The UK’s value of residing disaster and the affect of Russia’s battle in Ukraine threaten the used automotive market’s shift in the direction of stability, eBay Motors’ Dermot Kelleher has steered.
The net advertising and marketing platform noticed marketed costs dip 1.1% month-on-month to £17,636 throughout March as inventory volumes rose 1% to 46.2 models and days to promote remained unchanged at 43.4 days in what its head of promoting and analysis Dermot Kelleher described as a welcome return of “a steady used automotive market”.
However Kelleher urged retailers to take care of their on-line visibility and preserve an in depth eye on market developments because the rising value of residing and “worldwide occasions” threatened to disrupt the sector.
“A steady used automotive market was a welcome development for sellers in March, particularly towards a backdrop of a 14.3% drop in new automotive registrations throughout the all-important plate change month,” he mentioned.
“The continued provide disruption brought on by the worldwide semiconductor scarcity will proceed to immediate in-market new automotive consumers to take a look at used options.
“Though the dip in marketed costs was the most important up to now this yr, costs stay extremely robust, monitoring at 19.5% forward of the place they had been 12 months in the past which ought to feed into some robust first quarter performances for a lot of sellers.
“Nonetheless, the problem for the market over the approaching weeks and months would be the affect of the price of residing squeeze and worldwide occasions on client confidence.
“Our recommendation to retailers is to take care of the web visibility of their inventory always and intently observe pricing developments of their native areas and nationally.”
Final week Auto Dealer director of knowledge and insights Richard Walker has said that ideas of tumbling used automotive costs are “unfounded” – however conceded that demand is softening.
The eBay Motors market knowledge for March confirmed that used automotive supermarkets made the most important worth cuts as client demand started to melt.
Supermarkets’ costs had been down 1.7% (£306) as franchised sellers reduce their costs by 1.2% (£257) and independents made a marginal 0.1% improve (£19).
Used automotive supermarkets additionally drove the expansion in inventory volumes with a mean rise of 14 autos to 322, marking a restoration after February’s 13% drop.
Independents noticed shares improve by one unit to 35, whereas franchised sellers noticed a drop of 1 unit to 57.
March’s days to promote KPI was simply 0.2% decrease than February at 43.4 days.
And regardless of elevated inventory and worth drops it was used automotive supermarkets that held on to their inventory longest, averaging 3.1 days longer in February (32 days).
Franchised sellers remained unchanged month-on-month at 42 days and independents noticed a slight enchancment from 49.1 to 48.2 days.
In response to eBay Motors, the fastest-selling used automotive in March was the Volkswagen Golf with diesel fashions aged six to eight years averaging simply 19.7 days on forecourts.
Six to eight yr previous Ford Fiestas had been second place in its best-seller rankings (20.9 days) with 5 to 6 yr previous Fiestas in third place (21.1 days).
The quickest promoting gas sort was electrical (39 days), adopted by hybrid (40.5 days), diesel (42.7 days) and petrol 44.2 days.