New research from Indicata shows a decline in the number of three- to four-year-old cars available for sale.
The report found that just 23% of the UK’s used stock was between three and four years old. In comparison, the number of used vehicles under two years of age rose to 31%. This rise has been attributed to a growing influx of nearly new electric vehicles (EVs) entering the market. Meanwhile, used vehicles over five years old now make up 46% of the used car market, highlighting a shift in age distribution.
Expanding on these findings, Indicata UK’s head of sales, Dean Merritt, explained: “Our used vehicle data shows just how long it has taken to flush the impact of Covid through our used marketplace.” He continued: “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.”
According to the report, prices for vehicles in this age bracket have risen, but overall used car prices have fallen, reflecting economic uncertainty and low consumer confidence.
A brand performing well in the used car market, despite seeing drops in new car sales, is Tesla. In July, the Tesla Model 3 led used car sales in the UK, and both the Model 3 and Model Y were the quickest-selling used cars in Europe.
On this, Merritt added: “The majority of used car dealers are now stocking the Tesla Model 3 as it is one of the country’s most coveted used EVs. It’s been around for a while, and some of the older cars are now sub-£10,000, which represents good value for money for consumers looking to buy their first used EV.”
