Used automobile values proceed to develop, although at a slower charge than earlier months, in keeping with 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 stated these headline figures masks an exceptionally nuanced market, with a major disparity between age cohorts and gasoline varieties, which is being pushed by giant variances in market dynamics.

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

Auto Dealer attributes this to very sturdy shopper urge for food for older and extra reasonably priced autos with the present ranges of demand development for 10-15-year-old vehicles (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 ‘practically 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 sturdy, rising 37.9% on August 2022, though Auto Dealer stated it’s struggling to maintain tempo with the massive quantity of vehicles 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 automobile market restoration.

At an much more granular degree, Auto Dealer’s knowledge reveals a notable disparity between gasoline varieties inside this age group, with potential worth development for ‘practically new’ vehicles being additional restrained by falling electrical car values. Certainly, the common retail worth of a ‘practically 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 automobile rising 0.8% and 5% respectively.

Falling used EV values are having the same, if no more profound affect on used vehicles aged between 1-3-years-old, inflicting total 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 shopper urge for food for 1-3-year-old electrical vehicles (up 85.5% YoY), the speed of provide has surged (up 98% YoY) over latest months because the spate of brand-new EVs purchased on finance three years in the past re-enter the second-hand market. Resulting from this imbalance in provide and demand, the common 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) autos on this age group are once more, extra buoyant, nonetheless they’re stabilising, with petrol vehicles 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, stated: “The general retail market is steady, however as our knowledge illustrates, it’s extremely nuanced, with giant variations in provide and demand throughout segments inflicting vital variations in pricing. With provide of youthful vehicles enhancing, 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 degree, there are main variances between fuel-types, which highlights simply how vital it’s for retailers to observe the info, and never the headlines to tell their pricing and sourcing methods.”

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

When Auto Dealer appeared on the used electrical market extra broadly, the present common worth 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 the moment down -21.6%, which is only a fraction decrease than the -21.3% recorded in July.

The latest run of used EV worth contraction, which started in January of this yr, has been the results of a fast 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 shopper demand for used EVs on Auto Dealer (representing a document 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 latest 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 automobile consumers, we’re seeing clear indicators of costs stabilising. It means for retailers who observe the info, and supply the correct electrical inventory for his or her forecourt, there’s some very sturdy revenue potential.”