Dealers turn to Chinese brands in used market

Almost half of UK used car dealers have added vehicles from Chinese new entrant brands to their stock, as growing consumer interest begins to filter through from the new car market into the used sector.

New research from February’s Startline Used Car Tracker shows that 45% of dealers are now retailing models from Chinese manufacturers. Among those stocking the vehicles, sentiment is broadly positive, with 45% reporting that the cars sell quickly, 33% saying they represent good value for money, and 20% stating that customers like the cars on offer.

However, a degree of caution remains among retailers. More than a third (37%) of dealers said they are waiting to see how reliable the vehicles prove to be over time. Meanwhile, 20% believe consumer awareness of Chinese brands is still low, and 14% expressed concerns around parts availability and manufacturer support.

Paul Burgess, CEO at Startline Motor Finance, said Chinese brands have already reshaped the new car market and are now beginning to make their presence felt in used car showrooms.

“In the last couple of years, Chinese new entrants have made a sizeable impact in the new car market with a flood of new models and the rapid establishment of substantial dealer networks,” he said. “Stock is now beginning to filter through into the used sector and it’s clear that a large proportion of dealers are enthusiastic about their arrival.

“Their proposition in the used sector is similar to new – these are models that represent good value and have high retail appeal. It’s interesting that every dealer we surveyed who had sold a Chinese car reported that they sell quickly. A fast turnaround is obviously a key metric for motor retailers seeking stock.

“Objections from other respondents indicate a degree of wariness that might be applied to any unfamiliar car brand but, to us, it seems likely worries over reliability and manufacturer support are likely to disappear relatively soon.”

The Startline Used Car Tracker is compiled monthly by APD Global Research and provides insight into both consumer attitudes and dealer sentiment across the used car market. For the February edition, 301 consumers and 62 dealers were surveyed.