Used automobile values declined 0.4% month-on-month however remained 45% forward of pre-pandemic “norm” throughout November, based on the most recent information from Auto Dealer.
The typical worth of a used automobile marketed on the market on the platform reached £17,801 final month, which was down on the earlier month in a pattern mentioned to be “in-line with seasonal developments” and up 4.7% year-on-year.
The consequence marked the thirty second consecutive month of YoY used automobile worth progress on Auto Dealer.
Regardless of a 2% decline on final yr’s file ranges, Auto Dealer claimed client engagement on Auto Dealer stays “robust” with the quantity of advert views up 11% on 2019.
Automotive retailers’ inventory flip is slowing, with the typical days to promote rising from 25 days in October to 30 final month. This stays forward of the 31 days of November 2020 and 33 in November 2021, nevertheless.
Auto Dealer director of information and insights, Richard Walker, mentioned: “Regardless of the broader financial uncertainty, the continued year-on-year worth progress helps our cautious, however assured, outlook for the used automobile market.
“The proof of our retail information ought to give retailers the boldness to purchase understanding the strong commerce margins nonetheless out there, even through the usually quieter festive interval.
“The metrics we’re seeing are in keeping with what we’d anticipate to see right now of yr, and though it could be straightforward to interpret the month-on-month softening as an indication of a looming crash in costs, we’re not seeing any indicators of this.”
Walker added: “With ranges of demand remaining strong, and no indication of a major enchancment in ranges of provide anytime quickly, we will anticipate used automobile costs to stay secure into the brand new yr.”
EV values dip
Earlier this month Cap HPI director of valuations Derren Martin told AM that November appeared set to ship the second-lowest degree of depreciation on file, with values down simply 0.6% month-to-date at three years and 60,000 miles on the time, in comparison with historic declines of round 2.5%.
His prediction proved appropriate, regardless of the month-end’s 1.2% common decline being the third heaviest downward motion of the yr to this point, after March and April each noticed 2.1% declines.
Martin additionally identified that OEMs’ precedence of delivering electrical automobiles (EV) was making that a part of the market the toughest hit, with Tesla’s Mannequin 3 having misplaced round £5,000 within the house of lower than two months.
Auto Dealer’s information confirmed that used EVs had recorded a 3rd consecutive MoM decline in worth throughout on its platform in November – falling 2.5% to £37,919 – as plug-in hybrids values fell 1.8%.
In distinction, the typical worth of a used petrol (£16,279) automobile was down 0.2% MoM, while diesel (£16,696) was flat.
Auto Dealer’s newest automobile depreciation information confirmed that reasonably priced metropolis vehicles – now all-but absent from new automobile mannequin ranges – are the strongest performers as motorists search out reasonably priced mobility through the cost-of-living disaster.
Fiat’s Punto, Peugeot’s 107 and 207 and the Vauxhall Agila MPV head the rankings of most appreciating vehicles throughout November.
The Jaguar XK coupe, Vauxhall Grandland X and BMW 8 Collection took the largest worth hit, in the meantime.
Sue Robinson chief govt of the Nationwide Franchised Sellers Affiliation (NFDA), mentioned: “The used automobile market stays in a robust place with franchised sellers and impartial retailers benefiting from strong used automobile costs and sustained ranges of client demand.
“Auto Dealer’s Retail Value Index reveals year-on-year progress is softening however stays very optimistic at practically 5% on high of earlier information, and importantly, we’re but to see exterior elements regarding the broader economic system and vitality payments affect ranges of demand in a major approach.”