The used car market will shrink by 3.7% to 7.86 million sales during 2018, according to a forecast published by Cox Automotive.
Despite economic, Brexit and diesel headwinds the automotive remarketing and retail specialist claims that the sector will generate its third highest number of sales in the last five years as franchised dealer groups and independent dealers alike report strong results.
In its first published forecast of full-year used car transactions Cox Automotive predicts the market will drop by just 3.7% compared with 2017’s 8.11 million total and Philip Nothard of Cox Automotive hailed the projected result as a “remarkable achievement.
Nothard said: “The used car market has so far turned in a solid performance this year and our forecast of 7.86 million transactions by the end of 2018 would be a remarkable achievement for a market facing the headwinds of Brexit, the demonisation of diesel, economic uncertainty and the fall in new car sales.
“If current trending continues then dealers will continue to reap the benefits of sourcing and selling the right used cars for the right customers.
“We are encouraged by the continued strength of the used car sales reported in a succession of interim results from the listed franchised dealer groups and our market intelligence on sales in the independent sector.”
The inaugural used forecast follows the recent publication of the Cox Automotive H1 and June overview, which revealed the current strength of diesel in the used market, reduced stocking days in the independent sector, an increase in sold prices in the wholesale market and dealers evenly split between those expecting the economy to improve or decline.