Dealer pessimism over used cars has mounted over the past month amid concerns over the cost of living and uncertainty created by the war in Ukraine.
The majority of dealers (79%) are pessimistic about used car prospects compared to 60% last month.
Just 12% are optimistic about prospects compared to 33% a month ago, according to the Startline Used Car Tracker.
The majority of dealers (76%) now agree that used car prices have peaked and some kind of market readjustment is underway.
Paul Burgess, CEO at Startline Motor Finance, said: “Over the last month, it has become ever-clearer that we are seeing a deterioration in the general economic situation thanks to factors including the war in Ukraine, rising prices and political uncertainty.
“This has now started to feed through into how dealers see the next few months shaping up and there is no denying that 21% is quite a marked fall in dealers who feel optimistic.
“The one bright spot is that there seems to be widespread agreement that the stock supply situation is getting better. This has obviously been a difficult area for dealers for some time now, so it is good to see that some improvement is taking place.”
The Startline Used Car Tracker is compiled for Startline Motor Finance by APD Global Research. This month, 297 consumers and 54 dealers were questioned.