Used car demand slowed in June

Demand for used cars appeared to slow in June, according to data from Dealerweb.

It found that used car enquiries were 7.8% lower when compared to the previous month, while orders fell by 2.4%.

The average value of used vehicles sold increased from £19,470 to £21,030.  

James Hill, managing director of Dealerweb, said: “Used car demand has remained strong since the lifting of lockdown measures, and this may be the first signs of a move to more usual patterns.

“Dealers have found it difficult to source quality used stock and have seen wholesale prices rise due to shortages. This first dip may be the sign that we’ve passed the peak of the market.

“Dealers across the country are navigating a complex market with pressures facing the new and used markets. Conversion rates remain high, and it’s evidence of the efficiency of sales teams, assisted by advanced data and technology.”

Cap HPI's live valuations service shows wholesale used car prices rose by 13.5% in the past three months. 

Enquiries for new cars, meanwhile, increased by 14% against the same period last year, showing a continued strong recovery of the sector.

In an ever-changing market, Dealerweb argues it is more important than ever to collect lead management data and manage each enquiry in a structured way.

It will boost conversion rates and ensure that each buyer receives a consistent ‘on-brand’ experience.

Dealerweb data shows that 94% of consumers believe that the speed of a response to an enquiry will affect their likelihood to buy a car. Dealers should aim to provide an immediate and professional response to every enquiry, either by email or with a click to call recording.