6:43 am, July 5, 2013
IT won’t have escaped your notice that new car sales are doing phenomenally well at the moment.
Only this week we heard that new car demand between January and June 2013 was up 10 per cent on the same period last year. In cold hard facts that means 1,163,623 new cars were registered during this period – and that’s not to mention June recording a rise of 3.4 per cent on the the same month last year.
But, while it’s looking rosy for the new car market (on the surface at least), how about the used market – the one which industry outsiders tend to overlook.
Well, this week we heard of good and bad news. Let’s start with the bad.
Experian published its latest Used Car Sales Index and it showed quarter one 2013 recorded the lowest first quarter sales figures since 2005.
According to the results, a total of 1,653,668 used cars were sold from January to March this year, which represents a five per cent decrease compared to the same quarter in 2012, when used car sales hit the highest quarter one since 2009.
Those sporty flights of fancy – cars like the Mazda MX-5 and Audi TT – dropped the most with sales down 10.4 per cent on quarter one of last year.
The Upper Medium segment, which includes the Ford Mondeo and BMW 3 Series, suffered the second hardest hit with a 10.1 per cent drop in sales on quarter one 2012.
But relax – the Ford Focus still remains the UK’s top used car according to Experian’s figures selling over 77,000 units from January to March.
That was the situation with the used car market up until March. Speak to CAP, however, and they say that business is looking up for independent used car dealers.
The market was ‘challenging’ until May – backing up the Experian results – but the month performed strongly, say dealers questioned by CAP, leading the company to announce ‘business is looking up’. Out of 104 dealers surveyed, 61 said retail sales had increased.
So has the used car market turned a corner since May? Are you experiencing an uplift in sales compared to a difficult start to the year? But for how long do you think this good mod will continue? Let me know by tweeting me: @JRRBatchelor
