Confidence growing in the used car market, report says

Confidence growing in the used car market, report says

The UK's recent signs of economic growth are being reflected in the improving used car market, the latest figures have suggested.

According to the Q1 update from car valuation company Glass’s, the first three months of 2014 saw an 11 per cent increase in sales. Furthermore, there has also been an increase in sales for all major target sectors year-on-year.

The returning prosperity of the used car market is undoubtedly great news for the industry. However, car dealerships must remember to check that their motor trade insurance policy will still offer them adequate cover as their business activity picks up. Indeed, it is always advisable to contact insurance brokers when your company experiences any substantial change to ensure you have the right cover at the best price.

Ed Hamel, Glass’s sales director, has stated that the recently reported market boom can be attributed to increased demand from the dealer, fleet and finance and insurance sectors. The growing confidence in the economic recovery has triggered greater numbers of new cars being bought, in turn boosting used car sales.

He said: “Without doubt we have seen a real growth in demand from customers in these key sectors. It’s a sign that the automotive industry is feeling more confident, and we are definitely seeing the green shoots of economic recovery.

“Q1 generally sets the trend for the forthcoming year. I think we’ll see sentiment in the used car market continue to strengthen over the coming months. Consumer confidence is improving, new car sales are increasing and that’s helping to drive volumes in the used car market. The outlook for this year should be a positive one."