Published 04 Jul, 2024
Used Inventory Insight from MotoNovo Finance
This perhaps surprising reality is one of the key findings from our latest Used Inventory Insight report for Q1. As one of the UK’s largest used vehicle stock funders, we have a wealth of data on what has been selling and how quickly. What is abundantly clear is that at an average trade purchase of £21,097, dealers could find willing EV buyers quickly.
This perhaps surprising reality is one of the key findings from our latest Used Inventory Insight report for Q1. As one of the UK’s largest used vehicle stock funders, we have a wealth of data on what has been selling and how quickly. What is abundantly clear is that at an average trade purchase of £21,097, dealers could find willing EV buyers quickly.
The overall price comparison with ICE cars is interesting; in stock for an average of 59 days, with an average dealer purchase price of £14,451, the overall car parc is older and cheaper. However, there are signs that price parity between EVs and ICE cars is emerging on an age like-for-like basis.
Looking forward, in the face of increasing new EV supply, growing price competition and the pressure created by the government’s Zero Emission Vehicle (ZEV ) targets, there is the potential for used EV values to decline, making them more affordable. Factor in the fact that EVs have fewer mechanical parts to go wrong and that with a home charger, they are typically cheaper to run than an ICE car, and the potential for increased demand for EVs is evident.
The Ageing Parc
A continuing carryover from the post-COVID semiconductor shortage is an ageing used car parc. The traditional demand for cars in the 3-6 age category remains true, but availability remains constrained. The inevitable consequence has been increased stocking of cars in the 6-9 age range.
A little over 40% of stock purchased and settled in the last quarter came from the 3-6 age range. It was a percentage almost matched by cars in the 6-9-year-old segment. In fact, trade buying remained brisk in cars up to 11 years old.
With inflation now at 3.2% and the Office for National Statistics reporting annual growth in employees’ average total earnings (including bonuses) of 5.6% in mid-April, it will be interesting to see if consumers start to feel more confident and look to buy newer cars. Alternatively, might they be more inclined to buy an EV, as suggested previously?
So What is Selling?
BMW, Audi, Volkswagen, Mercedes-Benz, and Ford cars account for almost half of all used cars stocked with funding from MotoNovo Finance. Small-medium-sized cars, such as the BMW 3 series, Ford Fiesta, and Volkswagen Golf, featured most prominently within these brands.
Looking at fuel type, the demand for diesel cars is still evident. However, new diesel car sales, which fell to 6.9% in the year to the end of March, suggest that a shortage of used diesel cars will start to emerge in the future if the demand is sustained. It is possible that diesel cars could gain a price premium in this eventuality.
Finally, in this section, what colours are in fashion? In ranking order, the top colours are Black, White, Grey, and Blue, with Silver and Red following a fair distance behind the top four. One shocker was Beige coming in at No. 13!
Share