Almost two-thirds of dealers (62%) say an improved economy would provide the biggest boost for used car sales in 2025, new research indicates.
January’s Startline Used Car Tracker research is a timely reminder of dealers’ views on economic progress in the UK and the impact it has on the used car market and consumer confidence.
Chancellor Rachel Reeves has delivered a speech on how the Government intends to “kickstart economic growth” this morning covering areas like reform and investment.
Startline’s research, which polled 329 consumers and 58 dealers, shows that 50% would like to see direct Government support for used electric vehicle (EV) buyers, 48% an improvement in consumer confidence, and 38% a loosening of the Zero Emissions Vehicle Mandate (ZEV) targets.
Also, 36% want better stock supply, 31% improved motor finance availability, 19% a reduction in business overheads such as rates and staffing, and 16% better availability of skilled staff.
Paul Burgess, Startline Motor Finance chief executive, said: “Pretty much every indicator showed that there was a downturn in both the general economy and consumer confidence towards the end of 2024, and that appears to have weighed heavily on these results.
“Dealers seem concerned that this negative mood could be a drag on the used car market and really want to see some form of uptick for the New Year that changes the outlook.”
Burgess said other factors mentioned in the research are perhaps unsurprising.
He said concern over stock availability is now really “a given”, as are concerns over skilled staffing and premises costs.
The ZEV mandate is also very much a live subject and Startline hopes to see the current Government consultation have a positive outcome.
Burgess added: “Adjustments to the ZEV mandate could at least in part serve to lift market sentiment.”