2024 has been a year of success stories for some in the motor industry, while others have faced challenges. For the used car market, after years of recovery from the pandemic’s impact on sales, things are finally looking up.
In Q4 of 2024, the used car market showed obvious signs of resilience, with the value of used vehicles reported to have decreased by an average of 4.2%, compared to a 10.5% decline during the same period in 2023. Furthermore, used car inquiries saw a significant increase, with Carwow reporting a 49% surge compared to the same period in the previous year.
As the year ended, it was anticipated that both the retail and wholesale sectors would experience a slight decline due to seasonal patterns. However, it is clear that the market is stabilizing, with the average time to sell only increasing slightly in December, from 41 to 43 days.
Looking ahead to the New Year, Chris Plumb, Head of Current Car Valuation at Cap HPI, shared an optimistic outlook: “The outlook for January, and beyond, is largely positive.” He further explained that the success of 2024 for both vendors and retailers is likely due to “reduced used car stock volumes returning to the market and healthy retail customer demand.”
What is Influencing People’s Decision to Purchase?
Chris Plumb from Cap HPI elaborated on the factors influencing buyers' decisions, saying, “Vehicles with clean mechanical and cosmetic condition reports, good specifications, desirable colours, low mileage, and competitive pricing all play a key role in the decision-making process.” In a recent survey conducted by Carwow, it was revealed that 30% of car buyers are now more inclined to purchase a used vehicle rather than a new one. This trend suggests that 2025 is shaping up to be a promising year for the used car market.