September will be a ‘pivotal’ month for the used car market

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We recent wrote on the rise in value of second hand car values. We now write on the increase of used cars now on the market.

Now that Britain has come out of the recession and the car finance industry continues to soar, more and more people have the funds to be able to buy new vehicles, this has seen a rise in new car registrations which has also seen the knock on effect of more second hand vehicles being available.

Glass’s chief car editor Rupert Pontin haas said volumes of used cars in the trade were set to rise.

“We will start to see an increase in the volume of used cars coming to the market as a direct result of the increase in registrations following the recession,” said Pontin.

“There will still be a plethora of base and low spec level cars that have been used predominantly for business, and as such will not achieve the best condition grades.”

“The trade has long been concerned at the volume of poor quality low specification C and D segment diesel models typically favoured by companies for staff covering significant mileages that have been floating around unsold in auction centres and wholesale channels for several months now,” he said.

According to Pontin, cars will need to be cheaper to sell after September due to the new high volumes available.

“From September these cars will not only need a bit of love to get them sold but also a more considered view on pricing as they will start to compete with cars that will be de-fleeted as a consequence of the plate-change but having come from the perk car user,” he said.

But, Pontin said overall September was unlikely to provide many surprises and dealers will welcome the superior stock coming to market.

If you sell used cars, make sure that you have suitable car trade insurance in place to protect both you and your business.