A Quick Look at the New and Used Car Sales Markets
It has been an intriguing time in the auto industry within the last few years as more and more motorists are now buying used as opposed to purchasing new. In fact, the SMMT reported that over 8.1 million used cars changed hands in 2017 which is a small dip of 1.1% in 2016 and the second-best year on record. This differs drastically to new car sales, which fell a staggering 5.7% last year.
One of the major reasons that people are buying used instead of new is the uncertainty over the Government’s proposed 2040 ban on petrol and electric. This has created a great deal of uncertainty where people are reluctant to spend big on a car which may be obsolete in the near future. This is also reflected in the sale of used electric vehicles which surged a mammoth 77% in 2017. Hybrids, meanwhile, rose 22.2% in the same period.
Used cars are much safer investments to make with so much uncertainty not only around the 2040 ban, but also the uncertainty surrounding Brexit and the economy. With less money to spend but still a need for quality automobiles, entering the used car market makes a lot more sense than spending large sums on a brand new vehicle.
Additionally, motorists can benefit from a huge range of used cars and buy with confidence from reputable dealerships like AA Cars. Some motorists are sceptical about the used car market because they hear about scams and fraudulent sellers, but there are many safe places to buy and checks that you can carry out to avoid this. There is also a lot of low emission, safety and convenience technology that is now available in this market which can help motorists to drive more economically.
It is a familiar looking list of the top used models sold in 2017 with the Ford Fiesta, Ford Focus, Vauxhall Corsa, Vauxhall Astra and Volkswagen Golf making up the top 5. What is interesting, though, is that in addition to alternatively fuelled vehicles (AFVs), SUVs enjoyed the strongest growth with a rise of 9.5%.
Whilst it is good news that the used car market is currently in a healthy state, it is important that the Government restores confidence to the new car sector so that improvements to air quality can continue to be made. Both consumers and businesses need clarity over the 2040 ban, economic situation and Brexit so that they can replace their older models with new, low emission vehicles ahead of the proposed 2040 ban.
It appears that the used car market will continue to outperform the new vehicle market with so much uncertainty in the air, but once there is more clarity it should instil more confidence and encourage more motorists to make the switch to eco-friendly vehicles.