The UK’s pre-owned vehicle market is expected to witness substantial expansion in 2024, propelled by an increase in car inventory and changing customer preferences. After a tough 2023, where new vehicle shortages due to semiconductor shortages and post-pandemic disturbances influenced the sector, 2024 is anticipated to be a year of rebound and normalization (Grant Thornton UK LLP) (EY US).
With producers increasing output to fulfill need and maintain plant utilization levels, the surge of new cars is projected to enhance the used car market as well. Sales of used cars are projected to hit 7.3 million vehicles in 2024, increasing from an expected 7.05 million units in 2023. This increase, nonetheless, still falls short of before the pandemic levels of 7.9 million units in 2019 (Grant Thornton UK LLP).
One of the key trends to watch is the pricing volatility of battery electric vehicles (BEVs) in automobile industry the secondhand market. As technology improvements persist and government policies change, the market for pre-owned BEVs may see considerable variability. The overall outlook remains cautiously optimistic, with the market steadily acclimating to emerging financial realities and customer demands (Grant Thornton).
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