by
Autonet Insurance
| Jan 22, 2009
The number of used cars being bought by dealers is on the up as they anticipate that new car sales will continue to fall.
According to motoring guide EurotaxGlass's, dealers are turning their attention to used cars as opposed to new ones as a way to plug the gap as customers look for cheaper motoring including better value vehicles and lower car insurance.
Adrian Rushmore, managing editor at EurotaxGlass's, said: "Dealer stocks were at historically low levels thanks to fewer consumers bringing in used cars in part-exchange, as well as the efforts made by dealers to clear used stocks during the last quarter of 2008, and yet the level of trade buying is unprecedented for this time of year, exceeding all expectations given the broader economic conditions."
He added: "There has been lots of competition for the best cars, and the auctions have found their inventories dwindling. Even those 'problem' cars, such as executive models and large 4x4s that struggled to find buyers in December, have been attracting bids.
"This is because the need to restock is great, and because many of the large gas guzzlers now appear very good value for money."
This new demand for used cars has caused values to stabilise and in the case of the more desirable models prices at auction have even risen.
© Press Association 2009