The used car market is starting to return to more seasonal patterns, boosted by rising fleet volumes on the back of retreating vehicle shortages.

EV prices fell again in Q3 by 7.7% but growing price parity with ICE models is making the choice more straightforward for drivers

Aston Barclay’s latest used vehicle insights report reveals a 10% increase in fleet car sales in Q3 compared to the previous quarter, fuelled by a strong September plate change as new vehicle production improves.

The report also outlined a “gentle” slowdown in overall demand and prices as buyers become more selective due to market conditions.

Aston Barclay said a more seasonal market will allow the remarketing industry to plan more efficiently.

“Covid presented numerous challenges for new vehicle production, which made the market very sporadic. The new vehicle shortage pivoted the usual New Year, summer, winter and new March and September plate change market adjustments we had been used to for years, but in Q3 we started to see signs the market is reverting to normal,” said Nick Thompson, Aston Barclay’s chief customer officer.

Young part-exchanges and ex-fleet stock are currently in high demand, as wholesale buyers focus on vehicles between £8-15,000. This resulted in prices of young dealer part exchanges remaining static at £11,266 in Q3, while fleet cars fell by 3.7% (£621) to £16,022, following the trend of prices being marked down by the residual value guides.

EV prices fell again in Q3 by 7.7% (down £1,702) to £20,398 but growing price parity between ICE and EV models at the £10-15,000 mark is making the ICE v EV choice more straightforward for consumers.

Aston Barclay also saw used EVs reach 4% of its total sold volume in the quarter for the first time – this figure will continue to grow as leasing vendors report new EVs and ICE car deliveries are now on par with one another.

Petrol was the only fuel type to experience a price rise in Q3, as car buyers continued to move away from diesel. Prices were up by 5.1% (£404) to £8,197, their highest level since Aston Barclay’s first report in 2017. Prices of late and low cars (below 24 months) also fell by 5.7% to £22,623 – likely due to franchised dealers continuing to buy fewer used cars due to forecourts being full of dealer demonstrators and ex-management cars as more tactical sales are introduced by OEMs.

“2023 has very much been the transition year for the used car market. It remains very healthy and, with new vehicle supply improving, the entire supply chain is reverting back to a seasonal approach. It enables everyone to plan more efficiently, and we could see replacement cycles returning to a pre-Covid level,” added Thompson.