Used car values have dropped for the first time since before March's COVID lockdown as motor retailers pushed back against high prices for cars, says Cap HPI.
Increasing competition for used car stock from private sellers has been revealed in Motorway data showing year-on-year growth in the valuations – with EVs showing a 34% increase.
Following a frantic September which saw car retailers fight to sustain the market’s COVID-19 recovery Cazana director of insights, Rupert Pontin, believes a volatile period of used car pricing trends lies ahead.
Auto Trader has reported its 23rd week of consecutive used car price rises as the sector continued to defy the impact of COVID with values up 8.5% between October 5 and 11.
Aston Barclay has reported that the “unstoppable” strength of the used car market might be about to soften after increased post-September supplies start to reach remarketing centres.
Motorway is offering car retailers 50% off broker fees on the first two purchases made through the Motorway Pro platform during October.
BCA’s average used car sale value at auction remained above £8,000 for a fourth consecutive month after values rose by 6.9% during strong September trading.
Demand for used diesel cars has driven average values up by 11.3% to the end of Q3 2020, outstripping increases among any other fuel type, according to Autrola market data.
Used car retailers saw their stock turn accelerate by 10 days in September as average advertised prices rose by 1.8%, eBay Motors has reported.
Average retail used car prices on Auto Trader recorded the largest ever monthly price increase in September - increasing by 7.6% to £13,829.
Cap HPI’s head of valuations has said that the continued growth in used car values is “not sustainable in the long-term” - but may continue into 2021.
The flagship Kia Sorento SUV topped the ranking in Auto Trader’s fastest selling used car rankings as vehicles which defy Government’s “rule of six” COVID-19 rules made a strong showing this week.
Auto Trader has reported a 19th straight week of used car price rises with a 7.4% mid-September increase in the average advertised value on a vehicle offered on its online marketing platform.
Sales in the used car retail sector showed signs of “cooling off” according to a market report which revealed declining in activity during August – with retail sales down 3.3% year-on-year.
Premium used cars have been hailed as “pandemic proof” by online vehicle stocking source Motorway after the value of Land Rovers, Lexus and Maseratis rose by over 8% year-on-year.
Used car values showed little sign of an impending “market correction” as prices rose by an average of 0.2% across the sector during August, Cap HPI has reported.
Strong growth in average used car prices has continued into August based on data from the 12,500 retailers currently advertising on Auto Trader.
Cox Automotive’s monthly Dealer Sentiment Survey has found that more than a third (37%) of UK car dealers are stocking older vehicles in the wake of COVID-19 lockdown.
Car dealers’ used vehicle stock levels have declined by 30% as post-lockdown demand among buyers leaves businesses “grappling” with the challenge of securing fresh product for their forecourts.
Motorway is providing free vehicle collection worth up to £500 for new dealers, to celebrate hitting the milestone of £1.6m in daily sales.
