Aston Barclay has reported that it expects high demand for used vehicles “well in to 2023” after seeing used fleet car values rise 50.6% in a year and voicing predictions of a diesel car comeback.
The remarketing provider has delivered price increases in all but the young dealer part exchange sector (55-75 months of age) as prices rose by 9.3% (£175) in Q1, according to its latest Insights used market report.
“The fact the new car market was at an all-time low in March 2022 shows that production levels are still a long way away from getting back to normal which in turn creates higher demand for used cars,” said Martin Potter, Aston Barclay’s chief customer officer.
“It looks like well into 2023 and beyond before the large order banks will be cleared and the industry will be once again on a level footing.”
Cox Automotive today (April 20) reduced its 2022 new car registrations forecasts in light of ongoing component supply issues, Russia’s invasion of the Ukraine and COVID-impacted vehicle production.
It now expects volumes to be down by 10% by the end of H1.
The limited supply should maintain high values in the used sector, however, and Potter sees other economic issues strengthening certain the appeal of certain vehicles.
He said: “We believe the demand for used diesels is also likely to make a comeback during Q2 as fuel prices continue to rise.
“The demand for older Budget cars shows no sign of abating as consumer confidence dips after breaking through the £2,000 average price barrier for the first time.”
The rising fuel and energy prices triggering soaring UK inflation have led many car retailers to shift their sights to older, cheaper vehicles, while higher priced used cars (over £25,000) are increasingly being bought only by retailers looking to buy cars to meet orders, Aston Barclay said.
Its used electric vehicle (EV) volumes reached an all-time high in Q1 as prices rose to a record £28,060 – up 10.5% on Q4.
Aston Barclay’s Q1 report was the lowest ever average fleet mileage recorded of just 31,111 miles at an average age of 40.4 months, contributing to an average £150 price rise, to £15,683, during the period.
A typical used fleet car has now risen from £10,411 in Q1 2021 to £15,682 in Q1 2022, it said.
At the value end of the market the Budget sector (126 months+) passed the £2,000 mark at £2,049, despite a major increase in volume in Q1.
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