ARC360 News – Friday, 26 April 2024

Vehicle technology conference piques interest

More than 40 of the UK’s most influential names from within insurance are already confirmed to attend ARC360’s specialist ‘future vehicle technology’ conference, taking place on Thursday 27 June 2024 at the Manufacturing Technology Centre (MTC) in Coventry.

From the frontline

ARC360 hosted its third Breakfast Think Tank this morning, when more than a dozen industry experts representing repairers, insurers, mobility and data providers discussed the recent decline in repair volumes. A full overview of the session will be published next week.

Bodyshop Briefs

  • The Vella Group has acquired Axiom Accident Repair Centres, which comprises two repair sites in Peterborough and Daventry.
  • Whaley Bridge ARC, which is part of the Stellantis approved network, has been recognised as the world’s first carbon negative bodyshop.
  • Turners Accident Repair has signed a 10-year lease on a new 20,000 sqft site in Ripon, Yorkshire. The new facility will add to existing sites in Doncaster, Leeds, and Sheffield.
  • Fix Auto Loughborough has announced that it has secured Stellantis vehicle manufacturer approval.
  • Devonshire Motors ARC has achieved a 100% score in its BMW/MINI audit, retaining the approval it’s held since 2008.
  • Steer Automotive supported Automotive Work Experience Week by inviting Luke Saunders to its site in Portsmouth. He will now begin a MET apprenticeship when he finishes college.
  • Shorade Bristol is officially carbon neutral after achieving the PAS 2060 standard.
  • Revive! is celebrating after four franchisees, East Anglia, Surrey, Northampton, and Trafford, all turned over more than £1m last year.
  • Fix Auto Penzance was named Stellanis Audatex UK Estimator of the Year – Southern Region, ahead of Rackhams Auto Body Centre and Bodytek Taunton.
  • M&L Coachbuilders has passed its initial BS 10125:2022 stage 2 audit.
  • Komoo has opened its first site in the Midlands. Its new Rugby repair facility is its fourth new site of the year.
  • MG Cannon has installed Glasurit’s all-new waterborne basecoat system, Glasurit 100 Line, in all six of its sites.

Industry News

An interview with…

With more than one million daily transactions from 300,000 global customers in over 100 countries it’s fair to say Solera is big business. Its solutions empower smarter decision-making for anyone involved in vehicle-lifecycle management via AI-enabled technologies which utilise its vast vehicle, repair, performance, and telematics data. Here, we catch up with Arnaud Agostini, Regional Managing Director at Solera and Tom Hart, Claims Sales Director, UK & Ireland at Solera to find out more.

Fall in premiums only short term

Comprehensive car insurance premiums fell by five per cent to an average of £941 in the last three months, according to the latest Confused.com Car Insurance Price Index produced in association with WTW.

However, this is still 43% (£284) higher than they were 12 months ago.

Copart steps up preparations for Gloucester launch

Copart is gearing up for the first auction at its new site in Gloucester, scheduled for next month. The Gloucester development will provide storage for an additional 30,000 vehicles per annum.

Ben launches personal MOTs

Automotive industry charity Ben has introduced free mental and physical health checks through one-on-one conversations with a qualified health professional.

The health checks will also suggest positive steps to support better living and working.

ABI unveils Premium Finance Principles

The Association of British Insurers (ABI) has announced a range of new principles to manage consumer costs around premium finance.

The Premium Finance Principles underline what fair practice should look like and revolve around five elements: transparency, affordability, fair value, proportionality and accountability.

Emissions down despite growing car parc

The UK car parc hit a new high last year, with the Society of Motor Manufacturers and Traders revealing the number of cars on UK roads rose by 1.7% to 41,404,589.

However, with almost half a million EVs and plug-in hybrid registered, average CO2 emissions per car dropped by 2.1%.

Automotive production suffers March dip

UK car production fell by 27.1% to 59,467 units in March, according to the Society of Motor Manufacturers and Traders.

Meanwhile, commercial vehicle output was down by 19.2% in the same month.

Denso launches aftermarket brand

Mobility supplier Denso has unveiled a new standalone aftermarket brand, MobiQ, which will be dedicated to new digital smart mobility products that can be retrofitted to improve driver safety.

Government launches future skills inquiry

The Industry and Regulators Committee is seeking views from industry about what skills will be needed in the future and how policy can support apprenticeships and training.

Written submissions are invited by 30 May.

Repair complaints soaring

Service and repair complaints to the Motor Ombudsman have reached record highs in each of the last two quarters.

It received 1,604 new complaints between January and March, which is 35% higher than the same period last year and also up on the 1,372 complaints received in the final quarter of last year, which was the previous high total.

Motor trades tops vacancy charts

New figures from the Office of National Statistics have revealed that there are around 23,000 vacancies in the UK motor trades industry, which includes the automotive aftermarket.

Together with hospitality, it is the industry with most severe skills gap in the UK.

VM News

Mobility challenges revealed in global Forum

The second Freedom of Mobility Forum has highlighted key mobility priorities as the industry evolves to meet future challenges.

Initiated by Stellantis and entitled, “How will our planet accommodate the mobility needs of eight billion people?” the global digital debate urged the sector to prioritise innovations around sustainability, address challenges collaboratively, and focus on the needs of economically diverse populations.

Ford launches EV subscriptions

Ford has introduced a new Ford E-Transit subscription service for business owners.

Available on monthly contracts that can be extended indefinitely, Ford Drive enables businesses to increase their fleets flexibly while also trying electric models without commitment.

Innovation the trump card for ACEMAN

MINI has unveiled the MINI Aceman, a mid-size all-electric crossover with a raft of new innovations.

Four surround view cameras and 12 ultrasonic sensors help the model identify and initiate parking manoeuvres into tight spaces, while the Parking Assistant Plus option enables parking via a smartphone.

Hyundai establishes Amazon space

Hyundai Motor Europe has launched its own Brand Space on Amazon where customers can view the range of models, link to local Hyundai dealerships, configure features and schedule test drives.

People

  • Ben Townsend has been appointed as Head of Automotive at Thatcham Research.
  • Charles Trent has promoted Harry Merton to the role of Senior Supervisor.
  • Andy Morris has been appointed Proprietor at AKS Accident Repair Centre.
  • BASF SE has appointed Dr. Markus Kamieth as its new Chairman. He succeeds Dr. Martin Brudermüller.
  • Martin Gray has been named National Fleet Manager at CUPRA & SEAT UK, Volkswagen Group UK.

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Vehicle technology conference piques interest

More than 40 of the sectors most influential names from within insurance are already set to attend ARC360’s specialist ‘future vehicle technology’ conference.

Taking place on Thursday 27 June 2024 at the Manufacturing Technology Centre (MTC) in Coventry, ARC360 is supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: Gemini ARC, Repairify and Prasco.

The specialist event is sponsored by Activate Group and Thatcham Research along with Stellantis which will host the ‘Stellantis Zone’ on the day.

More than 40 of the UK’s most influential names from within insurance are already confirmed to attend the event which follows up on last year’s highly acclaimed specialist electric vehicle (EV) event to further explore just how technology is shaping the future of the industry and how businesses can optimise their value in the supply chain.

Some of the leading insurers represented at the event include: Action 365, Ageas, Allianz, Arch Insurance, Aviva Insurance, Broker Direct, Collingwood, Direct Line Group, esure, First Central Services UK Ltd, Hastings Direct, Haven Claims, LV= General Insurance, Markerstudy Insurance Services Ltd, NOVO Incident Management, NFU Mutual and QBE.

Mark Hadaway, Co-Founder of ARC360 said, “This level of engagement amongst insurers is testament to what ARC360 has created under our ‘gaining ground together’ banner. It truly provides an environment for insight, knowledge sharing and partnership for all ARC360 stakeholders.”

Underpinning the entire event will be a keen focus on what is arguably the most critical factor across the entire industry right now – people and skillsets. Also included will be a dedicated ‘business growth’ session to reflect the changing times within the sector.

Tickets for the event are on sale now – click here to book.

A limited number of special repairer guest passes are available, to join the waiting list please email mark@iloveclaims.com.

To find out more about the opportunities available to get involved in the event – exhibition or sponsorship, or how to become an ARC360 Partner contact mark@iloveclaims.com or liane@iloveclaims.com.

For a full overview of last year’s event, click here.

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ABI unveils Premium Finance Principles

The Association of British Insurers (ABI) has announced a range of new principles to manage consumer costs around premium finance.

The Premium Finance Principles underline what fair practice should look like and revolve around five elements: transparency, affordability, fair value, proportionality and accountability.

The ABI addressed rising motor insurance prices by announcing a number of steps in February, with premium finance a key element of that.

It has now committed to five key principles:

Transparency: When setting out any cost for paying by monthly instalments, insurers should provide a clear comparison of the total cost of paying annually and the total cost of paying monthly. Insurers should also publish up-to-date, clear information about their common or average premium finance charges.

Affordability: When deciding on their premium finance offering to customers, insurers should have regard to the fact that many consumers cannot afford to pay for their insurance up front, in one lump sum and so charges for paying by monthly instalments can fall hardest on those who can least afford it. 

Fair value: Insurers must ensure that costs associated with monthly instalments represent fair value. As part of this, insurers should consider how any income from premium finance compares to their income on the core premium.

Proportionality: Insurers should ensure that charges are reasonable, relative to the costs of providing premium finance for monthly payments. Insurers should also consider charges relative to comparable and accessible alternative payment options, such as a credit card.

Governance and Accountability: Insurers must regularly review the cost to customers of premium finance, using suitable information or data to ensure any charges remain appropriate. They should ensure the right level of senior management accountability for their approach taken on premium finance charges and its impact on consumers.

Mervyn Skeet, Director, Head of General Insurance policy said, “The principles announced are one of a raft of actions we are taking to tackle the cost of motor insurance, which we know is putting pressure on households, especially those on lower incomes. We are doing all that we can within our reach as a trade body for insurers and hope that other organisations involved with premium finance follow our lead.

“We’re also looking to investigate policy steps that could help low-income households specifically, as well as deliver on our broader Roadmap to tackling costs. This includes a call on the government to reduce insurance premium tax (IPT), especially when they are bringing in record tax revenues as a result of higher prices.”

The impact of these principles will be published in an ABI report next summer.

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Copart steps up preparations for Gloucester launch

Copart is gearing up for the first auction at its new site in Gloucester, scheduled for next month.

The Gloucester development is part of the company’s continuing strategy of expansion to meet growing demand for its storage, salvage and remarketing services, as the UK car parc continues to expand and increase in diversity.

The company said, “Here at Copart, we’re proud of our ability to collect, handle, and store vehicles quickly, efficiently, and with minimal environmental impact. And we want to keep moving forward, always. That’s why we’re continuing to invest into expanding our landbank and operational network across the UK. 

“Our Gloucester site will provide storage for an additional 30,000 vehicles per annum, significantly boosting vehicle storage capacity for our customers operating in the Southwest of England. Alongside our other new sites in Corby, East Kilbride, and St Helens, we are in closer proximity to more communities and customers than ever before, ready and prepared to provide our expertise and support whenever we are needed.” 

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Ben launches personal MOTs

Automotive industry charity Ben has introduced new health checks for those working in the automotive sector.

The new service offers a personal physical and mental MOT through one-on-one conversations with a qualified health professional. The health checks also identify potential issues and suggest positive steps to support better living and working.

Anyone interested can benefit from a 20-minute physical check that covers heart rate, blood pressure, body mass index and body fat percentage, or a 30-minute physical and mental check.

To start the roll out, Ben will offer heath checks at the upcoming UK Garage and Bodyshop Event on 5-6 June at the NEC.

Rachel Clift, Health & Wellbeing Director at Ben, said, “It’s never been more important for employers to prioritise employee health and wellbeing, especially at the moment when there are multiple work and life pressures on our automotive family. Employee absences can be linked to lifestyle-related illnesses, with factors such as alcohol, obesity and smoking known to be at the root of many health conditions.

“With one in three automotive people reporting to be struggling with their mental health or wellbeing, providing a health check is a proactive step, empowering people to take control of their health and wellbeing so they can lead healthier, more fulfilling lives. By booking Ben Health Checks for your employees, you’re not only investing in your people and your business, you’ll also be supporting your industry charity.”

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Emissions down despite growing car parc

Although the UK car parc hit a new high last year, the rising number of EVs meant average emissions actually dropped.

According to figures released by the Society of Motor Manufacturers and Traders (SMMT), the number of cars on UK roads rose by 1.7% to 41,404,589 during 2023.

Meanwhile, almost half a million EVs and plug-in hybrid were registered, representing a 47% surge compared to 2022. By year’s close, 2.7% of the UK car parc was zero emission, up from 1.9% a year earlier.

As such, average CO2 emissions per car dropped by 2.1%.

In the commercial sector, the total number of heavy goods vehicles and vans rose marginally to 625,873 and 5,012,632 units, although the volumes of electric HGVs and vans spiked by 146% and 44% respectively.

Mike Hawes, SMMT Chief Executive, said, “After two challenging years of constrained supply, more people and businesses across the UK are now getting back behind the wheel – and increasingly, opting for greener options. However, given the ageing fleet, we now need to encourage consumers and businesses who have deferred purchases of new cars, vans, trucks and buses to upgrade. A stronger and stable economy, coupled with reduced living costs, would boost consumer and business confidence, while compelling fiscal incentives would ensure that these purchases are emissions free. Not only would this accelerate the transition – fundamental to the UK’s net zero ambitions – but it would also stimulate the economy and enhance the wider environment in which we all live.”

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ARC360 News – Friday, 19 April 2024

Key repairers subscribe to ARC360 conference

Some of the leading lights within the repair community have already confirmed their attendance at this years ‘future vehicle technology’ themed ARC360 conference taking place on Thursday 27 June 2024 at the Manufacturing Technology Centre (MTC) in Coventry.

Consumer Intelligence to kick start New Generation discussions

Catherine Carey, Head of Marketing at Consumer Intelligence is set to kick-start ILC’s New Generation in Claims Conference 2024 by revealing research findings centred on careers in insurance. 

Titled ‘Perception Vs reality: redefining careers in insurance’ the session will explore the contrast between how current insurance professionals view their careers and the common misconceptions held by outsiders.  

Bodyshop Briefs

  • Accident Express Direct is transitioning to BS 10125:2022 after receiving a positive recommendation.
  • Steer Automotive Group won the People Team of the Year Award at the British HR Awards. The group was shortlisted in three categories.
  • Llandudno-based Hefin Jones Vehicle Body Repairs has passed its first BS10125 audit.
  • Komoo Wigan has secured BS 10125:2022 certification after achieving 100% compliance.

Industry News

Repair market facing over-supply issue

New insight from Trend Tracker suggests that after a period of capacity challenges in vehicle repair, the market could be about to enter a new phase.

It says a combination of greater investment in the sector coupled with falling demand could create a dynamic where supply outstrips demand, although it warns that the continued skills crisis could go some way to balancing that in the coming years as the industry struggles to attract the 107,000 EV technicians and 25,000 ADAS technicians that will be needed by 2030.

EV values continuing to fall

A new white paper into the UK used car market has revealed a dramatic fall in EV prices compared to their petrol and diesel counterparts.

The INDICATA Market Watch found a 20% fall in used EV prices in just six months during 2023, meaning they began 2024 more than 42% cheaper than both used petrol and used diesel cars.

New voices wanted for Diversity Group

The IMI is looking for more people to join its Diversity Task Force Working Group. Members will have the opportunity help shape the future of the industry by taking part in group meetings and sharing examples of best practice.

Plastrepair celebrates IMI approval

Plastrepair, which develops speciality tools and materials for plastic repairs in the vehicle repair sector, has announced that its training programme has now secured IMI approval.

MIB tackles uninsured driving

The Motor Insurers’ Bureau has launched a new initiative in collaboration with police forces to remove uninsured drivers from the road.

In the first of a series of one-day operations, it worked with officers from South Wales, Gwent, Avon and Somerset, Wiltshire, and Thames Valley Police to seize a number of uninsured vehicles from motorways across the region.

FCA warns of unexpected DCA costs

The FCA has written to motor finance firms urging them to maintain the financial resources needed to absorb the costs of discretionary commission arrangements (DCA), following its own review into the issue.

This includes planning for any additional operational costs from increased complaints and meeting the costs of resolving those complaints.

HELLA launches IMI-approved academy

HELLA has unveiled its new IMI-approved academy at its Chipping Warden head office.

The state-of-the-are facility provides classroom-based learning with hands-on workshop training.

Last day of AWE24

The inaugural Automotive Work Experience Week concludes today.

Introduced jointly by the Institute of the Motor Industry, School of Thought Automotive and Autotech Academy, the initiative is urging all employers to play their part in fighting the skills crisis by committing to a week’s work placement for at least one young person this year.

Inchcape sells retail operations

Inchcape is selling its UK retail operations to Group 1 Automotive for £346m as part of its strategy to become a distribution-focused business.

The deal includes more than 80 forecourts and is expected to be completed by the end of the third quarter.

EVs and petrol to dominate car sales by 2027

A new report predicts that EVs will make up 34% of all new car sales by 2027, with 701,893 registrations compared to 722,537 (35%) petrol sales. Diesel meanwhile will plummet to just three per cent.

According to Cox Automotive’s Fuel Type Forecast, petrol cars will however still dominate used car sales (62%), ahead of diesel (30%), with EVs languishing on a 5.9% market share.

SMMT wins workplace gold

The Society of Motor Manufacturers and Traders (SMMT) has gained gold accreditation from Investors in People (IIP), recognising it as one of the best places in the UK to work.

Just 17% of organisations seeking IIP accreditation secure gold.

BASF collaborates on hybrid hypercar battery

BASF has collaborated with RML Group to develop an immersion-cooled battery for a high-performance hybrid hypercar. It features a capacity of 4.2 kWh and weighs less than 75kg.

Meanwhile, the company has been named as a 2023 Supplier of the Year by General Motors (GM), making it the 17th time in 32 years it has won the accolade.

BASF has also emphasised how its innovative engineering solutions can support manufacturers meet sustainability targets around recyclability and low product carbon footprint.

Tyre recycling service cutting costs by 30%

Purchase Direct has introduced a new waste tyre collection and disposal service through its sister company, Outsourced Waste, which is delivering savings of over 30%.

BIBA and NOVO unveil EV insurance solution

The British Insurance Brokers’ Association and NOVO have launched a new motor insurance scheme that offers BIBA members like-for-like replacement mobility, access to EV-qualified repairers, and specialist EV claims management.

NFDA survey shows VM relationships trending upwards

The relationship between dealers and manufacturers is on an upward curve, according to the winter edition of the NFDA’s Dealer Attitude Survey.

Carried out between January and March, the survey attracted 2,321 responses with average scores up in 47 of the 56 questions.

VM News

JLR unveils BESS in class

JLR has partnered with energy storage start-up Allye Energy to develop a new portable Battery Energy Storage System (BESS) that can store 270kWh of energy, the equivalent of nearly a month’s worth of power for the average UK home.

Nissan on course to deliver all-solid-state batteries

Nissan aims to launch EVs with all-solid-state batteries by 2028 and has shown off the production line in Japan where they will be developed.

All-solid-state batteries will have twice the energy density as lithium-ion batteries, will offer shorter charging times and lower costs.

Polestar cuts emissions by nine per cent per car

Polestar’s first sustainability report has revealed that emissions per car sold last year were down by nine per cent, while the company cut absolute emissions by five per cent. 

People

  • Avant Group has appointed Mark Adkins as new Technical Project Manager.
  • Danielle Fenwick has joined the customer care team at 1st Choice ARC.
  • FMG (Fleet) has named Helen Keenan as Account Director.
  • WhoCanFixMyCar has appointed Amada Webb as Chief Finance Officer and Craig Livings as Chief Technology Officer.

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Key repairers subscribe to ARC360 conference 

Some of the leading lights within the repair community have already confirmed their attendance at this years ‘future vehicle technology’ themed ARC360 conference. 

Taking place on Thursday 27 June 2024 at the Manufacturing Technology Centre (MTC) in Coventry, the event is supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: Gemini ARC, Repairify and Prasco. 

The event is sponsored by Activate Group and Thatcham Research along with Stellantis which will host the ‘Stellantis Zone’ on the day.. 

A number of the UK’s leading repairers are already confirmed to attend the event – which follows up on last year’s highly acclaimed specialist electric vehicle (EV) event to further explore just how technology is shaping the future of the industry and how businesses can optimize their value in the supply chain.  

Repairers already subscribed to attend include: Accident Express, Allied Vehicles, Autocraft Telford, Brian Robson Coachworks, Castle Coachworks, Chartwell, Cougar Direct, Devonshire Motors, Fix Auto, KC Autos, Motofix, Solus Accident Repair Centres, Steer Automotive, The ARC Group and The Vella Group. 

A host of key insurance influencers from Action 365, Ageas, Allianz, Arch Insurance, Aviva Insurance, Broker Direct, Collingwood, Direct Line Group, esure, First Central Services UK Ltd, Hastings Direct, Haven Claims, LV= General Insurance, Markerstudy Insurance Services Ltd, NOVO Incident Management, NFU Mutual and QBE are also already confirmed to attend. 

Underpinning the entire event will be a keen focus on what is arguably the most critical factor across the entire industry right now – people and skillsets. Throughout the day, discussions will link back to how the industry – as a combined entity – can help make the automotive incident repair sector a career destination of choice. 

Tickets for the event are on sale now – click here to book.

A limited number of special repairer guest passes are available, to join the waiting list please email mark@iloveclaims.com. 

To find out more about the opportunities available to get involved in the event – exhibition or sponsorship, or how to become an ARC360 Partner contact mark@iloveclaims.com or liane@iloveclaims.com

For a full overview of last year’s event, click here.

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Repair market facing an over-supply issue 

New insight from Trend Tracker suggests that after a period of capacity challenges in vehicle repair, the market could be about to enter a new phase. 

It says a combination of greater investment in the sector coupled with falling demand could create a dynamic where supply outstrips demand, although it warns that the continued skills crisis could go some way to balancing that in the coming years as the industry struggles to attract the 107,000 EV technicians and 25,000 ADAS technicians that will be needed by 2030. 

However, Trend Tracker analysis does indicate a potential period of over-supply in the repair market before then. 

Throughout 2023 repair costs escalated sharply, driven by a perfect storm of higher energy prices, increased labour rates, and the emergence of new technologies such as EVs and ADAS. To mitigate these higher claims costs, insurers raised the prices of their motor insurance products by more than 60%. 

This helped to make the repair sector more attractive to investors, and that has only increased as inflation has tapered off. In recent times the industry has been boosted by Elysian Capital investing in Activate Accident Repair, Oakley Capital in Steer Automotive Group, Chiltern Capital in Rapid Repair Network, Mobeus in ABL1 Touch, and Jenson in Axioma. 

That momentum has continued into 2024 with Trend Tracker data partners reporting a number of new members in the first quarter of the year.  

However, while this investment has created greater capacity, it has coincided with falling demand despite the fact that there are no less cars on the road neither has accident frequency decreased. 

Instead, Trend Tracker notes falling demand appears partly a result of economic decisions around the repair viability of certain models; the rising values of used cars; the growing number of EVs leading to more vehicles being written off – Trend Tracker salvage partners confirmed an increase in Cat N write offs in the past year while anecdotal evidence from repairers found that up to a quarter of all estimates completed were declared write offs; and consumers selecting different cover options to cut costs.  

According to GoCompare, 23% of consumers said they were selecting policies with a £500 voluntary excess to lower premiums, while 15% had increased their excess. Meanwhile, motorists were also cutting back on legal cover (eight per cent) and windscreen cover (six per cent), while three per cent had sold their cars or stopped driving altogether due to steepling prices. 

Paul Sell, Trend Tracker Director, said, “The converging factors of new investment creating new sites across the country and lead times falling has created available supply. But, increasing Cat N write-offs together with increased excesses and reduced policy covers are creating less vehicle repairs coming through. This could suggest the supply demand cycle maybe about to turn again, with consumers’ needs to mitigate price increases and the need to reduce claims costs unlikely to encourage volumes back into the new available capacity.” 

ARC360-Trendtracker-April24

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White paper predicts price decreases in used EV market

A new white paper into the UK used car market has revealed a dramatic fall in EV prices compared to their petrol and diesel counterparts.

The INDICATA Market Watch has looked at the supply and value of used cars in the UK from 2020, and considered where prices will go in the coming few years.

Its data found that the UK used car market has been significantly more volatile than the rest of Europe since the pandemic struck, with prices remaining comparable until the second quarter of 2021 when they surged by 27% in the UK. Price escalations continued through the year, peaking in the second quarter of 2023 with a 41% uptick. This compares to a 25% rise in prices in Belgium, which was the second highest across European markets.

However, that represented the top of the curve and prices since then have been decreasing, with current trends suggesting used car values will fall by a further 27% in 2025 to return to pre-Covid levels.

Looking at the used car market by fuel type, BEV prices peaked in the third quarter of 2022 due to a shortage of semi-conductors but since then they have been on a continuous downwards spiral. This has partly been driven by a greater volume of used BEVs coming back into the market after two and three-year personal finance, leasing and salary sacrifice contracts.

Demand has not kept up with increased supply, leading to a 20% fall in prices in just six months during 2023. As a consequence, used EVs began 2024 more than 42% cheaper than both used petrol and used diesel cars.

The fall in UK used BEV prices has slowed dramatically since January, falling by just 1.3%, but with OEMs striving to meet the ZEV Mandate targets and more Chinese manufacturers flooding the market, INDICATA suggests that EVs will struggle to maintain price parity with ICE models.

Dean Merritt, INDICATA UK’s Head of Sales, said, “Price parity is vital for BEVs in the used market as consumers are now being offered all the latest fuel types at similar prices, where before used BEVs were commanding a 25-30% price premium which put buyers off going electric. In some cases, used BEVs are now cheaper than their equivalent ICE models.”

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