When it comes to evaluating the significance of used car market in the UK, it can be said without any doubt that this is one of the largest markets operating in Europe. With the passage of time, there have been different kinds of changes incurred in the market and as a result both buyers and sellers are using online mediums these days. Therefore, the current scenario of used car markets is becoming more price sensitive and this scenario needs to be considered by the competitors in a detailed manner.
This aspect should be taken into consideration that in this cutthroat competition there are many organizations that are using this slogan we buy any car quite successfully. This slogan is being propagated in order to attract more customers and potential buyers of used cars in the desired manner. Consequently, there are different tactics and measures needs to be taken by these competitors so that they could successfully follow the slogan we buy any car in reality.
Therefore, from value chain point of view organizations are needed to understand the recent scenario of used car market. In this manner, they will be able to forecast or predict the future outlook of the market in the right direction. In this concern, these considerations should be assumed by the organizations and these are discussed as follows:
Current Overview of Used Car Market
According to the recent estimates, there were 7 million cars sold in the UK and therefore it is assumed as the largest market prevailing in the UK. Before further going into the details of market, first of all there is need of understanding the market dynamics and structure. Therefore, market could be explained as the process in which there are three business models play their crucial roles. These business models are known as transaction parties, the transaction facilitators and information providers as well.
Three Business Models
As far as the importance of transaction parties is concerned, in this model there are different kinds of dealers involved in this phenomenon. These dealers could be considered in the form of franchised and independent dealers. At the same time there is another attribute, which must be observed in a careful manner and that is the online buying platforms. All these aspects are significant because these are helpful in supporting the financial risk that is initiated in order to buy and sell the cars.
In this kind of model, normally three types of players perform their parts and these are online sales platforms, online matchmakers and auction houses as well. These all factors actually help the process in which sales transactions should be completed in the best possible manner.
During this model, this is made sure that pricing scenarios and other important specifications and conditions of specific cars are discussed and examined in an appropriate way.
Supply restriction or limitation is becoming visible
In spite of the perception and viewpoint that does not support the trend of increasing demand in used cars in the UK, the recent situation is favoring the need and demand of used cars to a considerable level. This is quite true because of the reason that ratio of used car buying and selling as compared to new car buying is increasing with the passage of time. This is an important aspect to consider that more information and data is now easily be accessed by means of using different mediums. Therefore, the recent changes that are taking place in the domain of used car buying and selling will have a huge role to play in the development of future used car market in the UK.
At the same time, different kinds of individual buyers and sellers as well as the competitors will be influenced greatly by this situation as well. There is the likelihood that more opportunities and different trends will be emerged in used car market because of this scenario in the future. As a result, new challenges will also hinder and create obstacles in the way of used car buying and selling phenomenon.
Condition of the Market
The state or condition of used car market in the UK is quite encouraging and supportive for all the stakeholders who are taking part in this process. This could support this situation fact that the UK used car market has gone ahead of used car market of Germany as well. In reality, private owners sell majority or approximately 80% used cars and at the same time franchised dealers along with independent dealers also contribute in this process of used car buying and selling. The other sales channels like auction houses also play their parts as their contribution is accounted below 5% in total.
Wholesale Market of Used Cars
After considering all the actors and processes of used car market in the UK, there is another market that has been developed in recent years in the name of wholesale market. This wholesale market works by the help of different factors such as corporate owners, fleet owners and rental along with leasing companies. This is the way through which the process of used car buying and selling takes place and all these actors actually contribute in this phenomenon.
The contemporary trend suggests that there will be different sorts of changes incurred in coming years and as a result the market of used cars will behave differently in future. These changes should be considered appropriately because of their impacts and consequences. These changes are as follows:
Variation in Supply
The sales records of new cars suggested that the demand of new cars is decreasing and this has happened because of the 20008-2009 recession. At the same time the overall condition of used cars are improving and this is one of the reasons that has affected the sales of new cars.
Enhanced Online Buying and Selling
In this modern era of communication and social media presence, buyers and sellers of used cars both are moving towards the online mediums gradually. In this concern, consumers or real buyers are getting more information and awareness and they actually visit fewer dealers before buying their selected used cars. At the same time the application and utilization of mobile phones and other devices in order to search and explore rates and models of various used car is increasing drastically.
Improved level of trust between buyers and sellers
During this process, the level of trust among different buyers and sellers is also improving because the transparency has also been enhanced in this phenomenon. This is because of the reason that normally buyers and sellers usually share correct information with each other and as a result the fair price is paid to the sellers in the end. In this manner, the transactions are also performed in best secured manner and in this aspect online mode of payments are normally considered and applied.
In a nutshell, the statement or saying we buy any car is being applied in a true manner by the different competitors who are operating in the market of used cars in the UK. The future of this market is encouraging because real buyers and sellers are actually involved in this process. As a result, this process will further improve in the coming years because people have started using the online mediums in order to obtain information and awareness regarding used cars to a considerable extent.
Content Writer at Motor Trader