DESPITE a nervous market and suggestions that the value of defleeted cars is dropping, the majority of used dealers are reporting that business is as strong as, or better than, 2004.

As used car dealers are a key outlet for ex-fleet cars, once confidence drops among them, fleet car values will follow the same downward spiral.

But research by CAP Black Book has found the mood in the market upbeat.

As part of the monthly CAP Used Car Performance report, dealers were asked to rate their own retail sales performance during the first quarter of the year and compare it to the same period in 2004. The survey found that while some dealers – and some regions of the UK – are actually suffering a decline in retail sales performance, the overall picture remains positive.

A CAP spokesman said: ‘One characteristic of this year’s market so far has been a sense of nervousness and faltering confidence in trade circles. Actual retail sales results have tended to be better than anecdotal reports and dealer sentiment often suggest.’

Of those dealers questioned, 23% sold more cars during the period running from January to March than in the first quarter of 2004.

A further 41% reported similar sales figures while 36% recorded a decline. The research found there was no correlation between the strength of prices and regions.

The best performing region in terms of sales growth was Northern Ireland, where 60% of dealers sold more cars up to April than during the same period in 2004.

The worst performance came in the north west, with 80% of dealers reporting decline and none achieving improved results.

A dealer in the south west said: ‘We did well last year but it is taking a lot of hard work to meet this year’s targets. The customers are out there but there is so much choice and prices are so competitive that we’re often selling on no margin and relying on extended warranties and finance to make money.

‘It doesn’t help that people are talking the market down because that makes the customer more confident to walk away and try elsewhere. I’m lucky because I have a lot of loyal people who have come back to me for years but winning new business is hard at the moment.’