Car supermarkets lead September sales with quick turnaround on reduced inventories

Car supermarkets demonstrated their retailing efficiencies in September, achieving rapid sales despite reduced inventories, according to the latest Motors’ Market View report.

Cars at supermarkets averaged just 20 days in stock, significantly outperforming the market average of 29 days. Inventory levels at supermarkets also dropped by 5% month-on-month (MoM) to 258 units, but the segment still managed to grow MoM sales by 4%, the only retail sector to do so.

Overall, buyer activity was strong in September, with online views on the Motors platform reaching a new high for 2024—up 10% MoM and 12% year-on-year (YoY). The majority of searches were for used cars in the £5,000 to £10,000 and £10,000 to £15,000 price ranges.

Stock levels across the entire market remained stable, with an average of 51 units compared to 52 in August, unchanged YoY.

 Franchised dealers saw a slight dip in stock from 60 to 58 units MoM, but the arrival of part-exchanges from the new 74-plate registrations is expected to replenish inventories in October.

Independent dealers maintained steady stock levels at 38 units, in line with their nine-month average.

The average advertised price of a used car in September was £17,445, reflecting a modest MoM increase of £95 and maintaining the stable pricing trend seen throughout the year.

However, regional variations were notable: London saw prices rise by 3% MoM to £24,441, while the northeast recorded the largest drop, down 1% MoM to £15,190, representing a 14% YoY decrease. Wales had the lowest average price at £14,044.

By fuel type, electric vehicles (EVs) saw their prices increase for the third consecutive month, up 1.5% (£408) MoM to £28,180, though still 14% lower than in September 2023. Hybrid vehicle prices dipped by 1% (£180) to £25,546, while petrol (£16,662) and diesel (£14,937) prices remained stable compared to August.

Days to sell averaged 29 in September, one day longer than in August but an improvement over the 33-day average recorded last year. Franchised dealers achieved the fastest sales, averaging 19 days, followed closely by car supermarkets at 20 days. Independents lagged behind with an average of 53 days.

Large family cars, especially estates, were particularly popular in September as parents prepared for the new school term, with the segment receiving some of the highest views per vehicle.

“September’s Market View reflects continued stability in used car pricing, stock levels, and days to sell, all positive indicators for dealers despite ongoing economic uncertainty,” said Lucy Tugby, marketing director of Motors.

“Buyers were highly active online, driving record search volumes. Car supermarkets capitalised on this demand by maintaining fast sales and lean inventories."

Tugby also noted the importance of monitoring regional pricing trends: “The regional variations in prices highlight the need for dealers to review pricing on a daily and local basis to maintain a competitive edge.”