Used car prices stabilise in August but volumes of stock continue to fall

9:10 am, August 31, 2022

The average price of used cars stayed flat in August as stock volumes continued to fall and days to sell got better.

That’s according to the latest Market View report from eBay Motors Group, which found that after six consecutive months of small declines, prices stabilised at £16,630.

That was a month-on-month rise of 0.1 per cent, equating to £11, with prices remaining 9.6 per cent up on last year.

Car supermarkets led the rise with prices up by 1.2 per cent to £16,895, followed by franchised dealers, which were up 0.7 per cent to £20,352, while independents dropped 0.4 per cent to £13,967.

Stock volumes dropped from 51.9 units in July to 47.6 – down 8.4 per cent – and have now been in decline since peaking this year at 57 units in April, according to the report.

The shortage of stock was felt across all three dealer sectors: car supermarkets (down 6.4 per cent), franchised (down 8.5 per cent) and independents (down 6.7 per cent).

However, days to sell improved on average month on month from 38.3 to 35.6 days, led by franchised dealers, which were down from 34.4 to 31.3 days, followed by independents, which were down from 46 to 44.9 days.

Car supermarkets stayed unchanged at 28.5 days.

Vehicles priced under £5,000 took 42.2 days to sell, those costing from £5,000 to £9,999 took 43.4 days, while those with more than £40,000 on their price tag took an average of 40.4 days.

The fastest-selling cars by fuel type were EVs, averaging just 28.2 days on forecourts, although they accounted for just 1.1 per cent of dealer listings.

With fewer new cars coming into the used market, dealer listings are increasingly weighted towards older stock, said eBay Motors Group, with nearly a quarter (24 per cent) of all cars advertised in August aged six to 10 years and accounting for a third of all views.

Lucy Tugby, head of marketing at eBay Motors Group, said: ‘August is always a difficult month for dealers as buyers’ thoughts and budgets turn to holidays.

‘However, they should be reassured by the continued stability we’re seeing in used car pricing and improved days to sell.

‘The coming months are set to be more challenging as car buyers factor in the impact of inflation, rising interest rates, the increased energy cap and the Bank of England forecasting a recession.

‘But despite these ominous headwinds, opportunities will still exist and dealers will need to be smart in their inventory and marketing approaches.

‘The September plate-change will provide a welcome, albeit suppressed, influx of trade-ins and end-of-contract PCP cars.

‘Dealers who maintain a strong online presence over the coming months will know that anyone searching for a car, especially older ones, is more likely to be a hot prospect than a casual browser.’