A growing number of buyers of used cars are choosing to ‘go
private’ and bypass second-hand car dealers altogether – which
could negatively impact volumes of used car finance.
A survey on behalf of Exchange & Mart found that
the proportion of people preferring to avoid buying a used car from
a dealer grew by 11 per cent over the past three years.
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The shift to private buyers is more bad news for dealers,
already hit by a toxic cocktail of falling consumer confidence,
plummeting car sales, rising stocking costs, greater difficulty in
providing finance for car buyers and a downward trend in residual
values.
“When we last undertook the survey in 2005, the private market
was the preferred channel, but it’s the size of the rise that is
ringing alarm bells,” said Debra Healy, digital director at
Exchange & Mart. “Consumers have long believed they
may get a better price if they sell their car privately but the
increase in those looking to buy in this marketplace indicates that
more and more consumers have a perception that better deals are
available privately.”
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By GlobalData
