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Used car market remains buoyant

However this also compares favourably to pre pandemic (Q2 2019), when 2.03 million were sold in this period. 

Key reasons for this are the shortage of supply of new cars due to global manufacturing delays as result of Covid and also a global shortage of semiconductors and raw materials which is leading to manufacturers struggling to meet consumer demand. 

Those of you who have contemplated trading in or selling your car and have entered your car on to sites such as WeBuyAnyCar over the last year will likely already be aware of this having been notified over a period of 6 months as your car has gone up in value by around 10% since the first quarter of 2021. There is in fact such an imbalance in supply and demand at the moment that buyers are regularly paying over the asking price to secure their used car purchase and avoid being outbid.

Whilst this trend will clearly not continue in the longer term, the reduced number of new car sales over the last 18 months will result in a reduced supply of used cars coming onto the market in the next 6 months, therefore when combined with a lack of supply of materials and strong demand, this will likely increase the cost of new cars in future and in turn bolster used car values further. 

Data from the SMMT*

Used car remains buoyant graph

*Source: SMMT Used car sales: Q2 2021

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For further information or support, please contact James Astley or your usual UHY adviser.

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