Automotive data providers cap hpi has predicted a record year used car sales in 2017, due to high demand in the first half of this year.
Used car sales hit a record of 728,525 units in March this year, up 6% year-on-year, only the second time since 2004 that used sales exceeded 700,000 units in a month.
The total volume of used cars sold between January and the end of June 2017 exceeded 3.3m, a minimal rise of just 0.1%. The results come after cap hpi said half of dealers had felt their margins squeezed in June.
Despite this, Philip Nothard, Black Book editor, consumer and retail at cap hpi claimed retailers were using used sales to support their margins, and predicted a bumper year for used car sales.
He said: “Motor retailers are increasingly turning to used vehicles to support margins. To date, strong demand has helped to support stable prices in 2017. If the current trend continues, we will see a record year for used car sales.”
In 2016, used car sales exceeded 7.7m vehicles, a rise of half a million from 2015’s figure. In the first quarter of this year, used cars reached a sales record according to the Society of Motor Manufacturers and Traders (SMMT), achieving 2.1m in sales.