8:50 am, July 30, 2013
LATEST research by CAP shows sales have increased for a third month running for independent used car dealers.
According to the company, independent used car specialists have been enjoying their best summer for several years thanks to a number of factors including PPI cash refund windfalls and franchise dealers’ focus on new car sales.
In their latest ‘Dealer Insight Panel’ survey of 98 dealers, 77 per cent reported an increase in sales over the previous month. Meanwhile, the remainder said they had maintained ‘around the same’ numbers of retail sales. Only four of the dealers in the latest CAP survey suffered a decline in sales performance.
CAP says this is partly due to the easing of supply problems which saw independent dealers suffer from a lack of stock during the first six months of 2013, when around 70 per cent of the panel were reporting their forecourts were ‘under-stocked’ and were finding it difficult to find the right cars for their customers.
Now, only 18 per cent say it is difficult to source good stock, and the proportion describing their stock levels as ‘too low’ has eased to 63 per cent.
CAP’s Mike Hind said: ‘The majority of good independent dealers are enjoying their best summer for several years and there are several reasons for their strong performance.
‘Although there has been no analysis to prove the overall impact of PPI refunds on the car market, commentators all over the industry are consistently citing the windfall of several thousands of pounds in numerous households as a big factor in many new and used car purchases.
‘New car deals are more attractive than at any time we at CAP can remember and, for the even more cost-conscious motorist, used cars now represent the best value they have ever been.’
