Autorola has recorded a "dramatic increase" in demand for used cars priced £5-7,000, now the "most popular" selling brand for the online remarketer.
Autorola attributed the rise to reduced motoring budgets combined with the loss from the market of around 300,000 cars under the Scrappage scheme in 2010.
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The company added online sale prices were "often" reaching 10% above guide values as wholesalers strive to meet demand. Smaller cars were preferred with petrol engines, larger models with diesel engines.
New deals beat used prices
Neil Frost, head of operations at Autorola UK, added the nearly-new sector was "proving tough" by comparison, with many cars less than 12 months old appearing to be of less value than new cars bought on finance deals with extras such as discounts and servicing.
At the start of July, a survey of independent used car dealers by vehicle valuation firm CAP reported manufacturers’ current offers on new cars were the "most attractive" ever seen on the market.
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By GlobalDataHowever, car finance technology provider iVendi has said such subvented deals may have hit their apogee and are not viable in the long term.
richard.brown@timetric.com
