Used car market still impacted by supply challenges
New research has exposed a continued supply challenges in the used car market with models aged three to four years old reaching a new low in August.
According to Indicata Market Watch, just 23% of all used cars on the market are in the popular three to four-year age bracket.
It says this suggests there are still lingering supply constraints left over from the pandemic.
Meanwhile the volume of models under two years old has increased to a record high of 31%, with a growing number of nearly new electric vehicles entering the used car ecosystem, while cars older than five years old make up 46% of the used car market in the UK.
Dean Merritt, Indicata UK’s head of sales, said: “Our used vehicle data shows just how long it has taken to flush the impact of Covid through our used marketplace. Typically, 36-48-month-old used cars are at the sweet spot of both wholesale and consumer demand from an age, mileage and price perspective and currently demand is exceeding supply.”
The data also found that prices have fallen in all categories apart from in the three to four-year category, with economic uncertainty continuing to damage consumer confidence.
