Surge in older car sales contributes to a 3.7% rise in June used car sales reports INDICATA

Used car buyers buying six to 12-year old cars contributed to a 3.7% rise in sales in June 2020 compared with June 2019 according to the latest INDICATA used car insights report.

Sales of cars aged 6-9-years old and 9-12-year old rose by 12.6% and 8.6% respectively, while the 0-3-year old sector fell by 7.1% mainly down to a shortage of stock in the sub 12-month old bracket.

SUVs, sports and luxury cars continue to be in high demand while mini and small car sales fell by 4.7% and 3.6% respectively.

Since dealers opened on the 1 June used car sales have reached a seven-day rolling average of 12,000 per day which compares with the 10,000 per day restocking rates. This has led to dealers being short of roughly 125,000 used cars against April levels, which has been hampered by wholesale stock still stuck in compounds or parked on airfields.

This has weakened supply into the wholesale market which has meant demand has continually exceeded supply. With prices rising by just 0.7% in June it suggests many dealers could be brave and increase prices of stock on their forecourts.

“We have definitely seen a strong used car performance since dealers opened on the 1 June. Stock volumes on our online wholesale portal fell by 25% in the month so we know demand is outstripping supply,” explained Jon Mitchell, Autorola UK’s group sales director.

“We anticipate the summer months will be extremely busy with the market only starting to calm down in early Autumn. The new 70-plate in September and Covid-induced PCP and contract hire contract extensions will feed additional stock into the market in Autumn should improve stock availability,” he added.