Used car market continues to rise
Four straight quarters of growth saw 351,915 more motorists get behind the wheel of a second hand car than in 2022 as the previous year’s supply constraints receded, delivering more choice to buyers.
EVs boost used car sales
Volumes in each month of the quarter rose, with the strongest gain in September, up 6.3%, which helped the market deliver the best Q3 performance since 2021. Reflecting an increase in supply, demand for battery electric vehicles (BEVs) doubled in the quarter, reaching a record market share as volumes rose by 99.9% to 34,021 units.
Automatics shift gear on the used car market
There are signs that new and younger drivers are increasingly choosing to learn and drive an automatic car. In 2017/18, 163,790 driving tests were conducted in automatics. By 2022/23 this figure had doubled (up 98%) to 324,064. AA Driving School's data shows that in January 2022, 86% of its franchisees were teaching in manual cars and 14% in automatics. As of July 2023, the number of instructors using manual cars decreased to 81% and those teaching in automatics increased to 19%.
Consumer confidence drives up enquiries in April
British consumers were their most upbeat in more than a year this April, despite the surging cost of living, as they took a more positive view of their finances and the health of the wider economy, said market research firm GfK.
Dealers update over 2023 prospects
It’s probably a measure of how low expectations have been across both the used car sector and the wider economy that a significant minority of dealers are saying that this year has, so far, been something of pleasant surprise. Certainly, while conditions are not as bad as some experts predicted, they still remain tough.
Research finds “laws of attraction” drive faster used car sales
JudgeService first identified a correlation between high customer promoter scores and faster used car stock turn in 2018, but its forthcoming industry paper shows how further incremental improvements in customer satisfaction can drive even speedier sales.
Enquiries remain strong while handovers fall in January
January presents some conflicting signals. While the number of enquiries and test drives remained strong, despite some well-publicised fears about the economy, the number of sales and handovers dropped markedly.
Selling older cars creates new probloems for dealers
Another interesting finding from the Tracker concerns factors which dealers perceive as future challenges to their business. A notable change is in the potential impact of future ICE values with a 10% month-on-month percentage point rise to 38% since July.
Dealer used car market optimism declines
The new monthly Startline Used Car Tracker shows that even dealers who remain optimistic believe conditions have worsened – with factors mentioned including a 22% drop (down to 0%) in those who agree that the market and prices are strengthening and a 6% reduction (down to 33%) who agree motor finance availability is improving.
Using the consumer rights act as a sales tool
With attention now turning to the FCA's announcement on their proposed Consumer Duty plans, dealers can see this regulation as an opportunity to improve consumer perceptions of used car dealers still further and as MotoNovo's Commercial Director Debbie McKay said consumer regulation can be an opportunity today to differentiate the dealer model.