Used car demand fades

DEALERS hoping to resort to used cars to offset falling new-car sales may be disappointed by projections that the demand for used cars is falling away in the current economy.

Research data released by Roy Morgan shows there is a continuing decline in consumer intention to purchase a used vehicle.

August early indicators data just released from Roy Morgan Research show that only 6.5 per cent of the 18-plus population intend to buy a used vehicle in the next year. This equals the worst result ever recorded by the survey.

In addition, only 19.3 per cent of people aged 18-plus intend to buy a used vehicle in the next four years – the second worst result ever.

Roy Morgan’s Sak Ryopponen told GoAuto that the decline in used vehicle intention, combined with figures showing soft new vehicle buying intention, was bad news for dealers and manufacturers.

He said it would be difficult to maintain new-car momentum in these difficult times if dealers were having trouble moving their trade-ins. This would further slow the new vehicle market.

Dealers are telling GoAuto that walk-in traffic and internet enquiries for used cars have fallen away – in some cases by half – but closing rates have increased and used car sales were off by about 20 per cent.

This indicates that most of the buyers presenting at dealerships are definite buyers and that those just thinking of buying are no longer actively looking.