2024 used car market challenges

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【Summary】Used car dealers can expect an unpredictable year in 2024 as consumers continue to struggle with the cost-of-living crisis. The head of Black Horse Motor Finance, Tim Smith, believes that dealers will face challenges, but experienced ones can overcome them. The cost-of-living crisis and rising prices are impacting sales, and stable interest rates would be beneficial. Despite the difficulties, many dealers have managed to turn challenges into opportunities.

FutureCar Staff Nov 23, 2023 8:17 AM PT

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 he also believes that experienced dealers have the ability to navigate 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 will remain stable, but acknowledged the uncertainty surrounding the global economy.

Smith also mentioned that the cost-of-living crisis will likely continue to pose challenges for customers, which in turn will impact sales. He noted that 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 continue to rise. However, Smith believes that if interest rates stabilize, it would be beneficial, and he hopes for a more settled environment overall. He concluded by saying, "There's plenty to keep us all amused!"

Smith acknowledged that these new challenges come after a difficult year for used car dealers. The lingering cost-of-living crisis has affected sales, making life tough for both customers and dealers. Smith also discussed the supply and demand dynamics in the industry, attributing them to the ongoing impact of Covid, the presence of older cars, and price fluctuations driven by electric vehicles. However, he highlighted that many dealers have successfully navigated these challenges and 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. The 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. Winners and two highly commended firms will be announced for each category at the awards ceremony, which will take place at The Brewery in London on November 27. Although the event is sold out, interested individuals can contact the sales team via email ([email protected]) to be added to a reserve list for tickets.