Used car market booming as buyers flock to forecourts
Used car dealerships are continuing to see sales increasing as buyers look for alternatives to public transport, according to a major retailer.
Big Motoring World reported a sales increase of 46 per cent in August compared with the same month in 2019, which was the third consecutive month of sales increases.
The retailer sold 2,715 cars in August at its sites in London and Kent, up from 2,257 cars in June and 2,513 in July.
Peter Waddell, chief executive officer at Big Motoring World, said: “The market for good quality, late model used cars is booming at the moment.
“A combination of pent-up demand caused by lockdown and the decision by many customers to own an additional or second car over public transport has seen us face unprecedented levels of interest in high quality second-hand cars, and thanks to our incredible choice and hard-working team, we are able to offer exactly what the market demands.”
This increased demand is causing prices to rise, too. Online marketplace Auto Trader saw record price growth across its website in August, with the average used car costing six per cent more than in the same month last year.
Commenting on the results, Auto Trader’s director of data and insight, Richard Walker, said: “Over the last five months we’ve observed a very positive trajectory for used car prices, driven largely by supply challenges and extremely strong consumer-led demand.
“Although some of the supply constraints had begun to ease with the reopening of online auctions, many of our customers are reporting that they continue to face difficulty in sourcing wholesale stock. Combined with the massive acceleration in demand on our marketplace, whilst the trajectory may begin to level off slightly, we’re confident prices will remain buoyant over the coming months.”