A record 25% price increase (£3,723) for late and low mileage cars to £18,350 and a 16% price rise (£1,698) for ex-fleet cars to £12,109 summed up the UK’s buoyant used car market in Q2 2021.
Aston Barclay’s latest Market Insights report shows that younger dealer part exchanges between 55 and 75 months experienced a 17.3% price rise (£1,234) to £8,435, while the older part exchanges between 78-125 months reported a 9.5% increase (£357) to £4,113.
Only the Budget sector at 126 months+ experienced a fall of £92 to £1,412 mainly due to a 57% increase in volume during Q1.
Used demand continues to exceed supply exacerbated by the manufacturer semiconductor production challenges which is putting additional pressure on the used market. With talk of it being Q1 2022 before production starts to fully recover then this market position is likely to remain in place for many more months to come.
Large order books are being reported by all the leasing companies and manufacturers and many business and personal contracts are being extended for six to 12 months to manage the restricted new car supply.
Used hybrid car prices have become an integral part of the used car industry hierarchy and are typically in line with average fleet age and price of 40 months and £13,000. However, used EVs continue to find their feet, arriving at auction on average at just 12 months old and at an average price of £28,000 which has hampered demand.
Aston Barclay has been spending time helping its retailer clients to source vehicles and look at different stock profiles to energise their forecourts.
Martin Potter, Aston Barclay’s Managing Director – Customer, said: “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
“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.”