SMA reports that it has significantly increased sales volumes over the past year, with each of the SMA network auction centres in Edinburgh, Leeds, Birmingham, Newcastle and Kinross all reporting good double-digit growth.
SMA managing director Bob Anderson said: “There can be no question that the dynamics of the used car and remarketing sectors have changed significantly over the last decade.
“Falls in consumer disposable income and confidence in challenging economic conditions have altered the car buying dynamic.
“New car sales have been under pressure, with consumers’ commonly looking to trade down and/or move to more economical vehicles.
“At the same time the economic backdrop has created a new money saving ‘chic’, where customers are very comfortable in negotiating hard and the web has developed as an ideal tool to help them.
“Put together we have seen a perfect storm for the remarketing sector; falling nearly new car availability, demand for smaller more economical cars, value focused customers. Margins and unit sales have both been under pressure.”
Anderson says that SMA’s strategy is to help vendors and buyers has been to reflect the level of change by developing a business model that matches the dynamism of the market.