Used car market in excellent position, says Manheim
The firm points to higher consumer demand for new and used vehicles, fuelled by attractive new vehicle offers and an increased availability of finance deals, which has led to a stronger-than-expected performance for the first four months of 2013 across the entire automotive market. This comes hot on the heels of the Bank of England's recent upward revision of its economic growth forecast for 2013, adding to a sense of optimism among UK businesses.
Figures from the SMMT show increased private buyer confidence in the new vehicle sector. This has seen a knock-on increase in sales in the used vehicle wholesale sector. aReviewing sales on a like-for-like basket of used vehicles and vendors Manheim has seen that the wider wholesale used vehicle market has seen more than an 8.5% rise in the number of used vehicles sold through auction in the first four months of 2013 compared to the same period in 2012. The growth of the wider wholesale part exchange market has particularly fuelled this growth, rising 23.5% year on year.
During the first four months of 2013 the volumes of used vehicles sold through Manheim's auctions have risen by nearly 20% compared to the same period in 2012. This rise in demand included a 39% increase in part exchange vehicles and a 42% increase in sales of cars direct from the manufacturer.
Michael Buxton, chief operating officer of Manheim, commented on the results: ‘April surpassed January's record-breaking performance to become Manheim's best ever month. We sold the most vehicles during this month in our 65-year history.’