Used car inventories grew in September to their highest level this year, as prices continued to strengthen and buyer demand for electric vehicles (EVs) increased, according to the latest Cazoo Market View.
Dealers stocked an average of 59 cars in September – one more than August and three more than September last year.
Inventories increased across all retail sectors. Car supermarkets averaged 221 units, up from 219 in August and 206 in September last year. Franchised dealers averaged 63 units, compared with 62 in August and 60 a year earlier. Independent dealers averaged 44 units, up from 43 in August and 41 last September.
Petrol continued to account for over half (51%) of all vehicles listed on Cazoo, although its share dipped from 52.8% last September. The decline of diesel continues with its share of listings dropping year-on-year (YoY) from 30.8% to 29.9%.
Meanwhile, the momentum behind used EVs continued to build with the number of units listed climbing 17.6% YoY and up 2% month-on-month (MoM). EVs as a percentage of overall ad views on Cazoo jumped YoY from 2.4% to 4.3%.
Hybrid volumes increased 2.7% YoY and 3.7% MoM, with YoY ad views rising from 5.8% to 7.5%.
The average price of a used car in September remained steady at £17,484, up 0.4% from £17,411 in August, but down 0.9% from £17,650 a year ago. Prices this year have tracked below £17,650 since May.
September’s rise was mostly driven by franchised dealers where prices increased 0.9% MoM from £22,506 to £22,707. Car supermarkets averaged a smaller MoM rise of 0.6% from £16,733 to £16,833. Meanwhile, independent prices dipped 0.1% MoM from £14,202 to £14,186 but were up 9.9% YoY.
Demand for older, more affordable cars, as measured by ad views, continued to drive strong prices. Vehicles over 10 years old rose 10.8% YoY to £7,704, while five to 10 year olds were up 3.6% YoY to £13,554. Compared to younger profile cars, under two years old, which were down 1.3% YoY at £29,129.
The top five most viewed brands on Cazoo were led by Ford followed by Volkswagen, Mercedes-Benz, BMW and Vauxhall. The most searched for car was the Volkswagen Golf, a position it has held for most of the year.
Lucy Tugby, Chief Marketing Officer at Cazoo, said: “Dealer stock levels rose month-on- month and year-on-year across all three car retailing sectors in September, yet buyer demand – particularly for older, more affordable cars – helped dealers maintain competitive pricing.
“We believe this strong pricing also reflects the growing volume of EVs entering the used car market. Ad views for these models have nearly doubled since last September, providing further evidence of buyer interest in electric alternatives, especially as petrol and diesel pump prices rise.
“As the final quarter begins, dealers will be looking for continued stability in the used car market while closely monitoring broader economic and geopolitical developments that could affect consumer confidence.”