Used car buyers could take advantage of an influx of ex-PCP models, three years after the peak in finance packages, according to CarGurus.
CarGurus, a leading online automotive marketplace, has indicated that there is a surge in dealer stock of good condition, low mileage, three-year-old cars, meaning good news for used car buyers.
New car sales reached a record-high in 2016* with an estimated 86% bought on finance contracts**, the most common of which were three-year Personal Contract Purchase (PCP) and Personal Contract Hire (PCH) plans.
This means that many of the 2,692,786 vehicles registered in 2016 will be hitting the used car market in 2019, offering savvy buyers the opportunity to find a great deal on the forecourts.
Figures from CarGurus revealed that the number of low mileage, three-year old used cars listed on CarGurus.co.uk has more than doubled, with an increase of 137% since 2016’s PCP bonanza.***
“While 2016 proved to be the year of the new car, 2019 could be very much the year of the used car with a vast swathe of ex-finance contract vehicles heading back into dealer stock.” Chris Knapman, Editor of CarGurus UK, said.
He continues, “buying a three-year-old car now makes sense as there will be a consistent turnover of high-quality vehicles that are being returned or traded in by their original owners at the end of PCP contracts.
“The bonus of buying ex-finance vehicles is they are often well-maintained with comparatively low mileage because of the finance contract terms and conditions. However, as with any used vehicle purchase, buyers should always shop with care and research their potential purchase thoroughly and CarGurus can help, using its search function to compare potential purchases, to show whether the advertised price represents a good deal.”
CarGurus has compiled these top tips to help when buying an ex-finance vehicle.
Tips for buying an ex-finance vehicle
Check history: Always check the provenance of the vehicle and make sure it has been fully checked and serviced. Many dealers will offer this check as standard but make sure to ask.
Dealer: CarGurus offers a comprehensive dealer rating tool so buyers can see how well the seller has performed based on reviews from previous customers so they can be sure they can trust any purchase.
Spec/trim: CarGurus’ in-depth search filters allow you to find the perfect model to match your needs based on your desired colour and optional extras.
Price: Ex-finance cars are not necessarily the cheapest on the market because of their good condition and low mileage. This shouldn’t put you off as CarGurus’ Instant Market Value and Deal Rating will ensure you’re getting a great deal for the vehicle offered no matter whether its ex-finance or not.
Created by TripAdvisor co-founder Langley Steinert, CarGurus combines dealer reviews with comprehensive car valuation analytics to bring trust and transparency to the automotive marketplace, allowing buyers to quickly and easily find great deals from top-rated dealers.
CarGurus is the fastest growing automotive shopping site in the UK among its nearest competitors.****