The used car market is showing no signs of cooling down despite the high volume of PCP cars coming back into dealers as part exchanges, according to the Aston Barclay Group.<\/p>\n
It has reported very strong demand from franchised and independent dealers as they buy used cars at auction to satisfy a healthy retail demand.<\/p>\n
\u201cIn January and February and the first two weeks of March dealer demand has been very strong with 80-90% conversion rates being achieved across our group,\u201d explained Martin Potter, Aston Barclay\u2019s group operations director.<\/p>\n
\u201cInitially, industry pundits were worried that the volume of PCP part exchanges coming back into the dealers was going to prevent them from buying as many used cars from the trade.<\/p>\n
\u201cIn our experience PCP has helped dealers plan their used stock better as they know what part exchanges are coming back and when.<\/p>\n
\u201cThey can then proactively decide which cars to retail and which ones will be sent to auction. They are buying used cars to fill the gaps they have in their stock or to replace sold ex-PCP stock,\u201d he added.<\/p>\n
The growth of used Personal Contract Purchase (PCP) schemes is also helping dealers sell cars originally bought new on PCP two to three years ago. Forecourts are advertising monthly PCP rates on two and three-year-old cars.<\/p>\n
\u201cUsed PCP schemes are helping feed the retail demand, only time will tell if the used market starts to cool down as is traditional during the Easter holidays this April,\u201d said Potter.<\/p>\n
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