Automotive digital markets experts, Dealerbuzz today welcomed news that the used car market has been showing signs of returning to pre-recession conditions. According to a report released last month by British Car Auctions (BCA), sales of cars rose to 7.1 million in 20132, representing a record £38.1 billion.
The rise has reversed a three-year trend of falling sales in the sector. Figures show that lower inflation and fuel costs, as well as rising employment and a more stable economy overall have contributed to buyers’ confidence across the country. However, the recession is still causing longer term concern, as the average age of vehicles on the road is reportedly at a 30-year high.
According to the report, car dealerships dominated sales in 2012, selling 57.2% of all used cars – around 4.07 million in total. Older cars are proving popular as supplies of younger cars remains uncertain due to financial constraints affecting the sales of new cars in recent years. Dealers have reported sales of cars age 6 years or over to be steadily rising.
Signs seem to indicate that this increase in used car sales will continue. The number of drivers asked how likely they are to buy a car in the next 12 months rose from 10% last year to 14% this year – representing a 40% increase in real terms.
Qamar Rehman of Dealer Buzz said of the news, “These figures are really encouraging, and show definite signs of recovery in our industry. They show, too, how important it is for car dealerships to take note of the trends in order to get their marketing messages right to sell even more cars in 2013 and beyond.”