Used car prices remained stable in February, as days to sell improved and dealer stock levels reduced, according to the latest MOTORS & Cazoo Market View.
The average price of used cars sold by dealers was £17,710, down just 0.4% (£74) month-on-month (MoM) but up 1.9% (£325) year-on-year (YoY).
Older cars saw the biggest YoY price rises. Models aged 5-10 years were up 4.5% to £13,792, while those over 10 years increased 9% to £7,415. In contrast, nearly new cars, under two years, saw the biggest YoY drop at -1.8% to £28,740.
These rises in older cars helped drive an increase in prices advertised by independent dealers, up 1.4% (£216) MoM to £14,126 and 7.4% (£971) YoY.
Cars aged between 5-10 years accounted for just over a third (36%) of all ad views on MOTORS during the month.
Lucy Tugby, Marketing Director of MOTORS & Cazoo, said: “Older profile cars were particularly popular in February, with demand once again nudging up prices.
“As buyers search online, they are finding lower availability of cars registered in 2020 and 2021, because of the disruption caused by the pandemic, so are broadening their searches to include older models.
“We have tracked a steady rise in prices for 5-10 year old cars since June and an uplift for cars aged over 10 years since September. With affordability a key consideration for buyers, as well as opportunities to choose well specified models, older profile cars continue to generate plenty of interest, which is welcome news for the independent dealers who typically stock them.”
Across the sector dealers stocked an average of 51 units in February, marginally down from 53 in January.
Used cars averaged 29 days in stock, four days less than January. The fastest sales were achieved by franchised dealers at just 22 days, compared to 29 in January, followed by supermarkets at 24 days. Independents saw a MoM increase of three days to 46.
Alternative fuel vehicles accounted for 21% of cars being sold by dealers with EVs hitting a new high of 10%, compared to 7% last February.
The increase in EV volumes saw prices drop 3% (£693) MoM to £22,634, down 8.5% (£2,100) YoY.
Tugby added: “EV prices have been steadily dropping for five consecutive months making them increasingly affordable considerations for more used car buyers.”