UK is only used car market in Europe where values continue to fall

The UK is now the only used car market in Europe where the value of vehicles continues to fall, according to data published by Indicata.

The automotive retail insight provider, which gathers data from 13 countries across Europe, said that used car values had declined by 5.7% across six consecutive months in the UK, but remain 25% higher than they were at the start of the COVID-19 pandemic.

Indicata’s latest Market Watch insights report added: “The UK remains the only market in Europe where used prices continue to fall.”

Earlier this month Cap HPI’s director of valuations Derren Martin suggested that used car supply constraints were the only thing keeping the sector from a “bloodbath” of falling prices as the cost-of-living crisis begins to impact demand.

According to Indicata, the average UK car retailer’s used car stock levels fell again in June, by 4.3%, but stock is now 5.7% higher than in June 2021 as retail demand slows down amid the cost-of-living crisis.

The UK and Denmark are the only two countries in Europe where stock levels are higher than 12 months ago, it said, while the other 11 countries in its report are reporting stock levels down by up to 38% year-on-year.

Indicata UK’s group sales director Jon Mitchell said: “The UK was the first European market to see used prices go through the roof and now that retail confidence is falling, we are the first nation to see used prices fall. However, used cars are still around 25% higher than they were at the start of the pandemic.

“Sales are slowing down rather than crashing and they are likely to remain subdued until after the summer holidays. If consumers rush to buy used cars again after the summer and dealers are short of stock then the market will quickly rebound.”

Stock turn data which mirrored that published by Auto Trader today (June 30) showed that demand for used electric vehicles (EV) is soaring as fuel prices reach record highs.

The Kia Niro is currently the UK’s fastest-selling used car, according to Indicata – closely followed by the Hyundai Ioniq.

It is the first time it has topped Indicata’s fastest-selling used cars ranking.

On the continent Tesla’s Model Y and Model 3 currently Europe’s fastest-selling used cars followed by the Kia Niro.

Its Market Insight report stated: “Used EV stock turn in the UK is now on par with petrol cars and faster than diesel cars although this hasn’t prevented used car sales falling by 5.3% in the first five months of 2022.

“Sales are also 4% lower than in the same period in 2019, the last year to be unaffected by the Covid pandemic.”