Wholesale Used Car Sector ‘Starved’      

News that stocks are extremely low in the wholesale used car market won’t come as a surprise to many, but Shoreham Vehicle Auctions have now declared that the industry is being ‘starved of repossessions’ due to the growing number of owners choosing to sell their cars instead of passing them back to finance companies.

This helps the car owners in two ways: they retain their credit score and they earn some cash, given the buoyant nature of used car prices.

This bucks the expected trend after the FCA put a hold on car repossessions during the various lockdowns.  Now the market has re-opened it was assumed that thousands of repossessed cars would flood the market. But it has not been the case.

Shoreham’s MD Alex Wright, said: “It’s another issue that the used car industry has had to deal with.

“The wholesale sector is being starved of tens of thousands of used cars that are not finding their way on to the open wholesale market. Car-buying service companies are buying them, paying off the outstanding finance and selling them direct to consumers.

“It’s good news for drivers who have fallen behind with their car repayments, but this trend has contributed to the wholesale market being short of used cars.

“Many drivers are being put off replacing their used car by rising household bills, but as running costs rise as their cars get older, they will be forced into looking to buy a replacement.

“It will be spring 2023 before we have a better idea on future used car trends and this will depend largely on whether new car supply improves.”