The UK reported the strongest used car pricing growth across Europe in July, according to INDICATA’s latest data.
Prices rose on average by 1.7%, helped by a 22% shortfall in used stock in the market compared with the 1 April. Sales fell by 1.8% in July as a result of this stock shortage compared with a 3.7% rise in June.
INDICATA said the consumers’ appetite to buy electric and hybrid cars coming out of lockdown continues with sales up 53.5% and 51.2% year-on-year respectively, while 6-9-year old used cars continue to be the most popular. Prices of electric cars in July rose by £2,525 to £13,688 and hybrids by £1,461 to £16,156 compared with Q2, although supply was very limited.
Unlike many European markets luxury cars and SUVs are the UK’s strongest market segments experiencing a 11.5% and 11% increase year-on-year.
“July was a very busy month with demand exceeding supply. There are signs from some of our vendor customers that supply is starting to increase coming into August. With the new plate change in September we should also see new part exchange stock coming into the market,” explained Jon Mitchell, INDICATA’s group sales director.
“Despite that increase in supply prices look as though they will be strong during the summer, but we will have to wait to see how economic conditions will impact prices during the autumn,” he added.