Insight

Used Car Market Update- April 2021

Robert Redman | 19 May 2021

About the author

Robert Redman

Forecast Editor

Robert is responsible for forecasting Glass’s future car values right across the market. He has been involved in the motor industry for almost 30 years, most recently as Passenger Car Risk Specialist in the Residual Value and Portfolio Department at Mercedes-Benz UK. He has also held key roles at Leasedrive, Masterlease, Vauxhall Masterhire, Leasecontracts, GE Fleet Services – and has also worked as a specialist classic car restorer.

Used car market gathers pace

As expected, the UK used car auction market continued to gather pace following the easing of some restrictions in March. Sale volume and first-time conversion rate both continued the improvements seen for March, albeit not to the same degree, whilst the percentage achieved of the original cost new also increased month-on-month. In summary, the three key metrics all continued to move in the right direction, with more cars sold first-time and for more money.

Used Car Market Conversion Rate Graph April 2021
Used car market percentage original cost new graph April 2021

Demand continued to grow during the month, with premium SUVs and convertibles particularly sought after. Cars that required work were less desirable, so whilst there was a clear demand for vehicle stock, whether to fill up sites depleted during the lockdown or to prepare for increasing demand, it is clear that buyers were generally looking for cars ready for customer sale with the minimum delay or additional expenditure.

Used Car Retail Market

The metrics for the used car Retail market continue the positive theme from March. The number of observed sales increasing 13.6% – not as strong as the surge seen for March, but impressive nonetheless. The average sale price decreased a little. This is likely due to the increase in the sales of lower-priced cars. Buyers of these cars appeared to be less keen during the lockdown, which was reflected in the auction results, but the opening up of retail sites to more “normal” sales procedures saw a boom in demand at the auctions as retail demand increased.

Used car market retail observations graph April 2021
Used car market average retail sale price graph April 2021

Glass’s Live Retail prices measure the length of time a car spends on the forecourt, with a shorter duration generally pointing to a stronger retail market. The Average Days to Sell in April did improve compared with March, down from 48.7 days to 47.3 days, although the improvement may not be as great as some may have been expecting. However, with all of the recent restrictions, many cars may inevitably have been in stock for longer than would be desirable in a “normal” market.

The opening up of retail sites and the rise in demand is giving many retailers a confidence boost, so the practice of trading out overage stock added to the jump in retail sales will result in a bigger stock day improvement in May.

Used car market average days to sell graph April 2021

Outlook

Early indications for May are that the used car auction market is continuing to improve. Strong demand is continuing to drive values up, and whilst this is undoubtedly good news, dealers should be cautious. With many retailers topping up their sites to pre-lockdown stock levels whilst also keeping up with the increased demand, values may over recover. Supply into the auction market is also improving, so whilst May is shaping up to be a strong month for both auction and retail, the growth in auction values may slow towards the end of the month.

You might be also interested in

Used Car Market Update- March 2021

22 Apr 2021

Positive outlook as lockdown eases The big news for the UK was the relaxation of some lockdown rules, which began for dealers in early April....

Used Car Market Update- February 2021

23 Mar 2021

Used Car Auction Wholesale Market At the beginning of February, it was still unclear how long this latest lockdown would continue, or how restrictions would...

Used Car Market Update January 2021

16 Feb 2021

Used Car Auction Wholesale Market Whilst online shopping has become increasingly popular in the UK over the last few years, 2020 substantially accelerated this to...

Yes, please sign me up to UK news and insights

* Mandatory


Yes, please sign me to up to receive the following emails:
National automotive insight, surveys and events - Sent now and again by Glass’s Information Services Ltd in English

We use pixels in our emails to monitor whenever you open, forward or click on the URLs in our emails. This helps us to monitor and measure the performance and effectiveness of our emails. We combine this with the information you provide above and your browsing information so that we can better tailor and improve our marketing to you and personalise your user experience on our website. By signing up, you are consenting to the use of your data for the purpose of sending you the selected emails and to the use of tracking pixels. You can withdraw your consent to receive our emails and the related tracking at any time by following this link to our Email Preference Centre and updating your preferences. For additional information on the processing of your personal data, please refer to the Autovista Group Privacy Policy and the Glass’s Privacy Policy.