INDICATA Market Watch insights’ latest report reveals that the UK is the only market in Europe where used car prices are falling.
According to the report, used car prices have been falling for six consecutive months and last month they registered a 2.6% decline.
In contrast, prices in other 11 European countries in INDICATA’s report rose between 4.2% (Sweden) and 11.6% (Austria).
Since January 2022, used car prices in the UK have fallen by a total of 7.2%. In June, sales fell by 13.3% due to reduced economic confidence.
“People seem to be looking more at the cost of living,” St Leonards Motors director Jason Barlow was quoted by Bloomberg as saying. “They are making that conscious decision of ‘do we really need a car anymore?” he added.
According to Barlow, customers buying a used car are looking for lower-priced models, for which the demand had been resilient.
Meanwhile, the popularity of used EVs continued to rise. In June EV sales were 23% higher than in May.
Although the volume of used EVs is still low the increased demand indicates an increased acceptance of used EV cars by retail drivers.
INDICATA UK group sales director Jon Mitchell said: “The market continues to correct itself in 2022, but with stocks low and demand still consistent we do not predict a market crash.
“With new car supply challenges likely to continue now until 2024 we believe prices will settle down over the summer and may rise again in the autumn when used car demand looks set to improve.”