Why Used Car Sales are on the Rise

Recent research conducted by Experian has revealed a boom in used car sales, with the number of used cars sold in Great Britain increasing by as much as 7% in the final quarter of 2015… that’s 1.63 million cars.

North East Sees Largest Rise in Used Car Sales in UK

The region that saw the largest growth in the number of used car sales was the north east, where sales were up 8.3% year-on-year. Scotland’s rise, at 4.1%, was the lowest of all the regions in Great Britain.

New cars have seen a large rise in the number of registrations in the past few years thanks to a slight economic recovery. This rise, that started in 2012, has now seen those new cars returned as used ones as part of the traditional cycle, where owners part-exchange their car before its first MOT.

Sale of Cars Up to Three Years Old Rises by 11%

This partly explains why the number of cars sold that are up to three years old has soared by 11%, with people looking to buy slightly used models. By contrast, the number of people buying cars that are between 6 and 9 years old has tumbled by almost 6%.

In many cases, it appears as though many people are selling their vehicles before their finance deal matures properly, which is causing an influx of cars that are almost three years old coming to the market.

The Way We Buy Cars is Changing

This represents a change in British car buying behaviour and is in part due to the rise of Personal Contract Purchases (PCPs), which help split car prices into affordably monthly payments. For many, new cars and nearly new cars are now far more affordable than they’ve ever been previously and people now no longer have to settle for a used car that’s 3-5 years old.

By buying newer cars, many believe that they’re getting a much better deal, even if they have to pay a little more. This is because the age of the car, and the fact that it will still be covered by the manufacturer’s warranty and doesn’t need an MOT means that less is likely to go wrong.

The Trend Looks Likely to Stay

Overall, the thirst for newer cars has fuelled the rise of retailers who specialise in selling nearly new cars. According to the data, this is a trend that also looks set to stay. This is because the strong performance in the final quarter of 2015 follows a more modest increase in the third quarter of the year, when used car sales increased by 1.1% year-on-year to 1.88 million.
Why Used Car Sales are on the Rise Why Used Car Sales are on the Rise Reviewed by Hayley Reeve on Thursday, May 19, 2016 Rating: 5

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