Fleet News

Rover's disposals back on track after May blip

SPECULATION that Rover's used car disposal strategy was in disarray after the cancellation of two BCA single badge auctions in May has been dashed by leading industry observers.

Both CAP Motor Research and Glass's Information Services believe Rover Cars has got its act together well to protect and stabilise residual values despite months of turmoil in the run-up to the BMW sale.

According to Rover, last month's axing of a couple of special auctions - which would have made up to 200 cars available - was as a result of the intense new car sales activity the previous month - but June's scheduled sales were to go ahead as planned.

Johnathan Brown, Glass's car editor, said few dealerships could keep pace with the level of demand caused by BMW's campaign to reduce new stock.

'With the cashback and two years' 0% finance and a 40% down payment, thousands of people were falling over each other to take up this exceptional offer,' said Brown.

'Most dealerships could not keep pace with this unprecedented demand, and were unable to actively market their used cars in many instances.'

This had led to low levels of used car buying activity in the trade for Rover, said Brown, and added: 'BCA Auction sites were notably quieter and, wisely, Rover announced they were cancelling auctions to help prevent excessive over supply for the month.'

Mark Norman, CAP Monitor editor, agreed that a reduction in the number of sales in May would have helped protect RVs.

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