Demand for used cars over three years in age is set to remain high following five years with new car sales under 2.5 million units in the UK market.
According to the latest market forecast from SMA Vehicle Remarketing the trend in high demand is set to continue this year.
Bob Anderson, SMA group managing director; said: “There is very real competition from buyers for well-prepared used car stock in the current market, indeed auction process rose by 9% in 2011. This trend is set to continue into 2012 as the impact of lower new car sales over recent years continues to flow through.
“There is undoubted demand for used cars from consumers who continue to face declining levels of disposable income and as a result want to trade down in terms of the car they drive. However, consumers are very value conscious and are placing real pressure on dealers in terms of retail pricing.”
Anderson said that as a result, dealers are actively seeking forecourt ready stock that can be put to market quickly, removing refurbishment costs and minimising stocking times.
He said: “There can be little question that the rise in SMA’s online sales activity is being largely driven by a desire for ‘just in time’ stock’ with buyers using the internet to select particular stock to fulfil specific customer needs.”