The UK used car market has seen some significant price increases in the second quarter of 2021, according to Aston Barclay’s latest Market Insights report.
Late and low mileage car prices increased 25% to £18,350, while ex-fleet cars jumped 16% to £12,109.
Younger dealer part exchanges between 55 and 75 months rose 17.3% to £8,435, while older part exchanges between 78-125 months reported a 9.5% increase (£357) to £4,113. However, the Budget sector at 126 months+ experienced a fall of £92 to £1,412, partially due to an increase in volume during the first quarter of the year.
The global semiconductor shortage is continuing to put pressure on the used car market as manufacturers struggle to meet consumer demands with limited stock. The effects of this shortage are likely to be felt into late 2022, which means that this market position is likely to remain in place for many more months. Many business and personal contracts are being extended to manage the restricted new car supply.
Used hybrid car prices are now part of the used car industry hierarchy and tend to be in line with average fleet age and price of 40 months and £13,000. However, used EVs are arriving at auction on average at just 12 months old and at an average price of £28,000 which has affected demand.
Aston Barclay has been helping its retailer clients to source vehicles and look at different stock profiles to energise their forecourts.
“In over three decades of working in the remarketing sector I’ve never seen used car prices rise so dramatically in a three-month period. Many dealers are desperately short of stock which is compromising their businesses, but there is no change on the horizon,” said Martin Potter, Aston Barclay’s managing director – customer.
“The majority of new cars being delivered into late 2021 and 2022 will be EVs so it will be interesting to see how demand from consumers for used zero emission cars shapes up over the coming 12 months,” he added.