Used vehicle demand continues outstripping supply

Half of Britain’s used vehicle dealers are seeing demand still outstripping supply, according to the latest Manheim dealer sentiment survey.

It found that three fifths have adjusted buying strategies as a result of stock shortages and nearly 60% said they’d ‘taken steps’ to mitigate the supply shortfall.

A third said they were buying from ‘additional or alternative sources and a fifth were using classified as a medium to purchase stock. Some 15% were fast tracking vehicle preparation to speed stock turnover, and the same number said they were travelling further afield to source cars. One in ten were buying lower grade vehicles than they would normally.

“Our most recent data shows the used market is continuing to gain pace, with volumes and buyer activity increasing in October versus previous months. But despite this upwards trend, this dealer sentiment suggests that growth would be stronger still if more stock was coming through into the used sector,” said Manheim customer insight and strategy director Philip Northard.

“That dealers have maintained this growth despite stock availability challenges and increased competition in the lanes is testament to their resilience and ability to flex their business models to compensate. As we look towards Q1 and the prospect of a return to normality for the new car sector and a release of used stock into the wholesale market as fleets, manufacturers and leasing firms re-start their buying cycles following the WLTP-induced lull, I think we can be confident dealers are ready and able to take full advantage of every opportunity,” he said.