“Buy right to sell right” has been a dealer mantra for as long as I can remember.
But in the current used car market, knowing what to buy, and getting the numbers right, is becoming more important than ever.
Customers are increasingly focused on affordability, monthly payments and overall value, while dealers are having to balance that demand against rising costs, changing stock availability and the challenge of keeping vehicles moving.
So, rather than just looking at the latest market statistics, I wanted to look at what dealers are actually seeing on the ground.
We recently spoke to Shani Gazdar, Director at Tenby Car Supermarket, about what’s happening in his business.
Affordability is driving the conversation
One of the clearest themes from Shani is that customers are becoming increasingly price-conscious.
As he puts it:
“Customers are becoming increasingly price-conscious and are focusing more on monthly affordability than simply choosing the newest or most expensive vehicle.”
That feels consistent with what we're seeing more broadly.
The sweet spot for Tenby remains good-quality vehicles in the mid-market, with well-priced SUVs — particularly BMW, Audi, Mercedes-Benz and Land Rover — continuing to attract strong demand.
Diesel also continues to have a role, particularly for larger vehicles and customers covering higher mileages, while interest in hybrids is steadily increasing.
It’s a good reminder that there isn't a single story when it comes to the used car market.
Different customers have different needs, and dealers need to be able to offer choice.
EVs are becoming part of the used car conversation
At the same time, the used EV market is clearly evolving.
The latest data from Cazana shows that used EV values have been rising, with three-year-old/36,000-mile vehicles increasing in value for four consecutive months and gaining 7% overall during that period.
Fuel prices also remain high and volatile, making the potential running-cost savings of an EV increasingly relevant for some customers.
But the transition isn't happening overnight.
Shani's experience reflects that. Demand for fully electric vehicles remains more selective, with customers considering factors such as charging availability, battery condition and future resale values.
I think that’s an important point for dealers.
The opportunity isn't simply about putting more EVs on the forecourt. It's about being able to have a confident conversation with customers who may be interested but still have questions.
For some buyers, an EV could make perfect sense. For others, a hybrid, petrol or diesel vehicle may still be the right choice.
The role of a good dealer is to understand the difference.
Buying right matters more than ever
The other theme that really stood out from my conversation with Shani was the importance of getting the numbers right.
Stock availability is currently reasonable at Tenby, but buying at the right price remains critical.
As Shani explains:
“Preparation costs, finance costs and slower stock turnover can quickly reduce the margin, particularly on higher-value vehicles.”
That’s the reality of used car retailing.
A vehicle sitting on a forecourt isn't simply stock. It represents capital, preparation costs, finance costs and, potentially, a diminishing margin every day it remains unsold.
That makes the ability to identify vehicles that offer customers genuine value — while still making commercial sense for the dealer — increasingly important.
The role of the finance partner
This is where I think the relationship between dealers and their finance partners really matters.
Finance shouldn't be an afterthought at the point of sale. It is part of the overall customer proposition and can help dealers provide more choice, particularly when customers are focused on affordability and monthly payments.
Shani told us that this is one of the reasons Tenby chooses to work with Tandem:
“They understand the motor trade and the importance of providing customers with clear, competitive and suitable finance options.”
He also highlighted the importance of having responsive and reliable finance partners who help dealers complete transactions efficiently.
For me, that is what a good finance partnership should look like.
It isn't simply about approving a deal.
It's about understanding the dealer's business, supporting their team, helping them offer customers suitable options and being there when they need you.
The market is changing — but the fundamentals haven't
There’s no doubt the used car market is evolving.
Customers are more focused on affordability. EVs and hybrids are becoming increasingly important. Diesel still has a strong role in parts of the market. And dealers are having to be more disciplined than ever about what they buy and how quickly they turn it.
But some of the fundamentals haven't changed.
Dealers still need to buy the right stock, at the right price, and give customers confidence that they’re making the right choice.
And increasingly, that means having the right people and partners around them.
The dealers I speak to aren't looking for someone to tell them what they should be selling.
They want partners who understand their business, listen to what their customers are saying and help them navigate what comes next.
That’s something we’re committed to doing at Tandem Motor Finance.
Because the used car market may be changing, but the importance of good relationships hasn't.
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