Seller Public sale anticipates a ‘used automotive growth’ this yr, following a robust efficiency in Summer season 2020.
The digital wholesale market believes the used market is a “glimmer of hope” for the business.
“It goes with out saying that 2020 was a difficult yr for the automotive business. However it’s true that out of problem comes alternative – and, going into 2021, it’s clear that the used automotive market is extra necessary than ever,” stated Le Etta Pearce (pictured), CEO of Seller Public sale.
Reflecting on dad or mum firm Cox Automotive UK’s Q3 Seller Sentiment Survey, which discovered that two-thirds (64%) of sellers anticipated used automotive transactions to extend in 2021; Seller Public sale believes this outlook continues to be real looking regardless of the UK beginning the yr by coming into its third nationwide lockdown.
“We share our sellers’ optimism in that used automotive transactions will improve in 2021. It’s unlikely that the most recent lockdown restrictions will change this sentiment, as winter restrictions had been sadly at all times on the playing cards, and lots of sellers are persevering with to function on-line, as they did in the course of the November lockdown,” Pearce added.
The elements that drove the summer season 2020 ‘mini-boom’ in used automotive gross sales are nonetheless related, in line with Seller Public sale. Firstly, used vehicles are in a robust place to be the primary beneficiary of sluggish new automotive gross sales, which suffered their worst yr in practically three a long time in 2020, and now face additional uncertainty over Brexit. The used automotive market, then again, regardless of struggling in the course of the first 2020 lockdown, staged a powerful comeback in June, registering a drop of simply 17.5% (up from a 74.2% drop in April).
Seller Public sale additionally cited new audiences as a possible persevering with driver of success in 2021, with individuals transferring away from public transport in favour of a ‘protected house’ car. There has additionally been an increase in curiosity from younger drivers – in September 2020, Auto Dealer reported a pointy year-on-year improve of 18-to-24-year-olds vehicles on their web site. These, Seller Public sale says, current sellers with thrilling new advertising and marketing alternatives for the yr forward.
Lastly, Seller Public sale additionally pointed to pre-Covid indicators that the used automotive market was selecting up, after three years of decline, and says the pandemic served to sharpen this focus. The Society of Motor Producers and Merchants (SMMT) reported the strongest performances in November and December 2019 because the similar months in 2016.