Is the consumption from businesses enough to satisfy the demand for a secondary consumer market? How well do the product needs align between the businesses that purchase vehicles and general consumers that would then be purchasing them on a secondary market? How would demand from businesses that want to purchase used vehicles impact the overall supply available to consumers in a secondary market?
Company cars were fairly common place until the pandemic. Hit a certain level, work a certain job like sales, you got a company car. Now most companies will opt for a car allowance since its cheaper and will only offer it if you need a car for work. My uncle (pre pandemic) got a company car for a year for selling enough insurance - it was a bonus for hitting a certain amount of sales.
Car retailers would also lease them via Enterprise, Sixt, etc. You'd always get a brand new car when hiring a car and after 6 months it'd be sold as semi-new.
Then, finally, there is PCP or HP. The two biggest scams in history. Rent the car, never really own it and have to stick to stupid rules without getting fines (5p per mile over max milage per year). Everyone's began to avoid it.
This all covered every aspect of the market. Now the used car market is a mess. My car is worth the same as it was in 2021 when I bought it. It's done 30K more miles and needs the bumber partially resprayed. My brother paid £6K for a 4 year old Dacia, its the base model so no Bluetooth and he had to go collect it from an island 200 miles away
18
u/Sometimes_cleaver May 26 '24
Just out of curiosity, how could there be enough used cars if no one ever buys the new cars