Used car demand at ‘high interest’ as market looks set for instant lockdown bounce back

Used car demand at ‘high interest’ as market looks set for instant lockdown bounce back

Used car interest has soared as motorists prepare for summer day trips and domestic holidays. Analysis from car hire service Lease Fletcher has shown confidence in the market is being restored to its pre lockdown levels just days after dealerships were reopened.

They say the increase in demand for used cars means the market has almost recovered from a 53 percent drop in March. 

LeaseFetcher says demand has already surpassed interest seen in 2019 and the past three-year average as motorists desperately look for cheap vehicles.

The group says interest has been on the rise since early May while the new car market took a hammering.

Will Craig, Founder of LeaseFetcher says motorist’s hesitancy to use public transport has seen demand rise.

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These commuters said they now expected to buy a car to get to work after lockdown ended in an attempt to avoid large gatherings.

Interest in lower priced vehicles has also shot up with Auto Trader revealing an 11 percent rise in demand for cars priced below £1,500.

Interests had also increased by 13 percent in the £1,501 to £3,000 bracket as road users searched for affordable models.

Analysis of the European car market has revealed demand for second hand cars did rise after lockdown levels were eased.

It is expected this will be passed over to the UK as motorists look for alternative methods to travel safely.

Used car sales data from the Society of Motor Manufacturers and Traders (SMMT) revealed the market fell by 8.3 percent in the first quarter,

Growth in the first two months of the year was wiped out with a steep 30 percent decline in March as dealerships were closed.  

However, the market remained strong in comparison to sales of new vehicles which recorded a 44 percent over the same month.  

Mr Craig said he was “confident” demand for electric vehicles would soon return to the market and be “stronger than ever”.

These vehicles could take a hit during the uneasy financial period as models usually come with higher upfront costs.

However, Lease Fetcher says they have already seen demand for top vehicles such as the Audi e-Tron and Tesla models rise.

SMMT used car data for the first quarter also revealed plug-in electric vehicle sales remained strong with demand rising by 13.6 percent despite the outbreak.

New car sales data also revealed electric car sales had held well during the outbreak as demand continued to rise.

May’s new car registrations revealed fully electric models were the only type of vehicles which saw an increase on 2019 figures as petrol and diesel demand crashed.

Published at Thu, 04 Jun 2020 09:39:00 +0000