Cox Automotive UK has released its latest Market Tracker (Car), with the used car wholesale market showing signs of positive performance since lockdown.
The average wholesale price increased both YoY [+15.6%] and compared to July 2020 [+1.0%], rising to £6,549.
The average mileage of vehicles observed through wholesale lanes decreased in August to 61,310 compared to both July this year [62,033] and this time last year [63,350].
Following the lockdown period, first-time conversions have seen increased compared to 2019, with August rising to 82.1% compared to 81.5% in 2019.
Average price funded in August increases and an average age of stock rose 0.7%, to 5.7 years.
According to Philip Nothard, Cox Automotive UK’s Customer Insight & Strategy Director, the used car market remained buoyant with pent-up demand outstripping supply. He commented: “Auction values show signs of stabilising, with an average 96.77% of Cap clean following 96.92% in July, although this performance reflects the strength of the used car market with a +2.3% increase on the same period August last year (94.56%).
“Whilst August new car registrations results were down -5.8% [87,226], with the headwinds the market faced, is a positive result compared to the 2000 – 2017 average of 73,875, as in context both 2019 [92,573] and 2018 [94,094] results inflated due to the influence of WLTP and RDE in the September months.”
“Our data and insight indicate that the profitability many retailers have enjoyed since lockdown restrictions lifted has continued through August, with many capitalising on retail and trade margins. Although there were reports of demand easing in both the retail and wholesale market as the month closed, early indications in September show a return to positivity as supply continues to be challenging”.