2013 saw the lowest first-quarter retail sales volume for used cars since 2005, although electric vehicles (EVs) and 4x4s have performed well according to the quarterly Used Car Sales Index by credit reference agency Experian.
A total of 1,653,668 used cars were sold in Q1 2013, a year-on-year drop of 5.06% from the three-year high for first-quarter used sales in 2012, at a time when sales in the new market increased by 7.39% year-on-year to 605,198.
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The drop and subsequent recovery appear tied to the prices of second-hand vehicles at auction: British Car Auctions (BCA) reported the highest recorded average value in used cars at auction for the quarter, although dropping from a monthly high in December 2012. Meanwhile, carfinance247.co.uk recorded a 6.8% rise in prices from October 2012 to March 2013 and the Vehicle Remarketing Association and Manheim each reported high auction values in January.
Post-Q1, values continued to drop from December according to BCA, which value data provider CAP attributed to an increase in vehicle stock availability.
The drop in used retail had reduced confidence among independent second-hand car dealers, according to CAP in April. However, since the end of March, used sales have begun to climb again and a majority of independent dealers surveyed by CAP have reported a positive business outlook. Experian added finance in the used market has also risen over the last two years, which has perhaps enabled second-hand car dealers to compete with manufacturers’ deals in the new market.
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By GlobalDataAlternatively-fuelled used vehicles saw growth in excess of new counterparts. Petrol-electric hybrids were up 13.19% year-on-year for Q1 to 6,342 sales and EVs were up 13.69% to 930 sales, compared to 1.39% growth in new alternatively-fuelled vehicles to 8,439 units.
With changes in the Congestion Charge bringing hope for hybrids, despite dissatisfaction for motorists, according to Car Loan 4U, and funding from the Office for Low Emission Vehicles for domestic charge-point installation, many players in car finance have hopes for increasing EV sales and funding.
By segment, while specialist sports and upper medium models saw drops of 10.4% and 10.1%, respectively, in sales volume, 4×4 sales were up by 7.4% for the quarter.
Andrew Ballard, principle consultant at Experian Automotive, commented: "Our figures show that some categories are consistently performing well even in a challenging environment.
"These trends are important indicators for dealerships when identifying and building the optimum, profitable stock mix."
Further data from the Experian Used Car Index will be published in the July issue of Motor Finance magazine.
richard.brown@timetric.com
