Used car retail prices continued to fall in June, according to Indicata.
Its Market Watch insights report shows prices dipped by 2.6% last month, the sixth consecutive monthly fall in 2022.
Used car sales fell by 13.3% in June, according to Inidcata, as the used market continues to cool down due to reduced economic confidence. Stock levels also fell by 4.4% from June into July.
“The market continues to correct itself in 2022, but with stocks low and demand still consistent we do not predict a market crash. With new car supply challenges likely to continue now until 2024 we believe prices will settle down over the summer and may rise again in the autumn when used car demand looks set to improve,” explained Jon Mitchell (pictured), Indicata UK’s group sales director.
UK used prices have fallen by a total of 7.2% between January and June as the market continues to correct itself from the historic 32.2% rise in prices between January 2021 and December 2021.
Wholesale used car values bucked the trend in June, with a rise of 8.8% month-on-month at BCA auctions.
Evidence that demand continues to outpace supply – despite the UK’s cost of living crisis – was highlighted by an average £745 uptick in values as the average used car sold for £9,196 last month.
The main bright spark for the market was the continued rise in popularity of used EVs as they became June’s fastest-selling powertrain with a stock turn of 11, compared with 8.7 for hybrids, the second fastest-selling powertrain.
EV sales in June were 23% higher than in May, which was already a record month, while the volume of used EVs remains low but the high demand shows the increased acceptance of zero emission used cars by retail drivers.
The UK’s fastest-selling used cars in June were the Kia Niro, Toyota CH-R, and the Hyundai IONIQ, while the top-selling models were the Ford Fiesta, VW Golf and Nissan Qashqai.
Despite signs that the UK’s cost-of-living crisis is starting to impact the value of older vehicles, there are no signs of prices “crashing” in the used car sector, Cap HPI’s director of valuations has told AM.
In the latest in a series of mid-month updates from Derren Martin, AM heard that a “stable” market had seen used car values at three years and 60,000 miles decline by an average of 0.1% month-to-date in July, with a 1.3% decline at 10 years.