Alternative power trains gaining traction in used car market

Last month saw stock turn of used battery electric vehicles (BEVs) up by 33% compared with the previous month and 87% higher than September 2020 according to INDICATA’s Market Watch insights report, suggesting the market is starting to gradually embrace alternative power trains. Stock turn levels for BEVs in September at 9.0 were comparable with diesel at 10.2.

“September was a tipping point for BEVs in that stocking days got closer than ever before to ICE cars which suggests the market is warming to the zero-emission proposition. It will be interesting to see how this trend moves in future months of the report,” explained Jon Mitchell, INDICATA UK’s group sales director.

Online B2C used car sales rose 0.8% in September compared with August, and nine months into 2021 sales were 20.8% above the same period in 2020 and 3.9% above the same period in 2019 which was the most recent ‘normal’ trading year before Covid-19 struck.

Used prices rise

Increased sales have seen stock levels reduce by 9.4% than a year earlier and are 16.5% lower when compared with September 2019. Not surprisingly this is leading to severe price inflation with UK used car prices 27.5% higher than five months ago.

September also saw the first signs of tactical manufacturer registration campaigns in the market as there was a 7% monthly and 18% year-on-year increase, in car sales at less than 12 months of age. The aim has been to feed some cars into a sector which has been short of stock for the past two years thus helping increase stock levels in October by 2.3% above September levels.

INDICATA has also been tracking the top selling used cars in the UK which during September were the Ford Fiesta, VW Golf and Vauxhall Corsa. As of the end of September there were 40.9, 38.6 and 36.9 days respectively of stock available in the market of these three top selling cars which reinforces the current shortage.

Mitchell explained: “Used prices show no sign of slowing down as demand exceeds supply. Dealer stocks are still under pressure which suggests prices will continue to rise. There are around six weeks’ worth of stock in the market of the three top selling cars which also reinforces how short the market is of cars. The used market will be working under these pressures for many more months to come.”.