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Dealers should sell older used cars

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Franchised car dealers have been called upon to sell vehicles older than three years old with higher mileages, in order to boost the second-hand car market.

According to used car buyers' guide Glass's, such a move would help fight the anticipated fall in the supply of used cars over the next 12 months.

Taking into account the current used-car market condition, the firm predicts that by 2011 there will be about two million fewer used cars aged between one and five years in general use. This compares with figures for 2008.

A drop in the supply of used cars may also lead to a decline in the number of car insurance claims relating to second-hand vehicles.

Adrian Rushmore, managing editor at Glass's, said: "In 2008 over 60% of franchised dealer stock consisted of cars less than two years old, and yet this year alone there could be as many as 600,000 fewer one and two-year-old cars available for dealers to retail."

Decline in the number of registrations lead to a proportionally lower count of part exchanges, while it also results in a fall in the stock of younger used cars. Together this caused a decline in used-car supply.

Rushmore added: "Despite the shortages, we should not get the idea that the market will be in a frenzied state of excitement in the next few years."

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