Used car warning: Buying this vehicle today will be ‘best investment’ for future profits

Used car warning: Buying this vehicle today will be ‘best investment’ for future profits

Used car sales have been “resilient” over the past three years which is expected to continue in the short term. However, the expert warns drivers can “future proof” themselves by purchasing an environmentally friendly car to later sell on. 

Tom Leathes, director at Motorway.co.uk says there will “definitely” be a shift towards electric vehicles in the used car market within the near future. 

He predicts these cars will soon become the “strongest part” of the used car market as sales are expected to rise. 

He said: “There will definitely be a shift towards more environmentally friendly vehicles in the used market and in the new car market. 

“What that means is if you have an electric car that’s going to be more valuable in the future than a highly polluting car.

READ MORE: Avoid getting ‘carried away’ when buying a used car

Some models are now available for less than £7,000 including popular city runaround such as the Nissan LEAF and Renault Zoe. 

Models such as the BMW i3 can be purchased second hand for just £13,000 in savings of over £20,000 on the original price. 

Private car finance agreements can even be purchased on some used models making them even more affordable for cash-strapped road users. 

This is only expected to rise as demand for new electric vehicles continues to rise due to a wealth of incentives. 

New car tax changes have scrapped electric car benefit in kind rates and removed charges for those with vehicles higher than £40.000. 

These tax breaks alongside cheaper fuel and no city congestion charge has boosted popularity for the vehicles. 

However, despite the future changes Mr Leathes still believes the used car market is in a “very strong” place in its current condition. 

He said the used car market continued at a good level as the new market repeatedly recorded year-on-year sales figure declines. 

SMMT used car data revealed the market was down just 0.1 percent year on-year at the end of 2019 with sales for the last three months up on 2018 data. 

Mr Leathes said: “The used market has been extremely resilient in the past three eyes and is fastly growing while the new market has been fastly dropping. 

“That’s one in which we think is just going to continue. People are still very very likely to change cars.

“They may need a larger or a newer car and used cars are more likely to be the default. 

“So we think from that point of view in the medium to short term, very strong.”

Published at Sat, 09 May 2020 04:01:00 +0000