Signs of life within used car market

Sales of used cars fell 89% in April compared to March, according to data released by CDL Vehicle Information Services (VIS). However, this could change again in May.

The vehicle valuation team has been closely monitoring the automotive marketplace for Covid-19 related impact and sees a number of factors set to stimulate demand.

Head of vehicle valuation services at CDL VIS, Jon Wheeler, said: “Although it’s still very early days, we are already seeing the first transactions coming through, led by online auction houses, and we expect pricing movements to kick in over the coming weeks, driven by pent-up demand.

“Fears surrounding public transport, the drop in fuel prices, increased home-working and growing environmental awareness all point to the likelihood of greater demand for small city vehicles and electric vehicles as people use their cars more selectively.

“We also anticipate an increase in secondary leasing of used vehicles, due to the interruption to supply of new cars, which is likely to give consumers some lower cost leasing options in the short-term.

“As long as dealers can provide consumers with reassurance that they have adapted their operations, it’s likely that we’ll see new opportunities and trends emerging.”