Five year Hyundai Promise warranty proposition is available for all vehicle types, covering petrol, diesel, hybrid and electric vehicles, with the latter featuring Assurant’s EV One℠ warranty programme, which launched in the UK market in 2020.
Paul Burgess, CEO at Startline Motor Finance, said that for most of this year, around 20% of dealers have mentioned the agency model as a challenge but there has been a definite increase this month. Why this has happened is not clear, but it may just be that the full implications of manufacturer plans to attempt to manage their vehicles in the used market for a longer period of time – into second and third lives – are becoming more obvious.”
Despite a rise in average age and mileage prices and the usual summer seasonal slowdown in Q3, ICE prices in particular have remained healthy. Used diesel prices fell by just 1.5% (£276) from Q2 to Q3 to £17,580 and used petrol prices dropped by 1.8% (£272) to £14,703. Used EV prices saw the biggest price fall of 9.5% (£2,124) to £20,067, while hybrids fell by 5.4% (£1,295) to £22,246.
New research shows that 63% say the condition of cars available will improve, 60% that they will be newer and 57% that prices will be lower. In addition, improved availability of cars of all ages is being forecasted, with 47% saying that supply will improve for 1-3 year old models, 62% for 4-7 years and 58% for eight years and over.
INDICATA’s latest Market Watch report saw used diesel car sales fall to a record low in August while used petrol sales rose to 54.6% and hybrids and BEVs comprised 22.5% and 6.6% respectively. However, Group Sales Director Jon Mitchell expects the Prime Minister’s announcement to inject new life into diesel sales and expects used prices to rise.
In the first half of 2023, the total number of individual dealers making bids rose by 42%, and the total number of offers made by those dealers increased by 99%. Even more of those bids are turning into transactions, with dealer purchases from online auctions in the first half of 2023 growing by 60% compared to the second half of 2022.
September’s Startline Used Car Tracker shows that 45% also believe there will be better stock supply and 43% that demand for electric vehicles (EVs) will increase. However, just 25% expect there to be an improvement in consumer confidence.
Running costs are the most important factor now named by 74% of motorists compared to 62% in April, followed by the cost of living, which is now at 65% against 61% over the same period. Similarly, inflation has risen from 26% to 36% and job security from 20% to 24%.
Cox Automotive predicts used car transactions for the entirety of 2023 to be 7,154,047 units, a 4% year-on-year increase, but still below (-3%) the average pre-pandemic yearly figure. It forecasts 1,866,540 transactions in Q3, softening to 1,607,517 in Q4. The Q1 baseline forecast of 1,790,034 achieved an impressive accuracy of 96.8%, closely aligning with the actual figure of 1,847,149, instilling confidence in the full year forecast across different market scenarios.
EVs accounted for 10.6% of used car sales in June compared with 9.2% for diesel for cars under two years of age which marks a swift and marked change in the market which has seen electric cars struggle to sell earlier in 2023.
