2024: Uncertain Times for Used Car Dealers

author: FutureCar Staff    

2024 is expected to be an unpredictable year for dealers, as consumers continue to grapple with the cost-of-living crisis. According to Tim Smith, the head of Black Horse Motor Finance, used car dealers will face several challenges in the coming months. However, he believes that experienced dealers have the ability to navigate through these obstacles.

In a video interview, Smith stated, "The only thing you can predict [about 2024] is it will be unpredictable." He expressed hope that interest rates would remain stable, citing the Bank of England's decision to hold rates. However, he acknowledged the uncertainty surrounding the global economy and its potential impact on interest rates.

Smith also highlighted the ongoing cost-of-living crisis as a major challenge for customers, which in turn affects sales. He noted that many people are transitioning from fixed-rate mortgage deals, which requires adjustment, and prices are still rising, albeit at a slower pace. Additionally, petrol prices are still under upward pressure.

Despite these challenges, Smith believes that stable interest rates would be beneficial and could lead to a more settled market. He concluded by saying, "There's plenty to keep us all amused!"

Smith acknowledged that used car dealers have already faced a tough year, primarily due to the cost-of-living crisis. He emphasized that this crisis has had a negative impact on sales and made life difficult for customers, dealers, and their businesses.

Furthermore, Smith discussed the supply and demand dynamics in the industry, which have been influenced by factors such as the ongoing effects of Covid, older cars still in circulation, and price fluctuations driven by electric vehicles. Despite these challenges, he commended many dealers who have successfully turned them into opportunities for their businesses.

Smith's comments were made ahead of the Car Dealer Used Car Awards 2023, which is sponsored by Black Horse. These awards recognize excellence in the used car industry and have been honoring top dealers, businesses, and manufacturers since 2012. The shortlist for the awards can be found by clicking here.

The winners and two highly commended firms for each category will be announced at the awards ceremony, which will take place at The Brewery in London on November 27. Although the Used Car Awards 2023 has sold out, interested individuals can contact the sales team via email ([email protected]) to be added to the reserve list for tickets.

FutureCar Staff