Sustained growth predicted for used cars in 2015
11 December 2014
Author: Daniel Puddicombe
There will be sustained growth in used vehicle volumes for cars and LCVs in 2015, with fleets continuing to move towards greener low CO2 vehicles.
That's according to independent motor auction group SMA Vehicle Remarketing, which also believes there will be an increased number of vehicles into the remarketing cycle. The group is expecting this to affect values, and de-fleet condition will be an important factor.
For buyers, the firm is saying there will be an "appetite for quality stock", and the group is suggesting that an increased number of payment options will help buyers, but the group is warning this could lead to price implications.
The group also expects the political and economic outlook to be neutral, even with the upcoming general election, which the Edinburgh-based company is saying will "create some issues."
Telematics was a big talking point in 2014, and the group believes it will remain so in 2015, with the firm suggesting it will impact the change cycle, helping fleets to bring their cars to the market at an optimum time.
Used car sales totalled 7.4m units last year - the highest volume recorded since 2006 - according to the 2014 BCA Used Car Market Report.
The increased volume - up 4.2% on 2012 - helped increase the used car market value by 4.2% to £42.7bn, which BCA said is a record market value. The used car market outperformed the new car market by £6bn.
The report says that an improving economy and a better choice of younger used cars has helped to stimulate demand.