Scrappage dents sales of small cars
Published: 10:36, 28 August 2009
Updated: 10:36, 28 August 2009
The scrappage scheme has dented sales of smaller used cars across the south east.
According to figures from Experian, overall sales were 6.1 per cent lower in the quarter to June compared to the same period in 2008.
The biggest casualty was the used mini segment (down 10.6 per cent year-on-year). With the scrappage scheme attracting car buyers to small cars in the new car sector, it has been at a cost to the sale of small cars in the used car sector.
But used sports cars were in demand, with sales up seven per cent on Q2 2008 and up 20 per cent on the first quarter of this year. Forecasts of a hot summer are thought to have triggered the sales surge.
Mark Nuttall, general manager of Experian’s Automotive business, said: “Although used car sales fell in Q2, used car values have been at their strongest and are likely to remain buoyant over the next couple of years.
“This should help offset some of the decline in volumes. This has been confirmed by dealer feedback that strong used car values have helped profits either increase or remain stable, despite the fall in sales.
“The fortunes of the new and used car sectors are very much linked and the scrappage scheme has had an impact on the industry as a whole. Although focus on small cars shifted from used to new, the scrappage scheme has helped increase footfall and enquiries to all dealerships.”
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KentOnline reporter