Used car prices dipped in October, after two months of gains, as days to sell increased and dealer inventories expanded, according to the latest Cazoo Market View.
The average price of a used car listed on Cazoo was £17,432, down -0.3% month-on-month (MoM) and -2.3% year-on-year (YoY).
The drop was driven by cars aged under two years falling -1.9% MoM from £29,082 to £28,528, as well as those aged 2-5 years down -0.9% (MoM) from £19,879 to £19,708.
Cars over 10 years bucked the trend by continuing to increase in value, up 1% MoM to £7,795, a YoY jump of 10.3%, reaching their highest level on Market View.
Franchised dealers were the only retailing sector to see prices drop, down -1.6% MoM to £22,307, a YoY fall of -5%.
Car supermarkets improved 1.1% MoM to £17,045, up 1.3% YoY. While higher prices for older cars ensured a 0.2% MoM increase for independent dealers to £14,214, a YoY jump of 9.4%.
Days to sell increased slightly MoM from 39.7 to 40.2 days, while remaining on a par YoY.
Once again car supermarkets achieved the fastest sales at 31.3 days, although franchised dealers closed the gap at 31.6 days, a notable improvement on September’s 33.9 days. Independent dealers averaged 49.6 days, up from 47 in September.
Electric vehicles (EVs) were the fastest sellers by fuel type, averaging just 32.3 days in stock, closely followed by hybrids at 32.8 days, both achieving significant YoY improvements from 37.2 days and 39.7 days respectively.
Petrol cars averaged 39.2 days, on a par with last year, while diesels proved a harder sell at 49.6 days, compared to 41.1 days last October.
Average stock levels were 58.3 units, up from 55.8 in September and 57.4 last October.
All three car retailing sectors increased their inventories MoM with car supermarkets up from 201 to 212, franchised up from 61 to 65 and independents up from 41 to 42.
The YoY shift in stocking patterns by fuel type continues to gather pace with petrol volumes down -13.8% and diesel down -6.9%. Hybrids increased 3.7% and EVs were up 2.4%. Collectively alternative fuel vehicles accounted for 19.5% of cars stocked by dealers, up from 17.2% last October.
Lucy Tugby, Chief Marketing Officer of Cazoo, said: “The softening of used car prices in October reflected new car discounts biting into nearly new values, prompting franchised dealers to trim prices accordingly, while car supermarkets and independents held firm.
“There was also a notable increase in stock levels following the September plate-change with cars taking slightly longer to sell.
“However, the market remains dynamic with cars priced between £20,000-£40,000, including a high proportion of EVs and hybrids, proving to be the sweet spot for many dealers, with these units achieving the fastest sales of just 34.6 days.
“As we enter the final months of the year, always a challenging time for big ticket purchases, dealers will be monitoring consumer confidence and adjusting their stock mixes and pricing to remain as competitive as possible.”