More than half of UK fleets (54%) now buy used cars for company use and a further quarter (24%) plan to do so in the next three years.

Within three years, almost three-quarters of UK businesses will be buying used cars

The research – taken from the 2024 Arval Mobility Observatory Fleet and Mobility Barometer – reveals that the UK figures are much higher than across Europe. Average figures across the continent show 29% of fleets already using used cars now and 38% looking to do so within three years.

The UK analysis also explored used car usage among different fleet sizes – and found almost no variation, from companies with fewer than 10 employees through to those with more than 1,000.

The majority of UK fleets adopting used cars operate them as pool cars (78%), with 66% run as job need cars, and half (50%) for benefit drivers. Again, there was very limited variation across fleet sizes.

It’s the first time that the Arval Mobility Observatory has explored used car usage – and Shaun Sadlier, who heads up the research programme in the UK, said the findings reveal the extent to which a majority of UK fleets have come to rely on used cars as an element of their fleet composition.

“While we have no historical data for comparison, our view is that this has probably always been something that businesses have done to some extent but that post-pandemic issues, especially much reduced new vehicle supply, have pushed more of them towards having to buy used, simply to get hold of the cars they need.

“Our findings show that the ways in which these used cars are being operated are overwhelmingly practical. They are being employed primarily in pool and job-need car roles where the ‘newness’ of a car is less of an issue, and less often where the car is part of a motivational benefits package.”

Sadlier said it was particularly noteworthy that many more fleets plan to adopt this purchasing strategy.

“The data shows that within three years, almost three-quarters of businesses will be buying used cars. It looks set to become an ongoing part of fleet acquisition. Certainly, Arval in the UK has been offering used car leasing to businesses for some years now under its Arval Re-Lease banner, and it has proven very popular.”

Sadlier also drew attention to the strong contrast with the European average.

“One factor behind this is that, unlike many other European countries, the UK has an established pre-registration market for almost-new cars. While this largely disappeared immediately after the pandemic, it’s back now, and cars with delivery mileage suitable for company use can often be bought at advantageous prices.”

More details of the Arval Mobility Observatory Fleet & Mobility Barometer 2024 are here.