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Dealers are forecasting a strong used car market in 2017.
The majority of dealers (80%) are forecasting the used-car sales market in 2017 could remain level or even increase compared to 2016.
A total of 43% believe it could increase as much as +10% or more, according to cap hpi.
The used market is expected to benefit next year from new car price rises as carmakers hedging strategies fall away.
Mike Allen, an analyst with Zeus Capital specialising in car retailing believes any slowdown in the new car market caused by price rises may not necessarily be bad for retailers.
“A softer new car market is not necessarily a negative in our view, and might help residual values and therefore used car margins over time.”
And car finance suppliers see the used car benefiting from a slowdown in the new car market as prices rise.
John Simpson, managing director at Moneyway: “Any price increase could have a positive knock-on effect on the used car market, as consumers could opt for a slightly older car rather than a brand new model.
“Currently, the used car consumer finance numbers reflect a very strong position, reporting its strongest rate of growth for over two years with new business volumes up by 21% year on year in August,” he said.
Julian Rance, head of Paragon Car Finance, said: “New car prices in the UK look set to rise as the falling pound hits imports.
“As a result, dealers may find some of the most attractive new car finance deals are no longer available.
“However, lower new car registrations will help keep the used car market buoyant, encouraging lenders to sharpen their focus in the used car space.”