Used car pricing in the UK was the strongest in Europe in July, new data has revealed.
Used car prices rose on average by 1.7 per cent helped by a 22 per cent shortfall in used stock in the market compared with April 1, Indicata’s latest report shows.
Sales fell by 1.8 per cent in July as a result of this stock shortage compared with a 3.7 per cent rise in June.
Consumer appetite for electric and hybrid cars continued, said the firm, with sales up 53.5 per cent and 51.2 per cent year-on-year respectively, while six-nine-year old used cars continue to be the most popular.
Prices of electric cars in July rose by £2,525 to £13,688 and hybrids by £1,461 to £16,156 compared with Q2, although supply was very limited.
In contrast to many other European markets, Indicata found luxury cars and SUVs are the UK’s strongest market segments experiencing a 11.5 per cent and 11 per cent increase year-on-year.
‘July was a very busy month with demand exceeding supply,’ said Indicata group sales director, Jon Mitchell.
‘There are signs from some of our vendor customers that supply is starting to increase coming into August. With the new plate change in September we should also see new part exchange stock coming into the market.
‘Despite that increase in supply prices look as though they will be strong during the summer, but we will have to wait to see how economic conditions will impact prices during the autumn.’
Last week, Auto Trader data given exclusively to Car Dealer showed the Peugeot 2008 was the used car that rose the most in price.
The average asking price in July for a Peugeot 2008, up to one year old and in Allure, petrol, manual trim was £15,368 – £2,550 or 19.9 per cent more than in June.
Used car prices are expected to take a turn downwards, though.
Car Dealer investigated what will happen to used car prices in the months ahead, particularly in October as the furlough scheme comes to an end, and experts agreed prices will soften.
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