A return to manufacturer-backed tactical registrations could impact used car values in the long term, Indicata has warned.

If the used EV floodgates open, then it could further compromise used values just as EV prices have stabilised during 2024

Its April Market Watch report shows that sales of sub-12-month-old cars increased by 39.1% year on year.

It’s a surefire sign that self-registrations by dealers are on the rise as car supply comes back to pre-Covid levels following the recent shortages in recent years.

But it could also spell trouble for used car values, damaging prices in the long term if the trend continues.

Currently a number of nearly new used cars, in particular EVs, are being registered but are failing to be wholesaled as dealers continue to limit the number of used EVs they are buying to add to their forecourts.

But if the used EV floodgates open, then it could further compromise used values just as EV prices have stabilised during 2024.

The Market Days’ Supply of used EVs is lower in the UK than any other European country at 57 days with petrol leading the way at 40 days, diesel at 44 days and hybrids at 45 days.

Market Days’ Supply measures available used stock in the market versus its current daily run rate which saw EVs compete favourably with ICE cars once again in April.

Dean Merritt, Indicata UK’s head of sales

Average UK used car prices fell by 0.71% from April to May as the market is in a healthy state despite an increase in the number of older cars coming into the market as companies continue to update their fleets.

“The used market continues in its healthy state as supply and demand remain finely balanced. If the volume of nearly new used cars getting pumped into the market continues to increase it will impact the used values of all cars, not just EVs,” explained Dean Merritt, Indicata UK’s head of sales.

“Used prices are definitely heading back towards pre-Covid levels having fallen by 16% since January 2023,” he added.