Business Strategy

Used Car Sales Fall

The amount of used car sales has fallen in the third quarter of this year, studies have shown.
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The number of transactions for used cars fell to 2,057,457 in Q3 of this year, a fall of 2.1 per cent in a market which is experiencing almost record levels.
According to statistics from the SMMT (Society of Motor Manufacturers and Traders) the number of used car sales is down 2.5 per cent to 6.1 million for cars changing hands.

Growth in Alternative Fuel

However, there is good news for alternative fuels. For the same period, demand for hybrid and plug-in vehicles rose 2.9 per cent, with demand for pure electric cars reportedly reaching a jump in sales of 8.3 per cent.
By 2025, it is estimated that one in six cars sold will be electric.
Over the same period, sales of diesel and petrol vehicles declined by 2.6 and 2.3 per cent respectively.
In the third quarter of this year, sales of Executive-segment and Dual Purpose cars also grew by 2.4 and 6.2 per cent respectively.
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Supermini Sales
In the third quarter of this year, supermini cars remained the most sought after used car, despite a fall of 3.3 per cent in car sales for this period. 692,729 supermini cars, such as the Ford KA, VW Polo and Mini were sold in the past three months, contributing to the over two million second hand superminis sold this year so far.
Chief executive of SMMT, Mike Hawes, explained that it is encouraging that the market for used cars in the UK has remained strong in the third quarter of 2018.
However, the director of sales at Close Brothers Motor Finance, Sean Kemple, considers the figures for used cars as disappointing, despite the improvements to the market for used cars caused by the Worldwide Harmonised Light Vehicles Test Procedure (WLTP).
He goes on to explain that car dealers cannot acquire the new cars they desire, with confusion over the models and makes of cars being withdrawn, as well as a long waiting list for some vehicles. Auction houses are increasingly experiencing these issues, with wholesale prices and demand steadily rising. To operate the best car trading business in the current climate, dealers must ensure they are buying the correct cars for their forecourts.