‘Unusual’ Q2 brings across-the-board fall in used car prices
Used car prices fell across all powertrain types in Q2 – including hybrids and electric cars – as a result of both general apathy from Brexit and an increase in part exchanges due to the plate change.
Published after warnings from Cap HPI in May that used values had dropped up to 4% month-on-month as the used car market goes through a ‘market correction’, data from the Autorola online portal shows that average used diesels fell by 9.8% (equivalent to £1,317) from £13,385 in Q1 to £12,068 in Q2, said to follow a similar price pattern to Q2 2018, while used petrols fell by 5.3% (£555) from £10,435 in Q1 to £9,880 in Q2. Average age and mileage of used diesels and petrols remained static at 34 months and 28,637 miles, and 32 months and 18,187 miles respectively.
Used electric and hybrid prices fell by 4.5% (£780) from £17,455 in Q1 to £16,675 in Q2, with average age increasing from 16-18 months and mileage remaining static at 7,813 miles.
After seeing a record number of used electric and hybrid used cars sold online in Q1, stock availability and choice was very restricted during Q2 which helped contribute to the fall in prices.
“It has been an unusual quarter with some large dealer group and car supermarket buyers putting a stop on purchasing used stock in April based on the uncertainty caused by Brexit,” explained Jon Mitchell, Autorola UK’s group sales director.
“May and June were much more consistent with buyers investing in used stock again, while dealer vendors made decisions on which part exchanges to keep and which ones to sell which injected life into the market.
“We hope to see the used car market return to business as usual in Q3,” he added.