The resale value of many of the most popular cars in the UK is decreasing, due to a rise in the popularity of Personal Contract Purchase (PCP) sales.
Some of the UK’s best sellers, such as the Ford Fiesta and the Vauxhall Corsa, have been purchased in record numbers over the last few months, principally due to a rise in PCPs, according to recent figures produced by the Finance Leasing Association (FLA).
The figures produced by the finance group showed that used car purchase rose by 34 per cent between February 2015 and the same month this year, accounting for a total of around £4.9 billion in sales. While this is great news for the motor trade industry, it has the knock-on effect of lowering the resale value of the cars due to oversupply.
With the car sector booming, you may be thinking of expanding your business, whether that involves taking on new sites or simply adding to the volume of stock you hold. If so, you must ensure that you have the right levels of insurance to cover your enterprise. You should have a good motor trade insurance policy, as well as road risks insurance, that is adequate to your needs.
An industry spokesman, who asked to remind anonymous, told Autocar: “The [used] cars are going for less than they should because of the market conditions. It’s supply and demand.
“Even the part exchange values customers are being offered aren’t worth what they expected because of the change in the market. It means instead of upgrading their cars, they’re often forced to stick with what they’ve got.”