Trade prices for used cars have reached such a high level that dealers relying on finance and insurance (F&I) for profitability, the Vehicle Remarketing Association (RMA) has said.
Car buyers are selling their vehicle, on average, within 20 months of purchase, according to Tootle.
The number of cars sold on finance grew by 9% in August, when compared to figures for the previous year.
Volkswagen Group brands accounted for 49% of the UK’s total registrations decline of 20.5% (87,336 vehicles) as the brand’s WLTP-related supply woes were felt by car retailers in September.
September’s 20.5% decline in new car registrations will have a “brutal impact” on some franchised car dealers’ Q3 and full year profitability, according to Coachworks Consulting.
The Society of Motor Manufacturers and Traders (SMMT) has confirmed that supply shortages caused by manufacturers’ WLTP testing backlogs triggered a 20.5% decline in new car registrations in September.
Startline Motor Finance has predicted that dealers may shift their emphasis towards used cars in 2019 as a result of increased economic uncertainty.
Buoyant car registrations resulting from the September switch-over to WLTP and RDE fuel economy and emissions tests saw car dealers defy the usual August slump with a £200 average profit, ASE has reported.
The diesel-powered version of Mitsubishi’s Outlander SUV was the fastest-selling used car on Auto Trader during August – taking an average of just 17 days to leave forecourts.
Used electric vehicles (EV) rose in value during September despite static performance elsewhere in the sector, according to research from Cap HPI.
Delegates at the Vehicle Remarketing Association’s The Challenges of 2019 seminar will be able to hear about the current state of the used car market and how it is likely to develop from Zeus Capital analyst Mike Allen.
UK car production suffered a 12.9% decline during August as the number of vehicles produced for the home market fell by 38.8%, the SMMT has reported.
One-in-three (28%) car buyers are looking for a plug-in hybrid option with 42% of millenials pledging to ‘go green’ by 2020, according to a carwow study of 2,034 motorists.
Car dealers will have to “supply new and used cars to service providers” as consumers move away from ownership towards leasing and mobility solutions in the next decade, Auto Trader has claimed.
The UK’s 23.1% rise in new car registrations during August left it only 19th out of 27 European countries for volume growth during the month as the effect of WLTP was seen across the region.
Sales of SUVs continue to grow at the expense of traditional family cars, according to the latest data from carwow.
The average price of a used car offered for sale on Auto Trader declined by 1% during August as interest in electric and hybrid cars grew, the online retail platform has revealed.
Motorists aged between 18 and 36 are “most likely” to buy an autonomous car, but cannot correctly define what autonomous means, according to research.
Used car prices reached their second-highest level on record at BCA auctions during August, with average values rising by 2.4% to £9,697.
The Society of Motor Manufacturers and Traders has claimed that a ‘no-deal’ Brexit will undermine the automotive sector’s ability to operate and “cannot be an option”.
