What Does the General Election Mean for Used Car Dealers?

A major national event such as the general election will probably upset the apple cart for used car dealers and could very well impact on demand, according to valuations specialist Glass’s.

Next year the market will get off to a strong start, reports Fleet World, but will face upheaval following the forthcoming election, which will have a ‘dampening effect’ on sales, said head of valuations for the firm Rupert Pontin.
The election is likely to be followed by a new round of austerity measures as well as tax increases, which could affect spending power, he predicted.

However, another peculiarity that’s expected is a shift in used car market patterns that has not been seen since the recession ended. There will be more supply than ever, and this will be a defining characteristic of 2015. Looking forward to 2016, this could very well continue, said Pontin.

The new car market paints a different picture, though: “Here, we expect sales to stay strong, simply because manufacturers need to ensure that factories continue working as close to capacity as possible and will offer finance to make sure this happens.”

But new car dealers could be in for a bumpy ride too. Pontin continued: “However later in the year, we believe that it is likely that the deposit levels required for these finance deals will start to fall in response to macroeconomic effects.”