Growth was driven entirely by fleet investment as the previous year’s supply constraints faded and helped fulfil pent-up demand. Fleet deliveries rebounded by 38.7% year on year, while business registrations, a small proportion of the market, fell by 1.5%. Private consumer demand remained stable at 817,673 units after a strong recovery in 2022, with cost of living pressures and high interest rates constraining growth.
Nearly half (48%) of mainstream brand owners said they would consider buying from a new entrant if prices were up to £3,000 cheaper, while a further 27% said they would switch if they were more than £3,000 lower. Owners of prestige cars were also willing to change with over a third (34%) saying they would switch if prices were at least £3,000 cheaper, while 41% would consider savings of over £3,000.
AA Cars’ analysis of the cost of the most frequently searched for used cars on its site found that prices suddenly went into reverse in the final quarter of last year. The 3.3% fall in prices in Q4 followed an annual increase of 3.4% the previous quarter. The average price of the most popular second-hand cars was £16,464 during October, November and December, down from £17,021 a year ago. Average prices were £17,218 in the three months prior, during July, August and September.
But beginning in 2024 and continuing into the future, destinations which do not offer EV charging will become the outliers. They risk becoming no-go locations for EV drivers if rival venues offer EV charging alongside their primary reasons to visit. Indeed, even destinations offering a very limited number of charge points risk becoming less attractive if the driver experience is regularly one of arriving to find other EVs already plugged in and even queueing to charge.
A modular Software-as-as-Service platform helps car manufacturers’ national sales companies, dealers and importers to list, market and sell their vehicles, allowing them to offer car buyers an ‘omnichannel’ purchase process. AI-driven technology harnesses data and user behaviour to guide and engage them through their car buying journey more quickly and effectively.
Dealers indicated the effectiveness of the ZEV Mandate in encouraging consumer EV sales will be negated by the government’s decision to push back its 2030 ban on new internal combustion engine (ICE) vehicle sales until 2035, giving consumers more time to consider transitioning.
Dealers tempted to hold off from advertising new stock until after the holiday period will undoubtedly be missing out on sales opportunities. Instead, it’s vital they spend the run-up to Christmas ensuring vehicles are prepared for sale and all online listings are up to date to maximise on rising search activity and get 2024 off to a positive start
Startline’s December Used Car Tracker also reports that half (50%) think that some cars have become effectively uninsurable, so are probably unsellable. The research also reports that 23% think that it has become well-known among both trade and consumers that certain cars are easy to steal.
The apparent reversals on the part of some OEMs suggest that the model is still a work in progress. Although not a major player in terms of market share, Lotus’ apparent change of heart is incredibly significant and could trigger more negativity about the agency model.
Startline’s November Used Car Tracker also shows that 29% believe the move will mean the used electric vehicle (EV) market will take longer to develop while 19% forecast that consumer demand for EVs will fall. Additionally, 24% of dealers now believe it is more likely that motorists will buy a hybrid as a stepping stone to full electrification while 20% believe that EV prices will fall further in addition to recent reductions.
