Used automobile market demonstrates resilience amid robust demand
Used automobile gross sales proceed to point out strong demand and enhancing pricing developments, in response to the most recent Auto Dealer Retail Worth Index.
The common worth of a used automobile in November was £16,492, reflecting a modest month-on-month dip of 0.6%, aligning with historic seasonal developments. This marks the fifth consecutive month of enhancing year-on-year pricing developments, signalling sustained retail demand.
Autos offered two days quicker in November in comparison with 2023, with a mean of 31 days on forecourts. Electrical automobiles offered even faster at 28 days, with three-to-five-year-old EVs turning over in simply 22 days.
Regardless of this, Auto Dealer information revealed as much as £26.5 million in missed potential revenue, as some retailers underpriced sought-after inventory relative to market values.
The market’s robust efficiency is underpinned by resilient client demand and constrained inventory ranges in sure segments.
Inventory ranges fell by 6.6% year-on-year in November, marking the primary month-on-month decline since July. Nonetheless, demand was up 5.5% year-on-year, driving total market well being to a constructive 13.0% in comparison with 2023.
By way of pricing, the typical value of used petrol vehicles fell by 4.7% to £14,710, diesels declined by 5.8% to £14,077, and electrical automobiles dropped 11.7% to £26,390. Plug-in hybrids skilled a ten.5% decline, with a mean worth of £30,598.
Wanting forward, Auto Dealer forecasts continued robust development, predicting the used automobile market will rise from an estimated 7.61 million gross sales in 2024 to roughly 7.70 million in 2025. This may deliver the market inside 3% of pre-pandemic volumes.
Commenting, Richard Walker, Auto Dealer’s information & insights director, stated: “November is constant the development of a powerful end to 2024. Final yr many retailers adopted the wholesale market in dropping costs sharply with a powerful and considerably pointless influence on retail values and earnings. However shopping for confidence in addition to retail pricing have steadied this yr, as proven by the extra typical worth actions we’re reporting in current months.
“We’re nonetheless seeing a big quantity of revenue being left on the desk although and with January’s consumers already on their buying journey, it’s very important retailers comply with the information, whether or not in sourcing one of the best automobiles for his or her market or in pricing and merchandising their vehicles to maximise their business alternatives.”
