Surge in sales of older used cars sees demand outstripping supply

Time 1 year ago

Used car buyers purchasing six to 12-year old cars helped contribute to a 3.7 per cent rise in sales in June 2020 compared with June 2019.

The latest Indicata used car insights report shows sales of cars aged 6-9-years old and 9-12-year old rose by 12.6 per cent and 8.6 per cent respectively.

Meanwhile, the 0-3-year old sector fell by 7.1 per cent. The firm puts the decrease down
to a shortage of stock in the sub 12-month sector.

SUVs, sports and luxury cars continue to be in high demand while mini and small car sales fell by 4.7 per cent and 3.6 per cent respectively.

The report also shows since dealers opened on June 1, used car sales have reached a seven-day rolling average of 12,000-per-day which compares with the 10,000-per-day dealer restocking rates.

Indicata says this has led to dealers being short of roughly 125,000 used cars against April levels, which has been hampered by wholesale stock still stuck in compounds or parked on airfields – weakening supply into the wholesale market which has meant demand has continually exceeded supply.

Dealers could be ‘brave’ and increase prices of stock on their forecourts, thanks to prices rising by just 0.7 per cent in June.

Jon Mitchell, Autorola UK’s group sales director, said: ‘We have definitely seen a strong used car performance since dealers opened on June 1. Stock volumes on our online wholesale portal fell by 25 per cent in the month so we know demand is outstripping supply.

‘We anticipate the summer months will be extremely busy with the market only starting to calm down in early Autumn. The new 70-plate in September and Covid-induced PCP and contract hire contract extensions will feed additional stock into the market in autumn which should improve stock availability.’

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer.

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