Used car demand and prices are healthy but the market continues to adapt in 2020, new data has shown.
Data provider for the used car market Cazana has revealed a positive outlook on used car pricing and demand during the final week of October.
Director of insights for Cazana Rupert Pontin said: ‘What is clear is that 2020 continues to throw new and interesting challenges and market nuances on a day to day basis.
He added: ‘Retail pricing does not need to drop, and indeed there is no indication that there will be significant reductions or great consumer deals to follow in the coming weeks.
‘Where certain wholesale vendors are experiencing poorer conversions and more instability with wholesale pricing, the retail viewpoint remains firm for now.
‘As such there are opportunities to continue to recover losses incurred during the first lockdown.’
He noted some interesting changes when it comes to older cars aged over 10 years, where prices have begun to rise again, after a drop the previous week, and that there has been a rise in the number of these cars advertised for sales online also.
Pontin added that the peak for increase in pricing on these cars relates to prices up to £50,000 but peaks with a 0.27 per cent increase on cars in the £20,000 to £30,000 price bracket.
Pontin said: ‘The biggest shift on this chart has been an increase of 3.62 per cent in the average price of cars in the ‘old car’ profile which relates to cars over 10 year of age.
‘This is a significant upturn for the week and comes off the back of a drop of 2.42 per cent during the previous week.
‘Of equal note is that the price increase comes in partnership with an inflated number of cars advertised in what is the second largest sector of product in the market at just over 22 per cent.
‘This highlights volatility in this profile which is interesting given the consistent stability of this type of car over the past few months and perhaps reflects the retail consumers now varied appetite for this type of car.’
He added: ‘The biggest weakness in pricing comes for the ex-fleet old profile which relates to cars that are four to five years old.
‘A decline of 1.89 per cent in pricing is to be noted especially where there has been stability in market share.
‘This suggests there may be either a marked change in the profile of cars available or indeed a dip in consumer demand for this type of car.’