cap hpi, a firm that provides automotive data to the motor trade industry, has stated that strong consumer demand for used cars will continue and that sales are looking strong for this year.
Sales figures for the used car category are likely to hit 7.6 million vehicles this year. Last year, total sales came in at 7.2 million, so 2016 is set to beat 2015 with prices also rising off the back of the strong demand.
Car dealerships, and especially those selling used vehicles, will welcome the news that the market is remaining strong and that demand is continuing to grow. Dealerships can cash in on the strong market conditions by expanding into larger premises, taking on more sales staff or stocking more used vehicles. However, any changes to your offering or expansions must be covered in your new and used dealership insurance.
Philip Nothard of cap hpi said: “The trend looks set to make 2016 a marquee year, up 5.5 per cent on a blockbuster 2015. While recent predictions from the SMMT set some doubt about the new car market in 2017, the used market has much to feel bullish about.”
He added: “Both a strong new and used market has helped drive the growth of dealer groups, expansion of Supermarkets and independent operators. It is likely the used market will become an increased focus into 2017."
The firm said that the appetite for quality used cars was particularly strong last month, with price reduction for three years, 60,000 miles of just 0.2 per cent, according to its latest figures.