Used Cars

Used car market update: February 09

Not many cold, hard statistics to share with you this month, but plenty of news – including intriguing signs of activity in the used car market.

Let's start with some good news...

According to used car auctioneers Manheim, sales have increased since Christmas. Although it's common to see a small rise in the new year, the upturn is far larger than expected. Add to that the average wholesale used value rising by 5.5% and there are some promising signs of life in the second hand industry.

This fits in with further reports that dealers are rushing to snap up used cars.

Like Manheim, EurotaxGlass have noticed a post-Christmas rise in sales – particularly by retailer car buyers. It may be that dealers are turning to second hand vehicles to meet the needs of consumers looking for much cheaper deals.

It could also be a sign that dealers are seeing an opportunity to snap up a few bargains on the market for resale – particularly with current huge price slashes on big-engine and luxury vehicles.

EurotaxGlass also added that it expects used car prices to continue falling in '09 – but far less steeply than in 2008.

Of course, a bit of a shot in the arm for the used car market in the first months of 2009 is welcome news. However, it remains to be seen whether any upturn is sustainable in the continuing gloom of the global economy.

It also has to be taken into account that many dealers decreased their stock intake at the end of 2008, and may now be looking to compensate with additional purchases to fill up their forecourts.

Here come the poorsellers...

As for new car sales, the Society of Motor Manufacturers and Traders (SMMT) came out with some interesting stats and predictions. They forecast that the UK car market would shrink by a fifth in 2009, before listing the current ten worst selling brands:

Daimler
Cadillac
Corvette
Hummer
MG
Ssangyong
Lotus
Dodge
Perodua
Abarth

Manufacturing continues to feel the pinch

In a familiar news story for the manufacturing industry, Ford has announced cuts of up to 850 UK jobs by May – almost 7% of Ford's UK workforce. The BBC reports that around 500 are likely to go in the Ford Transit plant in Southampton, with the rest at locations across England and Wales.

Some positive news came in the form of an announced package of rescue loans for the car market. Business Secretary Peter Mandelson has promised a package of £2.3billion in loan finance – £1.3b of which comes from the European Investment Bank. The remaining billion is available for green vehicle investment.

Mandelson stopped short of calling the package a “bail-out” - having ruled out that prospect in early Jan - though it's hard to see it as anything else.

As always, if you want a quick and easy way to sell your vehicle, visit Sell Car. Online sales are our speciality.