Used automotive values proceed to develop, although at a slower fee than earlier months, in response to the newest knowledge from Auto Dealer’s Retail Value Index.

Costs are easing from a like-for-like improve of two.8% year-on-year (YoY) in July to 1.5% in August and have additionally softened on a month-on-month (MoM) foundation, albeit by simply -0.1%.

Nevertheless, Auto Dealer mentioned these headline figures masks an exceptionally nuanced market, with a big disparity between age cohorts and gas sorts, which is being pushed by massive variances in market dynamics.

Information signifies that older automobiles are outperforming the general market and by some margin, recording robust ranges of value development with these aged between 10-15-years-old seeing values improve a large 11% YoY this month, marking the best fee of development in eight months. With a median worth of £6,629, these automobiles are at present value greater than ever earlier than.

Auto Dealer attributes this to very robust client urge for food for older and extra reasonably priced automobiles with the present ranges of demand development for 10-15-year-old automobiles (up 10.9% YoY) outpacing ranges of provide development (up 7.9% YoY).

ICE costs stay secure as softening EV values gas contraction in youthful segments

Conversely, retail costs of youthful fashions have dipped this month, with the typical worth (£36,862) of ‘almost new’ fashions (these aged as much as a year-old) contracting -0.5% YoY to this point in August. Demand for this age group stays exceptionally robust, rising 37.9% on August 2022, though Auto Dealer mentioned it’s struggling to maintain tempo with the big quantity of automobiles coming into the market, that are up 53.2% over the identical interval – albeit nonetheless down circa 50% on pre-pandemic ranges reflecting the gradual post-pandemic new automotive market restoration.

At an much more granular degree, Auto Dealer’s knowledge exhibits a notable disparity between gas sorts inside this age group, with potential value development for ‘almost new’ automobiles being additional restrained by falling electrical automobile values. Certainly, the typical retail value of a ‘almost new’ EV (£39,371) has decreased -10.2% YoY this month. In distinction, its historically fuelled counterparts stay buoyant, with an as much as one year-old petrol and diesel automotive rising 0.8% and 5% respectively.

Falling used EV values are having the same, if no more profound affect on used automobiles aged between 1-3-years-old, inflicting total costs inside this age group (£27,027) to contract -4.1% YoY. Auto Dealer mentioned that that’s as a result of regardless of the very strong ranges of client urge for food for 1-3-year-old electrical automobiles (up 85.5% YoY), the speed of provide has surged (up 98% YoY) over current months because the spate of brand-new EVs purchased on finance three years in the past re-enter the second-hand market. As a result of this imbalance in provide and demand, the typical worth of a 1-3-year-old EV (£30,768) has fallen -26.4% YoY to this point this month.

Common costs of inner combustion engine (ICE) automobiles on this age group are once more, extra buoyant, nonetheless they’re stabilising, with petrol automobiles rising by simply 0.6% YoY this month, whereas common diesel costs stay comparatively flat at -0.1%, slowing from 1.7% and 1.3% in July respectively.

Richard Walker, Auto Dealer’s knowledge and insights director, mentioned: “The general retail market is secure, however as our knowledge illustrates, it’s extremely nuanced, with massive variations in provide and demand throughout segments inflicting vital variations in pricing. With provide of youthful automobiles bettering, values of sub-five-year-old-cars are largely flat, while costs of older, and extra provide constrained automobiles, proceed to develop. Even at this granular degree, there are main variances between fuel-types, which highlights simply how crucial it’s for retailers to comply with the info, and never the headlines to tell their pricing and sourcing methods.”

Used EV values file lowest month-to-month drop in 13 months, as demand reaches file ranges

When Auto Dealer appeared on the used electrical market extra broadly, the present common value throughout all age teams is £35,297, which marks a month-on-month decline of simply -0.3%, making it the bottom degree of month-to-month contraction in 13 months. On a YoY foundation, costs are at present down -21.6%, which is only a fraction decrease than the -21.3% recorded in July.

The current run of used EV value contraction, which started in January of this 12 months, has been the results of a speedy improve in provide into the market. Nevertheless, this is slowing; there are actually solely 12,000 second-hand EVs on the market every day on Auto Dealer, down from over 18,000 in early March. Auto Dealer mentioned it’s this easing, together with exceptionally robust client demand for used EVs on Auto Dealer (representing a file share of advert views) which helps to settle costs.

Walker continued: “Though electrical values are nonetheless easing, context is vital. The EV market’s nonetheless an immature one, and what we’ve seen over current months is a pure correction following an enormous surge in inventory. With provide starting to melt and demand rising with the assistance of very enticing financial savings for automotive consumers, we’re seeing clear indicators of costs stabilising. It means for retailers who comply with the info, and supply the suitable electrical inventory for his or her forecourt, there’s some very robust revenue potential.”