Used car values declined 0.4% month-on-month but remained 45% ahead of pre-pandemic “norm” during November, according to the latest data from Auto Trader.
The average value of a used car advertised for sale on the platform reached £17,801 last month, which was down on the previous month in a trend said to be “in-line with seasonal trends” and up 4.7% year-on-year.
The result marked the 32nd consecutive month of YoY used car value growth on Auto Trader.
Car retailers’ stock turn is slowing, with the average days to sell rising from 25 days in October to 30 last month. This remains ahead of the 31 days of November 2020 and 33 in November 2021, however.
Auto Trader director of data and insights, Richard Walker, said: “Despite the broader economic uncertainty, the ongoing year-on-year price growth supports our cautious, but confident, outlook for the used car market.
“The metrics we’re seeing are in line with what we would expect to see at this time of year, and although it would be easy to interpret the month-on-month softening as a sign of a looming crash in prices, we are not seeing any signs of this.”
Walker added: “With levels of demand remaining robust, and no indication of a significant improvement in levels of supply anytime soon, we can expect used car prices to remain stable into the new year.”
EV values dip
Earlier this month Cap HPI director of valuations Derren Martin told AM that November looked set to deliver the second-lowest level of depreciation on record, with values down just 0.6% month-to-date at three years and 60,000 miles at the time, compared to historic declines of around 2.5%.
His prediction proved correct, despite the month-end’s 1.2% average decline being the third heaviest downward movement of the year so far, after March and April both saw 2.1% declines.
Martin also pointed out that OEMs’ priority of delivering electric vehicles (EV) was making that part of the market the hardest hit, with Tesla’s Model 3 having lost around £5,000 in the space of less than two months.
Auto Trader’s data showed that used EVs had recorded a third consecutive MoM decline in value during on its platform in November – falling 2.5% to £37,919 – as plug-in hybrids values fell 1.8%.
In contrast, the average price of a used petrol (£16,279) car was down 0.2% MoM, whilst diesel (£16,696) was flat.
Fiat’s Punto, Peugeot’s 107 and 207 and the Vauxhall Agila MPV head the rankings of most appreciating cars during November.
The Jaguar XK coupe, Vauxhall Grandland X and BMW 8 Series took the biggest value hit, meanwhile.
Sue Robinson chief executive of the National Franchised Dealers Association (NFDA), said: “The used car market remains in a strong position with franchised dealers and independent retailers benefiting from robust used car prices and sustained levels of consumer demand.
“Auto Trader’s Retail Price Index reveals year-on-year growth is softening but remains very positive at nearly 5% on top of previous records, and importantly, we are yet to see external factors relating to the broader economy and energy bills impact levels of demand in a significant way.”