Franchised dealers will continue to see strong demand in the used car segment driven by a combination of consumer demand and a lack of supply of new vehicles.
That’s the view of Sue Robinson, CEO of the National Franchised Dealers Association (NFDA), commenting on the latest SMMT’s used car figures.
“Looking ahead, used car values will remain strong whilst supply side issues on new vehicles are prevalent. We also expect the BEV section of the market to continue to rapidly grow as more models enter production.”
Ian Plummer, commercial director at Auto Trader said the market was showing promise for 2023 but raised concerns over used EVs.
“Lingering supply issues held back used car sales against an exceptional 2021 performance, but the market has great momentum and last month we saw a record 80m visits to our site – nearly 10 million more than a year ago.
“2022’s EV boom is, however, at risk as our data shows demand for used electric vehicles has been dampened by high energy prices in the last few months.
Lisa Watson, director of sales at Close Brothers Motor Finance, said: comments: “The 0.8% December rise gives us reasons to be positive about the resilience of that market heading into 2023.
“Now, supply chain constraints are easing and the gap between demand and supply in the new car market is closing. This should start to settle the market, with more affordable used cars available to drivers in the coming months.”