Used Car Market Is On The Rise, Says Auto Trader

Auto Dealer has mentioned that January’s 7.4% rise in used automobile values has given it “confidence we’ll see a fast return to well being” as COVID-19 ‘Lockdown 3’ restrictions begin to ease.

Earlier this week the net advertising and marketing platform revealed a set of KPIs gathered from its on-line automobile purchaser knowledge which may point out one other post-lockdown gross sales increase.

On the similar time, it reported that January’s rise in automobile values had been the tenth consecutive month of worth rises on the platform.

As we speak, its Retail Worth Index revealed that the most recent rise had taken the common worth of a used automobile on Auto Dealer to £14,155.

Walker mentioned: “From what we’re observing out there, the present lockdown is following very comparable patterns to what we noticed throughout November’s.

“Worth development is robust, retailers are holding agency, and though gross sales have little doubt been hit within the quick time period as a result of restrictions in place, all lead indicators of client demand stay sturdy.

“Together with the resilience and stable gross sales efficiency we’re seeing amongst our retailer companions, it offers us confidence we’ll see a fast return to well being as soon as the restrictions elevate.

“And with the identical demand and provide dynamics at play, the information doesn’t counsel any motive for large worth corrections or changes within the coming months.”

In-line with yesterday’s Society of Motor Producers and Merchants (SMMT) January new automobile registrations knowledge, Auto Dealer mentioned that used automobile retailers had reported working at 60% to 70% of their common volumes in January as they leveraged click on and acquire and click on and ship companies to understand gross sales.

In keeping with knowledge revealed by Cap HPI this week, commerce values declined by a median of 1.4% (£150) on the three-year level final month as the amount of vehicles bought by way of commerce channels had been round 60% of the degrees seen in January final 12 months.

However companies are holding agency with their used automobile costs because the market balances provide and demand points rigorously.

On common 2,834 retailers made worth modifications in January, which was 8% fewer than the identical interval final 12 months, Auto Dealer mentioned.

The typical every day discount of pricing at £303 was solely marginally decrease than final 12 months.

In the meantime, visits to Auto Dealer elevated over 4% year-on-year in January, with 60.1 million visits.

The typical worth of a used petrol automobile marketed on Auto Dealer in January was £12,821, representing a 6.9% YoY improve.

However Auto Dealer reported: “It’s a major easing on the 8.1% development recorded in December and is as a result of present over steadiness of provide out there, which elevated 11.9% YoY final month, in comparison with demand, which fell 6.2%.”

While each provide and demand for used diesels fell in January, down -7.4% and -8.6% respectively, Auto Dealer reported that like-for-like costs grew 8.8% YoY, dipping very barely on December’s 9% YoY rise. The typical sticker worth for a used diesel in January was £14,700.

Electrical autos (EV) proceed to report robust ranges of client demand on the platform.

Demand for premium EVs elevated 65.6% YoY in January however a 250% improve in provide prompted costs to dip by 0.9% (£46,226).

Commenting on Auto Dealer’s knowledge, Nationwide Franchised Sellers Affiliation (NFDA) chief govt, Sue Robinson, mentioned: “It’s encouraging that common used automobile costs stay robust indicating a wholesome market with robust client demand regardless of the lockdown, which can be mirrored by retailers’ common optimism about automobile gross sales in 2021.

“The sturdy curiosity in electrical autos is optimistic: with a maturing second-hand market, the bettering charging infrastructure, and retailers working laborious to tell their prospects, there are causes to be assured this pattern will proceed.”