The less desirable cars in the wrong colours are now proving very difficult to shift, so adjusting the reserve price accordingly may be the only way to sell them quickly, the organisation has warned.
Buyers are also increasingly looking to purchase cars that are ready to retail, which means more vendors are spending money on refurbishment before the vehicle is offered for sale.
The majority of cars are seeing a benefit in refurbishment with higher prices and first time conversion rates.
With the market entering ‘the mad’ summer of Olympics, demand for hire cars is likely to stay high across the summer with more visitors entering theUK.
Therefore fewer cars are being remarketed and are remaining on fleets sometimes for two to three years. Currently this works well for the industry, says theVRA, as there is a general shortage of two-year-old cars in the marketplace, so when such vehicles are defleeted, they tend to make good money.
Meanwhile, the traditional six-12 month nearly new used car market continues to be under severe pressure from the aggressive new car deals on offer by manufacturers and their dealers.
Consumers who are in the market to purchase a car are now looking at a new instead of a nearly new car and so prices have fallen and are likely to remain under pressure in the short term, says theVRA.
Generally, says theVRA, the used market enters the summer in a stable condition with book values for July only reducing by 1% whereas the last couple of years trade values have been marked down by up to 3%.
The market still shows signs of smaller cars being those with the best profit margins, as used car buyers continue to downsize their motoring requirements to benefit from reduced running costs.
Therefore, five door cars are now being widely sought after at the smaller end of the market due to their increased practicality and are now, for the first time says theVRA, commanding a price premium over three-door models with petrol the preferred engine option.