Car supermarkets proved their retailing efficiencies in September achieving fast sales on reduced inventories, according to MOTORS’ Market View.
Cars averaged just 20 days in stock at supermarkets, outperforming the market average of 29, with inventories down 5% month-on-month (MoM) to 258 units. It was also the only retail segment to grow MoM sales, up 4% on August.
Overall buyer activity was strong in September with online views across the MOTORS platform up 10% MoM, a new high for 2024 and a 12% increase YoY. Most views were for used cars in the £5,000 to £10,000 and £10,000 to £15,000 price brackets.
Stock volumes across all retailing sectors for the month remained stable at 51 units, compared to 52 in August, and unchanged year-on-year (YoY). Franchised dealer stock levels dipped MoM from 60 to 58 units, with part-exchanges generated from the new 74-plate expected to boost inventories in October. Independents remained unchanged at 38 units, in line with their overall average over the last nine months
The average advertised price of a used car in September was £17,445, a MoM increase of just £95, reflecting the pricing stability which has been evident throughout the year.
However, there were some notable regional price variations with London seeing a 3% rise MoM to £24,441, with smaller increases across other southern regions. While the north-east of England saw the biggest drop at -1% to £15,190, representing a YoY drop of -14%. The north-west, East Anglia and south-west also saw MoM and YoY drops. The lowest average was in Wales at £14,044.
Analysis of prices by fuel type saw electric vehicles (EVs) rise 1.5% (£408) MoM to £28,180, the third consecutive monthly rise, although tracking at 14% lower than last September. Prices for hybrids dipped -1% (£180) MoM to £25,546, while petrol (£16,662) and diesel (£14,937) remained on a par with August.
Days to sell for the month averaged 29, one more than August but outpacing the 33 days recorded last September. The fastest sales were achieved by franchised dealers (19 days), followed by car supermarkets (20 days) and independents (53 days).
Large family cars were popular in September with estates achieving some of the highest views per vehicle by segment, as parents prepared for the start of the new school term.
“September’s Market View shows another month of stability across used car pricing, stock levels and days to sell, all positive trends for dealers against a backdrop of economic uncertainty and consumer hesitancy ahead of next month’s Budget,” said Lucy Tugby, Marketing Director of MOTORS.
“Buyers were busy online as searches on MOTORS hit a new high for the year, with increases across all retail segments. Car supermarkets made the most of the activity, demonstrating efficiency by achieving the fastest sales while maintaining leaner inventories.
“The regional variations in prices tracked by Market View underscores the importance of reviewing them on a daily and local basis to maintain a competitive advantage,” said Tugby.
