Analysis

Jigsaw Finance’s Nigel Hawkins gives his observations on the PCP market

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The recent performance of the new and used UK car market is being heralded as an indicator to an improving economy. Sales have been attributed to: aggressive manufacturer marketing; competitive low-rate PCP offers; deposit contributions; customers using PPI claims monies; and savings, due to the low return on investments.

However, there are differing views about market recovery. BCA reports average values continuing to rise in the used car market during September, according with both fleet and dealer part exchange values reaching record levels. The used market remained relatively short of stock in September as much of the volume resulting from the September plate change does not impact until early October.

Dealers are holding on to good part exchanges which would normally go to auction in order to offer consumers a good selection. Due to the factors above, dealers are seeing increasing numbers of older cars being used for part exchange as consumers return to the market having held on for better times.

Glass’s says the market figures reveal that while there’s been a considerable increase in the private sector, the business sector hasn’t shown any sign of recovery since the recession began and the fleet sector is performing only marginally better than 2009-11.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

PPI claims will run out, as the banks lobby the government for a cut-off date, so what happens after that? If the "improved market" is largely based on consumers then could the bubble burst?