UK’s used car market registered a notable decline in both advertised retail prices and dealer stock levels last month, according to Motors’ latest Market View report.
Digital marketplace Motors attributed the decline in used car prices primarily to buyers focusing on older models during the sixth month of the year.
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The average price of a used car on Motors’ platform at the end of June was £17,168 ($21,894), marking a 1.3% month-over-month (MoM) drop from £17,390 in May.
This figure was significantly lower compared to the same period last year, which saw prices averaging £18,511.
Over the first half of the year, prices dropped by 1.8%, starting from an average of £17,475 in January.
Franchised dealers were particularly affected, with a 4% decline in prices from £24,067 to £23,097.
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By GlobalDataThe most significant price reductions were observed in vehicles over ten years old, which decreased by 2.3% (£165) to £6,895 from £7,060.
Meanwhile, the cars that are under two years old saw a 1.4% decline to £30,690 from £31,134.
Dealer stock levels also saw a reduction, with an average of 51 units in June compared to 54 in May.
This figure is also lower than the average of 55 units from the same month last year.
Franchised dealers experienced the most substantial drop, with an 11% month-on-month decrease to 56 units.
In contrast, independent dealers’ stock levels remained relatively stable at 39 units, only one unit down from May.
However, car supermarkets bucked the trend, with stock levels increasing for the third consecutive month, from 245 to 254 units.
Stock levels for the first half of the year have remained relatively consistent, beginning at 54 units in January, Motors noted.
CarDealer Magazine quoted Motors marketing director Lucy Tugby as saying: “The focus for buyers in June was on essential purchase cars with older, cheaper, combustion engine models attracting plenty of online attention.
“We expect this to continue into July as family and personal budgets start turning to summer holiday spending.”
