‘Biggest used decline’
September 1st, 2009 by Richard Aucock
SCRAPPAGE is being blamed for the biggest decline in used car sales since the start of the decade.
Sales fell by 6.6 percent in Q2 – an unprecedented fall, says Experian, even after further declines in Q1.
Between January and March, sales fell by 1.1 percent. Which really does make the further declines between April and June all the more extraordinary.
Experian is blaming scrappage because of the declines in key sectors. Used mini cars were down a huge 12.4 percent, for example. Simply because buyers have been choosing new instead of used.
“The fortunes of the new and used car sectors are very much linked,’ said Experian boss Mark Nuttall. ‘The scrappage scheme has had an impact on the industry as a whole.’
There were positives, though. ‘Although focus on small cars shifted from used to new, the scrappage scheme has helped increase footfall and enquiries to all dealerships.’
What’s more, values have held up. ‘Although used car sales fell in Q2, used car values have been at their strongest, and are likely to remain buoyant over the next couple of years. This should help offset some of the decline in volumes.
‘This has been confirmed by dealer feedback that strong used car values have helped profits either increase or remain stable, despite the fall in sales.’
There’s further good news. Used sports cars leapt, by 6 percent year-on-year, and 19.5 percent compared to Q1. Why? The promise of a long, hot summer…
Money-saving car buyers have been helping diesel win, too; Q2 2008 to Q2 2009 saw the biggest increase in used diesel car sales since 2005.
Tags: experian, new car scrap, scrappage, used
 |  |  |