Buyers to favour cheap and cheerful
The profile of used car demand is likely to change through the winter, with increasing numbers of buyers entering at the lower end of the market.
Startline Motor Finance CEO Paul Burgess said that as weather worsens, commuters who have turned to walking and cycling instead of public transport will increasingly seek other cheap alternatives.
He said: “We’ve previously talked at some length about the post-lockdown used car sector being split into ‘like to spends’ and ‘need to spends’ but the truth is that the former have very much been powering the market. Average vehicle prices have markedly increased and there’s been high demand for prestige vehicles, sports cars and convertibles.
“Conversely, ‘need to spends’ have only been buying a used car when it was essential – but what we believe will probably happen now is that we see more of them entering the market as winter begins to bite and what looks like being the second wave of coronavirus increasingly makes itself apparent.
“People who have been using public transport to get to work through the last few months may well become increasingly worried as the risks of infection appear to grow, while others who have been cycling or even walking to work during the spring and summer will want an alternative once conditions become darker, colder and wetter.
“The only practical solution to these needs in the majority of cases is a used car and there is some feedback appearing from retailers to suggest that demand in this part of the market is already picking up.”
He added that lower income families have been hit hardest by the effects of the coronavirus, and that will reflect their car buying habits.
“They want low cost, reliable, value for money transport that will not spring unexpected expenses. Retailers who are able to create propositions that meet their needs are likely to be successful in the next few months.”
