Used car prices up 16.6% in first eight months of 2021
Used car prices have risen on average by 16.6% in the first eight months of 2021, as a result of the impact of the semiconductor shortage on new car supplies.
The data comes from Indicata UK’s latest insights report, which also reveals that overall used car sales between January and August 2021 were 24.9% above the same period in 2020 and 4.8% in 2019.
Latest SMMT new car registration figures show how buyers are turning their backs on new cars. Just 68,033 new cars were registered in the traditionally quiet August month – down 22.0% year-on-year to a level not seen since August 2013 and also down 7.6% against the average recorded over the last decade.
The Indicata data also shows that the popularity of used cars is also eating heavily into stock levels. Dealer stocks are 9.3% lower in September compared with the beginning of August. This is despite August used car sales falling 13.0% in line with the usual holiday seasonal trends.
“Buyers continue to clamour for whatever stock they can get their hands on and generally dealers are holding onto the majority of their part exchange stock to retail,” explained Jon Mitchell, Indicata UK’s group sales director.
“We have achieved 100% conversion rates on our online auctions for months as dealers are prepared to give all makes and models of used car a go just to keep their forecourts busy,” he added.
Indicata also reveals that stock turn on diesel and petrol used cars are on par with one another, closely followed by hybrids, while EVs are still slower to sell due to prices generally being £3-4,000 higher than equivalent ICE models.
The report also now tracks the top-selling used models each month – with the Ford Fiesta taking the crown for August while the MG GS SUV was the fastest-selling model.
“There is no surprise about the top-selling models in the month, but it was interesting to see the MG brand is gaining positive traction in the used market,” said Mitchell.