Used car sales falling

Thu, 31 Jan 2008



According to the most recent figures from credit check company Experian, sales of used vehicles in the UK slipped by 3 per cent in the third quarter of 2007. Reports indicate that younger cars aged under three years old fared the worst, the worst fall in eight years for the used car industry.

The managing director of the Automotive division at Experian, Kirk Fletcher, reportedly commented: "By the time the third quarter had begun, the base rate had already risen five times to 5.75 per cent – its highest level since spring 2001 – so consumers were feeling the squeeze on their finances . Sales of ‘big ticket’ items, such as cars, were the most likely to suffer, and they did. The third quarter of 2007 saw the biggest drop in sales for the year so far."

Fletcher reportedly continued: "The picture within the new car market, however, was different. Although interest rate rises had affected the new car market too, by the end of the quarter, sales had increased. New cars are relatively cheaper than they used to be, but customer feedback to our dealer clients has been about the strong incentives offered alongside the new cars. New cars sales have therefore seen an upward trend."

He was reported as concluding: "Increased warranty cover, free insurance and 0 per cent finance deals on new cars are influencing the decision to buy a new car over a nearly new one. The gap is closing and nearly new cars no longer hold the appeal they once did."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

Advice section: Pros & Cons | Finance Tips | Running Costs | Payment Options
newsnews rss
Car Finance news
Car company will develop model - Fri, 16 May 2008
Car dealers escape huge VAT bill - Thu, 15 May 2008
FSA final warning for car finance company - Wed, 14 May 2008
More News
Car finance partners
Car Loans