The UK used car market grew 6.3% year-on-year in September fuelled by a 5% rise in dealer stock according to the latest insights report from INDICATA.
This compares with an average sales growth of 18.4% across 13 European markets where INDICATA provides data insights, and follows two successive months in July and August where UK sales were down 1.8% and 3.3% respectively.
The sub-12-month old market continues to suffer from OEMs reducing pre-reg and demonstrator activity with sales volumes down 43% year-on-year. A 29% increase in stock turn confirms the segment is in extremely short supply which is fuelling strong prices, while the older 60-144-month old product is also short of stock.
Stock levels are improving in the traditional leasing 36-month sector but there are no real signs of increased stock turn and sales volumes are flat. Used car prices overall rose by less than one per cent during the month.
Stock turns of diesel and petrol are both high which is creating a supply shortage, while EVs and hybrids have reported a 108% and 55% sales growth year-on-year based on improved availability.
After lagging behind the rest of Europe the UK market finally increased its year-on-year sales during September. If supply continues to grow October will be a crucial month to see whether demand and prices stay firm.
“Used car activity has been very strong across the board since June, but supply has not kept up with demand until September,” explained Jon Mitchell, Autorola’s group sales director.
“Dealers are showing signs of buying used cars more sparingly as we enter October to avoid being left with cars on their forecourts that they have paid top prices for. That slight cooling in demand matched with higher supplies of used cars coming to the market may mean a market correction is already heading for Q4,” he added.