Used car prices rose by an average of 0.9% in February according to the latest used car insights report from INDICATA UK.
Prices of used petrol, diesel and hybrid cars increased on average by 1.6%, 0.8% and 0.7% respectively as the sector continued its strong performance in 2023.
EV prices meanwhile fell by 5.4 percentage points as the powertrain continues to find its level despite sales slowly picking up on the back of reduced prices. INDICATA has seen Tesla’s new car discounts contributing to renewed interest in zero emission motoring.
“Demand for used cars across the board has been strong since the beginning of the year and February’s price rise was the first our report has seen since September 2022. Not surprisingly the news of Tesla reducing new car prices has increased the exposure of EVs to dealers and consumers, but the stock levels remain the highest of any powertrain type,” explained Jon Mitchell, INDICATA UK’s group sales director.
Used petrol cars have consistently been the most popular in 2023 but sales are now being hampered by reduced stock levels with Market Days’ Supply (MDS) halving from 64 to 32 days during January and February.
To put this into perspective there were 87 days’ worth of used EV stock in the market on 1 March, down from 135 days on 1 February.
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INDICATA’s report saw the Ford Fiesta remain as the country’s top-selling used car for the second successive month closely followed by the VW Golf and Nissan Qashqai. The fastest-selling used cars were all newcomers with the Mazda CX-5 in first place followed by the BMW X3 and Hyundai Tucson.
“The dynamics of the used market continue to change on a regular basis. No one was expecting new car price cuts from Tesla and petrol car sales being hampered by low stock levels. Dealers and fleets should be using every available source of market data to stay one step ahead of this unpredictable market,” said Mitchell.
Read More: Driving the EV transition through finance