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Almost a third of used car dealers (32%) believe that used car values and prices will fall by more than 10% in 2023.
A further 19% of retailers say the drop will be between 5-10% and 26% by up to 5%, according to January’s Startline Used Car Tracker. Only 23% think prices and values will continue at their current level or better.
Startline also asked dealers what they thought would be the biggest challenge facing them during the New Year.
The cost of living crisis was the top response at 85%, followed by continuing poor vehicle supply (66%), stricter motor finance criteria (38%), reduced motor finance availability (32%) and demand for electric vehicles (26%).
Paul Burgess, CEO at Startline Motor Finance, said: “It’s clear that dealers believe the cost of living crisis will bite further during 2023. They think prices and values will fall at the same time as stock availability continues to be a problem. The picture that the data paints is of a market that is going to be more difficult.
“Specific concerns highlighted in the research surrounding motor finance are interesting. From a Startline point of view, business has continued to be buoyant but there is clearly concern among dealers about both the wider availability of motor finance and potentially stricter criteria being used by lenders in a time of worsening personal finances.
“The mood of dealers hasn’t really changed for some time, according to our data. There was a definite fall in optimism around September last year as the scale of the cost of living crisis became apparent but since then, survey results have been relatively flat. Dealers certainly don’t seem to think any fall in the market will be modulated.”