The Joys Of Nostalgia Driven Used Car Markets

A lot of commentary in used car markets at the moment surrounding those used car markets offering opportunity to both consumers and those capable of operating within them, including the unhelpful effect of government intervention in new car markets and the triple down effect that this intervention has had within used car markets; good and bad.

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As someone who has worked successfully within used car markets for over 30 years I am lucky enough to enjoy access to a wide ranging group of fellow used car professionals and it is fascinating to get a read of opinions and to see what used car markets are attracting both monetary investment and time.

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We all agree that the current unhelpful ideology within new car markets is driving great change within used car markets and as much as it is undermining many markets and therefore the businesses operating within them, it is also creating new markets and opportunity for those capable of identifying demand and taking advantage of this situation, by supplying that demand.

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However we are all cautious because there is not an unlimited supply of stock for these used car markets; so we remain highly agile in approach whilst continuing to make the most of the commercial opportunity that currently exists. We appreciate that sometimes used car market opportunity doesn’t last forever, so must continue to find the next used car market of opportunity; one driven by consumer sentiment and the availability of stock of the right profile; that in demand.

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That said as a conduit and market facilitator operating in specialist used car markets, I can say that as used car markets in the UK continue to fragment and evolve, there continues to be many market drivers in play (including consumer sentiment) and certain used car markets are seeing demand vastly outstrip supply.

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Although these used car markets are in their infancy (in terms of the trading volume and the sociodemographic of the customers looking to purchase), it has been fascinating to work within two of the fastest growing markets over the last 24 months; especially when you drill down into the motivations and sociodemographic of those purchasing within these markets.

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Two of the most competitive (in terms of supply and demand) used car markets have been the price range, up-to ￡10,000 – under 70,000 mile premium diesel market; SUV’s, Estates and Saloons. Along with the affordable roadster market; premium roadsters up to ￡10,000 which includes BMW Z3’s and Z4’s, all variants of the Mercedes Benz SLK and the Porsche Boxster.

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What has fascinated me is the sociodemographic profile of those buying in these markets and their reasons for purchasing. Without exception all have been what would be categorised ABC 1’s; professionals financially capable of purchasing a far more expensive car, but who don’t.

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Be in no doubt these are not purchasers spending up to a maximum budget that can’t be exceeded for financial reasons; far from it! As it is an important information for me in terms of market analysis and understanding, I always qualify their motivations and without exception all are looking at these markets due to the direction of travel in new car market; namely the drive towards EV’s.

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With a large of proportion of people this drive is not popular and they have no interest in following the associated “Dogma” so look upon this moment as their last opportunity to purchase a car that they want and will enjoy driving; and you can see why.

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Although prices are on the rise and there is (of course) not an unlimited supply of cars available, the value within these markets is astounding. So it is no surprise to me that free thinkers and those who enjoy a certain spirit of driving are making these used car market so busy.

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To help in understanding I thought it might be useful to provide a couple of recent examples of cars that have gone to new homes; one from each of the markets alluded to above.

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BMW X5 3.0 Diesel Sport Exclusive Edition

Carbon Black with BMW Individual Ecru Nappa Leather

2005 (55) Registration

63,000 miles with a full service history

￡6,995

BMW Z4 3.0 SE Roadster

Maldives Blue with Beige Leather

2005 (05) Registration

41,000 Miles

￡5,995

However for those understandably drawn to the value offered within these markets, a word of caution; these are used car markets for fully formed grown-ups, not those looking for the purchasing experience served up by vast swathes of franchised dealer networks and branded used car supermarkets in the UK.

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These markets are in their infancy, there are no warranty programmes available and you will be purchasing under a consultancy and/or brokerage style commercial arrangement; ergo there is no Sale of Goods Act and you can forget about any 14 day free trial and the ability to hand a car back.?

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On the plus side you will be working with a professional who knows the market and has the professional ability to acquire cars that you will not be able to; at a price that is representative of the market. You will be entering into a “Peer-to-Peer” (NOT a Master-Servant relationship) business relationship with a professional who will be looking to build “Trust” and not be bothered about being “Liked” or chasing a 5 star review. They will also ensure that the car you are acquiring has both the provenance and is prepared to a standard that will ensure that at that moment, it represents excellent value within the market.

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This is proving to be a very popular model of doing business with “The Grown-Ups” and is allowing consumers access to used car markets and cars such as those listed above; a level of expertise that would be beyond their own capabilities. Maybe those running used car businesses of the past, in ways that the new breed deem as old fashioned, really do know something after all?

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Anyone wishing to explore purchasing or selling a car falling within these market parametres can feel free to reach out to me directly on LinkedIn.