Fleet News

CAP highlights dealers' plight

FLEET operators might moan that cars cost too much and are cheaper in other countries - but it isn't the dealer who is making the money and it could all be good news for those with a three-year-old car to sell.

Many motor retailers are now making less money on each car they sell than 10 or 15 years ago - and have turned to selling older used cars in an effort to make the business worth the candle, says CAP Black Book operations director Andrew Wilkinson.

Wilkinson said: 'Fierce new car competition, combined with strong initial prices, have forced many dealers to operate for less profit per unit than ever before. That dispiriting fact is nowhere more true than in the nearly-new car market, where the sheer numbers of cars available makes it all but impossible to optimistically price a car. And that is why so many retailers are now focusing their attention not so much on brand new, or nearly new cars, but on cars that are three to six years of age.'

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