Used volumes continue to soar
Strong demand is driving record used vehicle volumes according to cap hpi. The market is set to hit 7.6m vehicles in 2016, beating last year’s figure of 7.2m.
The industry shrugged off concerns around Brexit with June beating the same month last year, with over 632,000 vehicle sales, a rise of 0.5%.
This follows the good news for the new car market, which according to the SMMT, hit a record high for September with 469,696 units registered, a 1.6% year on year rise.
A strong first half of the year saw used sales jump 5.9% in the second quarter of 2016 against the same period last year.
A total of 2,008,439 vehicles were sold with prices underpinned by strong consumer demand. The performance over the quarter was strong despite a sharp decline in activity in June.
Commenting on the findings, Philip Nothard, consumer and retail specialist at cap hpi said, ‘Strong demand has underpinned a stable market in 2016. Although we have seen larger volumes, values have tracked established seasonal trends.
‘The trend looks set to make 2016 a marquee year, up 5.5% on a blockbuster 2015. While recent predictions from the SMMT set some doubt about the new car market in 2017, the used market has much to feel bullish about.’
The company recently reported demand for quality used cars remained remarkably strong throughout September leading to a stronger than normal market, with overall price reductions at three years 60,000 miles of only 0.2%.
Nothard continued, ‘Both a strong new and used market has helped drive the growth of dealer groups, expansion of Supermarkets and independent operators. It is likely the used market will become an increased focus into 2017.’