The UK automotive industry has had another positive year, with the new car market growing for 33 months in a row. Here is a brief outlook for 2015.
The feel good factor is important in maintaining consumer confidence to buy larger items such as cars. A stable economy and low interest rates have added strength to the market. The recession in 2008 created a shortage of stock due to lower new car sales. This pushed the value of used cars up.
Used car values recently took a drop in November 2014 they fell by 2.9% seeing average values fall by £300, the largest single fall since June 2011.
We believe that new car volumes will continue to rise in 2015 with a greater choice for buyers in the market place. With more new stock available, fleets disposing of cars may find it harder to obtain good values in 2015. Fleet operators need to ensure cars are in good condition to achieve the highest price possible.
Trade buyers will continue to be selective and pay good money for the right car in the right condition. A possible rise in interest rate in 2015 could see homeowners having less money, keeping the used sector steady.
However a stable market for 2015 does not mean fixed values and so dealers will have to be realistic about seasonal trends which are not reflected in guide prices.
The key to a good year in LCV and commercials will be ensuring a good supply of good quality used vans. Buyers in 2015 will be looking for vehicles with useable and specialist equipment including lutons, dropsides and tippers.
With the construction industry ramping up in 2015 this will reflect on both new and used vans sales, keeping demand steady. Values of three year old vans have risen by around 50% since 2010 according to Caps Red Book, giving an example of a 60k Transit increasing in value from £4800 to £7,100 over this period. This has been an unexpected change in the industry.
It is believed that the LCV and commercial market will stay buoyant in 2015 but used values will begin to ease.
So it appears that 2015 will be a good year industry wide, again keeping consumer confidence high and the volumes ticking over. Let’s hope it’s as successful as this year.
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