More than half of dealers (55%) expect 2024’s used car market to be better than this year’s, new research shows.

Overall, 43% of dealers expect demand for EVs to increase in 2024

September’s Startline Used Car Tracker shows that 45% also believe there will be higher volumes of used cars while 43% expect demand for EVs to increase. However, just 25% expect there to be an improvement in consumer confidence.

Paul Burgess, CEO at Startline Motor Finance, said: “Our new research shows that there is definitely a growing and welcome sense of optimism in the used car sector. What is interesting is that this positivity seems to be based more on an expectation that we’ll see structural changes rather than a general improvement in economic conditions.

“Just one in four dealers think consumer confidence is going to increase, indicating that there is a general feeling that personal finances will continue to be a significant issue.

“However, there is much more widespread belief that we will see better stock availability and a rise in demand for EVs. What dealers are perhaps really forecasting for 2024 is a better balance of supply and demand, and that would undoubtedly be good for the market, even if it contributes to the ongoing readjustment in used car values and prices.”

The research, carried out among 349 consumers and 60 dealers, also shows the ongoing rise in dealer optimism during 2023. In April, just 20% said that they were feeling positive but that has now risen to 73%. Conversely, those feeling negative have fallen from 27% to 10%.

Burgess said: “This data suggests that dealers believe the used car sector has weathered the economic storms of 2023 pretty well. Certainly, there appears to be a much-improved mood in the sector as we head into Q4.”