Half of dealers to expand used car stock
Dealers have a positive outlook for the year ahead, with two-thirds saying they plan to invest in their business and around half looking to expand their used car stock – with the potential to bring higher used car values for fleets.
The sentiment survey was carried out by lending product provider NextGear Capital, part of Cox Automotive, and asked dealers, ‘What best sums up your ambition for your used car business in 2019?’. A total of 65% of those surveyed said it was to grow their business throughout the year.
And when posed the question ‘What will you be investing in to support your business in 2019?’, 52% said they would be investing in additional used car stock.
The analysis follows reports that car dealers have been increasingly turning to selling used cars to fill forecourt gaps left by supply issues with new cars from the shift to the WLTP test cycle.
Commenting on the new research, NextGear Capital managing director Liam Quegan said: “The survey results show dealers share a very positive outlook for the year ahead, with investment and growth a clear ambition for many.
“Despite the uncertainty of what will happen after 29th March, the potential for growth this year is nevertheless there for the taking. The used vehicle market is growing, consumer finance products are making it possible for more people to afford better and newer cars, online trading is breaking down traditional barriers and the wholesale market is offering a greater choice of stock than ever before.”