According to a recent survey conducted by Cox Automotive, around 50% of used-car dealers in the United States expect a market rebound in 2023. The survey, which included responses from more than 200 dealerships, found that many dealers are optimistic about the future of the used-car market, despite challenges posed by the COVID-19 pandemic and ongoing supply chain issues.
The survey found that 48% of dealers expect a market rebound in 2023, while 20% expect a rebound in 2022. Only 9% of dealers expect a rebound in 2021, and 10% do not expect a rebound until 2024 or later.
Dealers who are optimistic about a market rebound cited several factors, including the pent-up demand from customers who delayed car purchases due to the pandemic, the ongoing shortage of new vehicles, and the availability of affordable financing options. Additionally, many dealers expect a surge in demand for used electric vehicles (EVs) as consumers become more interested in sustainable transportation options.
However, the survey also found that dealers continue to face challenges in the used-car market, including inventory shortages, rising prices, and competition from online marketplaces. The ongoing supply chain issues, including the semiconductor shortage, have led to a decrease in new-car production, which has also impacted the availability of used cars.
Despite these challenges, the survey suggests that many dealers are hopeful about the future of the used-car market and are taking steps to adapt to the changing landscape. For example, many dealers are expanding their online presence and investing in digital marketing to reach new customers. Additionally, dealers are increasing their focus on customer service and providing a better buying experience to differentiate themselves from the competition.
Overall, the survey suggests that the used-car market is expected to rebound in the coming years, but dealers will need to navigate ongoing challenges and adapt to changing consumer preferences to succeed in a competitive market.