- Used diesel prices continue to rise and diesel is the fastest-selling fuel type
- Used electric cars reach a new price high at the end of May but take 4 days longer to sell than ICE cars
- Three used sectors buck the market price fall – Late and Low, Old, and Budget part exchanges
- Rental companies continue to buy rather than sell used cars at auction
Aston Barclay shared its outlook on the used car market with BVRLA members this week in the association’s first physical Residual Value and Remarketing Committee meeting since before the Covid-19 pandemic began in March 2020.
Over 50 members met at Aston Barclay’s Wakefield auction site to hear that despite prices falling in 2022 some market sectors continue to buck the trend at auction, which includes used diesels. The Late and Low (less than 24 months old), Old part exchange (78-125 months) and Budget part exchange (126+ months) sectors all saw a price rise in April and May of 1.5%, 0.6% and 4.3% to £23,623, £5,704, and £2,139, respectively.
Used fleet car prices continue to gently fall as the average age of stock continues to rise due to contract extensions. Prices fell by £367 from Q1 (-2.3%) to the end of May in line with recent CAP monthly valuations, to an average of £15,307 at 41 months and 32,729 miles. One-third of leasing fleets remain on extension which suggests there will be no large stock volumes coming back into auction during 2022 and 2023.
Diesel is still playing a major part in the used market and at 9.2 days it remains the fastest-selling fuel type. Forty-three per cent of stock moving through Aston Barclay auctions in April and May were diesel and despite fuel pump prices reaching an all-time high, diesel used car prices rose by 2.6% (£221) to £8,491. Average age fell from 98.8 to 94.7 months and average mileage from 83,862 to 80,987 miles.
Electric prices also reached a new all-time high in Q2 at £31,420, a rise of £3,340 from Q1, based on an average age and mileage profile of 22.4 months and 15,664 miles. However, EVs are currently the slowest-selling fuel type at 14.2 days.
Aston Barclay confirmed that retail demand had been subdued in the past couple of months due to the rising cost of living, which backs up CAP’s prediction that used prices are likely to fall during 2022 by 15%. Aston Barclay’s Chief Customer Officer Martin Potter believes this view is a realistic one based on a gentle price fall rather than a market price crash.
“There is a shortage of retail demand currently and this could continue to the end of the year, but we do not predict a dramatic fall in prices as the market remains short of used stock. Ex-fleet stock, in particular, remains in short supply and rental companies continue to buy rather than sell used vehicles at auction.
“We anticipate the market continuing at its ‘new normal’ which in cases of the fleet market means prices are still £4-5,000 higher than they were in Q1 2021,” he said.
