19 November 2021 Independent dealers have an opportunity to restock over the coming weeks as a result of some large dealer groups and car supermarkets staying out of the wholesale market having replenished their stocks.
This month ADESA UK has tracked rising activity from independents coming onto its digital-only UPSTREAM platform to source used cars.
“It’s been widely reported that many of the big players were busy buying up stock in October to fill compounds in readiness for the post-Christmas market. This means independents are currently experiencing improved access to remarketed stock without finding themselves bidding against dealer groups and car supermarkets with deeper pockets,” said David Grice, Head of Sales at ADESA UK.
“At a time when used car stock is in high demand but short supply, because of the semiconductor shortage hampering new car production, some independent dealers have spotted a welcome window of opportunity to restock their forecourts and they’re maximising on it,” he said.
Grice added the slowdown of churn from the new car market has led to a rise in trade-outs appearing on UPSTREAM over recent months, with dealers more actively disposing unsold cars in order to replenish their inventories.
“Dealers don’t want unsold assets on their books. One dealer’s unwanted trade-out is another dealer’s sure-seller and this is helping to replenish stocks at what is a challenging time for retailers,” he said.
“We’re seeing dealers buying older and higher mileage cars than ever before in order to keep on top of consumer demand and we expect them to make the most of the opportunities currently being presented to them,” said Grice.
ADESA UK, a subsidiary of KAR Global, is a specialist online vehicle remarketing provider for OEMs, fleet and leasing companies and dealers, using a combination of industry expertise and cutting-edge digital technology to transform the way used vehicles are bought, sold and processed.
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KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services, including the sale of nearly 3.1 million units valued at over $40 billion through our auctions in 2020. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in about 75 countries. Headquartered in Carmel, Indiana, KAR Global has employees across the United States, Canada, Europe, United Kingdom, Mexico, Uruguay and the Philippines. For more information and the latest KAR Global news, go to www.karglobal.com and follow us on Twitter @KARspeaks.