The transition towards mixed working styles poses significant opportunity for the used car segment, MotoNovo Finance chief executive, Mark Standish, has speculated.
According to Standish, a reluctance to use public transport and the need for flexibility favours the accessibility of personal transport.
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Standish said: “We can see from the increasing traffic on our used car marketplace findandfundmycar.com that more people are looking to used cars and we see much of this being driven by the need for affordable alternative to public transport.”
In September, data from YouGov revealed the varied preferences towards remote working, with 18% wanting to work entirely from home, and 39% angling for hybrid-style working. Only four in 10 want to work exclusively in the office.
Catering to these demands, several British employers have recently revealed their hybrid working strategies. BP informed staff that they could expect to work from home for two days a week whilst HSBC announced plans to cut office space by 40%.
Explaining the implications for public transport, Standish believes that the shift to hybrid working will “leave public transport operators struggling to break even” due to low footfall.
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By GlobalData:“People are choosing cars, motorcycles, and bikes. Within this, affordability is critical,” Standish added.
According to data from the Auto Trade Retail Price Index, average used car prices in January increased by 7.4% year-on-year to £14,155, representing the ninth consecutive month of price growth.
Based on a pricing analysis of around 900,000 vehicles, the price index has revealed the effects of ongoing supply constraints in the market, combined with solid levels of consumer demand despite persistent lockdown restrictions.
Concerning dual ownership, Standish argues this will become the norm, due to an increased need for flexibility. He concluded: “With people mindful of finances, the immediate outlook favours the appeal of two used cars on the drive and strong used car sales in recent weeks certainly point to this outcome.”
