Used car prices have risen by 16.6% on average in the first eight months of 2021 as supply issues continue to affect the new car market, according to INDICATA UK’s latest report.
As a result, dealer stocks are 9.3% lower in September compared with the beginning of last month, despite there being a drop in sales during August. Overall used car sales in the first eight months of 2021 were 24.9% above the same period in 2020, and 4.8% in 2019.
“Buyers continue to clamour for whatever stock they can get their hands on and generally dealers are holding onto the majority of their part exchange stock to retail,” said Jon Mitchell, INDICATA UK’s group sales director.
“We have achieved 100% conversion rates on our online auctions for months as dealers are prepared to give all makes and models of used car a go just to keep their forecourts busy,” he added.
Diesel and petrol cars are being sold at about the same rate, followed by hybrids and electric vehicles (EVs). However, EVs were still slow to sell due to being priced £3-4,000 higher.
The top selling used cars in August were the Ford Fiesta, followed by the VW Golf and the Ford Focus. The fastest selling was the MG GS was the fastest, followed by the Toyota Auris and the MG ZS.
“There is no surprise about the top selling models in the month, but it was interesting to see the MG brand is gaining positive traction in the used market,” said Mitchell.