The continued growth in consumers searching for used cars in 2016 could see the industry reporting record sales figures for the end of the year.
A prediction - reported by Cap HPI - is that the sale of used cars this year will reach approximately 7.6m, a 3 percent increase from 2015. Creditplus, the UK’s leading online car finance provider, are in support of this end of year projection, having witnessed a significant 29% uplift in their online applications for used car finance during the first nine months of this year.
Despite initial concerns for the UK car industry following June’s EU referendum vote, the result has not had any noticeable or detrimental effect on the used car market. The first six months of 2016 showed a record number of used car sales - more than 4.18 million - and if Cap HPI’s prediction is correct, the second half of the year will be just as, if not more than, successful as the first half. With regard to the demand in private registrations, September figures provided by The Society of Motor Manufacturers and Traders (SMMT) show this part of the market is continuing to slowly decline, down by -1.7% compared with August’s figures.
Consumers are also money-conscious. With a recent decrease in the Bank of England’s base rate - from 0.5% to 0.25% in August - those with more disposable income are able to widen their search for car finance products. From their own research, Creditplus have recognised that consumers - particularly sub-prime - are driven more by budget than car choice, and that their first port of call is to search for car finance deals online. A key feature of Creditplus is that they are ethical lenders, ensuring the well-being of their customers from initial application to the completion of their car finance agreement. To assist the car loan process, Creditplus have designed and developed their own car finance calculator, which makes it simple for customers to understand what they are likely to be lent by the company’s panel of lenders.
Speaking about the used car figure predictions for 2016 and how it will resonate with Creditplus, the company’s Managing Director Shaun Armstrong commented: “Brexit is not going to affect used car prices. Interest rates remain low and lender’s books are performing well, so I see single digit growth for the remainder of this year and 2017.”
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