A 0.9% discount in used automotive costs in February has been branded a “blip” by Indicata.
The information insights enterprise recorded the primary used automotive value drop since March 2021, however attributes it to a settling market, following the Christmas break.
“Though costs have fallen barely in 2022, we consider that is solely a blip as demand stays robust and inventory is changing into more and more scarce. Vendor half exchanges stay restricted and leasing corporations proceed to increase substitute cycles within the absence of latest automotive provide bettering,” mentioned Jon Mitchell (pictured), Inidcata’s group gross sales director.
“Latest predictions we have now seen from Europe say that it might be 2023 earlier than we see new automotive manufacturing again to its pre-semiconductor scarcity ranges. If that’s true used automotive costs are more likely to stay at their present ranges for one more yr,” he added.
Used automotive values surged by 29% in January, in keeping with information printed by Auto Dealer.
The net automotive market’s Retail Value Index report mentioned that the typical value of a automotive marketed on its portal reached £20,340 at first of the month – marking a £4,200 rise in simply six months.
Indicata’s information exhibits January 2022 gross sales bounced again by 45.3% month-on-month after a seasonal fall throughout December, however gross sales have been nonetheless 0.5% behind January 2021, a interval impacted by the Covid pandemic.
January demand remained very robust for used vehicles however continued to be hampered by inventory shortages. The market has skilled a 14% fall in inventory in February 2022 in contrast with February 2021.
Indicata says these statistics reinforce that the inventory scarcity is progressively getting worse the longer the market is starved of latest vehicles because of the continued world semiconductor scarcity.
Sellers have switched their focus to sub-£15,000 fashions from mainstream manufacturers, this month, following a interval of excessive demand for premium-badged vehicles.
This follows a interval in December and January the place inventory costing greater than £20,000 proved to be taking longer to promote for retailers, in keeping with Aston Barclay.
The remarketing agency’s February used automotive desirability index sees the VW Polo head the record intently adopted by the Suzuki Alto and VW Sharan.