Aston Barclay’s dealer part-exchange auction prices rose by up to 62.4% during 2021 and not surprisingly more cars were being retained by dealers to retail due to stock shortages.
Prices rose across all age bands in 2021 - by 62.4% (£4,445) to £11,559 for young cars (55-75 months old), 21.6% (£998) to £5,615 for older cars (78-125 months old) and 24.6% (£370) to £1,874 for budget used cars (126 months+ old).
It reinforces how dealers have had to adjust their stocking and pricing strategy due to new car shortages increasing demand for used cars. A typical 55-75-month-old £8,500 retail car in 2020 became a £13,000 retail car in 2021.
At the Budget end of the market, Aston Barclay experienced a 64.3% growth in volumes as many dealers chose to sell older cars rather than retail them. At the Budget end of the market, a car retailing at £1,750 in 2020 became a £2,500 retail car in 2021.
“Dealers will have to continue to reinvent themselves and their stocking policy in 2022 based on what they can get their hands on and what their local customer base can afford to buy,” commented Martin Potter, Aston Barclay’s MD – Customer.
“We must accept prices and demand will remain high and supply will be constrained throughout 2022.”
Potter cites diesels as an area of the market that could provide opportunities for dealers as the used conversation focuses on hybrids and EVs.
Diesels rose to nearly 50% of its Q4 volumes with wholesale prices rising £621 to an average of £8,843. That compares with average Q4 hybrid and EV prices of £18,542 and £25,883 respectively.
“Diesels still represent good value for money in the current market and are readily available. While EV prices and sales increased again in Q4, volumes accounted for just 0.5% of our Q4 sales mix,” said Potter.
