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The used car market in the UK has seen a return to more normal seasonal patterns, but dealers are still facing challenges in securing the right quality stock.
Alex Wooltorton, Head of Remarketing Operations and Commercial Optimisation at mfldirect, shared his insights with Automotive Management on the key trends and opportunities emerging in this dynamic market.
Despite the market stabilising, Wooltorton noted that used car supply remains relatively low, forcing dealers to compete intensely for the best vehicles. “Dealers are having to adapt their approach as a result,” he said.
Wooltorton highlighted three overarching trends that are shaping dealer behaviour in this environment.
Firstly, dealers are increasingly relying on data to identify the specific cars that work best for their businesses. On the mfldirect platform, Wooltorton has seen growing engagement with preview listings and detailed inspection reports, as savvy dealers use this information to target the most suitable vehicles.
In response, mfldirect is looking to provide dealers with even more practical data and insights to give them a competitive edge.
Secondly, many dealers are broadening their search parameters, both in terms of vehicle profiles and geographical reach. “Almost every single dealer on mfldirect both searches and purchases cars at a national level now,” said Wooltorton.
Thirdly, Wooltorton highlighted dealers’ focus on simplifying the stock acquisition process wherever possible. For example, around one in six vehicles sold on mfldirect now come from the platform’s own recommendations, tailored to each dealer’s preferences. Additionally, 80% of dealers choose to utilise mfldirect’s delivery service, offloading the logistical complexities. “Dealers are looking for ease and simplicity, and they want to minimise any unnecessary effort,” Wooltorton explained. “This allows them to focus on the areas where they can really add value.”
Despite any broadening, a preference for single-owner, retail-quality vehicles remains.
“The biggest advantage has always been around trust and confidence,” he said. This focus on provenance and history could prove particularly valuable as the used market transitions towards electric vehicles (EVs), and dealers must allay concerns around things like vehicle range and battery health.
Looking ahead, Wooltorton believes demand for internal combustion engine (ICE) vehicles will remain strong over the next few years, but as supply starts to contract that will pose a challenge for some.
“Dealers will have to compete harder and harder for ICE vehicles,” Wooltorton said. “This is where that data-led approach, broadening stock profiles, and minimising effort will become even more important.”
Beyond the short term, there are significant opportunities for dealers in the used EV market, particularly as prices continue to stabilise and become more accessible for mainstream consumers. We’re seeing a much broader range of EVs now in the used market, and used EVs can definitely now offer great value for money,” he said. He noted that around three-quarters of the EVs sold on mfldirect last month were priced under £20,000, with 80% offering WLTP ranges of over 200 miles. “This category of EVs is currently taking just one and a half days to sell on average, compared to three days for the broader range of vehicles on the platform,” he revealed.
