The UK’s used automobile market is being held again by youthful automobiles, with the common worth of a automobile lower than three years previous (£29,699) contracting 3.5% year-on-year, in keeping with the Auto Dealer Retail Worth Index.

Auto Dealer mentioned that somewhat than faltering demand, the worth softening amongst youthful automobiles was as a result of latest easing of provide constraints available in the market, mentioning that ranges of shopper demand for such automobiles rose 15.1% year-on-year final month, matched by equally strong provide 14.4%. Provide of ‘almost new’ automobiles – these aged beneath 12 months – was up a large 51% over the identical interval.

Costs of youthful used automobiles are additionally being impacted by the present surge in second-hand electrical automobiles (EV) coming into the market. The amount of EVs aged as much as three-years-old marketed on Auto Dealer elevated 97.4% year-on-year final month.

With the common worth of a used EV (£31,618) falling 22.6% yyear-on-year in August on account of provide persevering with to outpace the in any other case very robust ranges of shopper demand for second-hand electrical automobiles, up 68.6% 12 months on 12 months, not solely are the common costs of youthful age cohorts being suppressed, so too is the general market.

Highting the affect of those components on the headline figures, the common worth of petrol and diesel automobiles aged over three-years-old elevated 4.9% 12 months on 12 months final month.

Auto Dealer mentioned that provide is slowly bettering throughout most age cohorts, with general ranges on its platform rising 1.2% in comparison with final 12 months, marking the primary optimistic whole market progress since November 2022.

Nonetheless, it famous that provide volumes stay constrained by the three million or so fewer new automobiles that weren’t constructed throughout COVID, and importantly for future retail values, proceed to be outpaced by strong ranges of shopper urge for food for used automobiles.

In reality, based mostly on Auto Dealer’s Market Perception instrument, which tracks ranges of shopper engagement on its platform, demand was up 8.7% YoY final month throughout the market.

An additional indicator of the strong ranges of shopper demand available in the market is the velocity during which used automobiles are leaving retailers’ forecourts. The most recent information exhibits that used automobiles took a mean of simply 29 days to promote in August: two days quicker than in July, and a day quicker than August final 12 months.

Auto Dealer’s director of information and perception, Richard Walker, mentioned: “We’ve been seeing rising ranges of volatility available in the market over latest months as ranges of COVID associated new automobile provide step by step improves. Nonetheless, headline figures may be deceiving, and as ever the satan is within the element, as a result of opposite to what it could recommend, the market stays stuffed with pockets of revenue potential. Our figures ought to function a clarion name for retailers: in such a nuanced promote it’s important to observe the info, and never the headlines to tell pricing and stocking methods.

“As provide ranges of youthful inventory improves, notably of electrical automobiles, it’s possible we’ll proceed to see a softening in costs over the approaching months. Nonetheless, with no signal of a dramatic change in shopper appetites, there’s definitely no indication of costs falling off a figurative cliff edge. There’s nonetheless very robust pricing pockets obtainable, together with with used EVs – the demand is there, so if retailers use information to purchase them and promote them on the proper worth, there’s loads of revenue potential obtainable.”