Inside the industry: Is the bubble about to burst on used car prices? | Autocar

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Inside the industry: jim_holder on why softening used car prices spell anxious times ahead for dealers (Autocar Business exclusive)

Breath held, fingers crossed: after months of record profits, car retailers are currently hoping for the best and preparing for the worst – and if they were offered the choice, they would probably be happy with something in between.

Most notably, we’re at a curious moment for the used car market, with prices slowly but surely trending downwards despite supply being historically tight and demand reasonably high. The surge to historic highs was caused by the pandemic, of course, with everything from a reluctance to take public transport to post-lockdown ‘revenge’ buying – a term to describe rewarding yourself after a period of hardship – given as reasons for the booming demand that started to push prices up.

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