The majority of independent second-hand car dealers saw a bump in retail in May, according to CAP Automotive.
Measured by CAP’s survey of 104 such dealers, 61 said sales had increased compared to April while 33 reported no change. CAP also reported sales were "significantly ahead" compared to May 2012.
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So far this year, CAP’s monthly survey has reported a frustration in the used market, which the vehicle valuation firm attributed to manufacturers’ focus on the new motor market and its concomitant finance offers.
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According to the latest figures from the Finance & Leasing Association, the penetration rate of finance at dealerships in the new market has now reached 73.2% and Mike Hind, communications manager at CAP, said manufacturers’ offers in the new market were "the most attractive new car deals anyone at CAP has seen since our business started in 1979."
However, the mood among independent used dealers also appears to have risen, with 87 respondents marking the current business climate as ‘stable’, ‘good’ or ‘very good’, and only three respondents expecting a decline in trading conditions.
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By GlobalDataPart of this may lie in the rise of attractive finance in the used sector. Experian Automotive, the motoring arm of the credit reference agency, told Motor Finance PCP and HP finance on used cars in Q1 2013 was up 70% and 30%, respectively, on the same period of 2012.
Further analysis and data from the Experian Automotive Motor Finance Index will be published in the July issue of Motor Financemagazine.
