Investing in People Institute of Chartered Accountants

Gaining Momentum

19/03/2010

 

  • After a slow start with the January freeze the used car market has staged a recovery, but dealers should watch out for a potential glut of part-exchange vehicles after the March plate-change
  • The used car market in 2009 contributed hugely to dealer profitability as values rose throughout the year to compensate for the huge falls witnessed in 2008
  • The 2009 used sector got off to a slow start in January as freezing conditions kept dealers away from auctions and the country ground to a halt over a 10 day period, however the market began to make a recovery in February
  • There is a notable increase in demand for older cars of good quality, which is believed to be a result of scrappage removing a significant number from the car park and forcing consumers up the value chain
  • March has the potential to be the biggest new car sales month for 2 years but there are warnings that the market could be hit by a glut of part-exchanges.