ABM Q4 - Flipbook - Page 9
FEATURE
USED CAR MARKET
Value-conscious:
Lower costs
and reduced
depreciation
exposure makes a
strong financial case
for used vehicles as
the cost-of-living
continues to rise
can deliver excellent value across its
remaining lifecycle.”
The affordability picture is much more
stark for the private buyer, and therefore
the selling dealer, Palmer says: “Salaries
and the price of cars have increased
broadly in line. But while salaries
have gone up, food, energy, rent and
mortgages have all gone up much more.
The amount of money people have to
spend on a car feels about the same, but
everything else has gone up.”
A study conducted by Startline Motor
Finance in July found that 73% of
motorists’ finances had been stretched
by the war in Iran. This went beyond
pressure at the pump, with 36% less likely
to replace their current car, and 19%
spending less on servicing.
Rupert Pontin, head of insight and
communications at Brego, agrees that
consumers are increasingly driven by
cost, but are not necessarily deferring
purchases. He says: “Over the past
three or four months, we’ve seen an
increase in demand at that older end
of the market. That's driven by families
being cost conscious."
Good as new?
While drivers are looking for older
vehicles, they are unwilling to
compromise on condition, history and
mileage. This makes stock sourcing more
complex than looking at age and price,
Pontin says: “When they walk onto a
forecourt, whatever age that vehicle is,
they expect it to be almost like a new car.
That makes life more difficult.
“The dealers, as a result of that, when
they're buying from the wholesale
platforms, consistently look for cars that
are in really good condition. They can get
it on sale quicker, and spend less money
on preparation.
“Auction companies are seeing an
increase in the number of vendors that
want to do SMART prep work on the
vehicle before they offer it for sale, which
makes sure they're getting the best price
they can for the car, but also that they're
turning it quickly. →
Q4 2026
AUTOMOTIVE BUSINESS
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