Used car retail sales increased from June to July according to 85% of independent used car retailers surveyed by CAP Automotive.
Of the 108 dealers questioned, just one reported fewer sales, while the rest maintained the same level of activity achieved in June.
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Overall, CAP described July’s market performance as "the best yet" for 2013.
While sales remained strong, 85 out of the 108 dealers warned that forecourt stock levels were "too low", the first time stock levels had been described as such since April in the independent sector.
Overall, dealer confidence for the next three months was strong, and dealer’s description of the current business climate was more positive than at any time in the past two years.
Mike Hind, of CAP Automotive, said: "this year, thanks to sustained demand from motorists, depreciation has not accelerated in the way we have sometimes seen historically, when new car sales were stimulated by the heavy reliance on discounts and offers.
"For cost-conscious motorists the next few weeks will present great opportunities for bargain hunting. Franchise dealers will be pushing new cars even more heavily and independents will be determined to compete by offering the best deals possible during a period which tends to see the used car market slow down."
