Used automotive retail costs climb as seller confidence rises on sturdy demand

The used automotive market continued to point out resilience in April, with common retail costs rising by 1.5% month-on-month and gross sales volumes rising regardless of financial and political uncertainty, in accordance with new knowledge from Auto Dealer.

This represents the strongest month-to-month development since April 2023 and marks the primary time in 19 months that costs haven’t contracted year-on-year.

With strong client demand – particularly for 5-10 year-old and 10+ year-old automobiles – pricing confidence amongst retailers is constructing, although vital margin alternatives stay untapped.

Marc Palmer, Auto Dealer’s head of technique and insights, stated: “The nationwide media could also be awash with unsettling headlines, however reassuringly, our knowledge signifies the latest financial and political uncertainty has had little impression on used automotive shopping for demand.

Retail costs rose by 1.5% month-on-month and, for the primary time in over a yr, remained flat year-on-year – indicating stabilisation in pricing tendencies.

The fastest-selling age group was 5-10-year-old automobiles, which took simply 25 days on common to promote, outperforming all different age cohorts.

Older automobiles additionally noticed the strongest value development, with over-10-year-old vehicles rising 3.3% MoM and 1.4% YoY, whereas 5-10-year-olds elevated by 1.5% MoM and 1.1% YoY. In distinction, almost new vehicles – these lower than 12 months outdated – posted slower development of 1.3% MoM and a YoY decline of 4.4%, as returning provide outpaced demand.

General, used vehicles offered at a report tempo, averaging simply 27 days on forecourts—the quickest April on report for Auto Commerce

High 3 Rising Fashions (YoY)

Toyota Land Cruiser – £38,599 (+13.0%)

Hyundai i30 – £8,768 (+7.7%)

Volvo S60 – £12,764 (+7.2%)

High 3 Declining Fashions (YoY)

BMW iX – £47,533 (-19.1%)

Nissan ARIYA – £31,440 (-18.9%)

Tesla Mannequin X – £33,111 (-18.5%)

The information additionally revealed that 33% of inventory is now being priced above market worth – up from 30% final month – signalling growing retailer confidence. Nonetheless, £25 million in potential margin stays unrealised, with in-demand vehicles nonetheless being priced under market benchmarks, equating to £2,820 per retailer or £390 per car.

Commenting, Palmer added: “Though the general well being of the market will likely be welcome information to the business, retailers proceed to face challenges, with margins below growing strain. In at this time’s supply-constrained and closely nuanced market, each car counts, and so I’d urge our companions to scrutinise the info to not solely supply the appropriate inventory on your forecourt, however value it accurately and confidently to the market.”

Sue Robinson, chief government of the Nationwide Franchised Sellers Affiliation (NFDA), stated: “It’s encouraging that, regardless of the political and financial turbulence of latest months, the used automotive market has remained secure all through April and going into the second quarter of the yr. Used vehicles are leaving forecourts at a report tempo, providing a optimistic outlook for the months forward. Whereas these indicators are promising, there stays vital margin potential being missed and that is one thing retailers ought to carefully monitor as we transfer additional into the yr.”