USED CAR DEMAND GROWS IN Q3 AS PRICES OF HYBRIDS, EVS AND LATE AND LOW STOCK ALL RISE
Posted 29 October 2019
The used car market gained significant momentum during Q3 with demand very strong and conversion rates rising to the mid 90 per cent during September according to the latest market insights report from Aston Barclay.
Average prices of used EVs and hybrids reached their highest since the insights report was launched in 2017 at £14,012, while sub 24-month old late and low cars hit their highest level in 2019 at £14,738.
Demand at auction and online for EVs and plug-in hybrids continues to build, and buyers are targeting this stock, particularly in and around the London area. Average diesel and petrol prices meanwhile fell marginally to £7,390 and £4,213.
“Q3 was a very strong used car quarter with September in particular off the scale. The majority of sales across our network were delivering mid to late 90% conversion rates and demand for stock was extremely buoyant,” explained Martin Potter, managing director, auctions.
“The used volumes we expected to arrive in the market in Q3 on the back of a record new market in 2016 didn’t materialise which also helped fuel the market as did sluggish new car sales during September.
“We are seeing average fleet stock being replaced at 41-42 months so we may start to see these cars coming back into the market during Q1 2020 which vendors should be mindful of,” he added.
Average days to sell is further proof of a buoyant used market and fleet stock fell to 7.0 days from 10 days in Q2, while stock in all three dealer part exchange sectors saw sale days reduce.
“Dealers are investing more time in used cars and are now carrying a good balance of stock from 12-60 months to ensure they appeal to as wide an audience as possible.
“That looks set to remain as new car sales remain challenging with the uncertainty of Brexit continuing to unsettle consumer confidence,” said Potter.