UK used car market continues to expand

The used car market is continuing to grow, according to new figures for the third quarter of the year.

Research by funding software firm Sword Apak, which carries out analysis of global used vehicle stocking activity every three months, found that UK demand remained strong. It follows a record first half of the year, when the British used car market expanded by almost eight per cent to a record 4,181,042 vehicles.

If your dealership is part of the growth trend and you are increasing the number of cars on your forecourt, you need to ensure you are properly insured. Check that your motor trade insurance provides adequate cover for both the volume and value of the vehicles you have in stock.

According to the report, PCP finance has helped make car purchases more affordable. That, coupled with a slight increase in disposable income, has helped maintain the market’s robust performance in the third quarter of the year.

Sword Apak said it expected some seasonal adjustment in the final three months of the year heading towards Christmas. However, if the value of the pound continues to fall, it “may further strengthen the used car proposition in the weeks ahead”.

The report found that used car dealers are searching for more stock to meet demand, with some even advertising for vehicles on TV.

Sword Apak’s executive vice president James Powell said: “In used car buying activity, the British dealer and consumer have both demonstrated their resilience against a dynamic backdrop.

“Dealers have worked hard to increase stock turn by careful stock buying and by developing strategies to bring product to market more quickly.”