Ford and BMW bosses have said dealers’ recent troubles have been severely helped by the turn in the used car market.

Nigel Sharp, managing director of Ford of Britain, said that after a sharp dip in used car values last year they have now gone up in a V-like shape. Ford dealers have found a shortage of used cars resulting in more efficient trading because of less inventory.

When they do get hold of second-hand vehicles, there is more profit than previously and they are sold quickly which means less stocking issues.

Tim Abbott, BMW managing director, added that its network has re-assessed its business model. This has meant a shift towards aftersales and used cars.

He said used car profitability was up and that used car stock turn had improved dramatically.