Research shows used sports cars and luxury cars have seen a boost in sales
As we ease out of lockdown, a surge in used sports cars and luxury cars has been observed. Motorists are preparing to have a bit of 4-wheeled fun now that lockdown restrictions are easing.
A Market Watch insights report from INDICATA UK has revealed a few interesting things recently and with the new, looser lockdown rules, it’s clear there may be some correlation. During May, the car market ‘woke up’ as we passed the 9th week of lockdown, likely in anticipation of restrictions being made less strict on June 1 and over the coming weeks.
Due to money saved on cancelled holidays, reduction in leisure spend and fuel, it is presumed that a lot of people are spending that saved cash on a used car. This post-lockdown trend has also been observed in other countries such as Germany and Austria, says INDICATA UK.
Interestingly, the stats also suggest that the UK is the only market in Europe that has used diesel car sales remaining steady, where other markets see a decline. The data also shows that consumers are spending less than £10,000 on their used car.
Diesel car sales are down by 17% year-on-year in Germany, showing that consumers are moving more towards petrol, hybrid and pure electric cars.
INDICATA’s UK national business development manager, Neil Gilligan, commented:
“Our insights clearly show that sales in the luxury and sports car sectors were most prominent across the used cars sold in May. We are sure many drivers have adopted the life’s too short approach and invested their money in the used car of their dreams.”
“However, as the market settles down in June and July we expect to see consumers buying more smaller petrol family hatchbacks and SUVs. The sub-£10,000 sector is also expected to be where a majority of the used car sales will be for the rest of 2020,”
While the purchasing of used cars less than 3-years old was described as ‘slow’ the sale of cars aged between 6 and 12 years were more popular. This is likely due to car dealerships not being open during this period which is where many consumers would wish to purchase a newer used car.
Have you treated yourself recently to a used car? Let us know in the comments!
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