Improvement Seen In UK Used Car Market

Confidence seems to be returning to the UK used car sector. Data recently released by shows that spending from January through June of 2011 exceeds that of the same period during both 2009 and 2010.

This information was based on used car finance applications and used vehicle sales.

A bit more than £1.4 million was spent by consumers from January to June 2009. This included the vehicle deposit and regular or bad credit car finance amount. Deposits averaged £220.20 and the average value of used cars purchased during this time was £8,299.

During the same period in 2010, UK consumers spent £1.3 million on used car purchases. Vehicle value averaged £6,879 and the average deposit increased substantially to £504.70.

Between January and June 2011, used car buyers in the UK spent nearly £1.8 million to purchase their vehicles. The average deposit once again increased, reaching £727.91, and the average value for the used vehicles was £8,853. Director Louis Rix noted the increase in used car spending in 2011 as well as the tripling of the average deposit since 2009.

Mr. Rix said his company’s prediction that the used car sector would improve over the short-term appears to be accurate. As consumers become more confident in the economy, they seem to have more funds to apply toward a used car deposit.

He believes that consumers feel more comfortable using car finance for a pricier car than they did during the same period last year.

Though these statistics are encouraging, the car market has a long way to go. Many consumers are shying away from purchases due to the increasing price of fuel. Some are even going in the opposite direction, selling their cars and carpooling or taking public transportation.

Whether the positive used car trend will continue remains to be seen.