24 Jun, 2024

Stability’s back for used cars, says Vertu Motors, but new car retail looks uncertain

OEMs and franchised dealers face a daunting task to deliver sales mix and volume expectations in the new car market as many private buyers find young used cars much more attractive thanks to recent price drops, according to Vertu Motors, one of the biggest motor retailers in the AM100.

Its latest trading statement notes that after falling used car prices have stabilized, Vertu has actively worked to increase the turnover of used vehicle stock and reduce overall inventory levels. As a result, there has been an improvement in gross profit per unit from used vehicle sales in recent weeks.

Manufacturers selling new vehicles in the UK face challenges in managing the mix of internal combustion engines (ICE) and battery electric vehicles (BEV) due to ambitions to reduce emissions. This may lead to disruptions in supply and pricing as manufacturers strive to comply with regulations.

High prices of new vehicles, especially electric ones, have dampened retail demand, leading some customers to opt for used vehicles, which now offer more attractive prices after the market correction, it said.

Vertu said it is currently focused on navigating through this period of market adjustment, considering factors such as high interest rates and industry trends,

1 min read

Difficult start to 2024 for used BEVs

06 February 2024

Battery-electric vehicles (BEVs) experienced a difficult January across many of Europe’s major used-car markets. Autovista Group experts consider powertrain performances, including residual value (RV) trends and days to sell.

RVs of all-electric models presented as a percentage of the original list price (%RV), experienced a troubled start to 2024. Set against a market average covering all powertrains, BEVs retained considerably less value across a number of European countries.

The biggest gap was recorded in Italy, where all-electric models only retained 37.8% of their new-car value after three years and 60,000km. Meanwhile, the average across all powertrains in the country sat at 55%.

BEVs saw a similar performance in the UK, with value retention levels at 38.4%, while the total market average sat at 53.3%. Used all-electric cars retained 41.7% of their value in Germany while all powertrains averaged 51.6%.

The electric powertrain saw %RVs hit 47.3% in Austria, compared with 53% across

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Carvana Starts the Slow Climb Back Up to Recovery

From the March/April 2024 issue of Car and Driver.

Ernest “Ernie” Garcia III had a dream. Armed with a degree from Stanford and a $100 million investment courtesy of his father, Ernest Garcia II—the billionaire behind DriveTime, a major used-car dealership chain—­Garcia III was uniquely well situated to give his audacious vision a shot. In 2012, he cofounded Carvana, an e-commerce platform for selling used cars. He hoped one day it would become the Amazon of secondhand-car sales, an online operation where you might buy a pre-owned vehicle with no in-store visit, hard sell, or haggling and have the new-to-you car or truck delivered to your home. Though supportive—Carvana began as a subsidiary of Drive­Time before being spun off—Garcia the Elder was skeptical, according to his son, and, for years, he was not alone.

“Probably a different company would swing at [this idea] every couple of years ­until someone eventually cracked the nut. U­ntil that happened, there would just be failures, and ­people would probably think, ‘Oh, see, it doesn’t work,’ ” Garcia III, Carvana’s CEO, explains to Car and Driver. “When the reality was, it was just really hard to build something that was good enough to where

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