The National Franchised Dealers Association (NFDA) is forecasting used car values will remain strong in Q3 due to limited supplies of part-exchange vehicles generated from new car sales.
UK new car registrations fell by -9% in July to reach 112,162 units, the fifth month of consecutive decline.
The society of Motor Manufacturers & Traders (SMMT) said earlier this month the motor retail sector was facing its ‘most challenging year” for three decades as supply restrictions impact car sales. It has revised downwards its new new car sales forecast for 2022 and 2023.
Sue Robinson said: “The NFDA expects used car values to remain strong as the supply of good quality used cars are still lower than normal.
“Current new car volumes are restricting the number of part-exchange vehicles reaching the market that would normally help supply dealer forecourts, and at the same time some consumers needing a car quickly are turning to the used car market to source their next vehicle.”
“Franchised dealers continue to see strong demand in the used car segment driven by a combination of consumer demand and a lack of supply of new vehicles”, NFDA CEO Sue Robinson.