Half of used vehicle dealers report demand is outstripping supply and three-fifths have adjusted their buying strategies to compensate according to the latest dealer sentiment survey by Manheim.
Just over 50% of the dealers polled by Manheim agreed with the statement ‘demand is currently outstripping supply in the used car market’. When asked how they’d altered their buying strategy in the last two months due to used car stock shortages, 59% acknowledged they’d taken steps in one way or another.
A third report to be buying from additional or alternative sources, while a fifth say they are now also self-sourcing through classifieds. One in ten admit to buying lower grade stock than they normally would, while 15% have been fast tracking vehicle preparation to facilitate quicker stock turnover. The same number say they’ve been traveling further than normal for stock.
Reflecting the upturn in competition reported in the wholesale market, a fifth of the dealers polled say they’ve been accepting lower margins for grade one or retail ready vehicles, supporting the view dealers are paying strong money for fast moving, in demand stock.
Manheim’s Philip Nothard comments: “Our most recent data shows the used market is continuing to gain pace, with volumes and buyer activity increasing in October versus previous months. But despite this upwards trend, this dealer sentiment suggests that growth would be stronger still if more stock was coming through into the used sector.
“That dealers have maintained this growth despite stock availability challenges and increased competition in the lanes is testament to their resilience and ability to flex their business models to compensate. As we look towards Q1 and the prospect of a return to normality for the new car sector and a release of used stock into the wholesale market as fleets, manufacturers and leasing firms re-start their buying cycles following the WLTP-induced lull, I think we can be confident dealers are ready and able to take full advantage of every opportunity.â€
