Used car stocks remain at ‘high levels’

Used car stock levels remain at high levels in the trade as a result of rocketing new car sales.

Derren Martin senior editor Black Book said some auction centres were having to stock cars in compounds to deal with the capacity.

“Stock levels are high. We are aware of certain auction centres having to store vehicles off-site.

“These volumes have been high since early-mid April due to March’s new car activity and they are showing few signs of dissipating.

“It seems at the moment that for every car sold through auction, there is a replacement coming into stock hence levels remain at a high level,” he said.

Stock levels have been created by rising new car sales as carmakers target the UK to compensate for weak markets in mainland Europe.

In March, the most important sales month of the year, new registrations surged 18% to 464,824 units, the best March since the twice-yearly plate change was introduced 10 years ago.

For the latest figures, in the year to May, new car sales are up 11.6% to 1.06m.