Used car market set to bounce back in January, while used van market will go from strength to strength in 2021 predicts Shoreham Vehicle Auctions MD
The used car market will make a big come back in January after pent-up demand from the November lockdown 2.0 and December’s seasonal Christmas slowdown.
And the used van market looks set to continue its record demand and price growth as companies buy replacement or additional used vans out of necessity through business growth.
That’s the view of Shoreham Vehicle Auctions managing director Alex Wright who predicts a used car market bounce back in January 2021 that will mirror June 2020 when the market came out of its first lockdown.
Wright believes consumer demand will kick in between Christmas and New Year when motorists invest in upgrading their car rather than booking a family holiday.
He expects the £10,000 to £40,000 price brackets to continue to be the most popular in the market.
“The smart dealers are already buying used cars during lockdown at lower prices to feed the expected consumer demand from the end of December. We saw prices wobble on the first day of Lockdown 2.0, but since then prices have softened, but the market has found a new level where the trade seems comfortable to buy stock,” said Wright.
“The market knows it will be short of dealer part exchanges come January because the volume of new car deliveries falling as dealers only trade online during November. They are getting themselves ready for another record trading period in late December and into Q1 2021,” he added.
A polar opposite from the used car market is the used van market which from early November saw prices and demand continue to rise. Prices have nearly doubled in some sectors of the market during 2020.
“People replace their used cars as they fancy a change or because they want a new model with the latest equipment on it while used van buyers replace their vehicles out of necessity. The economy is still turning and big sectors like construction are still trading during lockdown 2.0.
“With many sectors such as home delivery continuing to grow even during lockdown, companies and contracted drivers are looking to buy a used instead of a new van due to the persistent delivery delays from manufacturers,” said Wright.
A recent Tuesday SVA commercial vehicle sale saw 175 buyers logged online buy 160 used vehicles online from around the country. The sale achieved a 98% conversion rate and this trend looks set to continue throughout 2021.