Used car market is strong, says Cox Automotive

10:54 am, August 20, 2018

THE used car market remains steady and stable despite external market pressures, new data released today by Cox Automotive has revealed.

The overview of the July marketplace signalled a positive upturn in demand for ready-to-retail vehicles, offering dealers and vendors positivity.

Cox subsidiary Manheim continued to show strong increases in the price of sold vehicles – up seven per cent to £7,298 from £6,816 in June, and a 15 per cent increase on the same period last year. Volumes of vehicles coming through the lanes also remained stable, in line with the previous month.

Dealer Auction, the trade-to-trade online auction platform, also reported a two per cent month-on-month increase in the average selling price of vehicles to £4,630, in addition to a 10 per cent increase in volumes through the online lanes.

Commenting on the figures, Cox Automotive head of external relations Philip Nothard said: ‘We’re not surprised average selling prices are being pushed up – something we expect to continue over the coming months.

‘As the market remains steady in terms of volume, demand for vehicles is heating up and dealers are now willing to pay more for quality vehicles that match their requirements. They want clean, tidy stock with good mileage that they can list quickly, and which they know will attract drivers for a quick sale, so vendors will do well to ensure their pre-auction checks are thorough before entering their vehicles, in order to achieve the maximum sale price possible.’

The Manheim data also revealed a strong demand for Ford Focus, Vauxhall Insignia and Vauxhall Astra models up to 10 years old with mileages below 50k, alongside a significant increase in the demand for convertibles coinciding with the hot weather.

Rounding off wholesale figures, NextGear Capital, Cox Automotive’s wholesale stock funding business, also reported steady figures across the board. The average cost per unit increased to £7,529 from £6,837 in July 2017, while average holding days increased slightly from 56.8 to 58.5.

In the retail market, Cox Automotive’s car search platform, Motors.co.uk, continued to report stable figures, with the average sold price of vehicles up by one per cent to £14,314 – a rise of six per cent year-on-year.

In line with the previous month, diesels continued to perform well, selling three days faster than the same period last year, despite ongoing negativity surrounding the fuel, while petrols continued to stall, held on forecourts for an average of 52 days compared with just 48 in 2017.

Nothard added: ‘It’s a given that the WLTP will hit hard over the coming months, especially in terms of stock availability, so it will be an interesting time for all involved. However, while we expect some peaks and troughs in terms of supply and demand, we are confident the market will steady itself, especially given the positive half-year to date.’

MORE: Used car market in good health, says SMMT