Non-Compliant Used Cars Holding Steady in UK as Ulez Expands, Auto Trader Reports

In the latest Motor Trade News from cardealermagazine.co.uk, Auto Trader's Monthly Market Intelligence report for October reveals intriguing trends in the UK's automotive landscape. Despite the expansion of the Ulez (Ultra Low Emission Zone) in London, non-compliant used car stock seems to be staying put rather than migrating northward.

Auto Trader's findings indicate that retailers across the UK are now holding fewer non-compliant vehicles. This development comes in the wake of the Ulez zone's extension on August 29, encompassing all 32 boroughs of London. Surprisingly, the data suggests that the south-to-north shift of non-compliant cars may not be as pronounced as anticipated.

For instance, in the East Midlands, non-compliant vehicles now constitute just 10% of dealers' stock, a significant decrease from approximately 16% in October 2021. Similarly, in the north-west, the percentage of non-compliant cars in stock has fallen to 12% from 16%. While London's Ulez expansion has presented challenges for some used car dealers, others have found themselves thriving.

Auto Trader notes that as supply dwindles and demand remains steady in most regions, the prices of non-compliant diesel cars are holding strong. In fact, they are experiencing faster growth than last year and outpacing their compliant counterparts. Furthermore, the report projects that non-compliant car supply will decrease by 26% by 2025, suggesting that prices are unlikely to change significantly as long as demand remains stable.

In other noteworthy findings, Auto Trader recorded an impressive 9.4% increase in site visits last month, totaling 74.3 million, compared to 67.9 million in October 2022. Meanwhile, year-on-year comparisons indicate a 1.7% decrease in like-for-like used car prices, with the average price now standing at £17,600. However, this still represents a substantial £3,600 increase from pre-pandemic 2019 levels.

The decline in prices is particularly noticeable in younger vehicles, with one-to-three-year-old cars experiencing a 7.6% price drop, according to Auto Trader's analysis. Despite these price fluctuations, used car sales saw a 2% growth in October compared to the same month last year. This growth was primarily driven by an increase in the supply of younger stock, though specific figures were not provided.

As the report concludes, it highlights that discounts on new cars following the September plate change averaged 7.4%, indicating potential opportunities for buyers in the market for brand-new vehicles.

In summary, Auto Trader's October report presents a nuanced picture of the UK's automotive landscape, with non-compliant used cars holding steady in various regions despite Ulez expansion. While prices fluctuate, the market continues to show resilience and adaptability, offering opportunities for both buyers and sellers in the motor trade industry.

You can read the original article at Car Dealer Magazine (cardealermagazine.co.uk)

source http://autoengage.co.uk/home-page-9252-9795-4532/b/non-compliant-used-cars-holding-steady-in-uk-as-ulez-expands-auto-trader-reports