Commercial characteristic: Out with the brand new, in with the used

Commercial characteristic from Black Horse

Regardless of UK new automotive gross sales hitting a 30-year low in 2022, the used automotive market is gaining increasingly momentum. On the finish of 2023 alone, it grew 5.5% with nearly 1.9 million items altering arms. And electrical autos (EVs) are enjoying a significant function, with gross sales hovering by 99.9% in Q3 of 2023, with a report 1.8% market share.

With increasingly individuals turning to electrical, and the federal government setting bold goals for all new vehicles to be zero emission by 2035, it’s essential sellers know the most recent info to information their prospects by the transition.

Used vehicles are on the up

The expansion of the used automotive market is a pattern we’ve observed at Black Horse too. In December 2023, 6.1% of our used automotive enterprise targeted on EVs. All through 2023 this enhance was evident month-on-month, rising fourfold by the tip of the 12 months. This means a strong surge in provide as the brand new automotive market recovers.¹

PHEV and HEV markets additionally experiencing development

Not solely did battery electrical autos enhance their proportion market share of the used autos market in 2023, plug-in hybrids and hybrids additionally elevated their market share. Collectively they make up 2.8% of the market.² What’s extra, in response to information from Auto Dealer, new electrical vehicles purchased in 2022 have misplaced 21% of their market worth³ – excellent news if you wish to purchase second-hand in 2024.

“The used automotive market continues to develop strongly, with re-energised provide unlocking demand for pre-owned electrical autos – the outcome being twice as many motorists switching to zero emission motoring within the quarter (Q3). Sustaining this momentum requires development within the new automotive market, to spice up provide to the used sector and cement this success. Equally essential is the pressing want for charging infrastructure rollout, so that each one drivers can have faith in having the ability to cost each time and wherever they want.” – Mike Hawas, SMMT Chief Government

Black Horse launch new EV Hub

With demand steadily rising inside the used automotive market, it’s essential for lenders and sellers to work collectively to teach their prospects. That’s why we’re launching a brand new EV Hub quickly, which can share info across the security and lifetime of a used EV to assist ease peoples’ worries round charging, operating prices and battery life. It should act as an help for sellers of their discussions with prospects to assist them make knowledgeable selections.

“At Black Horse, we’re dedicated to sharing the potential of used EVs with sellers and prospects. We’re taking steps to offer schooling to make EVs extra simply accessible. We’re additionally reviewing our finance merchandise to make sure we’re giving sellers confidence to inventory and customers confidence to purchase.”- Tim Smith, Head of Motor Finance.

^{1 & 2  https://www.smmt.co.uk/2023/11/used-bev-transactions-double-as-second-hand-market-goes-green/}

^{3 https://www.driving.co.uk/car-clinic/will-electric-car-prices-go-down-in-2024/#:~:textual content=Forpercent20thosepercent20lookingpercent20topercent20buy,beenpercent20tumblingpercent20allpercent20throughpercent202023.}