Car supermarkets increased their inventories in July as buyers renewed their focus on affordability, according to MOTORS’ July Market View.
Dealer inventories averaged 53 units in July, up from 51 in June and just behind 54 units 12 months ago.
The rise in volumes was mostly driven by car supermarkets where average stocks per site jumped month-on-month (MoM) from 252 to 274 units, an increase of 9%. Supermarkets have been increasing their stock levels every month since March, the only dealer sector to do so, although this new high for the year is down -10% year-on-year (YoY) from 303 units.
Franchised dealer stock levels increased MoM from 56 to 60 units, an increase of 9%, but were down -2% YoY from 62. While independents remained unchanged MoM at 39 units, maintaining the consistency they have displayed over the last 12 months.
The proportion of used electric vehicles (EVs) stocked by dealers increased MoM from 3% to 5%, while hybrids increased from 7% to 9%. Both gains were at the expense of petrol, down from 54% to 52% and diesel, down from 36% to 34%.
The lion’s share of online searches (43%) in July were for six to 12 years old cars, with most buyers (38%) searching for medium size vehicles.
The average advertised price of a used car on MOTORS increased 1.4% (£240) MoM to £17,410, following a succession of mostly downward movements since January, marking a -5% drop YoY from £18,319.
“July was a further stable month for the used car market in terms of supply and demand. Car supermarkets made the most of a succession of book drops in the wholesale market to continue to replenish stocks and build in some margin,” said Lucy Tugby, Marketing Director of MOTORS.
“Our data shows how affordability remains at the front of buyers’ minds with older family-size cars attracting the most interest online and rewarding dealers spotting the opportunity to source these essential purchase vehicles.
“The small increase in used EVs being stocked by dealers and the gradual increase in online searches for them are encouraging trends which we will be monitoring closely over the coming months,” said Tugby.
