High used car stock volumes in May prompted dealers to trim their prices resulting in increased sales across all dealer sectors, according to the latest monthly Market View from MOTORS.
Dealer inventories averaged 52 units, the third successive month of growth, with month-on-month (MoM) increases across car supermarkets (149), franchised dealers (66 units), independents (39 units).
The average price of a used car on MOTORS was £17,197, down 1.8% (£323) MoM. The drop was led by franchised dealers, down -0.6% (£138) MoM to £23,457. Consequently franchised sites enjoyed the biggest increases in sales up 11% MoM, followed by independents up 6% and car supermarkets up 4%.
The two biggest price droppers were both Tesla Model 3s with 3-4 year-old examples down -3.3% to £19,452 and 4-5 year-olds down -3.2% to £17,833.
Overall days to sell were up marginally from 29 to 30 with car supermarkets achieving the fastest sales at 21 days, followed by franchised dealers (23) and independents (47).
Younger profile cars dominated the fastest sellers with Vauxhall Corsas aged between six and 12 months averaging just 9 days in stock, followed by Ford Explorers under six months (12 days) and MG HS models less than two years old (12 days).
“Following two successive months of price rises it was just a matter of time before we started to see some downward pressure, especially as dealer inventories have been growing since March,” said Lucy Tugby, Marketing Director of MOTORS.
“Franchised dealers made the biggest cuts and were rewarded with the highest sales increases over the course of the month, with younger profile cars proving to be particularly popular among buyers looking to get the most for their money,” she said.
Turning to fuel, the average price of electric cars (£23,424) tracked below hybrids (£24,759) for the third month in a row and have now been falling steadily since October 2024.
“As greater numbers of EVs enter the used car market, especially from the leasing and fleet sectors, we’re starting to see lower prices attracting higher levels of online views as they become affordable considerations for more in-market buyers.
“Falling EV prices will give dealers greater confidence to stock them, especially as the overall average is now lower than hybrids. This emerging trend presents a more compelling proposition for buyers factoring in environmental considerations who may have previously dismissed hybrids as a stepping stone technology,” said Tugby.
