A “lingering supply chain crunch” has been blamed for a used car sector that remained 12.2% down by volume on pre-COVID 2019 in Q1, 2022.
The car retail sector should be braced for a prolonged period of uncertainty as OEMs impacted by Russia’s war in Ukraine battle to deliver vehicle supplies and consumers “grapple with a cost-of-living crisis”.
Used car marketing provider eBay Motors Group has said that a downward pricing adjustment was “inevitable” in the sector after seeing values decline by 1.5% month-on-month in April.
Data from wholesale and retail used car values data providers has indicated “signs of a market correction” but hopes remain that any market decline will be minor.
Aston Barclay has reported that it expects high demand for used vehicles “well in to 2023” after seeing used fleet car values rise 50.6% in a year and voicing predictions of a diesel car comeback.
Wholesale used car values declined by 5.9% in March as external economic pressures, the cost-of-living squeeze and the ramifications of the conflict in Ukraine ensured a “tougher” market for retailers.
The UK’s cost of living crisis and the impact of Russia’s war in Ukraine threaten the used car market’s shift towards stability, eBay Motors’ Dermot Kelleher has suggested.
Used car prices have risen for the 98th consecutive week, according to Auto Trader, with cars selling at the fastest rate in five months.
Used car supermarkets cut the price of their cars to trigger a 0.3% month-on-month decline in vehicle values on eBay Motors Group marketing portals during February.
BCA has suggested that high used car valuations could prove a “safety net” for car retailers as Russia’s invasion of the Ukraine compound cost of living concerns to impact consumer confidence.
A 0.9% reduction in used car prices this February has been branded a “blip” by Indicata.
Record UK inflation was accompanied by a further 29% year-on-year rise in used car values during January, according to data published by Auto Trader.
Used car retailers rallied against three months of COVID-enforced dealership closures and vehicle supply shortages to deliver annual sales up 11.5% year-on-year in 2021.
Used car buyers have been told they must “get used to a significantly older profile of vehicle” as supply shortages look set to continue into 2023.
More than one-in-five nearly new used cars advertised via Auto Trader are now priced above their brand-new equivalents after a further 31.3% year-on-year rise in values during January.
Auto Trader has made its Auto Trader Connect real-time car retail market data portal free to all advertisers in a bid to help car dealers adapt with a market “moving at record pace”.
Used car values were up 13.2% year-on-year in December as BCA’s programme of festive auctions delivered a near-25% sales boost during the last week of 2021.
Car supplies could take up to eight years to recover after component shortages and COVID-19 factory closures, according to Pendragon chief executive Bill Berman.
Auto Trader has predicted “continued strong price growth” in the used car sector following a 30.5% surge in values during December.
BCA said that the wholesale used car market showed signs of moving towards a “more stable” footing after average sold values declined by 19% in two months.
