Why Used Car Supply Constraints Are Expected to Ease This Year

Used cars parked closely, illustrating supply constraints.

Rising Stability in the Used Car Market: What It Means for Buyers

The used car market in the UK is experiencing a notable stabilisation, according to a recent report by Cox Automotive. Projecting approximately 7.64 million transactions for this year, this figure is 3.6% above the long-term average spanning from 2001 to 2019, indicating a vital stabilising effect within the automotive sector.

How Supply Chain Issues Are Easing

Supply constraints that have plagued the automotive industry since the pandemic are expected to ease in the latter half of the year. This anticipated relief comes as manufacturers ramp up production to meet growing consumer demand for affordable vehicles. Analysts suggest that retailers have a unique opportunity to set robust retail prices, which will benefit their profit margins in what has been a supply-constrained market.

The Shift in Vehicle Values

Trade values have shown signs of returning to their typical seasonal patterns, which is a positive indicator for both consumers and dealers. Notably, values for petrol vehicles remained stable at approximately 60% of their original cost throughout the past 18 months. However, diesel and hybrid vehicles have experienced slight declines, with diesel down by 7% compared to 4% for hybrids. With the rise of electric vehicles, there's also been a significant increase of 62.6% in electric van arrivals, showcasing a shift in consumer preferences.

What This Means for Consumers

For car buyers, this stabilisation offers a chance to purchase vehicles at more competitive prices, backed by steady values in the used market. With strategically chosen stock, retailers can provide better options for consumers, who are looking for economical choices as budget constraints continue to affect purchasing decisions. The future appears optimistic as the industry adapts to meet these evolving consumer needs.

As the used car market evolves, understanding these trends will help buyers make informed choices. Keep an eye on future market developments to find the opportunities that best fit your needs and budget.

news

0 Views

0 Comments

Write A Comment

Related Posts All Posts

06.26.2025

Volkswagen Golf GTI Edition 50 Breaks Records: A Tribute to Performance

Update The Volkswagen Golf GTI Edition 50: A Historic Milestone The latest buzz in the automotive world is the new Volkswagen Golf GTI Edition 50, a vehicle designed to commemorate 50 years of the iconic Golf GTI. More than just celebrating a legacy, this model is breaking records, having set the fastest lap time for a Volkswagen production vehicle around the challenging Nordschleife circuit. Racing driver Benny Leuchter piloted the car to a stunning time of 07:46:13, showcasing the GTI’s raw power and precision. Why This Record Matters to Car Enthusiasts For car lovers, lap times at the Nordschleife stand as a testament to performance capabilities. The tight corners and long straights of the "Green Hell" test a vehicle's engineering to the limit. Achieving such a remarkable time not only elevates the GTI's reputation but also reinforces Volkswagen's place in the high-performance hatchback market. This blend of speed and tradition appeals to both seasoned enthusiasts and newer generations of drivers. A Round-Up of Engineering Marvels in the Edition 50 Equipped with a Performance package that enhances chassis responsiveness, the GTI Edition 50 boasts lightweight 19-inch semi-slick Bridgestone Potenza Race tyres and forged wheels. This meticulous attention to detail in the design is essential for achieving optimal handling and speed. The setup allows drivers to maneuver through the Nordschleife's curves with confidence, making it a thrilling experience that few cars can match. What’s Next for the Golf GTI? As we look ahead to the market release next year, the anticipation surrounding the Golf GTI Edition 50 is palpable. With its performance credentials firmly established, Volkswagen is poised to once again redefine expectations in the hot hatch segment. The potential for customization, combined with the rich history of the GTI, signals that this model may well become a favorite among car enthusiasts for years to come. Take Your Next Driving Adventure to the Next Level Whether you’re an experienced driver or just starting your journey into the realm of performance vehicles, the Golf GTI Edition 50 offers something for everyone. This car not only delivers in terms of raw performance but also emphasizes the joy of driving, making it a perfect choice for those looking to elevate their everyday driving experience. Final Thoughts The Volkswagen Golf GTI Edition 50 is more than just another addition to the GTI lineup; it’s a celebration of a legacy that continues to evolve with the times. As it prepares to launch on the market, it brings excitement and allure to those who cherish high-performance vehicles. Keep an eye out for its debut next year!

06.27.2025

Leap into the Future: Bungee Jumping Promotes Leapmotor's EV in London

Update Leapmotor Introduces a Unique Pop-Up Experience in London In an innovative publicity stunt, Leapmotor, a Chinese electric vehicle brand, is capturing the attention of potential car buyers at its pop-up showroom in Coram’s Fields, London. For a limited time, attendees can experience a bungee jump from a staggering 50 meters, providing them with an adrenaline rush unlike any other while promoting the leap to electric driving. Taking the Leap to Electric Vehicles The core mission of Leapmotor is to make electric driving accessible and affordable for everyone in the UK. This bold move is significantly highlighted through their engaging pop-up event, which encourages prospective customers to explore not just the thrill of bungee jumping but also their full lineup of electric vehicles. The T03 city car starts at just £15,995, while the family-friendly SUV, the C10, retails for approximately £36,500, showing a commitment to value and accessibility in the EV market. Leapmotor's Launch and Expansion Plans Having officially launched in early 2025, Leapmotor is poised to expand its footprint, with plans to increase its retail network from 46 to over 80 locations by year-end. This initiative, a result of a partnership with Stellantis, emphasizes an aggressive strategy to penetrate the UK market as consumers increasingly shift towards electric vehicles. Why This Matters to Future Motorists As the automotive landscape rapidly evolves, events like Leapmotor's pop-up showcase not only highlight the practical offerings of EVs but also underscore the need for creative marketing strategies in attracting new customers. The increase in electric vehicle options and the engagement strategies developed by brands like Leapmotor can influence consumer choices, potentially shaping the future of transportation in the UK. Concluding Thoughts The Leapmotor event serves as both a thrilling experience and a significant push towards electric vehicle adoption. With its commitment to accessible pricing and innovative marketing tactics, Leapmotor is set to make a mark in the competitive EV market.

06.27.2025

How Vertu Motors is Thriving Amidst Automotive Market Challenges in FY26

Update Vertu Motors Thrives in a Complex Market Landscape As Vertu Motors embarks on FY26, recent performance indicators suggest a positive trajectory amidst a complex automotive market. The company has recorded a remarkable 7.0% growth in new retail volumes, despite the ZEV Mandate causing uncertainty for consumers and dealerships alike. Vertu's ability to gain market share during this tumultuous time reflects its strategic adaptability and robust business model. Consumer Trends and Market Dynamics The automotive landscape continues to evolve, with electric vehicle adoption increasingly prioritized by the UK government. This shift poses a dual challenge: while it drives interest in electric cars (EVs), it also pressures retailers to adapt quickly to changing consumer preferences. Vertu Motors has managed to navigate these waters wisely, positioning itself advantageously against market fluctuations. Highlighting Opportunities in Aftersales Segment Despite facing headwinds in the new car sector, Vertu's aftersales business stands out. Increased revenues in the service and parts segments demonstrate not only customer loyalty but also opportunities for profitability even when initial vehicle sales are subdued. The resilience of this part of the business illustrates a growing trend where consumers prioritize maintenance and service quality. Looking Ahead: Strategic Moves and Forecasts Vertu’s ongoing £12 million share buyback program, with £4.5 million already utilized, signals a confidence in its future performance. This strategic maneuver aims to leverage market conditions to enhance shareholder value. With continued focus on both new and used vehicle offerings and bolstered by a strong aftersales aspect, the company is poised for further growth. As automotive professionals and consumers observe these developments, the overarching lesson is one of resilience and adaptation. Embracing Innovation and Sustainability In summary, as Vertu Motors stabilizes its operations heading into FY26, its clear focus on emerging trends such as EV adoption and customer satisfaction in aftersales serves as a model for adaption in an ever-changing market. This approach not only benefits shareholders but also aligns with broader consumer needs for sustainability and quality. As we watch these developments unfold, stakeholders at all levels can glean actionable insights for navigating the retail automotive landscape.