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Submission: On July 03 via manual from IN — Scanned from DE
Effective URL: https://www.businesscar.co.uk/news/remarketing-sector-hit-by-falling-refurbishment-capacity-vra-warns/
Submission: On July 03 via manual from IN — Scanned from DE
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REMARKETING SECTOR HIT BY FALLING REFURBISHMENT CAPACITY, VRA WARNS
Staff Writer July 2, 2024
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Falling capacity in the refurbishment sector is affecting the remarketing
industry, creating substantial bottlenecks in preparing vehicles for sale,
according to the Vehicle Remarketing Association (VRA).
The industry body said the issue was being examined by its industry trends
committee, which had identified several contributing factors, said to including
consolidation of refurbishment providers, skills shortages, parts availability,
and limited resources suitable for EVs.
Committee chair Marcus Blakemore said: “We’re hearing increasingly from VRA
members about problems with refurbishment, something that has a direct impact on
the speed with which vehicles can be turned around, and tying up money in assets
that are simply waiting to be made ready for sale.
“This means that vehicles carrying damage or faults are becoming worth less
because dealers know they are going to take longer to process, sometimes taking
not just weeks but months longer than expected to reach retail sales channels.”
Blakemore said that the issue was difficult to resolve because there were
multiple factors involved.
He said: “The biggest single cause is that there are fewer refurbishment
facilities available to the general remarketing sector, a situation exacerbated
by some recent consolidations and sales of businesses.
“On top of that, there is undoubtedly a shortfall of skilled people, something
that can only be resolved with a renewed commitment across the sector to
training, and which will unavoidably take time.
“Parts shortages are also having a real impact. This is an area that has seen
improvements since the pandemic but remains a problem. Vehicles are sometimes
hanging around for months waiting for the parts needed to make them saleable.”
Blakemore added that the issue was especially acute with regard to EVs.
He said: “The industry has not yet really geared up to meet the volume of EVs
that will soon start reaching the market. For example, only something like one
in three bodyshops are able to handle repairs to electric cars and vans.”
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