THE used car market continued to outperform new in October, according to the latest data from Cox Automotive.
Its auction and remarketing arm Manheim reported a leap in the volume of vehicles coming through its auction lanes, up 6.3 per cent from September.
The average mileage for vehicles sold was up 1.8 per cent to 62,158, while the average selling price of vehicles dropped slightly by two per cent to £6,242 compared to the previous month, reflecting a change in the mix of stock going through the lanes.
Cox Automotive’s trade-to-trade online auction platform Dealer Auction also reported increased volumes, up 16 per cent year-on year, with a 7.9 per cent annual increase in average selling price, up to £4,829.
On the retail side, Motors.co.uk reported a 0.3 per cent increase in average sold prices. Strong demand was also reported for high specification vehicles, with valued extras such as panoramic roofs, privacy glass, larger alloys and reversing cameras achieving in excess of cap clean.
Meanwhile NextGear Capital, Cox Automotive’s wholesale stock funding business, reported steady figures across the board, with the average cost per unit decreasing just 0.07 per cent to £7,697, while average holding days remained steady month-on-month.
Philip Nothard, customer insight and strategy director for cars at Cox Automotive, said: ‘The SMMT figures released this week demonstrate the continued pressures on the new market. As predicted, WLTP continues to impact the supply of new cars to dealers, and while the demand for hybrid and plug-in vehicles looks strong, the figures are behind Government ambitions.
‘In contrast, the used market continues to gain pace. Volume across our wholesale auctions rose steadily throughout October, and good quality, ready to retail product continued to sell well.
‘Attendance at all auctions nationwide was high and we’ve seen a greater willingness by dealers to travel further to obtain good stock. As expected, vehicles that require reconditioning work have proved more difficult to shift and as such, we have seen great results for vendors who offer vehicles that need little to no post-auction attention.’
He added: ‘Retail part-exchanges have performed well, and the corporate and fleet market have also achieved strong prices in the direct supply market. The ever-continuing conversations around fuel type continue to weigh on consumers’ minds, impacting on decision making for end customers, and while hybrids remain interesting, there is little appetite to purchase plug-in electric vehicles while logistical infrastructure remains low.
‘As we head towards the end of the year, the market – especially in wholesale – will continue to ride on the coat-tails of a strong autumn, with prices holding steady until January. Losses incurred as a result of the stunted new market will continue to spur on the demand for used, with dealers investing even more greatly to replenish lost new car revenues.’