Used car retail demand strong despite high volume of PCP models returning
The used car market is showing no signs of cooling down
despite the high volume of PCP cars returning back into dealers as part
exchanges, according to the Aston Barclay Group.
The vehicle remarketing specialist has reported “very
strong demand” from franchised and independent dealers as they buy used cars at
auction to satisfy a healthy retail demand.
“In 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,” said Martin Potter, Aston Barclay’s group operations
“Initially, 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.
“In our experience PCP has helped dealers plan their used
stock better as they know what part exchanges are coming back and when.
“They 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.”
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
“Used 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,” said Mr Potter.