Lowest used car sales
March 12th, 2010 by Richard Aucock
USED car sales in 2009 plunged to their lowest level in almost a decade reports data expert Experian.
A drop of 5.7 percent saw 6,798,864 used cars sold in 2009.
This is comparable to 2000, says Experian, when 6,713,269 used cars were sold – and is a culmination of sales that fell every singe quarter of the year.
It got worse as the year went on, too. In comparison to the previous quarter (Q3 – July to September) sales during Q4 experienced a far greater drop – down 15.7 percent.
Scrappage and the recession are to blame, said Experian MD Kirk Fletcher.
‘Consumers who would have normally bought a used car were now considering a cheaper new car through the scrappage scheme. This resulted in smaller new cars moving into a price range that had previously been occupied by used cars.
‘The scrappage scheme has also affected the number of used cars available for sale. Normally, when a new car is bought, a used car inevitably comes onto the market.
‘However, with the scrappage scheme, the part exchange vehicles have been scrapped.’
The recession also meant people were holding onto their cars for longer, further depleting stocks of used cars in the marketplace. However, things could be about to see a turn for the better, reckons Fletcher.
‘The scrappage scheme is coming to an end, but value for money will remain at the forefront of consumer’s minds, which means that they could relax their criteria and seek out older, lower priced vehicles.
‘This will bode well for dealers that adapt their stock profile policies and extend the age profile, remove previous owner limitations and relax the mileage limits of their used cars to ensure they have a healthy supply of used vehicles to retail.’