The market for used cars remains benign, and the Goldilocks scenario continues. There’s no indication in the short term that this will change any time soon.
The most desired vehicles are turning even faster and, as ever, the challenge is finding suitable replacement stock. However, as the new parc opens up, this should start to bring decent trade-in vehicles.
As we’ve mentioned previously, second-hand EVs will continue to be a challenge as the supply rapidly increases, and there’s no tax cushion to support their residual value. With Tesla’s recent price reductions for new vehicles, it’s going to be interesting to see how far the second-hand prices fall. I’ve been told of an Audi e-tron GT costing over £100,000 that has halved in value after 18 months.
For dealers in the south east, the one to watch will be expansion of the ULEZ zone in August. An estimated 160,000 vehicles within central London will not longer be compliant and a large proportion of these will need to be replaced, creating opportunities for all.
Headline Autotrader figures
- 2022 stock MoM 2.4% decrease, YoY 19.9% increase
- 2021 stock, MoM 7.0% decrease, YoY 5.5% increase
- 2020 stock MoM 4.6% decrease, YoY 39.8% decrease
- Total market MoM 6.0% decrease, YoY 5.0% decrease
Top 5 brands by market share of 2022 stock
- Ford 8.5%
- BMW 8.5%
- Toyota 8.5%
- Audi 7.9%
- VW 7.9%
Enjoy March and have a great plate change. Long may the market remain benign.