Dealer profits on used cars came under pressure in March, according to new research<\/p>\n
Margins were dented despite the surge in activity prompted by a new plate, said CAP Automotive.<\/p>\n
In March 41% of dealers reported that margins were tighter than the month before.<\/p>\n
Cap said profits were under pressure because the condition of vehicles has deteriorated as volumes increased and dealers were hit by higher preparation and refurbishment costs.<\/p>\n
Despite higher volumes in the market just 23% of dealers described the choice of cars available as \u201cbetter\u201d.<\/p>\n
This signals further profit erosion in the coming weeks as those cars will also need refurbishing for retail, just as consumer demand is expected to reduce after Easter.<\/p>\n
The latest inter-dealer survey also reveals that online consumer interest increased during March more than physical visits to showrooms.<\/p>\n
Philip Nothard, retail specialist at CAP Automotive, said: \u201cDealers may, on the surface, be enjoying a very successful time but the number of sales isn\u2019t the whole story.<\/p>\n
\u201cThe squeeze on margins is a constant complaint and the problem is fuelled by a general deterioration in the quality of the majority of cars now available in the market, which forces them to invest much of their potential profit in refurbishment,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"