Used car sales have rebounded 2.8% week-over-week since September 6, while new retail announcements have jumped 27.8%, according to the latest Weekly Pricing Insight from Cazana.
New car sales would normally dominate in September due to the license plate change.
However, this year has been slightly different as new car supply constraints put retailers in a difficult position, unable to meet internal budget targets as well as those set by automakers earlier in the year.
James Sharwin, head of analysis and analysis at Cazana, said: “It is not difficult to determine that the overall volume of new listings in the market has increased as sales have not been balanced by compared to the number of used cars added to forecourt, although this is probably a good thing as used car inventory levels were extremely low for some retailers. “
After the 11.8% drop in used car sales volumes the previous week, Sharwin said it was encouraging to see the market strengthened by nearly 3%.
From a retail price perspective, Cazana’s used car retail price index saw a nominal increase of 0.2%, taking the price to £ 20,321.
This maintains the bullish momentum but is lower than what the market has become accustomed to in recent weeks and months.
That said, Cazana’s used car retail price index is 16.5% higher than it was at the start of August 2020.
Sharwin said: “Looking at the average gross price of a used car and again, the gain was very small at just 0.5%, which recoups some of the drop from -1.5 % of the previous week and takes the average used car price at £ 15,311
There was a further decline in the volume of pre-registered low profile cars sold and Sharwin said this was due to the lack of stock of new cars on the market which precluded the need to create a pre-registered stock.
At the opposite end of the age range is the “vintage car” sector which recorded an 8.9% recovery in used car sales compared to the previous week.
Sharwin added, “It perpetuates the volatility of this car profile.
“It’s also interesting to see that the growth in used car sales has mostly been focused on cars over five years old over the past week.”