Worth progress accelerates to 2.3% in used automotive market displaying ‘sturdy well being’

Used automotive worth progress accelerated to 2.3% year-on-year in a market that Auto Dealer has asserted is in “sturdy well being”.

The used automotive market and intelligence supplier unhappy the acceleration within the fee of worth progress after 10 months of softening “couldn’t be a clearer barometer of the present market”, which regardless of the broader financial and political backdrop, is “going from energy to energy”.

Information from the Auto Dealer Retail Worth Index confirmed the present common retail worth of a used automotive is £17,720, up 2.3% on a year-on-year (YoY) and like for like foundation and 1ppt on the rise recorded in February.

Auto Dealer’s director of information and insights Richard Walker mentioned: “As quickly as we got here out of the quiet festive interval, we noticed indicators of a used automotive market in very sturdy well being.

“Though progress charges might start to melt once more, with no quick change anticipated within the present provide and demand dynamics, anybody predicting a fall in used automotive costs anytime quickly shall be upset.”

In a mid-month catch-up with AM final week Cap HPI director of valuations Derren Martin mentioned that the market was up 0.4% month-to-date.

Used electrical automobile (EV) values continued their decline at a fee of three.2% at three years and 30,000 miles, in keeping with Cap HPI’s knowledge, nonetheless.

Auto Dealer’s knowledge revealed a starker image, with EV values falling 13% as inventory ranges surged 261% in March.

As of mid-March EV values averaged £33,060 as the typical worth of a used petrol (£16,102) and diesel (£16,236) automotive is up 4.3% and a pair of.4%, respectively.

In line with Auto Dealer this may be attributed to a fast inflow of provide.

Used EV provide is up 261% YoY, in keeping with Auto Dealer, as the provision of each used petrol and diesel vehicles is down by over 20% YoY.

Supply surge: Nissan Leaf EVSince August, the enduring Nissan Leaf has seen inventory ranges improve an enormous 313%, it mentioned while provide of the Renault Zoe was up 235%, and the Tesla Mannequin 3 up 148%.

Auto Dealer’s Retail Worth Index mentioned: “Opposite to some stories that shopper curiosity in EVs is collapsing. On Auto Dealer, ranges of demand is presently up 47% on the identical interval final yr.”

Automobiles are in a median of 28 days throughout the segments, in keeping with Auto Dealer’s knowledge. That is slower than the close to file 25 days in February however matches March 2022.

Auto Dealer additionally asserted {that a} 20% YoY rise within the variety of the quantity of cross platform visits to its market, following a 19% uplift in February and 14% in January, indicated that shopper demand remained buoyant, regardless of the impression of the cost-of-living disaster.

Walker added: “Regardless of a few of the current stories, it’s clear that shopper demand for EVs stays very sturdy, so it’s necessary that we right the parable that customers don’t need them and that they don’t work. With the sub-five-year-old EV parc anticipated to develop 62% this yr, we’ll have to work collectively as an trade to alter the narrative and we have to change it quick to keep away from greater than only a pothole on the street to 2030.

“Encouraging automotive patrons into used EVs by means of incentives, advertising and marketing and knowledge to demystify them shall be important.”

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