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The UK used market showed signs of cooling in August with volumes down 3.3% year on year.
That’s the view of Indicata which said during August sub-three-year volumes fell by 15.75%. Volumes plummeted 50% in the sub 12-month sector as carmakers cut back on self-registrations and demonstrators because of supply shortages following the Covid-19 pandemic lockdown. The six-nine-year age group was the only one to rise during August by 8.8%.
Hybrids and EV sales were up year-on-year by nearly 50% – from a low base – reflecting the consumers’ move to low emission used cars post lockdown.
Retail prices rose by 1.9% during August, which reflects the very high wholesale prices in the market.
Market stock levels grew by 3% in August as used cars stuck in the wholesale supply chain were found their way onto dealers’ forecourts.
Indicata warned that some dealers have become more cautious in their buying habits as wholesale prices have remained very high.
“The UK used car market saw an interesting blend of high prices, improving stock levels and a fall in demand year-on-year. Based on these trends, September could be more of a challenging used car month for dealers,” said Jon Mitchell, Indicata group sales director.
“Dealers must invest in identifying the fast-moving stock and trade out of the slow-moving stock quickly,” he added.