Used car buyers in search for stock over next two years claims new report
Selling a car could be a particularly good move for private owners over the next two years as reports indicate that used car market is facing a period of stock shortages.
Although a recent report from Sainsbury's finance indicates that the next six months from now to September will see a marked increase in the number of new and used car buyers, another separate report from carsite.co.uk indicates that there may not be enough stock to meet demand.
Normally around 75% of new cars come on to the second-hand market after three years. However, due to the sudden fall in new sales from March to September 2008 due to the economic recession, analysts predict that there could be a subsequent shortage in the used car markets this year and in 2011.
A key part of this estimation is the decreased number of fleet cars purchased by UK companies during the recession and the new focus on reducing costs such as company cars. This could mean that cash for cars schemes, which make the process of selling a car easier for private owners, integral to the second hand car market over the coming year.
Alastair Jeff of Carsite said: "The used car market is heading into a significant period of change, with the next two years seeing even further reductions on the availability of ex-fleet vehicles."
"Some used car models have experienced significant increases in value over the last 12 months and the reduced supply from 2011 to 2012 should strengthen residual performances but potentially trigger further price increases. With scrappage gone, the focus is back on the used car market. It's a very interesting time for the industry."
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