The UK saw a 22% shortfall in used car stock between April and July, according to new data from INDICATA’s latest Market Watch report.
The lack of stock resulted in an average used car price rise of 1.7% in July, while sales overall fell by 1.8% in the same month as a result of the stock shortages, compared with the 3.7% rise in June.
Consumers’ appetite to buy electric and hybrid cars coming out of lockdown continues with sales up 53.5% and 51.2% year-on-year respectively, while six to nine-year old used cars continue to be the most popular.
Prices of electric cars in July rose by £2,525 to £13,688 and hybrids by £1,461 to £16,156 compared with Q2, although supply was very limited.
Unlike many European markets luxury cars and SUVs are the UK’s strongest market segments experiencing a 11.5% and 11% increase year-on-year.
Jon Mitchell, INDICATA’s group sales director, said: “July was a very busy month with demand exceeding supply.
“There are signs from some of our vendor customers that supply is starting to increase coming into August.
“With the new plate change in September we should also see new part exchange stock coming into the market.”
Mitchell said that despite the potential increase in supply, prices look as through they will be strong during the summer.
He added: “We will have to wait to see how economic conditions will impact prices during the autumn.