The used automobile market has began off the 12 months sturdy regardless of financial turbulence, in response to Auto Dealer. Automobiles are promoting at a document tempo, engagement on the platform is reaching seasonal highs and retail costs proceed to stabilise.
Auto Dealer’s Retail Value Index reveals the typical retail worth of a used automobile (£16,774) was flat in January on a MoM and like-for-like foundation; a distinction to the -1.9% recorded in January 2024.
Richard Walker, Auto Dealer’s Knowledge & Insights director, mentioned: “The 12 months forward will maintain some distinctive challenges for the business, however our information ought to provide some optimism for 2025 – demand is strong, costs are secure, and automobiles are leaving forecourts at a document tempo.
“And despite some negative rhetoric, based on the solid market fundamentals we’re tracking, we don’t see any significant or immediate threat to consumer appetite for used cars.”
Stability in retail costs is the results of the continued post-COVID squeeze in used automobile provide (down -3.1% year-on-year in January) together with sturdy shopper demand. With round 87.1 million cross-platform visits to Auto Dealer final month, viewers stage has seen a 24.8% enhance on December (the very best variety of visits in a January ever recorded).
Demand is translating into gross sales whereas efficiency improved with the ultimate weeks of January recording a powerful enhance over the identical interval final 12 months. General gross sales in January have been a comparatively flat -1% YoY.
With sturdy ranges of shopper urge for food, the speedy turnaround of inventory might be on the potential expense of margin alternative. Round 61,000 excessive demand used automobiles are at present being priced beneath their true market worth, in response to Auto Dealer, leading to over £24 million in potential margin being missed (round £3,000 per retailer).
Walker mentioned: “It’s disappointing although for retailer profitability efficiency to see potential margin nonetheless being missed with too many automobiles, together with a number of the most fascinating inventory, being under-priced.
“With so many buyers returning to their next car research following the festive period, there’s a big opportunity for retailers over the coming months.”
