Dealers lose out as most used car buyers opt for private deals

Nearly four-out-of-five used car buyers are avoiding their local car dealer and buying on the private market.

Figures compiled by car history website Motorcheck.ie show nearly 400,000 private car sales occurred this year out of a total of over 660,000.

The figures highlight that increasingly cash-strapped used-car buyers are buying privately instead of involving a used-car dealer.

Shane Teskey, co-founder of Motorcheck.ie, said that economic factors were a significant reason for the popularity of the private market.

“It’s clear from our analysis that the vast majority of second-hand car buyers are avoiding their local dealer and turning to the private market,” he said.

“Common problems such as car clocking, poorly repaired write-offs and cars where finance is still outstanding are now all covered in a Motorcheckreport making it easier than ever for a buyer to avoid the hidden problems that are commonplace in today’s market,” he said.

The top 20 cars purchased in the private market so far this year have all been older than 10-years-old whereas cars purchased from dealers are all less than 10-years-old.

Meanwhile, new car sales in October were 6% up on last October.

However, sales for the year as a whole are down by 12%.

Spokeswoman for the Society of the Irish Motor Industry Suzanne Sheridan, said it is expected that by the end of the year, sales will be just short of 80,000 — 10,000 fewer than last year.

“Without scrappage, we have seen new car sales fall and both used cars and the servicing/repair sectors have also seen reduced activity so it’s been a tough year for the motor industry.”

“At this stage though, the industry is now firmly focused on 2013 and despite consumer concerns about the forthcoming budget, the good news for car buyers is that dealers are now quoting prices and cost to change that should mean no unexpected price increases as a result of the budget.”

Ms Sheridan said a VRT increase was expected in the budget, but as used car values tend to rise in relation to such increases, the cost to change should not affect buyers. At the moment, dealers are anticipating all of this so consumers can have some certainty if they are planning to buy now. Also, at the moment, we understand that many dealerships are offering significant discounts on 2013 cars if the order is placed before the end of the year,” she said.