The used car market continues to demonstrate its remarkable resilience, according to recent reports by Cap HPI, a trusted industry authority Marsh Finance relies on for market analysis. While some price adjustments occurred, as Cap HPI Director of Valuations Derren Martin highlights, the underlying strength of the market is evident. Here at Marsh Finance, we believe these trends offer valuable insights for dealerships and financiers alike.
Strong Demand Despite Price Fluctuations
Positive Signs for the Year Ahead
The Evolving Electric Vehicle Landscape
Adaptability is the Key to Success
Strong Demand Despite Price Fluctuations
Cap HPI’s Derren Martin confirms that used car sales remained robust after Easter, mirroring historical trends. However, he attributes the slight dip in prices towards the end of the month to an increase in available vehicles, not a decline in consumer interest. This aligns with Marsh Finance’s observations – spring typically sees more off-lease vehicles enter the market, influencing pricing.
Positive Signs for the Year Ahead
Looking at the bigger picture, Cap HPI reports that 2024 has started positively for used car retailers, with sales exceeding pre-pandemic levels. This is an encouraging sign for the industry’s health. While there might be some price fluctuations throughout the year, the modest first-quarter increase of 0.5% in used car values suggests a return to more predictable seasonal patterns. This stability is a welcome change after recent global disruptions.
The Evolving Electric Vehicle Landscape
The conversation surrounding electric vehicles (EVs) presents both challenges and opportunities. Cap HPI acknowledges the volatility in the used EV market, particularly with recent price cuts by Tesla impacting valuations. Here at Marsh Finance, we believe government support, such as incentives and reduced VAT on public charging, could significantly stabilise and bolster this segment. Consistent government policies can encourage consumer confidence and drive long-term growth in the used EV market.
Adaptability is the Key to Success
Cap HPI forecasts a potential annual decline of around 1.5% in used car prices, reflecting the market adjusting to a new normal. This highlights the importance of adaptability for dealerships and financiers. By staying informed with data-driven insights from Cap HPI and other reliable sources, stakeholders can develop strategies that cater to both seasonal sales cycles and evolving consumer preferences, especially in the burgeoning EV market.
Marsh Finance: Your Partner in a Dynamic Market
The used car market’s resilience is a testament to its strength. While the automotive industry is constantly evolving, Marsh Finance is here to empower dealerships to capitalise on these opportunities. We offer a comprehensive suite of financing solutions tailored to your customers’ needs, ensuring a smooth and successful buying experience.
Partner with Marsh Finance and gain access to:
- Competitive rates and flexible loan terms
- Fast and efficient approvals
- Dedicated support from experienced account managers
- MVP, our FREE sales, operational, and compliance consultancy service
Don’t miss out on this dynamic market! Contact Marsh Finance today to discuss a customised partnership and unlock your dealership’s full potential.