USED BUYERS SET TO CASH IN THREE YEARS AFTER CAR FINANCE BONANZA, SAYS CARGURUS
- Ex-finance dealer stock surges following record new car registrations in 2016
- Number of, low mileage, three-year-old used cars has more than doubled since PCP surge in 2016, according to CarGurus
- Buyers can capitalise on influx of good condition, ex-finance cars as more hit the forecourt
- CarGurus offers advice on how to shop for the best deal when buying an ex-finance vehicle
London, UK, August 13, 2019 – 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.* * * *
For further information, please contact:
James Drake at CarGurus – UKPR@CarGurus.com / 0208 541 3434 / +44 07809 657178
* * *CarGurus reported a 137% increase in inventory on CarGurus.co.uk of three-year old cars with under 40,000 miles from January - June, 2016 to January - June, 2019
* * * *CarGurus launched in the UK in 2015 and is the fastest growing auto shopping site in the UK among its nearest competitors based on the percent change in average unique monthly visitors from Q2 2018 to Q2 2019 (Source: Comscore MMX Multi-Platform®, Custom-defined list includes Cargurus.CO.UK, Motors.CO.UK, AutorTrader.CO.UK, Pistonheads.com, Gumtree.com)
How CarGurus Works:
CarGurus helps car shoppers search local car listings and quickly find great deals from top-rated dealers. Every day, the company analyses millions of data points on hundreds of thousands of UK car listings to calculate each car’s Instant Market Value (IMV) or fair retail price. This data is used in combination with dealership ratings from other shoppers to rank and rate available cars results based on the quality of the deal: Great, Good, Fair, High or Overpriced. The site also provides transparency on how long the car has been on the forecourt and if it’s had a price drop. Consumers can contact dealers directly.
Founded in 2006 by Langley Steinert (also a co-founder of TripAdvisor), CarGurus (Nasdaq: CARG) is a global, online automotive marketplace connecting buyers and sellers of cars. The company uses proprietary technology, search algorithms and data analytics to bring trust and transparency to the automotive search experience and help users find great deals from top-rated dealers. CarGurus is the most visited automotive shopping site in the U.S. (source: Comscore Media Metrix® Multi-Platform, Automotive – Information/Resources, Total Audience, Q2 2019, U.S. (Competitive set: CarGurus.com, Autotrader.com, Cars.com, TrueCar.com)). CarGurus launched in the UK in 2015 and is the fastest growing auto shopping site in the UK among its nearest competitors based on the percent change in average unique monthly visitors from Q2 2018 to Q2 2019 (source: Comscore MMX Multi-Platform®, Custom-defined list includes Cargurus.CO.UK, Motors.CO.UK, AutorTrader.CO.UK, Pistonheads.com, and Gumtree.com). In 2019, CarGurus acquired UK-based PistonHeads.com, which it operates as an independent brand. In addition to the United Kingdom and the United States, CarGurus operates online marketplaces in Canada, Germany, Italy and Spain.
CarGurus® is a registered trademark of CarGurus, Inc. All product names, trademarks and registered trademarks are property of their respective owners.
To learn more about CarGurus visit www.cargurus.co.uk.
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