DASHBOARD
INDUSTRY VIEWS NEWS AND THOUGHTS FROM SOME OF OUR CAR DEALER LIVE GUESTS CAP HPI
December values drop was business as usual USED car values slipped again in December but there’s no price crash on the horizon, said Cap HPI’s head of valuations. Derren Martin exclusively revealed that used car values fell by 1.4 per cent that month but it was a normal drop. ‘Values during December on our Live products fell by 1.4 per cent, which is around £240,’ he said. Some car dealers went on social media to predict a used car price crash over the Christmas period. But Martin said: ‘The important thing to note is that a drop like this is normal for this time of year – this isn’t a crash.’ He added that since Cap HPI introduced its Live product in 2012, the average December drop was 1.4 per cent, so it was in line. ‘The difference this December is that the fall is coming from a much higher starting point,’ he said. ‘It hasn’t knocked much off the overall increases – values are still over 27 per cent up on where they were at the start of the year.’
T S A C D PO Driven by
CLICK HERE TO LISTEN TO MORE CAR DEALER PODCASTS 42 | CarDealerMag.co.uk
Martin went on to say that December’s fall, as in other years, was because of retail demand dropping, but also September and October saw the large dealer groups stocking up for January. ‘There’s also a lot of people who have been watching and waiting to see what happens to values. When you’re watching and not buying, there’s little competition.’ Two of the strongest sectors in December remained city cars and MPVs, but only by small amounts – around three per cent or £150 for the Fiat Panda, Kia Picanto and Skoda Citigo. Martin reckoned this was due to MPVs still representing good value while city cars were still a necessity purchase for many. Looking back on a ‘crazy’ year for used car valuations, Martin said: ‘It’s never been more difficult to forecast values of cars – it’s actually easier to predict what’s going to happen in three years’ time, as we know there will be a lot less volume because of what’s happening right now. ‘With semiconductor shortages, Omicron and the potential for Covid outbreak at factories, there is not going to be many new cars coming through, and obviously that will mean fewer used cars being generated. ‘We think values will stay strong into 2022.’
CELEBRATION
Teams battle it out to claim Quiz of the Year crown TO CELEBRATE the end of another weird and wonderful year, the Car Dealer Podcast did things differently for a special episode. Instead of a show looking back at the week, this time we put the Car Dealer team and two dealer guests’ knowledge of the year to the test. In this podcast episode – that can be played on Apple Podcasts or Spotify AND watched on YouTube – James Baggott teamed up with Swansway director Peter
Smyth, left, while James Batchelor chose Car Quay boss Jamie Caple, right, as his teammate. With Rebecca Chaplin as quiz master, the teams went through five rounds of news challenges to decide who would be crowned the winner of the Car Dealer Quiz of the Year. Watch now to find out who really knew the most about car dealerships and the automotive industry in 2021. Click on the image to see how the teams got on.
