COVID-19: New mannequin shortages drive near-record demand for used vehicles | Enterprise Information

A scarcity of recent fashions has helped drive a near-record leap in gross sales of used vehicles, in response to business figures, regardless of proof of surging costs.

The Society of Motor Producers and Merchants (SMMT) reported that 2,167,504 automobiles modified palms through the second quarter of the 12 months – up 6.6% on 2019 pre-pandemic ranges.

The physique stated it was the perfect April to June efficiency on report and nearly the perfect quarter ever for the used automotive market.

It charted a number of causes for the efficiency together with post-lockdown pent-up demand – with gross sales rising by greater than 300% in April alone in comparison with the identical month the earlier 12 months as showrooms re-opened and private gross sales bought again in gear.

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Gross sales of plug-in automobiles are rising for each the brand new and used automotive markets however second-hand availability stays low

It stated that petrol and diesel fashions accounted for greater than 96% of the used automobiles bought – with simply 1.3% of the whole being plug-in vehicles.

Nevertheless, The SMMT stated that battery electrical and hybrid mannequin gross sales greater than tripled over the quarter to 10,903 and 16,202 respectively as newer second-hand automobiles turned obtainable out there.

An acceleration in low or no emission car gross sales is unlikely within the coming months as new automotive gross sales are impacted by weak provide – a consequence of the scarcity of semiconductor chips which has hit manufacturing globally.

The business says its efforts to spice up output have additionally been broken by the so-called ‘pingdemic’ – calls for to self-isolate through the NHS COVID app – leaving factories in need of key employees.

Final month was the weakest July for brand spanking new automotive gross sales since 1998.

SMMT figures launched earlier this month confirmed that simply 123,296 new vehicles have been registered within the UK throughout July – a fall of virtually 30% on the identical month final 12 months.

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The grim prediction for UK automotive manufacturing this 12 months

Its chief govt, Mike Hawes, stated of the brand new figures: “That is welcome information for the used automotive market as transactions rebounded following nationwide lockdowns which closed retailers.

“Extra motorists are turning to used vehicles as provide shortages proceed to have an effect on the brand new automotive market, and the elevated want for private mobility with folks remaining cautious of public transport as they return to work.

“A buoyant used automotive market is critical to keep up robust residual values which, in flip, helps new automotive transactions.

“We now have to see an identical rebound in new automotive gross sales to speed up the fleet renewal essential to ship speedy and steady enhancements in air high quality and carbon emissions.”

Information from Auto Dealer, the non-public gross sales website, revealed some second hand fashions had seen their worth leap by nearly a 3rd over the 12 months to June within the second quarter.

The Audi RS3 led the way in which with a median asking value of £37,507 – up by 31%.

It even discovered {that a} 12 month-old Land Rover Defender was at present priced round £13,500 greater than a brand new mannequin.

Auto Dealer’s business director, Ian Plummer, predicted that eight million used vehicles can be bought this 12 months – aided by a backlog in younger drivers seeking to purchase their first motors.

“This demand has despatched used costs rocketing, up from an already important 7.1% year-on-year enhance in April to 11.1% in June.

“This steep trajectory has continued, and as of July, costs are monitoring at over 14%.”

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