Motor Trade - Increase In Used Car Values

Motor Trade used car prices on the increase as bidding frenzies hit the auction houses.

Whilst visiting a friend of mine who has several businesses all connected with the motor trade in one way or another, I happened to drop by whilst a car auction was in progress, you’ve guessed it one such motor trade business is that he owns and runs a car auction.

Anyway I asked him how trade was with his auction business taking into consideration that we are in the middle of a recession and supposedly it was hitting the motor trade especially hard. His reply to this was recession what recession, to cut a long story short his Auction business is doing better than ever.

I asked him why he thought this was the case. He stated that there were two reasons for it. The first is that the general public are currently more inclined to buy a nearly new car rather than a new car, therefore motor trade dealers are clambering over each other to try and get hold of this kind of stock.

The second reason he gave is that there are now a lot more private buyers using auction houses. He stated that these private buyers have brought an ebay mentality to the auction houses, by which he meant that they get into bidding frenzies with each other.

Whilst I was there, there was one such example, there was a small crowd of people gathered round a 3 year old ford focus c-max as the bidding was coming to the end there were 3 private buyers and just one motor trader left in the auction. As I was standing there with my mate who owned the auction house and another trader who was a regular there, he pointed out as the auction came to an end that he had a similar model on his forecourt that was up for a £500 cheaper than what was being paid at the auction, that it was a year newer and for that money he would have given them a warranty and a years tax too.

Apparently, what I had witnessed was now becoming a regular occurrence with punters who were not experienced within the motor trade and they were often paying considerably more at the auction compared to what was available on the internet and even on the forecourts.