2024: Uncertainty for Used Car Dealers as Buyers Grapple with Cost-of-Living Challenges

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【Summary】2024 will be unpredictable for used car dealers as buyers struggle with the cost-of-living crisis. The head of Black Horse Motor Finance, Tim Smith, believes dealers will face challenges due to the crisis and the global economy. He hopes for stable interest rates and expects the cost-of-living crisis to impact sales. Despite the tough year, some dealers have turned challenges into opportunities.

FutureCar Staff Nov 23, 2023 5:16 AM PT

2024: Uncertainty for Used Car Dealers as Buyers Grapple with Cost-of-Living Challenges

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. Smith believes that used car dealers will face several challenges in the next 12 months, but those with experience will be able to navigate through them successfully. He acknowledges that predicting anything about 2024 is difficult, but hopes that interest rates will remain stable and potentially decrease. However, he acknowledges the uncertainty caused by the global economy.

Smith predicts that the cost-of-living crisis will continue to be a challenge for customers and impact sales. Many people are transitioning from fixed-rate mortgage deals, which requires adjustment, and prices are still increasing, albeit at a slower pace. Additionally, petrol prices are still under upward pressure. Smith believes that more stable interest rates would be beneficial and hopes for a more settled environment.

Reflecting on the previous year, Smith acknowledges that it has been tough for used car dealers due to the cost-of-living crisis, which has affected sales. However, he highlights that some dealers have effectively dealt with these challenges and turned them into opportunities for their businesses. He also mentions the supply and demand dynamics, the lingering effects of Covid, older cars still in inventory, and price fluctuations driven by electric vehicles.

Smith's comments were made ahead of the Car Dealer Used Car Awards 2023, which are sponsored by Black Horse. These awards celebrate excellence in the used car industry and have been recognizing top dealers, businesses, and manufacturers since 2012. The winners and two highly commended firms for each category will be announced at the awards ceremony in London on November 27. Although the event is sold out, interested individuals can contact the sales team to be added to the reserve list for tickets.