News

Vertu Motors Reports Decrease in Used-Vehicle Volumes

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Andrew R. Michaud

August 30, 2023

By Anthony O. Goriainoff

Used-Vehicle Volumes Decline

Vertu Motors has reported a 6.3% decline in like-for-like used-vehicle volumes for the five months ending July 31. The company attributed this decrease to the absence of 0% finance offers on used vehicles, which were available in the previous year but hindered by higher interest rates this year. Additionally, the ongoing shortage of used vehicles in the market has contributed to the reduction in sales.

Increased Vehicle Inventory

Despite the challenges presented by supply dynamics, Vertu Motors has managed to increase its inventory levels during this period. This strategic move ensures that future sales volumes are maximized.

Market Expectations for FY2024

Vertu Motors refrained from providing its own forecasts for fiscal year 2024. However, according to a forecast by Liberum sourced from FactSet, revenue for the year ending February is projected to reach £4.81 billion ($6.08 billion). This represents an increase from the previous fiscal year, which saw revenue of £4.01 billion for the period ending February 28, 2023.

Uncertain Market Outlook

Despite the importance of used-vehicle purchases for many consumers, Vertu Motors acknowledges that the market outlook remains uncertain due to inflationary pressures and higher interest rates. However, the company has observed strong demand for aftersales services and has taken measures to increase its available resources in response.