Used cars seem to have become the latest craze for auto buyers, as they don't need to pay much to acquire a vehicle of their own.
Market in UK for ex-fleet pre-owned cars is stronger than at any time since 2000, as private buyers are turning from brand new cars towards ex-fleet pre-owned vehicles instead, as per the recent annual BCA report named, 'The Used Car Market'. At more than £32Bn, total value of pre-owned cars sold is more than that of brand new vehicles. This has happened for the first time since the 1990s.
As per the annual report by BCA, market for used cars was above £32Bn in 2005, up from £30Bn in 2004. Rise in used car market is because of the record levels of new cars sales in the past few years. As many highly specified fleet cars return to the used vehicles market, buyers are opting for them rather than new cars.
According to commercial strategy and communications director of BCA "Well-specified, good value cars is what motorists want and exactly this type of product is delivered by the lease and fleet sector. Huge demand in the 3 -5 years old sectors typifies this. Volumes increased by 10.9 percent touching a record 2.11Mn mark, representing approximately 30 percent of total market. Price, low mileage, make/model, body type, age of car, and specification are the main decisive factors for those who prefer to buy used cars. Used car market’s resilience is particularly encouraging, given the downturn in the sales of new vehicle in this year as along with the general pressure on consumer spending."
The BCA report forecasts, diesel powered used cars' sales will increase steeply; with 22percent of motorists saying they'll prefer a used diesel car next time. A further 3percent saying they'll seek out a nearly new diesel. This implies that in a typical year with nearly 7Mn used cars sold, there'll be demand for around 1.75Mn diesels almost twice the volume entering the market as new cars.
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