Used car market looks strong as consumer confidence rises
The used car sector is dominated by private buyers – and with confidence high among consumers, the market is looking strong right now, says Automotive Management Online.
In July, sales of used cars at auction increased by 12.2% year on year, according to the latest figures from members of the National Association of Motor Auctions (NAMA). Conversion levels also rose to 80% from 73% in the preceding month.
The figures show "strong levels of trade buyer activity", which highlights the current strength of demand in the market.
"Many of the larger groups are fulfilling their used vehicle stocking needs through their own stock remarketing and part-exchange activities. This underlines the strength of demand in the market place right now," said Louise Wallis at NAMA.
The figures are even more encouraging given the success of PCPs, which has seen some traditional used car buyers convert to a new car, she added.
Rising confidence by consumers in their personal finances is clearly a major factor,said Wallis.
"The latest GfK Confidence Index saw finance confidence increase by 15 points and the forecast is for this to keep improving. It is a position supported by rising demand for unsecured loans and dealer finance reported by both the Finance and Leasing Association and BBA (British Bankers' Association)," she continued.
"Confidence, especially in financial matters is central to car sales. After a long extended period of financial austerity consumers and dealers are re-discovering a level of access to funding and the confidence to use it. As a result dealers are both stocking and selling more cars," Wallis concluded.