Car Market Forecast To Stay Buoyant

21/06/2016

Car Market Forecast To Stay Buoyant

It was being touted as a crucial moment in the UK’s history, and particularly its relationships with its nearest neighbours - but seasoned watchers of the car trade in the UK weren’t unduly worried that a vote either way in the referendum over whether or not to remain in the European Union would hit used car sales.

The motor trade analysts at CAP HPI released their latest study on the back of a period in March and April which saw record numbers of cars hit the used car market.

They concluded that it was very likely to be ‘business as usual’ in the wake of the referendum on Thursday 23 June.

This is mostly because of factors which have absolutely nothing to do with whether or not the UK remains a part of the EU trading bloc, which we’ll outline below.

Confidence is key

A major factor is simply that people are more willing to devote the time needed to searching for their next car when the weather is better.

And in the aftermath of a period earlier in the year which saw record numbers of cars traded in as part of the bi-annual change in registration plates in March, many dealers are confident that they can offer customers possibly the best ever selections of quality used vehicles from which to make their choice in the months ahead.

The report commented: “Manufacturers have been eager to maximise their volumes and market share with some keen incentives to buy.”

This may be primarily in relation to new car sales, but nevertheless, there’s a major correlation between the people taking advantage of these good deals, and the number of cars entering the used market.

Add to this that used car specialists are getting ever-more inventive at devising ways of getting people over their thresholds, and that we can hopefully look forward to many more long days with good weather which makes used car shopping so much more enjoyable, and you have a positive outlook for the trade in general.

Dealers Grapple With Higher Stocks

The fact that many garages have plenty of stock to shift is great news in terms of the choice you have available as a used car buyer.

“An abundance of part exchanges landing in the marketplace [means] plenty of choice for buyers,” the CAP HPI report noted.

Coinciding with a dip in consumer demand as buyers held off making a decision to upgrade their car against the background of all the noise of the EU campaign, sellers are hopeful that this will have created a volume of pent-up demand, which will be released into the market once the outcome of the referendum is known, one way or the other.

Many dealers are probably also hoping that the British summer stays as unpredictable as ever - a sudden heatwave will have everyone heading for the beach or the countryside, but if we remain in the grip of unpredictable weather for the season, this could persuade many to research buying a used car, before heading out to the showrooms.

As ever, though, you’ll find that it pays to be choosy, which is why plumping for a well-established used car specialist in your area is likely to pay off. They will have knowledge of the market and where to source the best types of car which appeal to their local customer base, so will leave no stone unturned in their quest to satisfy these tastes.

A trustworthy local used car specialist, such as Philip Paul of Oswestry, will have this kind of knowledge of the market in their area, meaning that buyers can be sure of finding a comprehensive range of vehicles which are proven good sellers in their area, without the need to look any further afield.

Longer Days Bring A More Stable Outlook

Given that the year had got off to such a strong start, many used car specialists will have been using all their marketing expertise to come up with plans to help them keep that positive momentum going.

The used car market can usually be relied upon not to rest on its laurels, as sellers constantly look for that extra selling point which will give them an advantage over the franchised main dealers in their area. And you can expect them to be quick to respond to conditions in the local market due to their in-depth knowledge of it, compared to a main dealer who might have to answer to a remote regional or national head office.

Where To Look For The Best Used Car Value

A key time in the life-cycle of every car is its third birthday. So if you’re looking for a quality used car at a competitive price, a list of those which lose among the largest proportions of their original price in their first three years will uncover many which are worth checking out.

Among the models making various experts’ lists of used cars to look out for which are likely to represent the best value for your money include:

  • Honda Civic: Its looks divide opinion like no other car on the market. The new look, which has been substantially tweaked, alienated a good proportion of instinctively conservative Honda-buyers; but that’s no bad thing if you want great value, because you know you’ll get a car with Honda’s renowned reliability, and better still, you’ll be supporting British manufacturing.
  • If you want something with quite a lot more space, but which still handles and drives like a standard family car, the Vauxhall Zafira is well worth a look, reckon the experts at Carbuyer.co.uk. In fact, you can no longer buy this new, so you’ll have to scout around your local used car dealers to take advantage of the Zafira’s mix of practicality and versatility.
  • The Ford Focus has been well received in many quarters, with more recent versions showing well in the respected Driver Power survey compiled from the experiences of thousands of real-life owners by Auto Express magazine. The version on sale between 2011 and 2014 - so one which is now starting to appear on the used car market in appreciable numbers - is lauded by Carbuyer.co.uk as having “plenty of kit and some excellent safety features”, and being “arguably the best car in its class to drive
  • If you need something a bit smaller, then the Volkswagen Up! is well worthy of your consideration. It lagged behind its stablemates, the Skoda Citigo and Seat Mii, when new, simply because both of these were cheaper and yet were basically the same car, with the same key attributes of being nippy, equally at ease in towns and on the motorway, and commendably economical. However, a few miles on the clock did no harm for the car’s reputation in the eyes of Car magazine’s reviewer, who summed it up as “a cracking little drive, surprisingly practical, and a high-quality product”.
  • If you’re in the market for something bigger, you can regularly find some excellent bargains which represent a lot of car for the money. Prime among these would be the Skoda Superb, or the slightly smaller Octavia. Both have enough space for the whole family, and as much luggage as they’re ever likely to want to carry with them, and regularly win plaudits for packing plenty of useful equipment for sensible prices. The downside is that the Octavia, now out of production, can be a little hard to find, but its main qualities of being a well-built and roomy family car go some way to explaining that, as again, it was a sound performer over a number of years in the aforementioned Driver Power survey.

In summary, you can find plenty of great value around in the quality used car market, but the examples highlighted above represent some choice buys in the most popular categories.

We hope this list helps you in your search, but whether you’ve settled for one of these models, or have another in mind, always check out our latest stocks, because they’re changing all the time. As the market seems to be staying buoyant, be sure to act quickly if you see a model you’re particularly keen on!

Take a look at the current range of used cars available at Philip Paul Oswestry, then get in touch to arrange a test drive if you see any you’re particularly keen on.