Dealers saw welcome stability in demand in June but continued to battle with limited supply, according to eBay Motors Group.
The latest Market View analysis of trends across Motors.co.uk found stock levels dipped 3% month-on-month from 55 to 54 units, a year-on-year drop of 6%. Franchised and independent dealers’ stocks dropped 7% month-on-month to 70 and 38 units respectively, while car supermarkets saw a welcome rise of 6% to 388 units.
Alternative fuel stocking dipped month-on-month with EVs dropping 4% and hybrids down 7%, nudging their overall market share from 11% to 10%, as dealers de-risked on the back of recent price instability.
Meanwhile, petrol increased by 7%, accounting for 52% of all used cars being sold on the platform, and diesel increased its share by 3%, taking a 38% stake.
The ongoing industry-wide pressure on supply saw days to sell fall for the third consecutive month with cars averaging just 35 days on dealer forecourts, as buyers remained active.
The fastest selling car on Motors.co.uk was the all-electric nearly new Cupra Born, selling in just nine days, with the top 10 featuring four Vauxhalls as buyers traded-in models to take advantage of the brand’s high profile 0% APR finance offer on new cars.
The average price of a used car in June dipped by 1% (£150) to £18,283 but was 10% (£1,671) up year-on-year. This reduction was largely a function of older cars making up a higher proportion of stock on Motors.co.uk. Pricing within age groups was stable.
The average price of a car on Motors.co.uk has now gradually reduced every month since peaking at £18,903 in January. One of the main drivers has been the fall in value of models aged over 10 years, down 5% (£347), with younger cars seeing smaller drops after rising in value during 2022.
Pricing analysis by fuel type shows some welcome stability for EVs which increased by 1% to £30,341, against a year-on-year fall of 16% from £36,378.
“After the disruption of May’s bank holidays, June’s market saw some welcome stability for dealers with supply and demand fairly well balanced, as witnessed by cars selling faster than at any time since October 2021,” said Lucy Tugby, Marketing Director of eBay Motors Group.
“In light of the ongoing economic pressures and June’s interest rate rise, used car buyers are more focused than ever on their monthly budgets. We know from our conversations with dealers that de-risking purchases remains a key part of the buying process which is why PCPs remain popular. Buyers value the peace of mind of fixed monthly outgoings and avoiding nasty surprises with warranties,” said Tugby.
You can download the June 2023 eBay Motors Group Market View report here
