Demand for used cars may decline

Demand for used cars could fall in the last three months of 2010, according to 50% of franchised car dealers.

A survey by Cap Black Book showed that only about 11% of dealers are expecting used car sales to increase towards the end of the year. The report appeared on the automotive website Motor Trader.

The study added: "The first two weeks of last month saw retail activity close to zero for many dealers and even when this did begin to pick up after the middle of the month it was very patchy.

"All of this has resulted in a further downward revision of values just short of three per cent, which is around one percentage point more than would be considered the seasonal norm moving from July into August".

Meanwhile, independent dealers may see improvement in business, boosted by better conversion rates at the start of summer, the report further said.

Copyright © Press Association 2010