7:34 am, July 10, 2020
Used car buyers are renewing their love for MPVs and buying more of them, driving prices up and leaving car dealers fighting to source stock.
Prices of used MPVs have jumped by five per cent according to one firm in recent weeks, marking a return to popularity of the once-loved practical family car.
Speaking exclusively to Car Dealer Magazine, Cazana’s director of insight, Rupert Pontin, said MPVs are one of a number of car types that boomed in June, with prices set to carry on rising in the weeks ahead.
‘We’ve recently seen a price increase of five per cent for the MPV sector,’ he said.
‘I think this is being driven by people not wanting to travel on public transport, but particularly in the MPV sector, there are two points to consider.
‘Firstly there are families who are looking at not travelling by plane for their holidays this year because of restricted air travel, and they’re maybe looking at looking at holidays in the UK.
‘They therefore need a car that’s a little nicer to travel in and that has pushed prices up because there’s so little stock.’
Pontin added another reason for this surprisingly new interest in used people carriers is businesses which still depend on them.
‘The other side of this is some industries and sectors of the economy where moving people in large numbers is important, and actually having an MPV allows companies to transport people safely – you have a large space to sit in therefore minimising the danger of coronavirus,’ he said.
Renault has now axed both Scenic and Grand Scenic MPVs in the UK
The interesting trend comes in the same week as Renault axed its Grand Scenic in the UK. Renault had already stopped selling the smaller Scenic last year, but the removal of the Grand Scenic brings an end to nearly 40 years of Renault MPVs being sold in the UK.
Pontin added that dealers may find they start to struggle to acquire stock if the trend continues in the short term.
But on a wider level, the industry will have to come to terms with dwindling stock levels thanks to car manufacturers hastily retreating from the MPV sector.
European new car buyers have turned their backs on multi-purpose vehicles, instead opting for more fashionable SUVs.
In the UK in particular, there are only a tiny handful of MPVs available to buy new, and for manufacturers it’s not economical to offer right-hand drive models. The Grand Scenic will live on in Europe but not in the UK, primarily for that reason.
Pontin also revealed along with MPVs, prices for cars costing less than £10,000 continue to rise as do cars in the £70,000-£90,000 bracket as cash-rich buyers are willing to spend big.
What were the fastest and slowest selling used cars in June?
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