The latest data from cap hpi has revealed an uptick in registrations of new vehicles while demand for used cars is dampening, with prices softening accordingly.
According to the Society of Motor Manufacturers and Traders, 272,610 news cars were registered during September, which represents a 14% increase on the same month last year, but 20.5% behind pre-Covid 2019.
This was the 14th consecutive month of growth with year-to-date sales of 1,451,908 units up 20.2% on the same time period last year.
Fleet registrations continue to drive new car sales, up 40.8% in the month and 42.3% for the year, while private registrations increased by 5.8% in the month and are up 1.8% for the year.
However, against this, demand and prices for used vehicles is tapering off. By 11 October the average price of a used car was 1.7% down, but since then the downwards trajectory has steepened.
By the month’s end, the average three-year-old car value had fallen by 4.2%, or £850, while values at the one-year age dropped by an average of 3.6% in the month, equivalent to £1,225. At older ages, values dropped by 4.3% at five-years and by 4.5% at 10-years, equating to £550 and £240 respectively.
The report concluded, “New car registrations will continue to increase compared to last year, bringing fleet returns, pre-registered cars and part-exchanges into the used market. Used car demand is not going to increase in the run up to Christmas, so it is highly likely that we will continue to see values drop over the coming weeks.”
