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Used car dealers will need to offer a high level of reassurance to ‘vulnerable’ buyers as used cars become older and more expensive in 2023.

Dealers need to prepare now for tougher market conditions in order to maintain profitability next year, the RAC Dealer Network is advising.

The latest market analysis from eBay Motors showed that the average advertised price of used cars rose 2% to £17,610 in November with hard-to-source vehicles aged under two years driving the increase with a 3% uplift to £35,425.

Sean Kent (pictured), European director of automotive at Assurant, which partners with the RAC in the warranty and aftersales sector, said: “We believe that continuing to achieve strong profits is certainly going to remain possible for dealers in the coming 12 months. People will continue to need used cars and vans, and they will continue to buy them. However, there is almost certainly going to have to be a shift in dealer propositions.

“In a furtherance of the ongoing trend we have seen developing since the pandemic, stock shortages will continue and, as a result, consumers will be faced with paying more money for older cars.

“This is going to be a tough ask. Buyers who feel quite vulnerable in terms of their own financial situation are going to find themselves offered vehicles that are potentially more prone to breakdown and repair because of their age.

“They’ll need a high degree of reassurance in order to commit to a purchase, and we believe that dealers who understand this mindset are the ones who will be most likely to perform best.”

The RAC Dealer Network is working with its more than 1,200 members to look at ways in which propositions could be enhanced for next year.

Kent added: “In our view, warranties are at the heart of resolving these issues and we would expect there to be a move towards longer and more comprehensive warranties both as standard with a vehicle purchase and as part of a potential upgrade path. A comprehensive warranty from a recognised brand means a lot to a potential car buyer.”

Dealers are also advised to adopt measures such as structured vehicle preparation inspections that can be shown to the customer, by highlighting the comprehensive nature of the service history, and carrying out vehicle history checks.

“All of this helps to generate a higher degree of confidence for the consumer but the skill lies in creating an overall proposition for the needs of each dealer, the range of vehicles that they sell and their customer base. There is no one-size-fits-all solution,” Kent said.

Used car values remained 45% ahead of pre-pandemic “norm” during November, according to the latest data from Auto Trader.

Platvormil müügiks reklaamitud kasutatud autode keskmine väärtus jõudis eelmisel kuul 17,801 4.7 naelsterlingini, mis oli eelmise kuuga võrreldes madalam trendi järgi, mis väidetavalt on kooskõlas hooajaliste suundumustega ja tõusis aastaga XNUMX%.

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• Allikas: https://www.am-online.com/news/used-cars/2022/12/19/buyers-will-need-reassurance-in-2023-as-used-cars-become-older-and-more-expensive