The UK’s secondhand car market is anticipated to see significant increase in 2024, fueled by an increase in car inventory and changing customer preferences. After a tough 2023, where new vehicle shortages due to semiconductor shortages and post-pandemic disturbances affected the sector, 2024 is anticipated to be a year of rebound and stability (Grant Thornton) (EY).
With manufacturers ramping up production to satisfy need and sustain factory utilization rates, the surge of new cars is projected to enhance the secondhand car market as well. Sales of used cars are expected to hit 7.3 million vehicles in 2024, increasing from an projected automobile industry 7.05 million units in 2023. This increase, nonetheless, still lags behind pre-pandemic levels of 7.9 million units in 2019 (Grant Thornton UK LLP).
One of the key trends to watch is the pricing volatility of battery electric vehicles (BEVs) in the secondhand market. As technology improvements persist and government policies change, the sector for pre-owned BEVs may see considerable variability. The overall outlook remains cautiously optimistic, with the market gradually acclimating to emerging financial realities and customer demands (Grant Thornton).
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