Second-hand car dealers are facing a tough time, according to the largest car dealership in the UK, Pendragon. According to the company, car manufacturers are flooding the UK market with discounted new cars, meaning used car dealers are finding it even harder to compete.

Pendragon are an expansive company, buying up used car dealerships wherever they can, and using profits to clear any debt . The firm now has debts of £350m, and operating profits are being eaten up by interest repayments . With new car dealerships extending into the market, Pendragon could face tough times.

The chief executive of the firm, Trevor Finn, reportedly commented: The manufacturers are giving incentives to dealerships to sell these new cars, which is great for the consumer. But that has put pricing pressure on the nearly-new cars that we hold in stock.

Whether the problem is throughout the market, or just with Pendragon, remains to be seen.