Canny smaller businesses could benefit from the findings of an influential report published today (03 September).
The BCA Used Car Market Report shows that used car values fell last year as concerns for the economy started to bite.
Since then, pressure on the economy has increased. For many smaller companies, a used car could be a shrewd way to help ride out the credit crunch.
The BCA report reveals how buyers are planning to mitigate the effects of the credit crunch.
- 12% said they’d pay cash rather than use finance
- 9% said they’d choose a cheaper car next time round
- 7% said they’d postpone buying a car
The report says that the choice of diesel cars – the preferred car for UK business – is growing on the used market.
Sales of diesel used cars accounted for a record 30% of the market in 2007, says the BCA report. Half of all £10,000-£20,000 used cars were diesel. Two-thirds of £20,000-plus used cars were diesel.
Buying used from a dealer, rather than a private individual, is likely to be a better health-and-safety decision. And there should be plenty of choice. The used market share for dealers in 2007 was the highest for six years at 77%.
Report author Professor Peter Cooke says: “The economic downturn may encourage more traditional new car buyers either to trade down to a smaller new car or to buy a quality used car.”
He added: “Those very same buyers may well seek to buy their used car through a franchised or non-franchised used car dealer rather than deal privately.”
Further information
Are you considering a used business car? Read our Advice Centre report
Top Tips: How to buy a used business car
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