February 2012 – for immediate release
RISING used car trade values will increase the squeeze on dealer profitability in February and beyond, according to the independent benchmark used car pricing guide CAP Black Book.

Healthy dealer margins will be threatened by an anticipated reduction in stock availability, increasingly forcing them to buy cars requiring more investment in refurbishing to retail standard, warns CAP.

Despite slow retail sales, due to low consumer confidence, dealers are already being forced to pay higher prices for many cars in anticipation of an approaching shortage of used car stock.

This expected reduction in the number of cars available in the trade market stems from the catastrophic slowdown in new car registrations in 2009.

Black Book, which is used by 94 of Britain’s top 100 motor dealers, reports that the most successful dealers in the current market are those able to price as keenly as possible. But this price-led strategy sets the scene for...