Monday, July 01, 2013
Business is looking up for independent used car dealers, says CAP
Used car business is at last matching the strong performance seen in this year's new car market, according to the latest research by CAP Automotive, the used car information experts.
Independent used car specialists - who are the true ‘barometer' of the second-hand market - are now enjoying an upswing in sales and expecting even more to come.
Each month CAP questions a 'Dealer Insight Panel' of more than 100 independent used car dealers. It is part of the research process for Black Book Live, the unique real time used car trade valuation and trending tool.
This year has seen the new car market take off as manufacturers get behind their franchise dealer networks to drive sales harder with a wide range of finance incentives. In contrast, independent used car specialists were reporting a challenging market until May. But then a sharp improvement saw the most positive change in trading results betweenany April and May since the survey began 4 years ago.
Not only did independents report a substantial improvement in May compared with April, sales results were reportedly significantly ahead of the same point last year.
Comparing May with April, 61 out of 104 dealers surveyed said their retail sales had increased, while a further 33 recorded no change. That left only 10 whose car sales apparently slipped on the previous month.
The mood is positive among independents with 84% of the dealer panel describing the current business climate as ‘stable', ‘good' or ‘very good'.
They also expect good times to continue, with only 3 of the panel forecasting a decline in trading conditions.
CAP's Mike Hind said: "Despite the UK economy struggling to make any kind of meaningful recovery this year, motorists are clearly in the market to replace their vehicles.
"We are seeing the strongest new car market in years as manufacturers promote the most attractive new car deals anyone at CAP has seen since our business started in 1979. But, although this means a lot of potential used car customers being tempted into new cars, good independent used car specialists are also winning motorists over with their own high quality, good value offerings.
"For the cost-conscious motorist this is a great time to consider changing cars because there has never been a more competitive market than we are seeing today."
DATED: 01.07.13
FEED: HA
