The quarter three used car market broke several records according to Aston Barclay’s latest market report.
The supply of ex-fleet cars coming to auction reached a record all-time low to just one in four of used cars sold, as contract hire companies have a third of their fleet still on extended contracts.
This scarcity of stock contributed to fleet prices rising by 3.4% (£530) in Q3 to a record high of £15,808 as the average age and mileage remained consistent at 40.9 months and 32,951 miles.
Late and low used cars up to 24 months old also broke a record in Q3 with prices rising by 3.2% (£773) to a high of £24,695. This was despite the average age rising from 14.2 to 16.0 months and average mileage rising from 11,419 in Q2 to 12,517 miles.
Stock levels rose for the first time for many months in Q3 to 6.0% of disposal volumes while conversion rates remained the highest out of any market sector.
Used EV prices stalled for the first time in 2022 during Q3 at £31,378 but they reached a 6.2% share of used cars sold during the quarter which was another record.
“It’s great to see so many records broken in Q3, but it doesn’t hide the fact the market is still short of stock which is contributing to these record highs and lows,” explained Mark Hankey, Aston Barclay’s chief revenue officer.
“Despite 225,000 new cars being registered in September we have yet to see many of these dealer part exchanges, or de-fleeted company cars reach the used market. Dealers tend to be hanging onto the majority of their part exchanges to retail. They have had to change their stocking strategy to fit in with the market which has resulted in them offering a much wider stock range than ever before,” he added.
