Dealers continue to re-price used cars to cater for high demand and falling stock levels reports INDICATA

UK used car sales rose by 17.1% in June 2021 year-on-year according to the latest INDICATA UK used car market insights report. 

This was despite June 2020 being a major used car month as dealers came out of a two-month industry-wide lockdown where new and used car sales were severely restricted.

This rise in sales contributed to a 3.1% fall in dealer stock from June into early July which fuelled a 6.9% price rise in the month as used car volumes from fleets, rental and dealer part exchanges did not materialise.

Sales and stock turn were lower in June 2021 than in May, but stock turn of between 10.1 and 11.4 for cars aged between 2-4-years-old was circa 30% above where the market was a year ago. 

When analysing stock turn by fuel type Internal Combustion Engine cars were 13% higher than in 2020, BEVs rose by 45% and hybrids by 92% compared to the equivalent month in 2020.

The fastest-selling used BEVs up to four-years-old went to the Renault Zoe and the Audi e-tron with a stock turn of 19. INDICATA also saw a tie for the fastest-selling identical age ICE cars between the Kia Sportage and Nissan Qashqai, both selling typically within 15.2 days in stock, a stock turn of 24.

“Dealers sold used cars quickly in June and then couldn’t replace them fast enough to keep up with demand. Prices continued to rise so dealers had to keep a close eye on forecourt prices against market prices for fear of selling cars too cheaply,” said Jon Mitchell, INDICATA UK’s group sales director.

“We have continued to help dealers re-value used cars on a daily basis during June such was the pace of the market. Moving into July there has been no sign of a fall in demand or increase in used car supply so prices will remain high for the foreseeable future,” he added.