The used car market has remained steady at the start of the year, with most dealers reporting more footfall from potential customers during January than they did in December.
That’s according to new figures from CAP HPI, which said that 69 per cent of the dealers it spoke to had more people through the showroom door than they did last month.
Figures from the organisation, which produces the monthly Black Book of used car prices, suggest that the higher supply of used cars currently on the market will not cause a problem for dealers because there are sufficient customers looking for a vehicle. This kind of research can play a key role in your stocking decisions for the months ahead. If you are increasing the number or type of vehicles you are selling, be sure to check that you have the correct level of motor trade insurance and road risks insurance to cover them.
CAP HPI said that dealers told its researchers there were high volumes of nearly new cars coming in, and the figure would probably increase due to strong pre-registration activity last month.
It also forecast that there would be an increase in the value of convertible vehicles in the next few months but that this would depend on the weather.
CAP Black Book senior editor Derren Martin told Car Dealer magazine: “In 2015, the average movement through February in Black Book Live was minimal. Whilst volumes in the marketplace are higher this year, it is still likely that there will be a period of overall stability with regards to prices.”
He said there would be more pressure on the prices of newer models and it would be “interesting” to see how this affected the prices of older used cars on the market.
He added: “We are in a period of relative stability for the used car market. This is likely to last until an early Easter hits us – a period that often forms a watershed for used car values.”