Luxury car demand rise ‘signals improving consumer confidence’
By Kyle Lindsay
Wednesday, January 8, 2014 - 10:00
DEMAND: Is consumer confidence improving?
Consumer confidence is improving, according to Auto Trader, after figures showed a strong increase in searches for luxury cars on the car marketplace website.
From September 2013 to December 2013, searches for luxury cars rose 4.1%, with executive cars up 3.3% and 4x4s increasing by 3.0%.
Meanwhile, demand for city cars, small sports and MPVs fell by 5.0%, 3.8% and 3.7% respectively – and Auto Trader believe such trends signal an increasingly bullish car market.
Jonathan Williams, Marketing Director at Auto Trader, said: “While the rise in 4×4 searches towards the end of the year can be seen as a seasonal phenomenon, the corresponding surge in luxury and executive car searches does suggest consumer confidence has returned to the market.
“We will continue to monitor and report this interesting economic trend throughout the year.
“Looking ahead in 2014, stock levels for all models under three years old are likely to remain low, following the dip in new car sales during the recession.
“That means used car prices will remain high for some time as demand continues to outstrip supply.
“However, the return to new car sales growth last year may ease price pressure as the year progresses and more nearly new stock comes onto the market.”