ABM_1 - Flipbook - Page 59
equipped to engage customers,
streamline operations, and adapt to the
evolving market.
What’s next?
Our industry forecasts predict a gradual
return to a more typical rhythm for the
UK used car market in 2025. Used car
transactions are expected to reach
7,717,595, a modest 1% year-on-year
increase and 4.6% above the 2001–
2019 average.
Depreciation rates are expected
to remain broadly stable across
most segments, with only limited
improvements in residual values.
Retailers will continue to manage stock
effectively, but margins will remain under
pressure as the market adapts to new
dynamics. While buyer attitudes towards
EVs are improving, affordability and
infrastructure challenges continue to
slow mass adoption.
Overall, the used vehicle market is
expected to see moderate growth in
the near-term, operating below pre2020 activity levels but likely a more
predictable environment than the new
car sector.
The path ahead
Looking back on 2024, retailers that
focused on disciplined acquisition,
strong stock profiling, and retail-ready
presentation were able to protect
profitability despite market volatility.
This approach should continue to be
leveraged, especially as consumer
preferences evolve and digital
engagement becomes more central to
the buying journey.
Remarketing ex-fleet and short-cycle
vehicles will be a defining trend in the
months ahead. Rising volumes from
these sources present both opportunity
and risk. Preparation standards,
Volatile residual values
add to uncertainty in a
market already unsure
about the long-term
viability of EV stock”
refurbishment consistency, and accurate
pricing strategies will be essential to
maximise returns.
Retailers must also prepare for a more
policy-driven environment. Navigating
regulatory changes with clarity and
confidence will be key to maintaining
customer trust and operational efficiency.
Ultimately, the used car market offers
a more stable footing than its new
counterpart. But stability does not mean
stagnation. The sector is undergoing
its own transformation, shaped by
electrification, digitalisation, and shifting
consumer expectations. Retailers that
embrace change, invest in technology,
and maintain a sharp focus on customer
value will be best placed to thrive. i
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