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Car supply is now close to pre-Covid levels but a consistent increase of manufacturer-backed tactical registrations could contribute to damaging used car values, INDICATA UK suggests.
Manufacturer-backed tactical registrations increased by 39% in April, according to INDICATA UK’s latest Market Watch.
Dean Merritt, INDICATA UK’s head of sales, said: “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.
“Used prices are definitely heading back towards pre-Covid levels having fallen by 16% since January 2023.”
Average UK used car prices fell by -0.71% from April to May despite an increase in older cars coming into the market as companies update their fleets.
Nearly new used cars, in particular EVs, are being registered but fail to be wholesaled as dealers limit the number of used EVs they are adding to their forecourts.
Market Days’ Supply measures available used stock versus its current daily run rate.
The Market Days’ Supply of used EVs is lower in the UK than any other European country at 57 days, petrol (40 days), diesel (44) days and hybrids (45 days).