A recent report by the British Car Auctions (BCA) showed that sales of used cars were buoyant, but that many used car dealers made less profit.
Stevenage, Hertfordshire -- (SBWIRE) -- 04/07/2015 -- During 2014, sales of used cars were up in all areas of the UK, but profits were down in most areas. The number of used cars for sale in Hertfordshire and other parts of the South East were definitely higher in 2014, and most of those cars were successfully sold. Yet despite increased sales, more used car dealers struggled to make a profit in 2014.
Weekly profits in London and the South East did grow. In London, the average weekly earnings were up to £692 a week, in the South East profits averaged out at £638 per week.
Across the rest of the UK sales rose, but weekly earnings fell. This turned 2014 into a challenging year for many of the UK's used car dealers.
However, there is good news too. Other reports compiled by the BCA, WhatCar and the Society of Motor Manufacturers and Traders all indicate that 2015 will be another good year for both used and new car sales in the UK. They all anticipate that more units will be moved, so sales will be made in 2015 than 2014. This means that falling per unit profits can potentially be offset by increased turnover.
However, not everyone in the industry agrees that sales will grow by enough. Some industry specialists believe that the UK car market is more volatile than it used to be, so sales could just as easily fall rather than rise during 2015.
Only time will tell who is right. Those who are confident about future growth in the industry point to the fact that many UK consumers have not replaced their car since the recession started in 2008. Instead, they have hung onto their old cars in an effort to save money. Those who foresee continued growth point out that many of these cars are reaching the point where they cannot be safely kept on the road, so many car owners will have little choice but to replace them. A fact that will help to drive sales in 2015.
For more information visit the website http://www.stevenagemotorcentre.co.uk/used-cars
For Media Contact:
Contact Name: Michael Mccarthy
Business Name: Stevenage Motor Centre Limited
Address : 282 Broadwater Crescent
Postcode: SG2 8AQ
Country: United Kingdom
Phone No.: 01438 751603