Economy set to impact used sales
Creating an all-round proposition to support used car purchases will become increasingly important as the economy slows in 2018 according to The Warranty Group.
With wage growth set to stagnate and the economic growth slowing, used car buyers will be looking for a complete ‘safety net’ package around their purchases, claims Damian Tyler, head of business development at The Warranty Group (TWG).
He explained, ‘The used car market this year will probably remain at around the level of 2017 in volume but will become more important to the motor industry as new car sales continue to slow.
‘A key feature, we believe, will be a shift in emphasis towards constructing increasingly comprehensive all-round used car propositions.
‘At a point in time when buyers are likely to feel quite a lot less secure than they have for several years, they will be looking for a used car package that protects them from unexpected costs as much as possible. We therefore expect more interest in upgraded warranties, in service plans and more.’
Sean Kent, director of TWG’s dealer partnership with RAC, agreed that the market had been moving in this direction for some time but that the kind of conditions expected in 2018 would speed progress.