UK remains only European country to experience declining used car values

The UK remains the only European country to experience a decline in used car values during 2022, according to Indicata.

Data published by the automotive management and marketing software provider showed that UK price inflation fell 0.3% during August to leave values down by 3.6% year-to-date.

Electric vehicles (EV) are the used car retail sector’s lone volume growth success, Indicata's data showed, as stock shortages continue to stymie trading.

Indicata UK group sales director Jon Mitchell said: “The used market is at a crossroads currently as the summer holidays are over and the trade is waiting to gauge consumer demand in the run up to Xmas.

“The restricted used car stocks and new car supplies are not going to change anytime soon. Dealers will need to be in tune with the used market on a daily basis to see how it shapes up over the coming months.”

Indicata said that EV sales were up 53.3% year-on-year from July during August.

But stock turn fell due to a shortage which saw overall used market stock levels decline 6.4% between early August and September but remain 8% higher than for the same period in 2022.

Earlier this month Auto Trader asserted that suggestions the UK’s used car values are in steep decline and on the verge of a crash were “sensationalist speculation”.

Last week Cap HPI director of valuations Derren Martin told AM that uncertainty surrounding the balance of supply and demand had created the most difficult period ever to forecast used car value trends.

Speaking to AM for a regular mid-month update on key trends in the used car market Martin stated that values “haven’t moved” at the three-years, 60,000 miles benchmark, however, in a market that remains stable from a pricing perspective.

“Everything hinges on the supply and cost-of-living situation,” he added.

Indicata suggested that some car buyers had delayed a move to zero emissions while the cost of living continues to rise.

Indicata’s top-selling used car during August was the Ford Fiesta, followed by the Volkswagen Golf and Nissan Qashqai.

The month’s fastest-selling used cars were Skoda’s Kodiaq, followed closely by the Lexus CT and Toyota C-HR.