Used car market takes a hammering
Wednesday 29 July 2009
Information about the new car market is readily available, but it's far harder to track trends in the highly fragmented market for second-hand cars. Now, a wide-ranging new report published by British Car Auctions (BCA) fills the gap with a wealth of detail. It provides plenty of depressing reading for the trade but also concludes that the recession hasn't produced the sort of market meltdown that might have been feared.
The analysis ("The Used Car Market - A 2009 Report by BCA"), prepared by Professor Peter Cooke at the University of Buckingham, draws on a wide range of sources and estimates that used car dealers sold 360,000 fewer cars in 2008 than they did the previous year. In fact, at 3.67 million units, the number of used cars sold by dealers dipped to a six-year low, and their revenues from those sales fell by £1.7 billion to £24 billion.
Dealers are also being hit by the rising number of 'private-to-private' sales that by-pass the trade completely; 2.69 million cars changed hands this way in 2008, at a value of £7 billion, an increase of £1 billion over the previous year. Only a modest increase in the average values of used cars prevented the drop in dealers' revenues being even larger than it was.
Professor Cooke's report also contains the results of survey work designed to gauge the attitudes of customers to the used car trade. It comes as no surprise to find that customers are looking for "the right car at the right price" or hope to be dealing with "friendly, helpful and professional staff" but the impact of the recession can clearly be seen in the fact that 40 per cent of customers gave "unable to afford a new car" as their reason for buying used.
The next future challenge for used car dealers? How to make money at a time when weak sales of new cars mean that the second-hand car market will in future increasingly be starved of supply.
Life & Style blogs
Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
Is Apple's iCloud safe after leak of Jennifer Lawrence and other celebrities' nude photos?
Reader dilemma: My wife only wants to have sex when she's drunk
Three quarters of the Ikea catalogue is CGI
Anal sex study reveals climate of 'coercion'
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- 1 Al Pacino on suffering from depression: 'It can last and it's terrifying'
- 2 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 3 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 4 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 5 Mexican woman becomes world’s 'oldest person' at 127
£26000 Per Annum: The Green Recruitment Company: Job Title: SAP Assessor Job T...
£85 - £120 per day: Randstad Education Preston: Randstad Education is urgently...
£30000 - £35000 per annum + Benefits: Ashdown Group: HR Advisor (Employee Rela...
£600 - £800 per day: Harrington Starr: Derivatives Risk Commodities Business A...