Demand for new cars set to increase

Car dealers in the UK should be preparing themselves to meet increasing demand for new cars, according to recent research reported by AM Online.

A survey of consumers conducted by Buyacar.co.uk shows that almost half of UK motorists plan to buy a new vehicle, which is a significant rise from around a third of drivers wanting to replace their existing vehicle in 2013.

Furthermore, around one in four UK motorists want to buy a nearly-new (under one-year-old) vehicle, while those wanting to buy a two-to-three-year-old car fell from 13.6 per cent in 2013 to 8.1 per cent this year. The numbers planning to buy a three-to-four-year-old vehicle have seen a massive drop, from 21.4 per cent in 2013 to 9.6 per cent this year.

The higher demand for new cars means it’s even more important to offer clients an excellent experience in the showroom so that you can increase your profits. So, as well as your general motor trade insurance, make sure you have good levels of demonstration cover to provide test drives.

Austin Collins, the buyacar.co.uk co-founder, said: “These findings suggest the boom in new car sales is not only set to continue but may even be gathering pace.

“Given the rise and rise in new car sales we have seen in recent years, it is particularly remarkable that our research reveals a 43 per cent increase, from 31.4 per cent to 45.1 per cent, in people looking at buying a new car next.

“We were also struck by the increase from 8.6 per cent to 13 per cent in the proportion of people planning to change their car in the next three-to-six months because that is a remarkable rise of 51 per cent.

“All of this data suggests that the appetite for new and nearly-new cars is still strengthening and that the market has, even more, room to grow.”