The used and new car markets have both faced a turbulent few years, however, trends for 2015 indicate that the 12 months ahead will be significant ones for the second hand auto market. Here are some predictions of the used car market over the next year.
General Election fever
May’s General Election is expected to focus around measures to save money and increase taxes, no matter which party comes out on top. Anticipated voting results at the moment are far from clear, which will have an affect on consumer confidence across all industries, but especially automotive. More people will be expected to turn to the second hand market when choosing their next vehicle.
Regional car buying trends look set to continue as well, as people maintain their traditional buying habits in line with where in the country they live. Auto Trader has revealed which the most desirable cars in the
UK are by region, with some examples including the Mini Cooper hatchback 1.6 for Londoners, the Range Rover Sport in Yorkshire, the Mini One hatchback 1.6 in the East of England and the Honda Jazz inNorthern Ireland
. The Royal baby due to be born in April may well also spark off a renewed feeling of patriotism amongst car buyers and a desire to ‘buy British’.
Environmentally-friendly vehicles will continue to be popular amongst not only individuals, but businesses too. More company fleets will move to greener, low CO2 vehicles. This trend will impact used car dealers, as demand grows within the new car market for robust hybrids that have a good resale value. Top-selling second-hand hybrids currently include the Toyota Prius, the Honda Insight and the Lexus RX.
Investing in knowledge and technology
Dealers hoping to stay ahead this year will need to invest in people power and technology to attract buyers. Forecourt visits are down 41% year-on-year, according to research by Auto Trader. Of those who do come, half arrive on site without having contacted the dealership in advance, as they have been able to find out what they need online. Making sure the website is up-to-date, interactive and available on phones and tablets must be a top priority for dealers in 2015, as internet searching and social media networking are not going away.