BCA (British car auctions) have today published their “Used Car Market Report”, which has figures showing 7.1 million million used cars where sold in 2012, an increase of 6.4 percent meaning they have not only outpaced new car sales figures for the same year but also returned to pre-recession levels.
The biggest increase in sales was of younger cars (0 – 2yrs old), which saw an increase of 18.6 percent, the first time in three years where there has been an increase rather than a decrease of sales in this segment. The dip in new car sales during the recession is still clearly still visible, with the average vehicle on the road’s age being 7.59 years, the highest figure for 30 years.
The 2013 report also reveals that the overall value of the used car market in the UK reached a record high, with a value of around ?38.1 billion, an increase of ?5.8 billion over the new car market value.? Other interesting figure show that the average age of vehicles in the UK on the road was also at a 30 year high and there has been a large drop in car ownership from certain areas of the country, with 28 percent of households in the UK not owning a car, an increase of 5%.
Used car sales were dominated by dealers who accounted for 57.2 percent of the used cars sold, an increase of 8.9 percent taking the total amount cars sold to 4.07 million.
This is probably down to confidence in buying from a dealer where according to the BCA Used Car Market Report customer satisfaction levels are among the highest ever recorded with dealers working hard to improve the perception of the used car industry from say over ten years ago.
Interesting facts –
- The sales ratio of used cars to new cars has increased to 3.5:1 in 2012
- The sale of 0-2 yr old cars accounted for 10.7% of the used car market in 2012, an increase of 18.6%
- The sale of 3-5 year old cars grew by 6.1% with the sale of 6-8 yr old cars rising for the fifth year in a row to 6.1%
- Sales of vehicle over the age of 9 years has remained flat
- Sales of saloon cars dropped to 22% with the sale of hatchbacks increasing by 4% to a market share of 51%
- MPV’s market share dropped by 3% in 2012 accounting for 7% of the market
- Diesel cars accounted for 36% of the market, a rise of 3%
- 75% of motorists bought a second hand car over a new car over the last two years
- 64% of motorists set price as the main thing they looked at when buying a car followed by 39% citing the Make as the second biggest influence and then model at 37%