7:27 am, March 8, 2023
A used car marketplace has recorded a 0.6 per cent fall in used car prices in February, compared to January.
The data from eBay Motors Group released today is at odds with recent reports from Auto Trader and Cap HPI who both recorded used car prices rising over the same period.
The eBay Motors Group data contrasts with a 0.3 per cent rise reported by Auto Trader last week.
Both marketplaces report on retail used car prices – the prices car dealers charge consumers on their forecourts, not trade values.
In the trade, Cap HPI reported values rose 1 per cent in February, their strongest performance in that month since 2009.
Despite the minor monthly discrepancies, both advertising marketplaces believe used car prices are still higher now than this time a year ago.
Auto Trader says prices are 1.3 per cent higher than February 2022, while eBay Motors Group thinks they’re 4.0 per cent higher.
eBay Motors Group has also seen used car stock levels drop significantly at car dealerships as they battle to find good quality vehicles.
Stock numbers were down 16 per cent at car supermarkets and fell 11 per cent at franchised car showrooms in February, said the group.
Consumer activity on Motors.co.uk has also hit a four-year high since the start of this year – but there is cause for concern.
The marketplace said that while consumers may be browsing, their clicks are not necessarily turning into leads.
Lucy Tugby, marketing director of eBay Motors Group, said: ‘Following a positive start to the year, online views remained encouragingly high throughout February, evidence of a strong appetite to purchase.
‘However, the lack of supply is being compounded by the economic pressures facing consumers, resulting in a softening of conversion to lead rates.
‘Buyers are in the market but with increased pressure on their household budgets they are understandably driven by price and affordability, we can see this in the high volumes of searches for older cars in the 6-14 year old bracket.
‘Many will also be hedging their bets to see if prices come down.’
The eBay Motors Group has also seen ‘realignment’ of used EV prices with notable drops for electric cars including the Hyundai Ioniq, Jaguar I-Pace, Nissan Leaf and Renault Zoe.
This has been a story repeated across car valuations experts with Cap HPI recently telling Car Dealer it’d seen a 7.7 per cent fall in used EV prices in February compared to January. You can watch our video interview with the firm’s director of valuations, Derren Martin, above.
Biggest February used car fallers
Source: Cap HPI data, three year old cars, 60k miles, comparing February values to January 2023
- VW Golf E -15.1% (£2,300)
- Tesla Model S -14.3% (£5,617)
- Tesla Model X -12.5% (£6,178)
- Renault Zoe -10.6% (£1,192)
- Nissan Leaf -10.6% (£1,469)
- Hyundai Ioniq -10.1% (£1,475)
- Kia Soul Electric -9.7% (£1,400)
- Peugeot 2008 Electric -9.7% (£1,615)
- MG ZS Electric -8.9% (£1,275)
- Audi E-tron Sportback -8.9% (£3,713)
Tugby said: ‘The volatility in used EV pricing continues, leaving many dealers with little choice but to wait and see how it plays out.
‘Likewise, buyers aware of the price drops, will also be biding their time.’
In February, EVs accounted for 5 per cent of all car dealer listings on eBay Motors Group platforms, compared to 49 per cent for petrol and 40 per cent for diesel.
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