Used car market expected to decline in Q1 2019

The used car market is predicted to fall to 2.02 million transactions in the first quarter of the year, according to new research from Cox Automotive.

Its forecast follows recent used car figures from the SMMT that confirm a total of 7.9m transactions in 2018, a fall of -2.1% year-on-year.

The used car market remains significantly higher that is was in 2015.

Philip Nothard, Cox Automotive UK’s customer insight and strategy director, said: “In contrast to new car sales, there was more stability in the used market and, as a result, many dealers have switched their focus from new to used.

“Our forecast of 2.02 million used car transactions in the first quarter of 2019 represents a modest decline of 0.6% on 2018, but still gives an encouraging outlook for used car retailers and finance providers.

“This would represent the fourth year in a row that used car transactions have passed the two million mark - a fantastic achievement that shows the strength of the market.”

The SMMT figures highlighted that sales of used hybrid, plug-in hybrid and battery electric cars were up 27% year-on-year.

Nothard added: “While diesel transactions held steady in 2018, the used-car market is starting to see the impact of reduced diesel registrations over the last three years. Availability of nearly-new diesel cars will certainly fall during 2019, although prices are likely to remain in line with the market in general.”