ABM Q4 - Flipbook - Page 10
FEAT U R E
USED CAR MARKET
“As a result, some of the wholesale
prices over the last nine months have
started to increase on some vehicles.”
The risk of poorly selected older stock
is not just that it becomes glued to the
showroom floor. Buyer protections, such
as the Consumer Rights Act of 2015,
mean that older cars can become more
trouble than they are worth.
Smyth says: “There can be greater risks
around condition and potential faults,
and consumer rights mean dealers have
to be particularly careful. It’s important
that the vehicle is properly assessed
and prepared.”
Swansway has placed particular
emphasis on stock turn in recent years,
aiming to increase the efficiency of its
whole used car operation. Smyth says:
“We use a range of trusted sources,
including auctions and online platforms
such as Carwow and Motorways, and
we’re always open to exploring new
avenues as the market changes.
“Stock turn is critical in the used car
market. The longer a vehicle sits on our
forecourt, the more money it’s costing
Swansway, so we’re continually looking
at how we can source, prepare and retail
vehicles as efficiently as possible.
“We need to make sure vehicles are
presented to the right standard for
customers, while balancing the cost of
preparation against the age, value and
likely retail price of the vehicle.”
Keeping a brand-new car or van in tiptop shape on a three-year maintained
lease is painless – something that cannot
be said about taking a five-year-old car
beyond its manufacturer warranty.
Vehicles are far more reliable than they
were 30 years ago, but oil still needs
changing, rubber still perishes and tyres
still wear out. To ensure vehicle uptime
does not take a nosedive, maintenance
needs careful attention.
Mansbridge says: “Reliability is still a
factor, but it's become more nuanced.
The real risk with older vehicles
is upkeep, as parts availability becomes
a bigger factor, while for EVs the
perceived risk is often centred on battery
degradation and replacement cost.
“Downtime is a direct cost, whether
through cost of repair, delayed jobs,
or lost revenue, all of which erode any
saving made on the initial purchase.
The way to mitigate this is through
10
AUTOMOTIVE BUSINESS
Q4 2026
proactive maintenance planning built on
centralised data, scheduling servicing
around a vehicle's actual condition and
usage rather than a generic timetable,
and flagging vehicles approaching key
risk thresholds before a fault takes them
off the road.”
A competitive edge
Careful planning is key to making used
car sales a worthwhile operation, not a
rusty headache. This is complex, with a
hot-and-cold market influenced by more
nuance than a move away from diesel or
preference for a certain mileage range.
Pontin explains: “The key mileage band
at the moment is 30,000 miles to 60,000
miles. That's where we see the biggest
volume of sold vehicles, and we see the
least days to sell. As the vehicle gets
older, it takes longer.”
A key way of keeping up with the
market is using data, not only to source
the right vehicle, but to control costs and
maximise margins, Palmer explains: “Get
control of the cost base: salaries, policy
changes, energy, rates, and stocking loan
rates. A way around that is to maximise
the margin of the stock that you do bring
in, that you do turn. That definitely has
to be about being really forensic and
using the data available to you to source
vehicles in a really smart way. [Find]
Keeping up
appearances:
Drivers buying used
cars still expect
high standards,
making prep work a
key part of fast sales
