New INDICATA insights
The European used car market grew by 10.3% year-on-year in August on the back of rising prices and supply shortages according to INDICATA’s insights report, but signs of a slowdown are showing.
Twelve of the 13 countries where INDICATA has a presence experienced growth during August.
Turkey, Portugal and Italy saw the biggest year-on-year growth at 41.7%, 39% and 33.1% respectively, while only the UK market contracted in August, by 3.3%.
August used car pricing was strong
Used car pricing was strong and continued to increase in most markets, which combined with reports of rising wholesale prices and high conversion rates, showed that overall demand is outstripping supply.
INDICATA’s insights show that sub-12-month old cars are particularly in short supply as OEM self-registration and demonstrator schemes continue to be compromised by manufacturing plants playing catch up following the impact of the Covid-19 pandemic.
Dealers are short of cars
Dealers across Europe remained short of used cars, particularly those in Poland and Portugal where stock levels reduced by 11% during August.
The UK and Turkey experienced the joint highest rise in stock of 3%.
While August pricing continued to rise, INDICATA warned that dealers are becoming more cautious in their buying habits as wholesale prices have remained high. In addition, rising Covid-19 infection rates could too result in a slowdown across many European countries in September and Q4.
Signs of slowing down
“There are signs that the European used car market started slowing down during August although prices remained strong,” explained Andy Shields, INDICATA’s global business unit director.
He continued, “Dealers are becoming more cautious with stocking following rises in infection rates.
“There are still healthy profits to be found from fast-moving stock but dealers need to keep a close eye on pricing and stocking days to ensure they aren’t left with slow moving stock should prices and demand swiftly fall.”
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