Used car prices “accelerating” as demand outweighs supply

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Used automobile costs are accelerating at their quickest fee in eight months.

Auto Dealer has reported that with a mean retail worth of £17,756, June marks a year-on-year (YoY) worth progress of three.2% on a like-for-like foundation, and the 39th consecutive month of YoY progress.

Over that interval, the typical retail worth of a used automobile has elevated circa £3,900.

Though retail costs in June softened barely on a month-on-month (MoM) foundation, reducing -0.3% on Might, that is close to to seasonal norms, with costs falling as a lot as -0.9% over the identical interval in 2019.

Used  provide was down -4.1% YoY in June, whereas client demand was up 2.3%. That is serving to to gas worth progress and is supporting a worthwhile used automobile market. Auto Dealer’s Market Well being metric is recorded a 6.7% YoY enhance final month.

Auto Dealer’s director of knowledge and perception, Richard Walker, stated: “The used automobile market has loved a robust first half of the 12 months, with the rise in retail values doing little to dampen client demand, which has been mirrored within the very sturdy ranges of engagement we’ve seen on our market over latest months. Though the present well being of the economic system does add a level of uncertainty for the months forward, primarily based on what we’re presently monitoring throughout the market, our outlook for the remainder of 2023 stays an optimistic one.”

June marked one other month of contraction for electrical automobiles (EVs), with the typical retail worth (£31,430) falling -19.1% YoY. It’s the sixth consecutive month of YoY decline, with common EV costs falling circa £5,000 since January (£36,179) and practically £9,500 since their peak in July 2022 (£40,728).

Shopper demand for second-hand EVs has been sturdy, up 6% YoY in June, but it surely has been unable to maintain tempo with the rise in availability – provide progress was up 174% YoY final month. Auto Dealer stated that this imbalance brought on costs to contract, versus any loss in client urge for food.

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