Used car sales continue to fall

One to three-year-old cars experienced their biggest fall in sales in ten years during the first quarter of 2007, according to Experian, the global information solutions company.

Overall sales of used cars fell by 2.9 per cent during January, February and March in 2007, compared to the same period last year. However, the biggest drop in sales came from cars aged between one and three years old. Falling by 10.9 per cent, it is the biggest fall cars of this age have seen during quarter one since Experian started collating this data in 1997.

Each age range saw a fall in sales during quarter one, with the smallest drop coming from cars under one year old (down 0.5 per cent). In previous years, sales falls in this age group were among the highest across the age ranges.

Segments

For the first time since Experian started collating the data, sports cars saw a higher increase in sales than SUVs.

Kirk Fletcher, Managing Director of Experian’s Automotive division, said: “Concerns for the environment may be beginning to have a small impact on sales of SUVs. High performance sports cars are just as guilty of high CO2 emission as SUVs, but the SUVs seem to have taken the brunt of the negative media attention.”

However, despite concerns for the environment and an increase in Vehicle Excise Duty on the highest polluting cars coupled with fierce competition in these segments, sales of used MPVs, sports, SUVs and luxury models continued to grow, with the MPV segment experiencing the highest increase of all the segments compared to quarter one in 2006. However, this increase was not as high as it has been in previous years.

The latest used car sales statistics also revealed a small, but growing shift towards smaller cars.

Kirk said: “The market share in terms of sales volume is still held by the lower medium segment, but the gap between this segment and super minis is closing fast. Over the last decade the market has shifted towards smaller cars and we are seeing these sales begin to give the lower medium segment a run for its money. In fact, this was the segment with the highest number of sales of new cars during 2006, thanks to the launch of a number of new models. With these bigger engine cars losing their value more rapidly than smaller cars, it will be interesting to see how soon this smaller segment overtakes sales of lower medium cars.”

Marques

For the first time since Experian started compiling used cars sale statistics, sales of used BMW cars overtook sales of used Nissan cars during quarter one 2007. Looking at the top ten selling marques in the UK, BMW saw the highest increase in sales compared to last year. It is the second year running that BMW has seen the biggest increase in sales during this quarter.

Sales of used Toyota cars also took over sales of used Citroen cars for the first time during this quarter.

Kirk concluded: “Feedback from our customers has constantly highlighted the strain felt by them to keep their heads above water. Challenges and demands will continue to evolve, and continuous review of business practices and employment of more effective and efficient ways of operating, will play a key role in their success.”