Revving Up Sales: Insights and Trends in the Used Car Market from Auto Trader

In the ever-evolving world of motor trade, recent data from Auto Trader, a leading light in motor trade news, has revealed some fascinating trends that could help dealers sell more cars. Despite the traditional lull, consumer demand and transactions remain buoyant, painting an optimistic picture for the industry.

The latest figures, as of November 15, indicate a slight 1% dip in the average price of used cars month-on-month. However, it's not all about price drops; cars over five years old have seen a price increase of 2.2% year-on-year, and those over a decade old have jumped a notable 8.4%. This divergence is largely attributed to an increased supply of younger cars, causing their prices to decline by 4.5%, leading to an overall annual price decrease of 2.3%.

Consumer demand, however, remains undeterred, rising for all car segments, age groups, and fuel types - a robust 6.9% higher compared to the same period last year. This demand, coupled with a more modest 3.2% rise in supply, suggests a healthy market.

Auto Trader's market health metric, a gauge of potential profitability based on supply and demand, reflects this positive trend, showing a 3.6% increase from the previous year. Cars, on average, are being snapped up in 31 days, consistent with the trend over the past three years and faster than the pre-pandemic pace in November 2019.

Electric vehicles (EVs) are leading the charge in sales speed, taking just 25 days to sell on average, compared to 31 for petrol and diesel cars. The Jeep Compass petrol hybrid, less than a year old, holds the crown as the fastest-selling car, taking a mere nine days.

The dynamics in supply and demand also present interesting opportunities. Cars aged between one and three years have seen a supply decrease of 6.9% and a demand increase of 9.5%, resulting in a significant 17.5% boost in market health. Meanwhile, nearly new cars, under 12 months old, experienced a 29.9% surge in supply but were outpaced by a 31.7% jump in demand.

This trend extends to all fuel types, with petrol seeing a 2.7% increase in demand, diesel a modest 0.7%, and a remarkable surge for plug-in hybrids and full/mild hybrids - 37.6% and 51.1%, respectively. Electric cars, however, steal the spotlight with a staggering 69.1% rise in demand against a 12.9% increase in supply, leading to a 49.7% market health boost for EVs.

Richard Walker, Auto Trader’s director of data and insights, offers sage advice to retailers. Despite the pressure from new car offers and an increasing supply at the younger end of the market, consumer engagement remains strong. He advises retailers to avoid knee-jerk pricing reactions and to focus on quick sales without sacrificing profit, emphasising the importance of pricing to the market.

This analysis from Auto Trader, first reported by cardealermagazine.co.uk, provides a crucial lens through which the motor trade can view its current state and future potential, especially for those aiming to sell more cars in a competitive market.

source http://autoengage.co.uk/home-page-9252-9795-4532/b/revving-up-sales-insights-and-trends-in-the-used-car-market-from-auto-trader