Used automobile sales proceed to point out robust demand and improving pricing trends, based on the newest Auto Trader Retail Price Index.
The common price of a used automobile in November was £16,492, reflecting a modest month-on-month dip of 0.6%, aligning with historic seasonal trends. This marks the fifth consecutive month of improving year-on-year pricing trends, signalling sustained retail demand.
Vehicles sold two days faster in November in comparison with 2023, with a mean of 31 days on forecourts. Electric vehicles sold even quicker at 28 days, with three-to-five-year-old EVs turning over in only 22 days.
Despite this, Auto Trader data revealed as much as £26.5 million in missed potential profit, as some retailers underpriced sought-after stock relative to market values.
The market’s strong performance is underpinned by resilient consumer demand and constrained stock levels in certain segments.
Stock levels fell by 6.6% year-on-year in November, marking the primary month-on-month decline since July. Nonetheless, demand was up 5.5% year-on-year, driving overall market health to a positive 13.0% in comparison with 2023.
By way of pricing, the common cost of used petrol cars fell by 4.7% to £14,710, diesels declined by 5.8% to £14,077, and electric vehicles dropped 11.7% to £26,390. Plug-in hybrids experienced a ten.5% decline, with a mean price of £30,598.
Looking ahead, Auto Trader forecasts continued strong growth, predicting the used automobile market will rise from an estimated 7.61 million sales in 2024 to roughly 7.70 million in 2025. This could bring the market inside 3% of pre-pandemic volumes.
Commenting, Richard Walker, Auto Trader’s data & insights director, said: “November is constant the trend of a robust finish to 2024. Last 12 months many retailers followed the wholesale market in dropping prices sharply with a robust and somewhat unnecessary impact on retail values and profits. But buying confidence in addition to retail pricing have steadied this 12 months, as shown by the more typical price movements we’re reporting in recent months.
“We’re still seeing a major amount of profit being left on the table though and with January’s buyers already on their purchasing journey, it’s vital retailers follow the information, whether in sourcing the very best vehicles for his or her market or in pricing and merchandising their cars to maximise their industrial opportunities.”
This Article First Appeared At www.am-online.com
