Most new drivers choose a second hand car as their first vehicle. They tend to be more affordable to buy, providing an easier entry point to ownership. In addition, there is way more choice in terms of the variety of makes and models. Plus, it can result in cheaper insurance. Sadly though, the current situation is making it much harder to find cars. We want to look at this today and the role that car broking can play to help matters.
Shortages
Typically new drivers don’t have the biggest budget when it comes to buying their first car. They are generally looking for something affordable and reliable. However, the latest figures from AutoTrader show that fewer vehicles than usual are available in crucial price brackets.
The data says that at the time of writing there are only 24,359 cars on the market with prices under £5,000. This is a massive 75% less than just a few years ago. To make matters worse, the stock of vehicles currently available for less than £11,000 is also lower, with almost a 50% drop.
Prices of EVs are also causing issues. New drivers, especially gen Z, typically have a higher interest in electric vehicles because they are more eco-conscious. However, they can be pricey, even second hand models. As a result, it can limit their options further.
Removing the barriers
A number of things need to change to make it easier for new drivers to find affordable cars. People should also ensure they are aware of all the options when they are searching for vehicles, including the usefulness of car broking. Brokers work to find vehicles to suit various needs, primarily helping dealers to get stock for their forecourts.
A crucial thing is prices need to come down. They’ve been pushed up massively in the last few years because of supply issues and high demand. So, many that would have been available in the under £5,000 and under £11,000 brackets are now worth more. The market needs to correct this to help more people get on the road.
The supply also needs to improve. It has been restricted as a knock on effect of covid and shortages or parts/labour. Luckily, new car production is back up to speed. As a result, in the coming periods we could see an influx of new vehicles on the second hand market.
Finally, the EV market needs to evolve. While the choice of new EVs is broader than ever today, the choice with second hand models is smaller. In many cases there are only a few models, including luxury ones. They can be out of the price range of many new drivers and can give concerns about their reliability and high battery replacement costs.
Do you want to start car broking?
The car market in the UK is massive, with a steady flow of new drivers wanting their first vehicles and people looking to upgrade. That means there is a lot of work to do and money to make. It presents opportunities for dealers and car brokers. We can help people start a business if they want to be a broker. Our products are exceptional, giving easy access to all of our knowledge and expertise. With them you can get a better understanding of the job, the industry, prospective clients, and more.
So, browse our website to learn more about car broking and explore our products. If you need some additional help or advice, contact us.
