Dealers can expect continued high demand for sub-£5K used cars well into the economic recovery, according to The Warranty Group.

Despite the economy’s return to its pre-recessionary level, The Warranty Group said demand for low cost used cars will continue as a result of real world wages having fallen since the recession began.

“There is perhaps an expectation that the burgeoning economic recovery should see people start to spend more money on cars right across the used sector. However, this is not happening and is unlikely to do so. The recession has left a lot of people feeling much worse off and that situation is unlikely to change for quite some time, “ said Ian Simpson, sales and marketing director.

“Dealers specialising in the sub-£5K sector will continue to do well if they retail quality, low cost cars that are likely to provide value for money motoring.”

Simpson also said the trend towards longer extended warranties is continuing.

“At the start of the recession, we saw a definite increase in demand for longer and more comprehensive warranties as customers looked to minimise the possibility of being hit with large bills. Perhaps surprisingly, this demand is continuing into the economic recovery. There is a genuine desire to put a ‘safety net’ in place around the vehicle to provide a high level of cover.”

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Original Story Taken From Motor Trader News http://www.motortrader.com/automotive-news/demand-sub-5k-used-cars-continue/