New figures from SMMT (Society of Motor Manufacturers and Traders) give a great insight into the current situation in the new and used cars markets. The story is night and day, with one sector struggling and the other thriving. We want to take a closer look at it today. Then, if you want to start car broking, you can learn from us.
New cars
Let’s start with the challenging side and explore new cars. The headline figure from SMMT is that new sales to private buyers at showrooms were down 12.9% in May. Since the start of 2024, the decline has been 11.3%. Not even the release of new 24 plates could drive a consistent wave of interest.
There are a couple of major reasons for the lack of interest in new cars. Most notable is that there are fewer models to choose from than ever before. In the past, showrooms could have dozens of different models to offer. However, today manufacturers have a much smaller offering. That means that there is far less choice for buyers, and many may decide not to make a purchase at all.
The push to get more people to buy EVs is also a massive factor. There is actually legislation in the UK now that is having a massive impact on dealers. The ZEV mandate (zero-emission vehicle) means that this year dealers have to ensure that 22% of sales are EVs. Manufacturers offer lots of models today, and there can be great incentives, but it is still hard to get interest with higher prices for new EVs.
Used cars
The news for second hand cars is much brighter. That will be music to the ears of anyone that works in or wants to start car broking.
SMMT says that the number of private buyers choosing used cars is up. During the first three months of 2024, sales were up 6.5%. This hit a five year high, close to two million units.
Impressively, sales of used EVs were up because the values depreciate massively in the first 12 months. However, the highest demand was still for petrol engines. The top selling used cars in the period were the Ford Fiesta, Vauxhall Corsa, Ford Focus, VW Golf, and the Mini hatchback.
Buyers have been very active in the used car market largely because prices are stable now. Plus, they can get far more choice than they can when they shop for new cars.
Do you want to start car broking?
Auto Car Brokers is a great resource if you want to benefit from the amount of interest and activity in the used car market. We can help you to start your own broker business. It is a fantastic way to get involved with very few risks. Most importantly, it gives you incredible flexibility and you don’t need to make any massive investments.
If you want to find out more, you should have a look at our website. We recommend reading all the info and then having a look at our products. They can make it very easy to set up a business. In addition, you can speak to us if you want to clarify anything or need some advice.
