8:05 am, November 2, 2022
Used car retail prices rose for the third month in a row in October, as stock levels and days to sell remained stable.
That’s according to the latest eBay Motors Group Market View, which said advertised prices on Motors.co.uk went up by two per cent (£343) month on month to £17,154 – their highest level since May but only 0.5 per cent ahead of October 2021.
The increase in prices was mainly driven by vehicles under five years old, it said, prompting rises across all three main car retailing sectors.
Franchised dealers were up 2.5 per cent versus September to £21,624 and car supermarkets up 2.1 per cent to £18,302, while independents only saw a rise of 0.5 per cent to £13,830, reflecting their older stock mixes.
Average stock levels stayed steady at 48.5 units versus 49.2 in September. Franchised and independent sites were both down by just one unit month on month to 72 and 35 respectively, while supermarkets averaged seven fewer cars at 286 units.
But year-on-year comparisons were more pronounced for car supermarkets (down 19 per cent) and franchised dealers (down 17 per cent), while independent retailers bucked the trend with a six per cent increase.
Analysis of the stock mix across Motors.co.uk showed sharp falls in diesel (13 per cent) and petrol (eight per cent) but strong gains in electric (92 per cent) and hybrid (20 per cent).
However, petrol and diesel still comprised 95 per cent of listings and 97 per cent of ad views.
Average days to sell were unchanged month on month at 39 days – on a par with averages since June, although nearly six days longer than last October.
Car supermarkets enjoyed the quickest sales at 28 days, followed by franchised dealers (31 days), with both enjoying month-on-month improvements and independents seeing a small increase from 50 to 51 days.
The fastest-selling cars were dominated by younger-profile vehicles, especially those under three years old, with hybrids and electrics accounting for four of the month’s best performers.
Overall, the fastest-selling car was the Fiat 500 hybrid, pictured at top, averaging just 9.3 days in stock, followed by the Peugeot 3008 petrol (12.3 days) and Tesla Model 3 electric (12.4 days).
Lucy Tugby, marketing director of eBay Motors Group, said: ‘Despite the economic and political uncertainty that dominated news headlines throughout October, used car buyers remained active in the market, suggesting those purchasing were doing so out of necessity.
‘This resulted in another month of strong prices for dealers, with only marginal drops in inventory levels, despite the ongoing shortage of stock.
‘Our Market View continues to track rising interest in electric and hybrid models across Motors.co.uk, with increases in listings and ad views and more models entering the Top 10 fastest sellers’ rankings.
‘However, we know from our analysis of dealer leads that petrol and diesel account for over 90 per cent of inquiries and, with the cost-of-living crisis influencing the car-buying decision-making process, we expect this to remain the trend for some time.
‘The challenge for dealers, more so than ever before, is to keep an open mind when it comes to stocking EVs and closely monitor the level of inquiries they receive for them, especially as the rising cost of charging will be a barrier for some of their customers.’
Commenting on the top 10 sellers, Tugby told Car Dealer: ‘It was a good month for hybrid and electric models, accounting for four of the month’s best performers, with a diverse selection of brands and vehicle types, which included a van.
‘Our top 10 fastest sellers significantly outpaced the overall market, where vehicles averaged 39 days on dealer forecourts, highlighting the attractiveness of the right cars at the right prices.’
The news of the used car retail prices rise comes on the heels of trade prices reported as falling by 0.5 per cent in October.
In an exclusive interview with Car Dealer, Cap HPI’s director of valuations Derren Martin declared October’s market to be ‘strong’.
The combination of October’s small drop in trade prices, September’s 0.3 per cent rise and no sign of normal new car supply levels returning soon led him to believe a price crash won’t be around the corner.
Martin said it had been the strongest October witnessed since 2007 or 2008, adding: ‘We’re not used to seeing massive drops because of what happened last year [where values rose by 30 per cent], and that 0.5 per cent drop is what we’ve seen at various months throughout the year. It’s a bit of a continuation of that.’
Watch our exclusive interview with Martin below:
