8 crucial used car stats to help power your dealership to success

It’s no secret that the post-lockdown used car boom has throttled back in recent months. However, research from used car experts heycar suggests dealerships have reason to be optimistic heading into the rest of 2023. Highlighted in heycar’s Headlights report, there was an irrefutable upturn in leads and overall consumer interest in January compared to December. For discerning dealerships, this means that now is exactly the right time to identify and invest in the best quality used car stock. And if you want to know which cars consumers are searching for, that’s where the Headlights report can be of help. Compiled each quarter using a wealth of industry-leading expertise, the Headlights report offers in-depth insight and analysis on the very latest used car trends and must-know sales figures. This data can help you and your team power decisions concerning stock, marketing and offers (ultimately helping you drive more revenue). Putting the current landscape into context, Karen Hilton, CEO of heycar, says: “Consumers have begun 2023 with a sense of caution and trepidation – so dealers can be forgiven for feeling the same. Few imagine this year will settle into an easy economic ride and ‘expect the unexpected’ seems a reasonable mantra for the times in which we live and work. Editor's letter: Retailers must focus on used electric cars “But look closely, and there are signs for optimism. Experts think that a recession may be shorter than previously expected, and one thing we can cling to – at least for the time being – is the strength of used car prices.” So, to help your dealership navigate the current used car market and prepare for the rest of 2023, we’ve pulled together eight of the most essential statistics from this quarter’s Headlights report to help power your business to success. Owned by a consortium of major car manufacturers and insurance companies, heycar shook up the used car market when it launched in the UK in 2019. Whether through eCommerce or in-person dealings, heycar offers buyers a simple and trustworthy experience that makes finding your next used car easier than ever. Every car listed on the heycar site is under eight years old, has less than 100,000 miles on the clock and comes with a confidence-inspiring warranty. And to show unwavering dedication to quality, heycar even offers a 10-day money back guarantee. For dealerships, heycar makes listing and selling your quality used stock easy. For starters, there are no listing fees, meaning more margin for you. heycar’s platform also ensures your dealership gets information-rich leads, helping you to close more deals. heycar already hosts an inventory of thousands of quality used cars for over 3500 franchised dealerships across the country. To register your dealership, click here. And to get even more in-depth insight into the used car market, sign-up to watch Autocar Business's next free-to-watch live webinar – in which Autocar editor Mark Tisshaw will be speaking with Karen Hilton, CEO of quality used can marketplace heycar, and Jacqui Barker, Global OEM Director at Keyloop, about the challenges facing the used car market, and how dealerships can conquer them. For even more in-depth market insight, download the full heycar Q1 2023 Headlights report Sign-up for the Autocar Business Live webinar 'The challenges facing the used car market (and how to conquer them)' – featuring in-depth expert analysis from Autocar editor Mark Tisshaw and heycar's Karen Hilton 1. Overall month-on-month leads up by 47% As we already know, data suggests that leads significantly declined across the board towards the end of 2022. However, 2023 has started positively, with leads universally increasing in January – up by a whopping 47.1%. Certain models fared better than others, meaning that paying attention to which models are popular could be crucial to success in the uncertain months ahead. 2. SUVs are still king Unsurprisingly, SUVs ruled the roost in January, with leads skyrocketing up 57.4% from December. In fact, four of the top five best-selling used cars on heycar in January were all SUVs. For a full breakdown of which models performed best, download the full Headlights report. 3. MPVs and estates growing in popularity It may come as a surprise that MPVs and estates came close to SUVs in terms of leads generated through heycar in January. Estates were up 57.9% month-on-month, while leads for MPVs jumped by 51.5%. This would suggest buyers are looking for bigger cars, and it’s a fair assumption that stocking up on all manner of big cars would be a safe bet 2023. 4. Buyers long for newer models Models built between 2016-2019 accounted for the majority of stock (and leads) in January due to greater availability. However, while leads for model years from 2016 onwards grew across the board, cars registered between 2019 and 2022 saw the biggest month-on-month increase in leads: between 77% and 102%. This data suggests that putting newer stock front and centre could help drive sales. 5. Petrol still dominates the market While the new car market is becoming increasingly electrified, there’s still plenty of appetite for internal combustion-powered cars among used car buyers. Petrol took the lead with a 45.4% leap in January, while diesel saw a 42.1% jump in interest. Hybrid and all-electric models saw just 9.8% and 2.6% increases respectively. 6. Little desire for EVs Data from heycar suggests that electric car prices have fallen dramatically in recent months, with research showing an average 17.25% drop in January prices for models registered between 2016 and 2022. A saturated market is partially to blame, while the cost-of-living crisis and increased energy bills have scuppered leads. However, the increase in inventory has brought the average cost of used EVs more in line with that of diesel, averaging at £26,111 and £27,416 respectively. In the coming months, this price drop could culminate in an increased interest in electric cars. 7. Older EVs are holding their price Despite the EV price-drop in January, older models held their values best. Prices for cars registered in 2016 fell by 12.8% in January, while 2017 models saw a 26.1% price drop. This suggests that older, cheaper electric cars – such as Nissan LEAFs and Renault Zoes – may be less subject to the recent downturn in EV prices and represent better value for used car buyers. 8. Consumers looking to the future The biggest positive to come out of heycar’s Q1 Headlights report is that there are signs that interest from used car buyers bounced back in January after the year-end slump of 2022, and future purchases were once again front-of-mind with consumers. However, inflation stood at 8.8% in January – 6.8% up on the Bank of England’s 2% target – while two years of steep inflation rises have taken their toll on potential buyers, with the GfK’s Consumer Confidence Survey falling by three points to -45 in January. According to the GfK, these results were “still bumping along at near-historic lows”. But, despite the fall in confidence, there was one metric in the survey that increased: respondents’ predictions about their future financial situation over the coming 12 months. Combine this with a potentially shorter-than-predicted recession, and inflation expected to half towards the end of the year, and there are signs that suggest used car buyers might have more to spend than previously expected. So, now’s the time to get the right stock, and prepare your dealership for the rest of 2023. For even more in-depth market insight, download the full heycar Q1 2023 Headlights report Sign-up for the Autocar Business Live webinar 'The challenges facing the used car market (and how to conquer them)' – featuring in-depth expert analysis from Autocar editor Mark Tisshaw and heycar's Karen Hilton