The majority of people in the UK will get at least one used car in their lifetime. It could be their first vehicle or simply be because they want a specific model that isn’t available anymore. Whatever the case, there are plenty of good choices. Dealers and buyers may even call on a car broker service to help them find vehicles.
One of the most interesting things about the used car market here is that traditionally there would be an influx of nearly new cars periodically. It would happen because fleets would buy new, keep the vehicles for two or three years, then replace them. All of them would end up on the second hand market.
A change
However, while that does still happen, more and more fleets are now using second hand vehicles. New data from 2024 Arval Mobility Observatory Fleet and Mobility Barometer highlights the change. Its findings are that 54% of UK fleets are buying used vehicles now. In addition, 24% were planning to in the coming years.
If you compare with figures for Europe, more fleets in the UK are looking to used vehicles. Currently the average is 29% of European fleets buying them already. On top of that, 38% are looking to do so in the future.
Why the change?
To an extent some businesses have always chosen second hand rather than new for fleet vehicles. However, there is no historic data to show the extent.
A number of factors could be to blame for the change to used vehicles for fleets. Primarily is the massive dip in new car production during covid. Many businesses will have had no choice but to choose second hand models because there simply weren’t enough new ones coming off production lines.
The cost could also be a factor. Used vehicles can be massively cheaper than new ones. So, any business looking to balance the books or improve margins would be better off choosing them. Using a car broker service can help businesses to find great cars at fantastic prices.
Uses
According to the data, many fleets today are using second hand vehicles for things like pool cars, job need cars, and benefit drivers. The first are owned by the business but available to different employees depending on needs. The second are given to employees as part of a company car scheme, typically as a works vehicle. Finally, some businesses arrange vehicles for employees because they have disabilities.
The impact
It is a good idea to consider the potential impact of this move. Traditionally fleets would be supplying a regular influx of quality near new vehicles to the used market. However, more firms pulling from it instead could mean a drop in numbers. In turn that could mean prices increase.
Do you want to start a car broker service?
Whatever happens, the used car market in the UK will be an important resource for various buyers. The services of brokers will always be useful too. They can help various buyers, including dealers, to find vehicles. The rewards can be fantastic, including a nice commission for every car.
So, if you want to explore the opportunities to start your own car broker service, browse our website. We have plenty of info and then you can buy industry leading tools. You can even contact us if you need any answers for questions.
