he has installed a one-man testing rig, where the car drives onto the ramp and the front wheels are clamped to hydraulically-operated plates, which carry out all the contortions needed to check ball joints, track rods and other steering and suspension components.
As we put the old Porsche through the motions, my tester speculated that, with the recent changes in emissions measuring equipment and the Vehicle Inspectorate’s near insistence on these one-man testing ramps, the UK seemed to be moving towards a two-year MOT test regime – the standardisation of test procedures across the European Union. He’s put the question to the Inspectorate a number of times previously, and never had no for an answer.
Two-year testing is...more
July
Older Cars Market Trends - July 2010
The distractions of the General Election, the World Cup, and the recent Budget setting out the austerity measures that face the nation, have all taken their toll on retail sales of used cars. In spite of the retail downturn there were fewer older car bargains to be found at the auctions.
Prices at the older end of the market have risen gently for much of this year, and they have more than held their own in recent weeks when the wider market was experiencing a marked downturn. This comment is specifically aimed at ‘ready to retail’ older cars that remain popular with dealers who have been keen to source these cars for stock.
This has necessitate...more
May
Older Cars Editorial - May 2010
With the hard winter now a distant memory, the older car market has an increased number of cheaper 4x4s that were handy for ferrying families about in the snow. Now summer is coming and fuel prices are crawling up again, many of these ‘convenience’ 4x4 owners have decided to get out of all-wheel-drive, and bank whatever cash can be raised.
Let’s take Land Rover Discovery as an example: perhaps the most widely available older 4x4 in the UK. A look through the list of recently sold items on one of the big Internet auction sites made interesting viewing.
Searching for Land Rover Discovery up to £2,000, 635 individual Discovery auctions have been conclu...more
May
Older Cars Market Trends - May 2010
An insatiable demand for budget priced cars in this period of economic austerity and a limited supply not helped by the crushing of so many clean older cars via Scrappage, has allowed prices to gather a little more pace. Though the Scrappage Scheme has run its course, factory order new cars are still coming through, and Scrappage part exchanges are arriving back at dealerships to be destroyed.
Our contacts report the recent demise of a 17k-mile 99T Polo, a 40k-mile BMW Z3 in need of minor cosmetics and an all-original two door Mark 1 Escort in perfectly usable condition. The market value of all these cars exceeds the amount offered in Scrappage. The Escort had ...more
March
Older Cars Editorial - March 2010
The recent sale of Saab Automobile AB to a consortium led by Spyker Cars NV was a palpable relief to classic car lovers around the world. Of all the manufacturers that could have failed during the credit crunch, Saab was possibly the one classic car enthusiasts feared losing the most – proved by the huge upsurge of Saab support across the Internet as the company’s fate hung in the balance.
Saab’s new owners are amply aware of the important role heritage will play in reviving the company’s fortunes. Victor Muller, CEO of Spyker Cars and the driving force behind the buyout, has pledged to recapture Saab’s distinctive style, and appeal to traditional Saab ...more
March
Older Cars Market Trends - March 2010
Following a slightly disappointing start to the year thanks to the snowy weather, most independent dealers reported that interest and activity picked up as soon as the snow began to melt, and hibernating car buyers came back to the market.
Clever dealers with some space and working capital spent the quiet retail period buying whatever decent stock they could get their hands on. Locating stock remains a challenge: what is about in good condition is not cheap.
A recent trip to a busy Midlands auction site perfectly illustrated current older car supply. Of approximately 250 cars offered for sale, less than ten percent were pre-2000. Of those on offer, ...more
January
Older Cars Editorial - January 2010
I was recently reading about a private seller who had sold their car. The sales process was somewhat involved, as the eventual buyer drove and tested the car a number of times, both on his own and with a relative. A deal was eventually agreed, and the car was paid for and driven away.
A few months later, the seller received a lengthy letter from the buyer, explaining that they were now unhappy with the car and wanted to return it. The seller, a complete novice to selling cars, replied to the letter. There ensued a lengthy to and fro of correspondence, which caused no end of stress and ended acrimoniously.
Millions of used cars change hands every year...more
January
Older Cars Market Trends - January 2010
Good, retail-ready older car stock remains difficult to come by, and prices for the very best examples continue to rise. This is especially the case for low mileage examples in good condition, many of which are selling at exceptional prices, both at auction and through the classified ads. Run-of-the-mill examples have enjoyed price stability for some months, with no sign of this changing any time soon.
Though small and medium cars in very good condition always achieve auction prices higher than Guide Disposal, the strongest prices in the run up to Christmas were reserved for the nicest toys: sports and cabriolet models from the prestige manufacturers, and older...more
November
Older Cars Editorial - November 2009
Scrappage has been a useful sales tool for the motor trade, but it has not been the free ride portrayed by many.
New small cars have been by far the biggest sellers, but with little or no profit for the supplying dealer. Older cars that might have been retailed have been recycled, making no contribution to tax coffers. We have sold new cars and taken VAT from them, but at the lower rate of 15%. Though the cost of the scrappage scheme has been marketed by the Government as largely cost neutral to the taxpayer (£1,000 cost cancelled out by £1,000 VAT take), this does not account for the £1,000 VAT lost per car in paying for the scheme, or the fact that ev...more
November
Older Cars Market Trends - November 2009
News from the auctions is that some cars are still available behind book, but these are mainly cars that have just fallen off franchised retail networks’ buy lists and are still low on the radar for most independents – most examples are likely to be in the newer Car Guide. It’s a specialised zone but, with the majority of independents running at roughly 50% of the stock they would have had this time last year, focus has intensified on the type of cars most want to sell. This has led to more targeted buying for cars they know will sell quickly in their locale, and thus more successful stock turn.
Average profit seems to be up about 15% on this ti...more
September
Older Cars Editorial - September 2009
A recent press release by The Department for Business, Innovation and Skills describes the Government’s scrappage scheme as “a real success up and down the country, with orders reaching 154,927.” The release says scrappage is intended to “get older vehicles off the road and encourage consumers to invest in new, safer, and potentially more environmentally friendly models.”
The Government data claims that new cars bought under the scheme have CO2 emissions some 25% lower than the cars scrapped. The average CO2 figure for scrapped cars is estimated to be at least 179 g/km, compared to a much lower 133.9 g/km emissions average for cars bought through the ...more
September
Older Cars Market Trends - September 2009
Competition for interesting cars at auction can be intense; so much so that some traders are abandoning physical auctions altogether and turning to private sales and online auctions, where there are still a few bargains to be found.
With some franchised dealers offering what are perceived to be low prices for part exchanges, disappointed consumers who have had a prior Internet opinion on likely trade-in values seem increasingly likely to stand firm on price and offer their old car online at around Guide Trade level. Buying a sensibly-priced private car direct from the owner is a no-brainer for traders who might otherwise find themselves paying into book on ...more
July
Older Cars Editorial - July 2009
With appreciable strength in the classic car market at the minute, there is resurgent speculation as to what might be the classics of tomorrow.
Emerging prospects are always intriguing to owners and potential investors alike. The obvious choices for future greatness are the premium German and British brands (Bentley, Bristol, Rolls Royce et al), as well as the best that other European manufacturers have to offer. Into this mix we must also put some of the rarer Japanese and American cars. Beyond that it is a cherry-picked basket of individual models, mainly hand built luxury or performance cars.
Many of today’s best prospects were built before a change in...more
July
Older Cars Market Trends - July 2009
One big industry argument in favour of the scrappage scheme was that it would rid the roads of much of the dross at the older end of the market. This has not necessarily been the case: some very good condition older cars have met their end in the name of new car discount.
Many of the cars seen at scrapyards are worth well above the £1,000 Government share of the scrappage bonus, and there is no doubt that in these circumstances a very similar deal would have been available to these customers outside of the Scrappage Scheme. The net result for the taxpayer is therefore not so impressive, and these cars destined for the crusher could have found new homes with custom...more
May
Older Cars Editorial - May 2009
We are fast approaching the point where consumers decide that the ever-rising prices for nearly new cars are too high. When that time comes, the late used market will stall, as consumers look again at new car prices and refine their choices to buying a new car, or buying no car. Managing the buyer’s decision-making process at that point will be key to how currently fragile consumer confidence is protected and strengthened throughout the remainder of 2009 and into 2010.
Confidence does not entirely depend upon on a consumer’s personal situation; in a normal year, most people see no change in their earnings month to month. Confidence to spend rather than save t...more
May
Older Cars Market Trends - May 2009
Auctions have remained busy, but the latest reports suggest that the rate at which prices are rising has begun to decelerate. Given that new car registrations are down 30% year on year, it is not surprising that part-exchanges are also significantly lower. Thankfully, a good proportion of what is taken in is of an acceptable retail quality.
Ready-to-retail stock remains hard to find at acceptable prices via the normal trade channels. As there is general reluctance amongst many traders to pay the high prices other buyers are happily paying, cars in below average condition begin to look like a viable proposition. A number of bodyshop contacts report an increase in cos...more
March
Older Cars Editorial - March 2009
As the retail motor industry keeps itself busy in search of decent used forecourt stock, the Retail Motor Industry Federation is calling for a scrappage scheme to be introduced, to stimulate demand for new cars.
“There has been a vast improvement in used car sales in the last month,” said Sue Robinson, Director of the Federation’s National Franchised Dealers’ Association, “as consumers feeling the pinch look for great value for money on used vehicles. This proves that there is still desire for a new car, and a budding confidence that must be developed.” The RMIF are preparing details of a self-financing scrappage scheme to be put before the Government, ...more
January
Older Cars Editorial - Jan 2009
Glass’s Information Services is driven by data. We are passionate about numbers, and strive to provide subscribers with the most reliable and up-to-date information available. Many people imagine data to be dull, cold and impersonal; the preserve of boring office types. This is not the case. Delegates at our recent dealer conference watched Adrian Rushmore, Glass’s Managing Editor, present our latest analysis of UK automotive stock, price and web-search data, and were fascinated by the microscopic level of detail that Glass can now call upon, to give our customers the competitive advantage.
Glass’s Stock Profile Intelligence gives subscribers detailed and up-to-th...more
