The impact of the cost-of-living crisis on the used car market has come under focus by the Vehicle Remarketing Association for its latest ‘Five-Minute Briefing’. 

The VRA says the cost-of-living crisis looks set to have a major impact on the used car market throughout the remainder of this year

Five experts from the industry body have tackled different aspects of how the trend is affecting everything from supply to sales to values, as well as also looking at the effects of the situation in Ukraine. 

Contributors include Cliff Deller, remarketing and digital retail consultant, Orchid Automotive; Matt Dale, co-owner and director, G3 Vehicle Auctions; Derren Martin, director of valuations at Cap HPI; Jayson Whittington, chief car editor, Glass’s; and Philip Nothard, insight and strategy director, Cox Automotive and VRA chair. 

Philip Nothard said: “The cost-of-living crisis looks set to have a major impact on the used car market throughout the remainder of this year and beyond, with prices for key items reaching new highs and inflation touching levels not seen in several decades.   

“Developing an understanding of exactly how this will play out over time in terms of its effects on consumer behaviour is going to be essential for remarketing businesses, especially those sectors where there is a high level of sensitivity to vehicle pricing and running costs.” 

Key takeaways include a general observation that dealer interest in higher-priced vehicles has reduced as consumers react to the changes in their finances, but cheaper cars are still sought after by end-users, affecting how much dealers will invest to maintain levels during these uncertain times.

Nothard added: “What we have worked to achieve in the new Five-Minute Briefing is to deliver a commentary that provides a strong expert overview for the remarketing sector but takes only a few moments to read and digest.”   

The VRA is planning to issue more Five-Minute Briefings over the next few months and has invited suggestions from across the remarketing sector for topical subjects to tackle. 

The ‘Five-Minute Briefing’ can be obtained by emailing [email protected].