Which used car sectors will thrive in 2020?

Which used car sectors will thrive in 2020?

With the general election behind us and the promise of some kind of resolution to Brexit in the medium-term, the time now seems right for dealers to plan ahead after a long period of uncertainty.

Indeed, according to the most recent report from cap hpi, the current outlook is now better than it has been for some time, despite remaining economic headwinds. But which sectors of the car market are likely to be most successful in 2020?

Following on from last year, cap hpi say there has been “particular strength” among smaller city cars and superminis. “These petrol, price-point cars remain popular and value drops over the last 12-months have made them more sellable than ever,” their analysts write.

“Lower medium – or C-sector – sized cars have also increased on average at the three-year point, but there has been slightly less demand for late-plate offerings and, at younger ages, values have dropped slightly.” 

Elsewhere, SUVs – which have been among the hottest parts of the used car market for a long period of time – are starting to show some divergence.

“SUVs have been interesting with large models moving down on average by 0.7% – which equates to around £500 – at one year or 10,000 miles reflecting increased supply and high prices in the market,” cap hpi said.

“By contrast, small SUVs have performed better with demand for lower price point, fast selling models healthy. Nonetheless, some hybrid models have come under pressure and their values have moved down.”

However, while there is certainly cause for some cautious optimism among dealers, it is worth noting that there remains a high degree of uncertainty around exactly what 2020 may bring for the overall used car sector. Glass’s have stated that while their overall forecast for the market is 1.5% growth, it could also grow or contract by a considerable 4%.

So, while it is important to maximise opportunities that arise in the market, it is also sensible to bear in mind that conditions could quickly take a turn for the worst. As ever, your 1link Disposal Network account manager will be pleased to help you increase your holdings of types of cars that are proving popular – but also plan for how to liquidise stock quickly if the situations change.

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