Used vehicle export boom causing supply problems at home

Demand for used vehicles overseas is leading to cars targeted for export selling for up to twice their UK value or more at auction, say independent car information experts CAP. But the used vehicle export phenomenon is not confined to cars, with CAP's experts also reporting a constant flow of trucks, trailers, motorcycles and vans abroad as the export trade grows every day. This trade, supplying almost every continent with used British vehicles, is pushing prices ever higher in the UK and creating shortages of certain models.

Researchers for Black Book Live report daily on the “crazy prices” achieved by cars destined for export to locations as far afield as Africa, New Zealand, Indonesia and even the Falkland Islands.

Recent examples have included a 6 year old Citroen C8 sold for £5,600, which CAP ‘books’ at £2,200 in the UK, a 5 year old Audi A4 selling for £15,400 – more than double its UK CAP trade value of £7,175 and a 4 year old Honda Civic diesel which went under the hammer at £20,600 – almost £12,000 more than its usual value at home.

Nor are used vans immune to demand from abroad, with Ford Transits and Mercedes Sprinters frequently snapped up by exporters. However, the ‘crazy prices’ are reserved for cars which are cheaper to run in countries where fuel costs are lower. This means large, petrol-engined ‘executive’ models enjoy especially high demand and some British leasing and vehicle remarketing companies are now cashing in on the phenomenon by cherry-picking suitable cars to specifically offer to exporters. In this case, New Zealand is a particularly profitable market – despite the costs of shipping and the depreciation that occurs while holding the cars on docksides, often for several months.

While the export phenomenon is causing supply shortage headaches for dealers and traders in some UK markets, in others it has been welcomed, with CAP Red Book’s truck editor Barrie Travis famously commenting “Great Britain would have sunk under the weight of scrap metal long ago, without the export trade.”

CAP’s Mike Hind said: “This is one of the biggest untold stories of recent years across the UK used vehicle markets. Our car, bike, truck and van experts are often astonished at the prices they see paid for vehicles destined for export and there is no sign that demand will dry up any time soon.

“Sometimes it is causing real issues for dealers and traders in our own markets, with real pain being felt by bike dealers in particular, at present. But elsewhere it is helping to remove a considerable number of vehicles that would otherwise struggle to attract any interest here.”