ABM Q4 - Flipbook - Page 11
FEATURE
USED CAR MARKET
through Motorway or through an auction,
because it's making life easier for you as
a vendor.”
A move towards older cars can
provide additional profit opportunities.
Customers may be looking for additional
reassurance, through an extended
warranty or a service plan, while spend
in the aftersales department often goes
further than just routine servicing.
Smyth says: “At Swansway, we look
at used cars much more broadly than
simply the margin on the vehicle itself [...]
including finance, insurance, aftersales,
servicing and other additional products
and services. These all contribute to
the overall profitability of the customer
relationship. The key is understanding the
whole picture rather than focusing solely
on the profit made from the vehicle. A
used car can create a relationship that
continues well beyond the initial sale.”
what's going to sell in your
local market for the right
money. You don't need to
take chances on that sort
of stuff anymore. That will
be a way to mitigate the
cost increases that we
see. Harness the power of
technology rather than add
it as a cost and a bit of
confusion.”
Technology has also
become deeply ingrained
in the sourcing process. In
the summer, Carwow ran
an automatic number plate recognition
(ANPR) campaign called ‘The Fling’, which
targeted drivers of in-demand used cars,
aiming to get them to ‘break up’ with
their car. Platforms such as Carwow
and Motorway have provided new
opportunities for dealers, giving them
access to private seller vehicles they
would not ordinarily be offered.
Some dealers have taken this further,
opting to buy directly from owners. This
is more time consuming than slapping
a few bids on an online auction, but
arguably offers greater profit potential,
Pontin explains: “Generally speaking,
they will find that a private vendor
will sell a car cheaper direct to them
than they would if they were getting it
Gone are
the sharp sales
practices, the
tactics to make
you buy the car
right now"
A confidence boost
The transition to EVs has been anything
but smooth for the used market. Fears
around battery longevity, price volatility,
and the fast pace of vehicle development
have all contributed to weak confidence.
There are signs this is beginning to
change, though. Dealer confidence is
growing, with a third of independents
that stock vehicles under five years old
now having sold EVs.
There are still challenges, though.
Pontin says: “When it comes to an EV or
a hybrid, they don't know whether they're
going to be wearing wellington boots or
gloves, and what happens if it catches
fire. They don't want that hassle. They
don't understand it, so they don't want it.
“The biggest problem is around being
able to prep that car, having technicians
that have got experience to work on it,
so that they can get it properly ready
for sale. It puts a whole different
dimension on the dealership, because
[...] you've lost all that profit that comes
with aftersales. An EV does not need the
same level of care and maintenance that
a fossil fuel car does."
Price instability, while traditionally
viewed as a weakness, has arguably
helped the EV transition at the older end
of the market. While new car buyers
have been turned away from EVs due
to often higher list prices and more
expensive leases, some used car buyers →
Q4 2026
AUTOMOTIVE BUSINESS
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