A mean sticker worth of £18,067 marks the twenty second consecutive month of worth development, and a 31.3% year-on-year (YoY) enhance on a like-for-like foundation.
The Auto Dealer Retail Worth Index confirmed that worth development continues to be fueled by the unusually massive hole between the degrees of provide and demand out there.
Whereas the worldwide scarcity in semi-conductors continues to position strain on each new and used automobile provides, shopper demand stays exceptionally excessive, which is mirrored within the enormous variety of used automobile enquires being despatched to retailers via the Auto Dealer platform. Final month, the quantity of enquiries elevated by practically a 3rd (31%) on January 2021.
As a result of report tempo at which used automobile costs are rising, retailers who fail to maintain observe are prone to shedding essential income attributable to underpricing their inventory. Auto Dealer stated that retailers on its market missed out on circa £125m in potential revenue because of pricing beneath the present retail valuation. It equates to a median of over £11,000 per retailer. The revenue hole is widening, rising from a possible revenue lack of circa £93m(circa £9,000 per retailer) in August 2021.
Highlighting simply how robust the used automobile market is, multiple in 5 (21%) of the practically new automobiles presently out there (these aged as much as 12 months) are dearer than their brand-new equivalents. Almost half (46%) are priced inside 5% of the RRP. The rationale for this, Auto Dealer stated, is right down to very excessive demand – on this case from automobile consumers unable or unwilling to attend for a brand-new automobile to change into out there – coupled with very low provide. Regardless of this, practically new automobiles have been leaving forecourts 24% quicker in January 2022, than they have been in January 2021 (a median of 41 days vs 54).
Richard Walker, Auto Dealer’s Director of Knowledge and Insights, stated: “The January blues have finished little to take the warmth out of the used automobile market, which has began the 12 months in a really robust place. The continuing squeeze on new and used automobile provide, mixed with exceptionally robust shopper demand has ensured that the report worth development we noticed final 12 months has continued into 2022. From what we’re monitoring there’s little proof to recommend that these very uncommon market dynamics will change considerably any time quickly. Easy economics subsequently level to a continuation of robust worth development properly into the 12 months forward.”
Sue Robinson, Chief Government, NFDA added: “Used automobile costs stay excessive because of provide constraints adversely affecting the worldwide market. Nonetheless, sellers are optimistic, strengthened by shoppers’ rising urge for food for Electrical Autos. Regardless of challenges, most notably relating to provide, shopper confidence stays strong for the 12 months forward.”