8:15 am, October 17, 2022
Despite cost-of-living concerns and 2023 automotive forecasts being downgraded, demand for used cars has strengthened.
That’s the latest from Cox Automotive’s market tracker.
The firm’s latest industry report reckons consumer confidence continues to be dampened and supply chain problems are expected to remain, but demand remains high for second-hand cars.
Cox said September was one of the busiest months this year for the wholesale vehicle market for conversions and price performance.
Cap clean performance reached 98.19 per cent, a 1.94 increase on 2019.
First-time conversions continue to reflect constrained stock levels, said the company, at 86.6 per cent for September – 2.1 per cent ahead of 2020 results.
With dealers diversifying stock profiles, average age and mileage remain behind 2019 levels.
A shortage of new cars and retained margins have bumped up used car prices and propping up demand, said Cox Automotive.
As reported by Car Dealer, values at three-year/60k at Cap HPI increased marginally by 0.3 per cent in September, following a drop of 0.3 per cent in August, with the market remaining static during this period.
Cox Automotive’s insight and strategy director, Philip Nothard, said: ‘Dealerships are advised to remain cautious, as they have been throughout 2022.
‘Unfortunately, consumer spending power has not yet been restored and will likely be negatively impacted as we move into the winter months.
‘However, the used market offers a flicker of hope with neither prices nor demand likely to drop, whilst lack of supply remains.’
