Retail
- Diesel continues to experience pressure with further year on year volume decline of -24.4%, countered by an increase in petrol of 20.1%
- The UK’s used car market will reach 7.86 million units in 2018, if current market trends stay on track
- Stable retail market with the average sold prices of vehicles up 1% to £14,314 (up 6% year on year)
- Overall days in stock increased marginally, weighted by both Estate and Large, but not consistent across all sectors
- Diesel vehicles saw a slight reduction in days in stock, despite less stock listed compared to July 2017
- Dealers maintain better mix of petrol and diesel stock in July 2018 as consumers become more prepared to buy diesel again
Wholesale
- Strong increases in the price of sold vehicles, up7% to £7,298 (from £6,816 in June) – a 15% increase on the same period last year
- Diesel wholesale prices rise 11.5% while petrol rose by 23.1% in July 2018; an average of £984 overall
- 35% of dealers are not aware of when WLTP comes into force; two-thirds are unclear on what it means for new car sales
- The market remains steady in terms of volume, demand for vehicles is heating up and dealers are now willing to pay more for quality vehicles that match their requirements
- July signalled a positive upturn in demand for ready to retail vehicles, offering dealers and vendors positivity as we head towards Q4
- Volumes of vehicles coming through the lanes also remained stable, in line with the previous month
- Dealer auction reports a 2% month on month increase in the average selling price of vehicles to £4,630, in addition to a 10% increase in volumes through the online lanes
Dealers
- Online activity bucks the trend in July 2018 with 53% of dealers surveyed reporting an increase compared to this time in 2017
- As days in stock on average increases for used cars, the inception of WLTP in September keeps average new car stock to a minimum
- 60% of dealers report that the economic outlook is no worse whilst 27% believe it could deteriorate and 13% optimistic about improvement
Whilst 70% of dealers expect sourcing stock to remain tough due to the impact of WLTP and high values, a fifth believe it could worsen.