Auto Dealer has reported a 19th straight week of used automobile value rises with a 7.4% mid-September enhance within the common marketed worth on a car provided on its on-line advertising platform.
The like-for-like enhance was primarily based on the interval from September 7 to 13 and got here in a interval which delivered report every day visits to the web used automobile market.
Auto Dealer mentioned that a mean of two.1 million visits occurred throughout its platforms every day final week – representing a 30% year-on-year (YoY) enhance.
Restricted car provide continues to play a component, with demand elevated 19.7% year-on-year final week as provide was down 10.4% YoY.
Automobile retailers have been far much less inclined to make common changes to autos costs because of the elevated demand and restricted inventory, in response to Auto Dealer, with many holding out for the precise promoting value.
Auto Dealer mentioned that in regular buying and selling circumstances reductions averaged between £250 and £550 per day.
Final week the common value discount was £279 which stays on the decrease finish, and simply £15 greater than the tip of August.
“The common variety of retailers making every day value changes was 1,158, which is 166 greater than the tip of August, however it’s 15.9% decrease than the identical interval final 12 months,” Auto Dealer reported right this moment.
“In complete, 9,683 automobiles had been repriced throughout the week, which is 35% fewer than final 12 months.”
Commenting on the mid-September used automobile pricing developments, Auto Dealer’s director of information and perception, Richard Walker, mentioned: “From a pricing perspective what we’re observing on our market is a really gradual return to pre lockdown ranges, with a small enhance in retailers energetic however throughout fewer numbers of automobiles and the changes on the decrease finish of what we might sometimes see.
“It’s indicative of the arrogance within the well being of the market and whereas demand continues to develop at such sturdy ranges, we’re not seeing any indicators that recommend retailers are beneath strain to cut back their costs.
“Opposite to many expectations of a drop in client confidence, our analysis suggests the other is it true.
“In December final 12 months we started monitoring customers’ confidence in with the ability to afford their subsequent automobile, and in August this reached its highest price.
“What’s extra, 45% of customers on our web site mentioned they’re extra assured of their potential to afford their subsequent automobile than they had been a 12 months in the past.
“All of those metrics provide a promising outlook, and while the speed of development might start to ease, now we have each cause to consider that each used automobile costs and gross sales will stay buoyant throughout the weeks forward.”
Robust demand for inside combustion engine (ICE) automobiles has maintained robust pricing throughout September, in response to Auto Dealer’s knowledge.
Final week, demand for petrol was up 22.3% YoY, whereas provide was down 5.1% YoY.
Diesel demand recorded a rise of 13.6% YoY, however provide dropped dramatically, down 20.8% YoY.
In consequence, each petrol and diesel autos recorded a like-for-like value enhance of 8%, marking consecutive value development of 28 weeks and 17 weeks, respectively.
Costs for alternatively fuelled autos (AFV) continued their downward decline, falling 1% year-on-year final week
Used automobiles aged between 10 and 15 years have seen a very steep decline in provide, down -16.4% YoY final week, leading to a YoY enhance of 11.9% – the most important development in values up to now this month.
It was adopted by five-to-10-year-old automobiles (10.8%), 3-5-year-old automobiles (9.7%), 1-3-year-old automobiles (5.9%) and as much as 1-year-old (4.1%).
Hatchbacks recorded the most important common value development final week, growing 11.5% on the identical interval final 12 months, whereas MPVs rose 8.5%, property automobiles 7.5%, saloons 6.6%, SUVs 5.6%, coupes 4% and convertibles 3.7%.
The common value of used premium and quantity automobiles elevated 6.1% and 10.9%, respectively.