Monday, October 19, 2009
Used car sales on dealer finance plummet 23% in August
Sharp contrast
The performance is on contrast to the three months to August when sales fell 13 per cent and the year to August when sales were down just 10 per cent.
FLA head of motor finance Paul Harrison said the fall was caused by a shortage of supply.
High demand
"The high demand for used cars has out-stripped supply and the lack of affordable stock has led to a shift from used to the new car market.
"As sales grow and prices stabilize we would expect to see the market re-balancing itself."
Limited impact
Harrison said the scrappage scheme has had a limited impact on the motor finance market.
"Rather than take out a finance deal, buyers tend to be trading in cars for scrap and using cash and part-exchange to replace them with a new smaller car," he added.
DATED: 19.10.09
FEED: MT
