Retail interest in used cars holding up

Demand for used cars is holding up in spite of the general economic uncertainty, according to a survey of UK franchised dealers by Manheim Retail Services.

Across the five main vehicle segments (Small Hatchback, Medium Family, Large Family, Executive, 4x4) enquiry levels and test drives are only marginally down compared with the previous three months. The study shows a third of enquiries came from customers who had registered interest in specific vehicles prior to visiting the showroom and the balance being showroom walk-ins. Not surprisingly, sales-to-enquiry conversion rates were down by 8.3% for Executive models and 7.6% for 4x4s. However, they actually increased for Medium Family vehicles by 0.9%.

John Simpson, Managing Director, Manheim Retail Services said: “With negative consumer confidence forcing new car registrations down in July by 13%, it is encouraging to see that dealers are maintaining activity in used car sales. In the five vehicle segments analysed, used car sales were only down by an average of less than one unit per dealer per month. And as to be expected, interest levels and sales were highest in the Small Hatchback and Medium Family segments.”