Used car market booming with rising volumes and valuesCompact Cars, Bridgend
The current demand for used cars is presently facing an upturn as volumes and values increased in May. The average price of used cars sold by dealers rose by 6% in May, reaching an approximate total of £21,056. This trend is also corroborated by an increase of 26% in used-car-related enquiries that helped to facilitate a 19% increase in orders received for used cars. The total value of parts exchange deals took a decline of 3.4% based on the previous year’s figures, equalling a total of £10,666.
An in-depth analysis of 500 used car dealers in the UK was carried out by survey company enquiryMAX, resulting in figures that clearly indicate a boom in the used car marketplace. The current trend is strongly endorsed by the trading figures for used automobiles, which have seen a rise as recorded by analysis by the firms Pendragon, Vertu and Inchcape. On the side of wholesale figures, the funding software group Sword Apak, which has gained insight into dealer stocking activities, expects that the UK used car market will remain resilient for the time being, “at least until the end of 2017,” in the face of the current economic disquiet and a plethora of political changes, such as Brexit and political party disagreements.
James Powell, the executive vice president at Sword Apak, commented on these trends: “While the new car market is expected to slow in the months ahead, we expect the used sector to remain resilient overall. Modelling on historic consumer car buying behaviour during terms of economic challenges, there is typically a shift of interest towards greater affordability which is associated with a used car. A similar pattern, albeit on a shorter-term basis, is reflected during major political events such as an election.”