Dealers 'avoid' stocking higher-value used cars, says Aston Barclay

Used car dealers are avoiding high value used cars for stock and only buying such vehicles to order, according to Aston Barclay.

The auction firm found that eight out of the ten used cars in its March desirability index are higher value premium used cars, with dealers protecting their cashflow by only bidding on these cars to fulfil sold orders.

When these used cars go under the hammer there is competition between buyers to secure a car for their customer, which generally sees it selling for beyond market value.

“Since the fall in consumer confidence and rising inflation began in Q4 2022 together with inflated used car prices dealers have been more cautious about what used cars they stock to protect their cashflow,” said Mark Hankey, Aston Barclay’s chief revenue officer.

“We expect this trend to continue until such time as the economy improves and dealer confidence returns to stock the bigger ticket vehicles,” he added.

The Mercedes GLE, BMW 4 Series and BMW X5 are the three most desirable used cars currently going under the hammer at Aston Barclay, which typically cost between £30-80k depending on age and mileage. The Range Rover and Audi Q7 also appear in the top 10 while the only lower value cars in the current index are the Vauxhall Astra and VW Up.

More than a third (34%) of dealers are stocking more economical cars to meet the needs of buyers during the cost of living crisis.

A further 33% are stocking cars that cost less to buy or lease, while 20% are retailing smaller cars. The findings come from February’s Startline Used Car Tracker.

Auto Trader's Retail Price Index showed the current average retail price of a used car is £17,720, up 2.3% on a year-on-year (YoY) and like for like basis and 1ppt on the increase recorded in February.