Why might a main dealer have a car for months before selling
Discussion
r11co said:
There's a thread running on PH about the car finance cycle and theories about the bottom falling out of the business model.
One of the things sustaining the current lease-cycle is that the cars coming back in are being stockpiled and drip-fed back into the used market to prevent a glut and preserve final values.
Just a thought.
No. This is unsubstantiated myth being propagated as fact on the internet.One of the things sustaining the current lease-cycle is that the cars coming back in are being stockpiled and drip-fed back into the used market to prevent a glut and preserve final values.
Just a thought.
Cars may be being grouped and held for certain auction types but there is absolutely no stock piling of cars to prevent a glut. There is no glut. Simple maths would tell you that. 2.69 million new cars sold last year, and there are 36.7 million cars on UK roads. So thats just 7% of the total car pool. Old cars getting scrapped at the other end, etc means the market pretty much absorbs that 7% injection per year.
daemon said:
mike74 said:
Waiting for some gullible mug to pay their stupidly inflated price?... and then you came along.
Was that entirely necessary? You've no idea what he bought or what he paid for it, yet you're throwing around insults. 
no worries; my skin is too thick for such posts to be bothersome. I took it as a joke really. Thanks to everyone for their ideas and possible reasons. I'll be asking them myself next week. WJNB said:
Have you assured yourself that it's not:
1. An odd colour proven to be unpopular, such as Varicose Vein Blue, Hearing Aid Beige,Yuk yellow or Loose Bowel Lime Green
2. A very poorly specified version, lots of switch blanks & fabric not leather seats.
3 Minuscule engine capacity. .
4 A diesel.
5. A manual diesel.
All possible reasons over & above those already suggested for it gathering dust on a forecourt
waiting for it not to appear too expensive. I have know dealers wait several months, then put price UP. Well, they would, wouldn't they?1. An odd colour proven to be unpopular, such as Varicose Vein Blue, Hearing Aid Beige,Yuk yellow or Loose Bowel Lime Green
2. A very poorly specified version, lots of switch blanks & fabric not leather seats.
3 Minuscule engine capacity. .
4 A diesel.
5. A manual diesel.
All possible reasons over & above those already suggested for it gathering dust on a forecourt
Dynamic Space Wizard said:
Maybe it wasn't serviced at all in January. Maybe the dealer got it two weeks ago, put it straight up for sale, wound the mileage back a bit and just stamped the service book. That's the most likely explanation I can think of.
This - except they didn't wind the clock back they just knocked a few miles off the current reading - which they did in case you look at the plugs / air filter and see that they aren't new.A lot of new car sales were brought forward to the beginning of the year in anticipation of the changes in VED. No doubt many of these involved part exchanges which have taken several months to work through the system as the lower number of part exchanges against the fewer new cars now being sold gradually balances out.
daemon said:
No. This is unsubstantiated myth being propagated as fact on the internet.
Cars may be being grouped and held for certain auction types but there is absolutely no stock piling of cars to prevent a glut. There is no glut. Simple maths would tell you that. 2.69 million new cars sold last year, and there are 36.7 million cars on UK roads. So thats just 7% of the total car pool. Old cars getting scrapped at the other end, etc means the market pretty much absorbs that 7% injection per year.
Someone must have put a substantial effort to come up with that analysis you just summarised here. Do you have a link?Cars may be being grouped and held for certain auction types but there is absolutely no stock piling of cars to prevent a glut. There is no glut. Simple maths would tell you that. 2.69 million new cars sold last year, and there are 36.7 million cars on UK roads. So thats just 7% of the total car pool. Old cars getting scrapped at the other end, etc means the market pretty much absorbs that 7% injection per year.
daemon said:
No. This is unsubstantiated myth being propagated as fact on the internet.
Cars may be being grouped and held for certain auction types but there is absolutely no stock piling of cars to prevent a glut. There is no glut. Simple maths would tell you that. 2.69 million new cars sold last year, and there are 36.7 million cars on UK roads. So thats just 7% of the total car pool. Old cars getting scrapped at the other end, etc means the market pretty much absorbs that 7% injection per year.
Not the place for this discussion, but generalised numbers are meaningless in the context of 'good' lease deals (the kind that get posted about elsewhere in here) that lead to large sign-ups for a particular make and model. All those cars will end up back in the dealer system around the same time and if they all ended up on the 'approved used' forecourts at that same time the deficit between their GFV's and resale value would increase drastically.Cars may be being grouped and held for certain auction types but there is absolutely no stock piling of cars to prevent a glut. There is no glut. Simple maths would tell you that. 2.69 million new cars sold last year, and there are 36.7 million cars on UK roads. So thats just 7% of the total car pool. Old cars getting scrapped at the other end, etc means the market pretty much absorbs that 7% injection per year.
Basic business.
It might be true that the overall numbers of cars around is fairly static, but this is about changing purchasing habits in order to inflate values. so tight control of supply and demand is key to this.
PS. You analysis doesn't include an actual figure of cars being scrapped - you've just weasled a number that sounds credible!
Edited by r11co on Wednesday 22 November 07:23
Glasgowrob said:
StrNge things do happen in the motortrade the other half bought a ford eco sport a couple of years ago brand new but built over 12 months previously
I found that one strange a couple of months yes but over a year in storage
It happens; undesirable car vs undesirable spec, the Eco Sort isn't exactly setting sales figures alight anyway.I found that one strange a couple of months yes but over a year in storage
I'll log on to our system and occasionally see vehicles which have been sitting at the docks for a over a year, usually odd or undesirable spec.
We have just struck a deal with our manufacturer for 2 cars which were auto issued at launch, they are both 4x4's which isn't what people want, we have managed to get £8k towards each one, this is on a car which retails around £27k, they have been sitting around for almost 2 years.
The increase in PCP type deals mean that there are far more "newer" used cars in the UK Used Car Parc than ever and these number are forecast to continue growing - reports are available from the SMMT.
As an aside and back OT - was it serviced by the same dealer or the same dealer group?
I only ask as it's a Land Rover and Guy Salmon for example - have dealers hundreds of miles apart and rotate stock regularly.
As an aside and back OT - was it serviced by the same dealer or the same dealer group?
I only ask as it's a Land Rover and Guy Salmon for example - have dealers hundreds of miles apart and rotate stock regularly.
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