The used car market is showing no signs of cooling down despite the high volume of PCP cars coming back into dealers as part exchanges, according to the Aston Barclay Group.
The remarketing specialist’s group operations director, Martin Potter, said that it has reported very strong demand from franchised and independent dealers as they buy used cars at auction to satisfy a healthy retail demand during the early part of the year.
Potter said that 80% to 90% conversion rates were being achieved across the group during January and February and the first two weeks of March, defying the views of experts.
He said: “Initially, industry pundits were worried that the volume of PCP part exchanges coming back into the dealers was going to prevent them from buying as many used cars from the trade.
“In our experience PCP has helped dealers plan their used stock better as they know what part exchanges are coming back and when.
“They can then proactively decide which cars to retail and which ones will be sent to auction. They are buying used cars to fill the gaps they have in their stock or to replace sold ex-PCP stock.”
The growth of used Personal Contract Purchase (PCP) schemes is also helping dealers sell cars originally bought new on PCP two to three years ago.
Forecourts are advertising monthly PCP rates on two and three-year-old cars.
Potter added: “Used PCP schemes are helping feed the retail demand, only time will tell if the used market starts to cool down as is traditional during the Easter holidays this April.”