Used car prices have fallen again according to new data published by Cazana.
The firm’s Weekly Retail Price Watch found that the week commencing June 2 saw mostly negative values across the board, although hybrids bucked that trend slightly.
Values for petrol-powered cars across all sectors fell by -0.92 per cent, representing a shift of £162 per car on average, although this was mainly influenced by a drop of -3.84 per cent in the luxury car sector.
The only significant rise for petrol-powered vehicles was executive cars – prices rose by 0.81 per cent which equated to £225 per car, and suggests increased consumer enquiries and reduced stock availability.
Diesel values were negative rather than positive, with the biggest drop coming from the executive sector. The average price is now £18,937 for an e-segment executive car – a decline of £121 per car compared to the previous week’s findings (May 26-June 2). The data puts the fall down to an increase in the number of cars in the market or a dip in consumer demand.
Cazana says of more note is the decline of -0.48 per cent for c-segment or the medium car sector (which represented 7.9 per cent of the total volume of retail adverts) with cars dropping by £57 on average.
Petrol hybrids fuel type grew, though, with an average uplift of 0.65 per cent – which translates to an increase in price of £172 per car where the average used car price across all sectors and ages is £26,743.
BEVs (battery electric vehicles) also increased by 1.59 per cent overall. While supermini, small and medium decreased, these sectors were offset by a large increase for d-segment or the large cars. Here prices rose by £3,074 – or 6.3 per cent – taking the average to £51,877.
Cazana also analysed the number of car classifieds listed during lockdown. The number of newly advertised vehicles dropped by almost 74 per cent with the decline continuing week after week; the first improvement came in week 16 (April 13-19) as the initial period of lockdown came to an end.
Rupert Pontin, director of insights, said: ‘The industry is now one week into the post lockdown trading period and the question that concerned retailers nationwide has now been answered and that was whether there really would be consumer demand for cars.
‘Indications both anecdotal and factual reflect the fact that consumers have returned to the showrooms in significant numbers, although as expected not at the pre-lockdown levels. Confidence in the social distancing and cleanliness of the showrooms has been absolutely key and post-Covid-19 retailing procedures have in many ways been welcomed.
‘Unfortunately, the return to business has not been without difficulty and disappointment for some. The financial pressures of such a long period of closure have resulted in a variety of less positive measures from some of the dealer groups and OEMs. Lower levels of business, improved online sales and a lack of revenue have prompted an operational review and the outcome has been the loss of some jobs, predominantly from the sales teams.’
- Want breaking news sent direct to your phone? Join our WhatsApp group. It is broadcast only, no chit chat, and delivers Car Dealer headlines to you as and when they happen. Send us a message here and ask to join, and we’ll send you a link.
- Download the latest digital edition of Car Dealer Magazine Issue 147 for free here.