More than half of dealers (55%) expect 2024’s used car market to be “better” than this year’s, new research shows.
September’s Startline Used Car Tracker shows that 45% believe there will be better stock supply and 43% that demand for electric vehicles (EVs) will increase. However, just 25% expect there to be an improvement in consumer confidence.
Paul Burgess, CEO at Startline Motor Finance, said: “Our new research shows that there is definitely a growing and welcome sense of optimism in the used car sector.
What is interesting is that this positivity seems to be based more on an expectation that we’ll see structural changes rather than a general improvement in economic conditions.
“Just one in four dealers think consumer confidence is going to increase, indicating that there is a general feeling that personal finances will continue to be a significant issue.
“However, there is much more widespread belief that we will see better stock availability and a rise in demand for EVs.
“What dealers are perhaps really forecasting for 2024 is a better balance of supply and demand, and that would undoubtedly be good for the market, even if it contributes to the ongoing readjustment in used car values and prices.”
Each month, the Startline Used Car Tracker asks dealers how they feel about the prospects of the used car market and there has been a sharp improvement over 2023.
In April, just 20% said that they were feeling positive but that has now risen to 73%. Conversely, those feeling negative have fallen from 27% to 10%.
Paul said: “This data suggests that dealers believe the used car sector has weathered the economic storms of 2023 pretty well. Certainly, there appears to be a much improved mood in the sector as we head into Q4.”
The Startline Used Car Tracker is compiled monthly for Startline Motor Finance by APD Global Research. This time, 349 consumers and 60 dealers were questioned.