July 21, 2024
News

June 2024 sees a decline in used car prices and dealer stock levels

The UK used car market experienced a significant decline in both advertised retail prices and dealer stock levels last month, as reported by Motors’ latest Market View report.

Motors identified the decrease in used car prices to buyers’ preference for older models during the sixth month of the year.

The average price of a used car on Motors’ platform by the end of June was £17,168 ($21,894), showing a 1.3% month-over-month (MoM) decrease from £17,390 in May.

This figure was notably lower compared to the same period the previous year, which had an average price of £18,511.

Throughout the first half of the year, prices dropped by 1.8%, starting from an average of £17,475 in January.

Franchised dealers experienced a significant impact, with a 4% price decrease from £24,067 to £23,097.

The most substantial price reductions were seen in vehicles over ten years old, which decreased by 2.3% (£165) to £6,895 from £7,060.

On the other hand, cars under two years old saw a 1.4% decline to £30,690 from £31,134.

Dealer stock levels also decreased, with an average of 51 units in June compared to 54 in May.

This number is also lower than the average of 55 units from the same month in the previous year.

Franchised dealers experienced the most significant drop, with an 11% month-on-month decrease to 56 units.

Conversely, independent dealers’ stock levels remained relatively steady at 39 units, only one unit down from May.

Car supermarkets, however, saw an increase in stock levels for the third consecutive month, rising from 245 to 254 units.

Stock levels for the first half of the year have remained relatively consistent, starting at 54 units in January, according to Motors.

CarDealer Magazine quoted Motors Marketing Director Lucy Tugby stating: “The focus for buyers in June was on essential purchase cars, with older, cheaper combustion engine models attracting significant online attention.

“We expect this trend to continue into July as family and personal budgets shift towards summer holiday spending.”

Frequently Asked Questions

Here are some common questions about the UK used car market:

  • 1. What caused the decline in used car prices?
  • 2. How did dealer stock levels change over the past year?
  • 3. Which types of vehicles saw the most significant price reductions?
  • 4. What are the expectations for the market in the coming months?

Conclusion

The UK used car market experienced notable changes in prices and dealer stock levels, with a focus on older models and decreased prices across various vehicle categories. As the market continues to evolve, staying informed about these trends is essential for both buyers and sellers.


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