Used automotive costs rose by 2.17% on Auto Dealer as new automotive provide constraints continued to drive a buoyant market in September.
Values rose a median of £370, to £17,409, between August and September to depart the sector’s development at 35% over two years and 42% in three.
Inventory flip additionally continued its latest acceleration, with the common used automotive taking a median of 26 days to promote in September.
That’s two days sooner than August and the sector’s quickest since October 2021 (24 days), in response to Auto Dealer.
Auto Dealer’s director of information and insights, Richard Walker, stated: “It appears nearly each week the market is having to deal with one other potential headwind, most just lately the Chancellor’s not so mini funds.
“And as we’ve seen following different latest financial disruptors, some have been fast to counsel it’ll be the straw that breaks the camel’s again. Nevertheless, we’re merely not seeing any signal of it, with ranges of client demand, intent, and budgets all remaining secure.
“While the used automotive market received’t be immune to those macro modifications, together with the potential affect of rising rates of interest on finance offers, there are a number of things distinctive to the automotive market, which we imagine will proceed to insulate it from broader financial disruption and proceed to gas sustained ranges of demand, and with its sturdy used automotive costs.”
Inventory shortages look set to proceed to drive excessive used automotive values and automotive retailers’ margins within the months forward.
Even forward of final month’s 4.6% new car registrations uplift on a constrained 2021 quantity plate change month, The Nationwide Affiliation of Motor Auctions’ (NAMA) warned that forecourts are unlikely to benefit from “significant volumes” of extra inventory.
Auto Dealer claimed that advert views on its automotive advertising platform had remained buoyant throughout September, nonetheless.
Whereas final month’s views have been down 5% on 2021’s large post-lockdown surge, they remained 17% up on pre-pandemic ranges, it stated, whereas common each day customers elevated to 1.34 million.
Moreover, in a September survey performed by Auto Dealer, greater than 80% of shoppers acknowledged they have been at the least as assured as they have been final yr of their potential to afford their subsequent automotive.
In a separate survey, three quarters acknowledged they have been intending to purchase a automotive throughout the subsequent six months.
Nationwide Franchised Sellers Affiliation (NFDA) chief govt Sue Robinson stated September had delivered “one other constructive month within the used automotive market”, with excessive costs and robust client demand making for a wholesome market.
She added: “The continued client demand and growing values highlights a secure market, which is constructive going into the closing months of the yr.
“There are cautious headwinds to look out for with the broader financial local weather, however NFDA is assured this won’t have an instantaneous affect on the used automotive market.”