Motorists’ continued urge for food for automotive shopping for has delivered one other 5.1% improve within the worth of the typical used car marketed on the market on Auto Dealer.
Month-to-date to November 17 the typical value of a used automotive rose round £300 to £17,863 on the identical interval in October as ongoing inventory shortages proceed to play out in a market that appears sturdy, regardless of the cost-of-living disaster’ affect on family funds.
On a month-on-month foundation, used automotive costs have now been impartial or risen for 5 consecutive months on Auto Trader.
Information used to compile its Retail Worth Index Report confirmed that automotive retailers had been turning inventory in a mean of simply 27 days month-to-date, which is someday sooner than final yr (28), and 4 days fewer than 2019 (31).
Auto Dealer additionally claimed that the quantity of advert views on its market growing 1% on November 2021, and a major 14% on pre-pandemic November 2019.
Richard Walker, Auto Dealer’s knowledge and insights director, stated: “The distinctive market dynamics we’ve seen over the course of the pandemic has shifted common costs up dramatically – round 47% on 2019 ranges.
“However while we proceed to listen to reference to a figurative cliff edge, or costs set to break down, we nonetheless see no proof of it. Based mostly on what we’re monitoring throughout the entire retail market, in addition to ahead views of provide chains, there’s nothing to recommend something apart from a return to relative normality now that these dynamics have been absorbed and new equilibrium appears to be stabilising.”
The most recent findings from Auto Dealer’s shopper sentiment survey, performed in October, advised 42% of two,000 respondents intend to buy a automotive throughout the subsequent two weeks, which is up from 40% in September, while almost 1 / 4 (24%) intend to buy throughout the subsequent three months.
Auto Dealer stated it continues to see no less than 80% of surveyed customers visiting its market stating they’re as assured they’ll afford their subsequent automotive at this time as they had been final yr, if no more.
In his mid-month market update with AM, Cap HPI director of valuations Derren Martin described the sector’s present excessive used automotive values to stay, describing the outlook as “very steady”.
He revealed that electrical autos (EV) had been turning into vulnerable to depreciation, nevertheless, as carmakers prioritised their manufacturing and used automotive patrons shied away from their excessive costs.
Tesla’s Mannequin 3 has misplaced round £5,000 in worth (at three years, 60,000 miles) for the reason that begin of October, he advised.
Auto Dealer’s knowledge communicated an identical development.
The common value of a used EV having declined from £39,166 in October to £38,021 in November – a fall of £1,145.
It stated {that a} “important improve within the ranges of provide” had been a contributor, with the quantity of EV adverts on Auto Dealer grew 200% YoY.
Auto Dealer’s month-to-month rating of November’s least and most depreciating used automobiles included only one EV, however did present an growing demand for budget-oriented metropolis automobiles, with the Fiat Punto (up 36.2%), Peugeot 107 (up 33.8%) and Peugeot 207 (up 33.2%) probably the most appreciating autos.
On the different finish of the spectrum the Jaguar XK (down 17.5%), Vauxhall Grandland X (down 14.4%) and BMW 8 Collection (down 14.1%) had misplaced probably the most worth.
