Lookers said today that its used car sales in Q4 were down 14.2% but it was achieving excellent used car margins.
The group is aiming to boost its presence in the used sector with new moves planned for 2022.
“The board continues to believe that the scaled used vehicle market presents the group with a significant opportunity, as evidenced by several recent new entrants to the market.
“Building on the group’s existing multi-franchise standalone used car infrastructure, the group will implement several initiatives to protect and expand the group’s penetration into the market in 2022 and beyond.”
But it raised questions over whether used car margins could be sustained at current levels and it remained cautious.
The question of values remains critical for dealers. Used car valuation group cap hpi is predicting values may come under pressure in H2.
Derren Martin, head of valuations, cap hpi, said: “The semiconductor alongside other component shortages and logistics issues are not going away anytime soon and new car supply will continue to be affected well into the second half of 2022.
“Values are likely to come under increased pressure from late-spring or early summer onwards, but they will certainly not fall by anywhere near as much as they have increased by this year.
“We may well see a more normal second half of the year with regards to deflation. Let’s not forget that used car values do generally drop as cars age in their lifecycle. It will be important to keep close to live, daily values in what could be another tumultuous year.”