Aston Barclay expects a positive response to Chinese brands entering the used market
Posted 20 March 2023
Aston Barclay believes it will be late 2024 and into 2025 before it sees used cars from Chinese brands arriving at auction in any great volume.
But when they do Aston Barclay is predicting a positive response from buyers, based on the success of MG in the new and used market over the past few years.
“Buying a Chinese used car doesn’t seem as though it will be a compromise as the success of brands such as MG in the used market can confirm,” explained Aston Barclay’s chief revenue officer Mark Hankey.
“The lead times for Chinese ICE and EV products are relatively short which suggests if fleets can get hold of the cars they will add them to choice lists.
“Fleets will also look forward to offering their drivers new EVs at sub-£30k prices where the majority of EVs have generally retailed at more than £50,000 up until now,” he added.
Currently, many manufacturers have prioritised retail and leasing sales, but Aston Barclay expects the new Chinese brands to build awareness through rental which is what MG has successfully done.
“From a remarketing perspective, we generally don’t predict new models hitting our auction lanes for up to two years after their launch. However, if cars get placed with rental suppliers we might see some of the new Chinese brands reach the nearly new used market during 2024 and early 2025.
“Currently values of MG ICE and EV cars sold through the Aston Barclay halls range average between £11,500-£13,500. If other Chinese brands reach the used market at that level then demand should be strong,” said Hankey.