Why retail car buyers are switching to the nearly-new market

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In the wake of various emissions scandals, the Worldwide Harmonised Light Vehicles Test Procedure or WLTP for short, is the standard to which all car manufacturers must have their cars tested before they can be put on sale. Since September 2017 when WLTP was implemented, progressively replacing previous testing processes, new car sales figures have illustrated just how much this has affected the market.

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This is largely attributable to a shortage of supply of the models most in demand, with delivery times in many cases running well into 2019.

New car buyers are thus switching to used car alternatives. As a result, new car stocks have reduced and are expected to continue to do so for some time. On a more positive note, there is little doubt that WLTP was needed and this very same trend is also responsible for increasing the value of used cars under three years of age.

Motor trade finance specialists have seen a rise in demand for finance for cars under three years; in contrast with relatively subdued demand for new car finance.

Similarly, the profile of vehicles insured under motor trade insurance policies such as those offered by https://www.quotemetoday.co.uk/motor-trade-insurance/ has changed to reflect this market trend.

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New versus nearly-new car sales

Over the last few years, the incentives associated with new car stock have been so aggressive that they have driven new sales at the expense of the nearly new sector. However, given the current state of the market, many dealers are focused upon increasing the volume of nearly new stock – at least in the short term until the availability of high demand new models catches up with market dynamics.

Some in the motor trade believe that the economic ramifications of Brexit may fuel a sustained level of interest in nearly new vehicles, even once the WLTP effect has been addressed.

Buying and Financing Nearly New Cars

Whilst a significant percentage of nearly new cars are sold privately through eBay, Gumtree, Autotrader and similar avenues, the availability of dealer finance, together with the wider warranty ramifications ensures that dealer purchases continue to be attractive for the buying public.

With fierce competition in the asset finance market, the availability of finance on both new and nearly new vehicles has never been better.

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