Used car buyers are set to take advantage of an influx of ex-PCP models, as ex-finance dealer stock surges following record registrations in 2016.
This is according to online automotive marketplace CarGurus, which explained that new car sales reached a record high in 2016, with an estimated 86% bought on finance contracts. The most common agreements were three-year personal contract purchase (PCP) and personal contract hire (PCH) plans.
As a result, over 2.5m vehicles registered in 2016 are due to enter the used car market this year. This presents buyers with the opportunity to find three year old stock of good condition and low mileage.
Figures from CarGurus revealed that the number of low mileage, three-year old used cars listed on its platform has more than doubled, with an increase of 137% since 2016.
“While 2016 proved to be the year of the new car, 2019 could be very much the year of the used car with a vast swathe of ex-finance contract vehicles heading back into dealer stock,” said Chris Knapman, editor of CarGurus UK.
“Buying a three-year-old car now makes sense as there will be a consistent turnover of high-quality vehicles that are being returned or traded in by their original owners at the end of PCP contracts.
“The bonus of buying ex-finance vehicles is they are often well-maintained with comparatively low mileage because of the finance contract terms and conditions. However, as with any used vehicle purchase, buyers should always shop with care and research their potential purchase thoroughly and CarGurus can help, using its search function to compare potential purchases, to show whether the advertised price represents a good deal.”