Used car demand grows in third quarter as average prices of EVs and hybrids rise, say auctioneers

Time 9:39 am, October 29, 2019

THE used car market gained significant momentum during the third quarter, according to the latest market insights report from Aston Barclay.

Demand was extremely strong and conversion rates rose to the mid-90 per cent during September, said the independent auction group.

Average prices of used EVs and hybrids reached their highest level – £14,012 – since its insights report was launched in 2017.

Demand at auction and online for EVs and plug-in hybrids continues to build, and buyers are targeting this stock, particularly in and around the London area. Meanwhile, average diesel and petrol prices fell marginally to £7,390 and £4,213.

Martin Potter, pictured, managing director of auctions, said: ‘Q3 was a very strong used car quarter, with September in particular off the scale. The majority of sales across our network were delivering mid-to-late 90 per cent conversion rates and demand for stock was extremely buoyant.

‘The used volumes we expected to arrive in the market in Q3 on the back of a record new market in 2016 didn’t materialise, which also helped fuel the market, as did sluggish new car sales during September.

‘We are seeing average fleet stock being replaced at 41-42 months, so we may start to see these cars coming back into the market during Q1 2020, which vendors should be mindful of.’

He added: ‘Dealers are investing more time in used cars and are now carrying a good balance of stock from 12-60 months to ensure they appeal to as wide an audience as possible.

‘That looks set to remain as new car sales remain challenging with the uncertainty of Brexit continuing to unsettle consumer confidence.’

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