Used car sales fall as people struggle to secure finance

New research published by credit reference agency, Experian, has revealed a surprising drop in used car sales in the first quarter of this year, the lowest since 2005.

Just over 1.6 million used cars were sold from January to March this year, a 5 per cent decrease compared to 2012.

This decrease in used car sales is thought to be attributable to the tough economic climate throughout the UK, with people finding it increasingly difficult to secure finance to fund used car purchases.

With rising costs of living and stagnant incomes, the financial situation for most adults is tight, and is set to become worse over the coming months as benefit changes from the government are introduced and inflation remains unstable.

Household incomes have to stretch even further to cover basic living costs such as food, travel and rent/mortgages, and due to a general inability to save money, people want to rely on finance to fund purchases such as a car.

However, lenders are being increasingly strict with their lending criteria, and more and more people are facing knockbacks from high street lenders.

This pattern has led to a surge in alternative lenders to the market, whose lending criteria is not as prescribed. GetMeFinance.com is one such lender, and they have been helping people with a less-than-perfect credit score secure car finance for over 20 years.

COVID 19 hasnt helped the situation and as funders start to come back its tough in the market.