Independent dealers' share of the market dips

The share of the used car market held by independent dealerships and private sellers has fallen, and franchised dealerships are attracting more customers, according to a new report.

The 2015 GIPA Drivers’ Survey found that independent dealers’ share has dipped from 29 per cent when the research was first carried out in 2009 to 21 per cent, while private sales dropped from 41 per cent to 38 per cent. Meanwhile franchised dealerships now sell 34 per cent of used cars compared to 23 per cent in 2009.

Whatever size of business you run, you should periodically check that your motor trade insurance and road risks insurance policies are the right ones for where your firm as market conditions fluctuate.

According to the research, released on behalf of Castrol Professional, franchised dealerships have put a greater focus on used car sales since the recession, when new car sales dropped off.

It found that used car sales now make up 66 per cent of the market, compared to 72 per cent during the economic downturn in 2010.

Nigel Head from Castrol said: "Privately purchased new cars are typically sold to the second owner when they reach 2.9 years old. It’s at this point that many franchised dealers can lose the vehicle from its customer base as they are unable to establish contact and build a relationship with the new owner of the car.

"When a new vehicle’s warranty expires, or when it’s sold second-hand to another motorist, many owners may subsequently take their vehicle to an independent garage in an attempt to cut potential maintenance and repair costs."