The seeds of a different used car market 10 years from now have already been sown including fuel type changes, new funding methods and a sophisticated, digitised wholesale sector.
According to Philip Nothard, customer insight and strategy director at Cox Automotive, parent of Manheim Remarketing, these are the three major trends which are likely to have the most impact.
Nothard will outline why, and what dealer group leaders can plan for, at the Automotive Retail Congress on May 21 at Ricoh Arena, Coventry.
Although the EV sector is being driven by a handful of manufacturers currently, the arrival of 80-plus new models in the next three years will very quickly change the balance.
By 2030, the current market dominance of PCP and HP is likely to have been overtaken by PCH and some provision of shorter subscription style funding options. Nothard believes such 18-month leases are likely to see the rise of vehicles having two lifecycles before it reaches the wholesale used car market.
A new car will be leased by a captive finance house once up to 18-months and again from 18-36-months, before the finance house remarkets it.
Linked to this trend will be an increasingly digitised wholesale process which could see a car marketed to its next owner or lessee whilst it is still on the road, Automotive Retail Congress delegates will learn.
Nothard added: “The vehicle’s data will become its most valuable asset including imagery, video and telematics which will be made available as part of the process but the vehicle itself will not need to be marketed in a physical place. This has massive implications for efficiency and cost savings for dealers as the digital space is utilised in a much more sophisticated way.”
- Other presenters at The Automotive Retail Congress, on May 21 at Ricoh Arena, Coventry, include the ICDP, Zeus Capital, Tomorrow's Journey, Barclays and Aston Business School. To find out more click here.