Used car values are set to ‘remain buoyant’ over the next 12 months and to remain robust over the next four years.
That’s the view of Paragon Bank Motor Finance managing director Julian Rance who said the outlook was positive following an amazing 2021.
“I have never seen used cars grow in value to the extent they did in 2021 during my 30+ year career in this industry. It was an amazing year with so many influencing factors at play.
“I expect the used car market to remain buoyant during the next 12 months, and that includes values.
“The supply chain issue for new vehicles is well known and that is not going to be resolved anytime soon, so demand for used cars will be strong again this year. Simple supply and demand economics dictates that will underpin prices.
I also expect values to remain robust over the subsequent three to four years. Fewer new cars today means fewer used cars in the future, so supply will continue to be constrained,” he said.
Rance said the business is expecting an increase in refinancing over the coming year along with growth in EV volumes.
“We are looking at growth across our key market segments, including BEVs and the leisure vehicle market, whilst we expect to see an increase in refinance activity.
“Given the value inflation and shortage of stock we have seen in recent months, people are increasingly keen to keep hold of their vehicle once a finance agreement has come to an end through refinancing.
“We have seen an increasing number of requests for that.”
Used car values are set to ‘remain buoyant’ over the next 12 months and to remain robust over the next four years.
That’s the view of Paragon Bank Motor Finance managing director Julian Rance who said the outlook was positive following an amazing 2021.
“I have never seen used cars grow in value to the extent they did in 2021 during my 30+ year career in this industry. It was an amazing year with so many influencing factors at play.
“I expect the used car market to remain buoyant during the next 12 months, and that includes values.
“The supply chain issue for new vehicles is well known and that is not going to be resolved anytime soon, so demand for used cars will be strong again this year. Simple supply and demand economics dictates that will underpin prices.
I also expect values to remain robust over the subsequent three to four years. Fewer new cars today means fewer used cars in the future, so supply will continue to be constrained,” he said.
Rance said the business is expecting an increase in refinancing over the coming year along with growth in EV volumes.
“We are looking at growth across our key market segments, including BEVs and the leisure vehicle market, whilst we expect to see an increase in refinance activity.
“Given the value inflation and shortage of stock we have seen in recent months, people are increasingly keen to keep hold of their vehicle once a finance agreement has come to an end through refinancing.
“We have seen an increasing number of requests for that.”