Used automobiles now represents a 3rd of the pre-loved economic system with a worth of £2.2bln.
The pre-loved economic system is estimated to be price £6.5bln in 2022, up from £3.8bln in 2018 and set to develop to £12.6bln by 2027, in accordance with analysis carried out by Motorway and the Centre for Economics and Enterprise Analysis (CEBR).
The analysis revealed that total value pressures are the principle trigger behind these turning to pre-loved and used items, whereas larger accessibility by way of the prevalence of on-line marketplaces can also be a key issue. The proportion of second-hand items offered by way of on-line marketplaces jumped from 57% in 2017 to 74% in 2022.
The areas of London, the South East, and the South West see the best absolute expenditure on pre-loved items, accounting for greater than a 3rd (37%) of the full pre-loved market within the UK.
James Bush, gross sales director at Motorway mentioned: “With the used-vehicle market making up a 3rd of the worth of the pre-loved economic system, we need to be certain that our seller companions have entry to as a lot privately owned inventory as attainable to fill their forecourts. With greater than 1,000 automobiles going into our day by day gross sales, our community of sellers has a continuing stream of high quality personal inventory to select from – with no intermediary taking a minimize. In these unprecedented occasions, when high quality used automobile inventory is changing into tougher for dealerships to amass, our seller companions can depend on us to assist gas the used-car market, offering top quality, used-car inventory on daily basis.”
Owen Good, head of financial Advisory at CEBR mentioned: “Our evaluation highlights the appreciable contribution of the pre-loved market to the UK economic system at £6.5bln, with the full worth of the market anticipated to double over the subsequent 5 years, highlighting the traction pre-loved items have gained amongst customers. That is particularly pertinent given the continued cost-of-living disaster and severely dampened spending energy of customers, with our analysis discovering that the worth provided by the pre-loved market is a key driver of its progress over the past a number of years.”
