Analysis
Jigsaw Finance’s Nigel Hawkins gives his observations on the PCP market
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Summer has come to a close, kids are back to school, and the 63 plate is on the road – all factors that have some form of impact on used car values and the market generally. August, traditionally a quiet month due to holidays, saw average used car values rise slightly from £4,862 to £4,899 according to the National Association of Motor Auctions. Rises were seen in all sectors apart from the fleet sector, which was a consequence of the higher fleet sector volumes seen in July.
Retail activity was ahead of expectations for August probably due to the good weather with more people holidaying at home. The 4×4 sector showed improved performance buoyed by the back-to-school return, and the onset of the forthcoming autumn and winter.
Anticipation of a strong September new car market will see more part exchanges in the system and therefore activity in the used sector generally, so prices should remain static or at worst slightly down towards the latter part of September into October. Dealers need to use their finance products effectively, especially PCP to help market their late model cars where there is no longer any manufacturer support. Older used car stock should be given the same treatment, as most customers operate on a tighter budget these days and PCP is an excellent product to help dealers achieve this.
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