The automotive sector is set for a dynamic year in 2025, with emerging trends reshaping the market and creating new opportunities for manufacturers, dealerships, and lenders. According to Louis Rix, co-founder of Car Finance 247, these developments will have significant implications for industry stakeholders.
1. Stabilisation in the used car market
After years of volatility, the used car market in 2025 is expected to stabilise, benefiting both buyers and sellers. An increase in the supply of used vehicles —driven by lease expirations and fleet renewals — is balancing demand and bringing greater price predictability. For dealerships and remarketing businesses, this presents opportunities to attract value-conscious buyers by highlighting the affordability and availability of used cars.
2. Growth in the secondary EV market
The secondary electric vehicle (EV) market is poised for substantial growth as more leased EVs and early purchases return to dealerships. Advances in battery technology have extended the lifespan and appeal of older EV models, making them competitive with newer offerings. For manufacturers, this creates an opportunity to solidify EV adoption by investing in certified pre-owned (CPO) programmes, while dealerships can leverage the growing appeal of EVs with lower price points, reduced running costs and expanding charging infrastructure.
3. Opportunities in car loan refinancing
The expected decline in interest rates in 2025 opens up refinancing opportunities, which could drive increased activity in the auto finance market. Lenders and finance providers can seize this moment to offer tailored refinancing products, helping customers reduce monthly payments or adjust their loan terms. By leveraging data-driven insights into consumer creditworthiness and repayment history, lenders can enhance customer engagement while expanding their portfolios.
These three trends signal a transformative 2025 for the automotive industry. Businesses across the value chain, from manufacturers to financiers, have opportunities to respond to consumer demand for affordability, sustainability, and financial flexibility. Adapting to these shifts will be crucial for capturing market share and driving growth in 2025.
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By GlobalData