Used automotive values proceed to develop, although at a slower charge than earlier months, in response to the newest information from Auto Dealer’s Retail Worth 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 stated these headline figures masks an exceptionally nuanced market, with a major disparity between age cohorts and gasoline sorts, which is being pushed by massive variances in market dynamics.

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

Auto Dealer attributes this to very sturdy client urge for food for older and extra reasonably priced autos 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 steady as softening EV values gasoline contraction in youthful segments

Conversely, retail costs of youthful fashions have dipped this month, with the common worth (£36,862) of ‘almost new’ fashions (these aged as much as a year-old) contracting -0.5% YoY up to now in August. Demand for this age group stays exceptionally sturdy, rising 37.9% on August 2022, though Auto Dealer stated 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 stage, Auto Dealer’s information reveals a notable disparity between gasoline sorts inside this age group, with potential value development for ‘almost new’ automobiles being additional restrained by falling electrical car values. Certainly, the common 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 an identical, if no more profound affect on used automobiles aged between 1-3-years-old, inflicting general costs inside this age group (£27,027) to contract -4.1% YoY. Auto Dealer stated 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 consequence of this imbalance in provide and demand, the common worth of a 1-3-year-old EV (£30,768) has fallen -26.4% YoY up to now this month.

Common costs of inner combustion engine (ICE) autos on this age group are once more, extra buoyant, nevertheless 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 information and insights director, stated: “The general retail market is steady, however as our information 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 autos, proceed to develop. Even at this granular stage, there are main variances between fuel-types, which highlights simply how important it’s for retailers to observe the information, 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 seemed 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 stage of month-to-month contraction in 13 months. On a YoY foundation, costs are at the moment 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 yr, 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 stated it’s this easing, together with exceptionally sturdy 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 essential. 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 engaging financial savings for automotive consumers, we’re seeing clear indicators of costs stabilising. It means for retailers who observe the information, and supply the fitting electrical inventory for his or her forecourt, there’s some very sturdy revenue potential.”