Auction houses are seeing more older used cars up for sale than in previous years, according to Glass’s Guide.

The company said that cars aged 10.6 years or more represented 14% of all auction sales this year compared to only 9.8% last year.  Those aged between 9.6 and 10.5 years accounted for 8% this year and 6% last.

“Furthermore, for every month this year, there have been a larger proportion of sales in these age groups than for the equivalent month last year,” said Glass’s Guide managing editor Adrian Rushmore.

Rushmore also said dealers are retaining more younger cars to retail than previously so the mix of vehicles going to auction has got older. Customers are also keeping their cars for longer, resulting in a higher proportion of older part-exchanges, which are often unsuitable for retail.

Glass’s said that ex-fleet cars aged between 2.6 and 3.5 years accounted for 19.5% of the total in August 2011, but had reduced to only 15% a year later. This was because fleet sales were at their lowest in early 2009 and these cars are now coming to market. These cars are in demand and more of them are being sold direct to dealerships.

We say:

The current used car shortage has had an impact on both franchised dealerships and auctions, with prices reflecting the availability of premium quality vehicles. Dealers cannot sell empty spaces and so more and more are looking to increase profits by offering those “too good to trade” vehicles that fall outside of their desired stock profile or franchise marque. But many are missing out on a tremendous opportunity. These older vehicles would normally go to auction for another dealer to buy and turn into profit, so why not retail them, along with a good warranty and recovery package instead?

We are experiencing an unprecedented demand from franchised dealerships for warranties to cover these vehicles that often are too expensive to cover or fall outside of the manufacturers approved programme. Our Safe and Sound scheme ticks all of the boxes when it comes to providing an excellent level of protection and we are driving footfall into dealerships with our consumer-facing marketing campaign, involving Sir Stirling Moss’s endorsement. We can also design a warranty to reflect the age and mileage of the stock being offered with great upsell opportunities (such as receiving up to 50% cover free of charge when the customer upgrades to a longer term) to create more profit for the dealership.

To find out how the WMS Group can work for you, request your FREE dealership pack by clicking here, and learn why over 3,500 dealerships have chosen us to supply their warranty, GAP and protection products.

Source: Motortrader.com