Used automobile costs proceed climbing in January

Used automobile costs have continued to climb, reaching the thirty fourth month of consecutive progress, in line with Auto Dealer.

It’s newest Retail Worth Index reveals the common retail value of a used automobile has reached £18,119 – up 2.7% year-on-year. Final month, costs grew by 3.4%.

Since Could 2020, common used automobile costs have rocketed by greater than £4,000.

Auto Dealer’s director of Information and Perception, Richard Walker, stated: “It’s exhausting to disregard the present political and financial disruption, however primarily based on what we’re monitoring, it’s having a really restricted affect on the retail market.

“Crucially, demand for used automobiles stays strong, which together with the continued constraints in provide, is conserving costs steady, and with it, income wholesome. Nonetheless, as our information highlights, the market is extremely nuanced, and fluctuations in provide or demand can have an effect at a really granular stage. It’s essential then, that retailers comply with the info rigorously to make sure the perfect potential margin.”

The present stability in used automobile costs continues to be pushed by the mix of strong client demand, and the continued squeeze in provide. Auto Dealer’s market information reveals that the quantity of cross platform visits elevated 14% final month, in opposition to January 2022, whereas provide fell by 5% over the identical interval.

Used automobiles took a median of 40 days to promote in January, which is simply someday slower than final yr (39), however sooner than pre-pandemic averages. On common, older automobiles had been leaving forecourts the quickest in January, with these aged 10-15 years taking simply 35 days, while 5–10-year-old-cars took a equally above market common of 36. The slowest age cohort to promote, nevertheless, was 1-3-year-old-cars, which took a median of 47 days.

The rising demand for older and cheaper inventory shouldn’t be solely leading to a sooner velocity of sale for older age cohorts, but additionally stronger ranges of value progress. These automobiles aged 10-15 years outdated (which had a median worth of £6,325 final month) elevated 0.5% between December and January, and on a year-on-year foundation, had been up by 10.9%.

Sue Robinson, chief govt of the Nationwide Franchised Sellers Affiliation (NFDA), added: “The used automobile market has entered 2023 with continued resilience, values have remained steady, and demand is buoyant. Franchised and impartial sellers promoting used automobile autos need to the yr forward with optimism after profitable buying and selling in January, and there’s little to counsel that there will probably be any drastic adjustments to the market any time quickly.”  

Used electrical automobile (EV) retail values recorded the fifth consecutive MoM decline in January, dropping 2.1% from December to £36,179. 12 months-on-year, common EV values have fallen by 1.5%, whereas petrol was up 3.4% YoY and diesel was up 2.5%.

Aston Barclay reported that used EV values fell by £5,000 in This autumn 2022.

Regardless of the unsure financial and political again drop, client confidence continues to point out indicators of enchancment. Auto Dealer’s client analysis reveals that greater than three quarters (78%) of the circa 1,900 in-market automobile patrons surveyed in January are planning on shopping for within the subsequent six months, and 27% within the subsequent three months.

High 10 automobiles for value progress Jan 22 vs 23:

Automobiles with largest value contraction Jan 22 vs 23: