Average used values increase by 4.2% in June (1)
We recently reported on Cap HPI research which painted a positive picture of the used car market in terms of sales, before going on to predict that 2017 will be a bumper year for the industry and now the National Association of Motor Auctions (NAMA) – has supported Cap HPI’s predictions.
NAMA’s monthly car auction data confirmed that average used car selling value jumped by 4.2% in June, from £5,176 to £5,392. Meanwhile, first time conversion rates increased by 1.3% from May to 75.4% in June – though, this is still down -0.3% compared with the same period in 2016.
According to NAMA’s figures, average mileage of used cars also dipped in June, by -0.4% to 64,102; while the first time premium rose by £34 (55.7%) on last month to total £95.
Head of NAMA, Louise Wallis, acknowledged that auction activity in the UK improved during June, strengthening as the month progressed.
“The overall conversion rate improved by 1.3% – whilst this was significantly lower compared to some [of] the highs seen in the first quarter, this is broadly in line with last year’s performance.”
Wallis is optimistic about the used car market in the coming months: “We anticipate the market to remain stable with good quality car remaining in demand.”
So, with increased selling values how do you maximise your profits?
As a used car dealer, you want to make sure that you are taking advantage of this strong-performing market and are maximising profits wherever possible. Just some of the ways you can do this include:
- Upselling products such as extended warranties and GAP insurance.
- Enhancing your website so that’s optimised for mobile devices, while ensuring that it contains all of the information consumers need to make a purchasing decision.
- Improving consumer response times by utilising tools such as direct emails and live chat.
- Offering competitive finance options for consumers, who are increasingly looking towards this option to purchase used cars.
- Carrying out stock pricing to ensure that car values are realistic and making adjustments where necessary.
Do you have any tips of your own for maximising profits?