10:47 am, October 19, 2022
Used vehicles now represent a third of the ‘pre-loved’ economy with a value of £2.2bn.
That’s according to new findings by used car marketplace Motorway and the Centre for Economics and Business Research (CEBR).
It found that the pre-loved economy is estimated to be worth £6.5bn in 2022 – up from £3.8bn in 2018 and set to grow to £12.6bn by 2027.
The ongoing semiconductor shortage, which has meant delays for manufacturers bringing new cars to market, has driven some of the rising demand for used cars, but it also comes down to price and what people can afford, said Motorway.
The poll of 2,000 UK adults revealed that overall cost pressures are the main reason for turning to pre-loved and used goods, while greater accessibility via online marketplaces such as Motorway is also a key factor.
Two-thirds of Brits who bought pre-loved goods in the past year (66 per cent) stated that saving money was a key reason, suggesting that cost-of-living concerns have prompted a shift in shoppers’ preferences.
James Bush, sales director at Motorway, said: ‘With the used vehicle market making up a third of the value of the pre-loved economy, we want to make sure our dealer partners have access to as much privately owned stock as possible to fill their forecourts.
‘With more than 1,000 cars going into our daily sales, our network of dealers has a constant stream of quality private stock to choose from – with no middle man taking a cut.
‘In these unprecedented times, when quality used car stock is becoming harder for dealerships to acquire, our dealer partners can rely on us to help fuel the used car market, providing high-quality used car stock every day.’
Owen Good, head of economic advisory at the CEBR, said: ‘Our analysis highlights the considerable contribution of the pre-loved market to the UK economy at £6.5bn, with the total value of the market expected to double over the next five years, highlighting the traction pre-loved goods have gained amongst consumers.
‘This is especially pertinent given the ongoing cost-of-living crisis and severely dampened spending power of consumers, with our research finding that the value offered by the pre-loved market is a key driver of its growth over the last several years.’
