Used car price gap impacting stock levels

New data has found that dealers are struggling to replenish used car stocks as sellers are valuing their vehicles too highly.

Used car prices fell about 20% last year, but many private sellers are not aware of the market slow down.

According to used car trading platform HonkHonk, which connects sellers with dealers, the gap between expected prices and actual vehicle value has never been higher. This is because of the surge in prices of used cars during the pandemic.

CEO Sebastien Duval said: “Car owners still remember all the headlines about their cars suddenly becoming worth more than they originally paid and they just haven’t caught up with this year’s reality of the market returning to normal.

“Dealers tell us that many private sellers have no idea that prices fell back in 2023, albeit from abnormally high levels. So both sides are now missing out, with dealers hungry for good quality stock from trusted sources and drivers reluctant to part with their cars at realistic prices.”

He continued: “Many private sellers are missing out at the moment. Dealers are more hungry for stock than they have been for a long time, but they remain cautious about paying too much until they know for sure that the market has stabilised.”