As the remarketing sector faces a period of profound transformation, the insights shared at the Vehicle Remarketing Association’s Automotive Summit focussed on the need for agility, data-driven decision-making, and forward-thinking strategies.

The road ahead may be complex, but it is also ripe with opportunity, according to Louis Maxwell, senior insight manager, and Micha Byrne, performance manager, both from Auto Trader, who provided in-depth insights into the challenges and opportunities facing the car remarketing sector. Their discussion touched on evolving consumer demand, the transition to electric vehicles (EVs), and the supply dynamics reshaping the market.

Navigating Complexity

Maxwell captured the complexity of the current market, stating, “2024 has been one of the most complex years for buying and selling used cars, and we expect it’s going to continue next year as well.”

Consumer demand remains healthy with Byrne pointing to the resilience of consumer interest: “Consumers, and their demand for cars, have never been stronger. We’ve had real wage increases, unemployment low, confidence has improved, and when we look at Auto Trader as a gauge of activity, site visits have been up 8% year on year.”

This robust demand is reshaping the used car market, particularly regarding speed of sale. “Stock has sold rapidly in 2024 as well, turning one day faster than the prior year,” Byrne said. For the supply-constrained three-to-five-year-old segment, “They’ve been selling four days faster.”

Despite ongoing challenges, Byrne noted the market’s overall strength, predicting “a total of 7.6 million transactions , which is 5% more than last year and just within 4% of economic levels.” Looking ahead, she forecast further growth: “We expect 7.7 million transactions in 2025, and there’s probably a little bit more upside scenario to this forecast as well.”

The Shift to EVs

The transition to EVs is one of the most transformative forces in the remarketing sector. Maxwell highlighted the declining prevalence of internal combustion engine (ICE) vehicles, stating, “We have 18.7 million petrol cars on the road in Great Britain, and every year going forward from now, that number is going to decline because of the ZEV mandate and the transition to electric.”