Used car sales slow as cost-of-living crisis begins to bite in retail sector

Used automobile gross sales slowed as the typical value of a automobile marketed on the market declined by 4.7% in Q2 in keeping with eBay Motors information which confirmed the affect of the UK’s rising cost-of-living disaster.

Whereas market analysts famous that restricted provides and bulging order books meant that the new car retail sector would be isolated from the impact of soaring inflation for some time to come back, the web market’s information confirmed that the tide may very well be turning for used automobile sellers.

Sellers’ common days to promote elevated by practically three full days, from 36.7 to 39.5 days, in June as the typical marketed used automobile value on eBay Motors Group’s platforms dropped 1.4% from £16,872 to £16,627, the fifth consecutive month-to-month fall.

Lucy Tugby, head of promoting at eBay Motors Group, stated: “June’s common £245 drop in marketed costs represents additional proof of them heading again to extra regular ranges as client demand eases.

“We’re seeing the affect that rising family prices is having on potential patrons, supporting our latest Client Perception Panel analysis which discovered one-in-five car purchases are being delayed because of the cost-of-living crisis. Lowered demand meant sellers took longer to promote vehicles from smaller inventories in June.

“Nevertheless, the typical value of a used automobile remains to be monitoring at over 20% greater than final June, a distinction of £2,804, so sellers holding agency on transaction costs are persevering with to maximise on the alternatives accessible.”

eBay Motors Group days to sell data for June 2022In accordance with eBay Motors franchised sellers suffered most from June’s slowing of client demand, their common days to promote having elevated 14% from 31.2 to 35.6 days, adopted by independents up 3% from 45.3 to 46.5 days, whereas automobile supermarkets remained regular at 28.5 days, in comparison with 28.1 in Might.

June’s drop in marketed costs on eBay Motors – to a stage which remained 20.3% forward of June 2021 – was led by a 1.5% to £14,496 within the unbiased vendor sector.

Franchised retailers’ used automobile values declined by a lesser 0.6% to £19,872 and used automobile supermarkets simply 0.5% to £16,802.

In-line with the sector broad scarcity of used vehicles, inventory ranges dropped for the second successive month, down 2.4% from 46.1 to 45 items. The common stays 9% forward of June 2021’s 41.3 items, nevertheless.

eBay Motors Group stock volume data for June 2022The information from eBay Motors indicated that used automobile supermarkets bore the brunt of the scarcity with inventories down 3.1% from 293 to 284, whereas franchised sellers have been down 5.4% from 56 to 53. Independents remained unchanged at 36 items.

Talking in AM’s recent General Managers’ Guide to ‘Holding the Right Stock’ webinar Automotive Store chief govt Nigel Hurley stated that the Sytner-owned enterprise had adjusted its inventory to incorporate older, extra inexpensive automobiles in response to automobile shortages and the cost-of-living disaster.

Tugby stated: “Though the primary half of the yr noticed a common stabilisation in costs and days to promote, we advocate that sellers pay shut consideration to client wants as demand alters with the cost-of-living affect. By remaining sharp on inventory kind, pricing and on-line visibility, savvy sellers will have the ability to roll with the incoming waves.”

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