Wheeler Dealers host Mike Brewer is “positive” about the future of the used car market despite a staggering drop in valuations in recent months.
Data from CapHPI shows used car values fell by 2.1 percent in December following a drop of 8.4 percent over the past two months.
This is a lot higher than the average December fall of around 1.3 percent with the largest 2.2 percent drop last coming back in 2014.
Speaking to Car Dealer Magazine, Mr Brewer revealed he was still slightly worried about external factors.
However, he still admitted he was optimistic it would be a “very good year” for the second-hand car market.
He explained: “I think next year is looking positive in a number of ways. There is one bit of fear on the horizon which is the price of oil looks like it’s going to go up again which might raise inflation again which might keep interest rates where they are.
“But I do tend to think in our industry in the used car trade or new car trade it is going to be a very good year.
“We haven’t spoken about what dealers are doing about EV stock and how that’s affected their business and how prices have just fallen out of the market.
“In a positive sense, I feel pretty positive about next year. I know I’ve got a really good loyal customer base who come and buy from Mike Brewer Motors or One Automotive. I feel pretty positive about next year, bring it on.”
AutoTrader also suggests a positive year for the used car market next year with estimated transactions likely to increase.
The online car marketplace claims there could be around 7.24 million sales, up from the 7.17 forecast for 2023.
However, the colony still predicted that buyers could get their hands on significant discounts on models in the early stages of the new year.
Derren Martin, Director of Valuations at CapHPI said valuations will continue to drop but not by as much.
They predicted there could be a gradual stabilisation of values before these start to rise in the second half of 2024.
He told Car Dealer Magazine: “It might be a bit of a tricky first half that continues to see some small drops, but as we get through that and into the second half of next year, we’re kind of calling it a game of two halves.
“We think the back end of next year could be stronger and you could actually see values going back up again.”
