The value of the used car business to franchised retailers in the UK is well known and exploited by all sectors. Pendragon’s statement is one in a long line of similar pronouncements from other PLC groups.
It does, however, question the position of the fine line between ‘new’ and ‘nearly new’. Trevor Finn mentions pre-registrations in his report and, of course, as they become defined as used cars, they are really new ones but at a considerable saving. This line is blurred beyond the understanding of most and certainly of the financial analysts who pass judgement.
What would be interesting would be to see if retailers seek to increase their penetration of the 3+ year old market which is by far the largest segment. Return on investment in this area is also particularly strong providing larger organisations position the product away from the ‘Approved’ sector.