Used car market picking up as consumers looks for budget deals

The number of used cars sold in the last 12 months has fallen fall year-on-year, but a strong increase against the previous quarter may suggest a possible recovery.

A new report from Experian has revealed that although used car sales were 5% lower in the first quarter of 2009 than in the same period in 2008, sales were up 17% when compared with the last quarter of 2008.

Sales of multi-purpose vehicles (MPVs) shot up by 40% in the first three month of 2009 when compared with the previous quarter, with newer models the most popular. Sales of MPVs under three years old were up 50% on the last quarter of 2008. In addition, MPVs were the only segment to see a year-on-year increase in sales, up 15% when compared with the first quarter of 2008.

While sales of all other segments fell year-on-year, the biggest decline was in the used mini segment (down 13%). The smallest decline came from the used sports segments, which were down less than 1%. This segment saw the second largest Q4 2008 to Q1 2009 increase – up 25%.

All makes of car saw significant increases from Q4 2008 to Q1 2009, with the biggest increases coming from Citroen, Renault and Nissan. However, year-on-year, used cars from all manufacturers saw their sales fall. After Rover, Fiat saw the highest decline in used car sales (down 10%). Meanwhile, sales of used Volkswagon cars held up the best – down by less than 1%.

Kirk Fletcher, Managing Director of Experian’s Business Information and Automotive businesses, said:

“This is the clearest indication so far that consumers are slowly beginning to spend again in the used car market and it also reflects the anecdotal feedback we are getting from dealers. The increase in sales on Q4 2008, led by MPVs, is a positive development, and whilst year-on-year sales were down, the decline was not as severe as many in the industry had been expecting.