A REPORT from auction house Aston Barclay reports prices of used diesels, hybrids and ex-fleet cars rising.
Aston Barclay’s Q2 Market Insights puts the used car price rises down to dealers investing more energy in used cars following a fall in new car sales.
The report said that prices of hybrids and EVs had reached an all-time high.
Average diesel prices rose from £9,769 in Q1 to £10,656 in Q2 (£887), reinforcing the continued strong demand. Aston Barclay said consumers were benefiting from historic VED rates and beneficial running costs that outweighed environmental concerns. Another factor that helped was the 996 mile drop in average mileages to 62,232 miles.
This price rise came about despite diesel volumes growing by 13% in Q2 on the back of peak new car registrations 3-5 years ago.
Hybrid/EVs continued their upward trend in 2018 with prices rising by £675 to £13,323 in Q2 – a record high for Aston Barclay. It suggested the wholesale market is gaining more confidence in stocking these cars on their forecourts.
Petrol prices in Q2 rose by 6% (£446) from £7,343 to £7,789.
Average fleet prices rose 6.7% (£629) from £9,316 to £9,945 in Q2 helped by an impressive range and quality of stock going under the hammer, and new vendors entering higher value cars for sale across the group.
Prices have risen by a total of £1,045 from Q2 2017 to Q2 2018 reinforcing the strength of the ex-fleet market over a prolonged period.
Martin Potter, Aston Barclay’s group operations director, said:
“Dealers continue to put more energy and investment into their used car businesses in the light of falling new car sales. More dealers are buying at auction across the age ranges, but particularly three-year old ex-fleet stock as it appeals to a wider group of used buyers.
“Falling new car sales and with market uncertainties such as WLTP, Brexit and the recent interest rate rise reducing disposable incomes, many consumers are looking to buy used cars. The used market has entered the summer in a strong condition and we envisage it retaining its consistency to the end of 2018,” said Potter.