Auction group Aston Barclay has said that diesel cars remain the fastest selling used cars in the UK and diesel is the fastest-selling fuel type, despite the trend of declining values.
Aston Barclay shared its outlook on the used car market with 50 BVRLA members during the association’s Residual Value and Remarketing Committee meeting.
The group said that the late and low (under 24 months old), old part exchange (78-125 months) and budget part exchange (over 126 months) sectors all saw a price rise in April and May of 1.5%, 0.6% and 4.3% to £23,623, £5,704, and £2,139, respectively.
Owing to the contract extensions, the average age of stock is rising and used fleet car prices continue to fall.
Prices slumped by £367 from Q1 (-2.3%) to the end of May in line with recent CAP monthly valuations, to an average of £15,307 at 41 months and 32,729 miles.
As one-third of leasing fleets remain on extension Aston Barclay expects there will be no large stock volumes coming back into auction during 2022 and 2023.
Diesel remains a key player in the used market, Aston Barclay adding that 43% of stock moving through its auctions in April and May were diesel.
Despite the record rise in fuel prices, used diesel car prices soared by 2.6% (£221) to £8,491 and average age fell from 98.8 to 94.7 months with average mileage falling from 83,862 to 80,987 miles.
In Q2, electric vehicle prices rose £3,340 from Q1 and reached a new all-time high of £31,420, based on average age and mileage profile of 22.4 months and 15,664 miles.
Currently, EVs are the slowest-selling fuel type at 14.2 days.
The rising cost of living has impacted the retail demand, which had been subdued in the past couple of months
This is in line with CAP’s prediction that during 2022, used prices are likely to fall by 15%.
Aston Barclay chief customer officer Martin Potter said: “There is a shortage of retail demand currently and this could continue to the end of the year, but we do not predict a dramatic fall in prices as the market remains short of used stock. Ex-fleet stock, in particular, remains in short supply and rental companies continue to buy rather than sell used vehicles at auction. “We anticipate the market continuing at its ‘new normal’ which in cases of the fleet market means prices are still £4-5,000 higher than they were in Q1 2021.”