Fall in used car sales

There was a three per cent drop in the number of used cars changing hands during the third quarter of 2007, according to the latest statistics from market analysts Experian.

The fall represents the biggest drop in used car sales seen during the quarter by the industry for eight years.

Younger cars - aged less than three-years-old - suffered the highest loss, falling in sales by eight per cent, compared to quarter three of 2006.

This again is the biggest drop in sales for younger cars during quarter three since 2000.

"By the time the third quarter had begun, the base rate had already risen five times to 5.75 per cent - its highest level since spring 2001 - so consumers were feeling the squeeze on their finances," said Kirk Fletcher, managing director of Experian's automotive division.

"Sales of 'big ticket' items, such as cars, were the most likely to suffer, and they did. The third quarter of 2007 saw the biggest drop in sales for the year so far."

However, some vehicles remained popular throughout the period.

SUVs and MPVs saw sales increase eight and three per cent respectively - while all other segments saw a downturn.

"Conditions are tough for used car dealers and the squeeze on consumers' spending is not helping," continued Mr Fletcher.

The company finds some 7.8 million used cars were sold in 2006, but by the end of September 2007 the industry was three per cent off this target.

"In order for the used car sector to avoid recording a loss during 2007 as a whole, October, November and December will need to record just under 1.9 million used car sales," concluded Mr Fletcher.